the nuance will be in the moment and that's why having a lot of cash is great. meanwhile, to be able to perform at the same levels of the s&p makes us feel really good about where we are. >> all right. chamath, we appreciate you being on today. would love to have you back. >> joe. >> you got to come back to talk about your religion. >> religion? i'm buddhist. >> okay, two -- >> make sure you join us tomorrow. right now it's time for "squawk on the street." ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. stocks looking to build on yesterday's post federally with our best shot in a couple of weeks of testing record highs. we're watching the president's proposed budget today, court challenges to the revised immigration order, the dutch elections in europe where there is some green. and decent data on claims,

starts and philly fed back home. a roadmap begins with a new budget blueprint from the white house. the impact on the economy, the markets and business. >> plus, oracle had a strong beat on the back of its cloud business. the stock is moving higher on those earnings in the premarket. >> another stock sale from tesla raising over $1 billion ahead of the model 3 launch. stock is climbing instead of falling. we'll get to that. but first out, the president out with his budget blueprint for fiscal '18 calls for a $54 billion increase in defense spending. that's the largest for the military since the '8 0z. blueprint outlines billions in funding for the wall, spending offset with cuts to agencies like the epa and state as well as elimination of certain domestic programs. in a message accompanying his proposal the president said, quote, a budget that puts america first must make the safety of our people its number one priority because without safety there can be no prosperity. they're calling it a hard power budget, jim, as things like soft power in state will have to deal

with less money. >> yeah, "the washington post" has a really fantastic summary of each division and what gets cut. look, this is in the government thesis, get the government off the backs of the people is a little harsher than what reagan wanted to do because it taxed things for sacred cows, but sacred cows for republicans, not just democrats. again, it may be a bold initiative, but where are the people who are going to lift the water in congress? >> right. we'd already gotten reports about of course all of these numbers, the 10% increase in defense spending and the percentage cuts in state and the epa. but the other initials are doa, which is what they say about virtually every president's budget when it gets to the house and the senate. >> yeah. definitely. and let's just be honest about it, better to be out there and say it right now that this is -- look, if it's the art of the deal, then it's going to be, you know, something going on. but you have to have someone on

the other side to argue with. what i find is the other side has already made up its mind before the year begins. these people they're very entrenched -- let's take foreign aid as a good example, okay. what he's basically saying is, listen, america first, which therefore means foreign aid last. but the countries that have foreign aid, they have the people in the congress. and every one of these countries whether they like us or hate us get money. and i know trump would stand that, but i think when you start going case by case, country by country, you're in the swamp again. and the swamp is getting crowded, man. >> well, as mulvaney said, you can't drain the swamp and leave all the people in it. part of this is about reducing the size of the federal government. gingrich, his point is regardless of what happens with this budget, it is a first step to what the government is going to look like in three years, in four years. >> it looks like to me that trump's either being like the most clever guy in the world or most naive guy. i'm reluctant to say he's naive.

if you don't staff the government, that's kind of like deregulation. i mean, if you don't staff the guy who's in charge of foreign aid, then the foreign aid's not going to go. i mean, they're just not staffing. reagan tried to do some of that. we've got all these offices, he's not -- this guy's not a normal president. he didn't have his people lined up. he didn't want any people lined up. >> well, some people say he didn't have enough people in his own organization during the campaign to even fill those jobs. >> right. >> which is often the case. >> but he doesn't want those jobs. whoever's got that bureau at the state department, which is the bureau of give money to our enemies, that guy's not being staffed. i'm being a little facetious. >> yes. >> but there are a lot of people who voted for trump know exactly what i mean. >> and also people believe foreign aid is a good investment. >> yeah, like valeant? >> no, not like valeant. making investments so you don't have to spend the money in defense. >> what, like ge? i mean, give me -- it's not 3m,

my friend. it's not facebook. >> no, it's not. and it's also very small number foreign aid budget. but defense is not a small number, jim. >> no. >> i guess the one takeaway certainly is that regardless of where we end up on this budget, defense is going to have more money coming into it. >> well, general dynamics has been a red hot stock. there's one. you want to know what's an investment, general dynamics. they can do no wrong. this thing's straight up. remember there was a blip, once reagan submitted this budget this is when the defense stocks took about a 10% hit. because finally everyone said he's going to do the 600 ship navy and the huntington angles then went down. over time spent a lot of money, but i think in terms of trying to be more stock oriented, which is what i am as opposed to making a judgment as to whether the first national country of hatred gets money, the defense budget, whatever they can find -- what are you smirking about? >> first national -- what was

that? of hatred of america? >> i'm just kind of using i didn't want to mention any particular country so i came up with how about fredonia. we probably give a lot to fredonia. >> yeah, that's a good deep reference right there. now, the other point is nondefense discretionary spending is 15% of all federal spending. we're not touching entitlements here. you already got pete peterson and his groups for instance saying we're not really doing things that are going to keep debt-to-g debt-to-gdp from going to 150. >> no, david, i know you take the subway every day to work, i'm not as big aficionado. you know, they got the third rail you're not supposed to touch? >> yes, the third rail. the rats can do it apparently very easily. >> how do they do that? >> they will be here after it's all over. >> hard to kill. again, reference to steven seagal movie, one of his best. but they're not touching that

stuff. it's really interesting this is what i thought would get touched. >> you did? i mean during the campaign trump always said this is i'm not going to touch it. >> i thought drugs would be the way in. remember he actually said drugs were a much bigger part of medicare than they are? right? when he campaigned in new hampshire. so i thought that would be something, i thought he would say i'm going to walk back that entitlement. >> again this is sort of the clash between the president's brand of nationalism and the speaker's brand of libertarianism. and we're going to see whether those can coexist or not. >> can we please have repatriation and forget all of this? things have gotten really off track. things are off track. i was out with a group of cfos last night, by my own choosing, a lot of people are involved with choosing, but the one thing everyone was thinking was like what happened to repatriation. everyone's like where's the repatriation? i mean, what happened to lower taxes? they're all kind of like, wow,

that would have been good for me. would have been. >> well, listen, it is still early. it's only the middle of march and we're talking about the budget today, but a lot of the focus continues to be on the repeal and replace of the affordable care act and where that's going to stand and what ryan's going to have to do to change the bill to get house conservatives on his side. if he gets conservatives on his side will he lose if there are any moderate republicans in the senate, and there are, so how's it going to play? what does that mean for tax reform? which of course continues to be the most important single thing for businesses in this country. >> to you. >> yes, to me. >> obviously not to congress. not to congress. congress is not focused on -- >> yeah, but we're a business network. so i care about that. >> president even said last night got to get health care done so we can move onto tax reform. >> health care's what they -- i know that's kind of like the give. there's the art of the deal. we know that the republicans ran -- >> but these cfos, you're going to get a cut and repatriation deal. probably not going to get tax reform.

>> not this year. push it out. look at oracle. okay, oracle's flying. why? is it because they had 50 billion overseas? no, numbers were great. >> no, decent numbers. >> speaking to marc hurd, this is the transition quarter, this is the cloud quarter it's a blowout quarter the stock's not done going higher. it had nothing to do with -- go read the conference call. not about tax reform. repatriation, no. >> it's not. that is a bonus. >> yes. >> but is that bonus already built in to the s&p? >> no. >> no? just no? >> no. deregulation's getting built in. >> okay. but not tax reform? so what's the concern? if it comes in '18 and we get it that it's going to be a bonus, to your point, it's not going to reverse the s&p? >> no. >> because a lot of people think if you're not going to get it or timeline really gets altered, you're going to see this market rally disappear. >> you've got yellen giving you the clear path. how about the way the stocks acted and the bonds acted?

yellen read -- >> the third biggest post election rally since 2000 -- >> sometimes you have the comic strips underneath that explain what's happening -- >> or sometimes on our own show because people have no idea what we're talking about so they have to -- >> said i think stocks should go higher and interest rates should go lower. that was the sub text. people want to put a lot of stuff in about the word only and -- >> symmetry. >> yeah, whether the economy's good or not, no. this was we want more people hired, i'm sitting there watching everything go up except for the banks because the banks need 72 rate hikes in order to be able to get net interest margin higher. remember, they had 17? so anyway, it's clear sailing because the fed o's not in the way. david, giving a runway. >> right. >> in the meantime business is better. how can oracle not put up that

number? that is not just good cloud, that is good business. they have hundreds of thousands of customers. >> funny you use the word clear sailing because that's almost exactly how tepper put it in regards to europe and nationalism and now we got the dutch election result. does that mean he's directionally right on things like le pen. >> right. i think high water for nationalism. a lot of people feel like the euro has to break up, okay. no, euro's not breaking up. euro is a buy. you see the dollar yesterday? that's not supposed to happen. a lot of stuff not happening. a lot of the hedge funds proving again why you should be at the vanguard index fund. >> proving warren buffett's point from his annual letter some people say was unfair because he chose a fund of funds -- but come on, they risk adjust, jim. >> they do risk adjust returns? >> hedge funds do risk adjust

returns. >> they do that? cash is king. >> you can't compare. come on. >> cash versus them? >> no, just risk adjust. just use that. >> i like what buffett said about repatriation, that if the money comes back it's still good for the economy. >> yes. it will get allocated. >> yeah. look, i'm a little more sanguine than i was yesterday because i thought yellen was unbelievable. she's masterful in her own way. >> just not when it comes to foreign aid. >> no. do you have any teachers that were like yellen? >> no. >> i had a couple. >> not that i recall. >> they're great sit back and say i'm learning. hay, show some respect. there's always somebody in the press didn't get the memo. show some respect. >> when we come back, the always outspoken former congressman barney frank, we will talk the budget with the congressman, health reform and a lot more. take another look at the premarket. looking for an all-time high on the nas 5911, we might open close toyota. back in a minute.

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♪ oracle's up in the premarket. the company posting a better than expected quarterly profit helped by demand for cloud. oracle also hiking its dividend 27%. stay tuned for an exclusive be

co-ceo mark hurd later this morning on "squawk alley." got some upgrades at jpm and jmp. >> correct. this was the quarter we've all been waiting for. it's no longer a slow growth company. it's now an accelerating growth company. the cloud bookings were absolutely terrific. start the call with a very well orchestrated tremendous growth in cloud which i now what was more important is it's faster growing than the part that's going away. and then larry ellison came on this call and you felt triple play. ellison was at his best top of game. i've got to tell you when you hear ellison top of game, you tremble. microsoft is the loser in this call, okay. and amazon, i never want to call amazon a loser, but amazon is in larry's sights. and i felt a couple quarters ago that was a little like are you kidding me. but now i feel like they have this combination amazon web services attack by keeping you on the cloud, they're moving all

these customers to their cloud. and it's working. this was an important quarter. and i will give them credit. and i've been tough on them. this was a good quarter. and they give you the dividend hike too and cost control safra's always great about that, hurd's great at giving them customers. this stock is going to be rerated and rerated aggressively. it was expensive if it was just licensing. honestly, kudos. kudos. good job. >> is amazon more vulnerable because of the disruption we saw a couple weeks ago? >> i think amazon web services, you know, you're always going to question whether everyone's going to go to amazon web services. if it's easier, if oracle's got a good web service business it's so easy to transition to them. you know who recally came under fire in this call? not salesforce. not benioff. of course workday and neil not that crazy about. s.a.p. i've been waiting, now, s.a.p.'s

been a red hot stock. bill mcdermott doing a great job. but ellison wants s.a.p.'s business. really hard to transition away fr s.a.b., but i think hurd, ellison and catz, they're going to the clients and saying listen it's time and we'll transition you real easy. i got to tell you this was a great call. i was going home from the cfo council i wish you'd been at and i was thinking what a great way to end the night. just joyous. joyous. what's the matter? >> tesla meanwhile -- electric car maker announcing offering of $250 million in stock, 750 million in converts. ceo elon musk will buy 25 million of the new sharings. both offerings priced out after the close tonight. proceeds go towards strengthening the balance sheet, jim, what do you make of it? >> i think david tamberino has a lot of thinking to do today, why? because i have here in my hands -- camera, can we get

close up here? this is a february 27th sell recommendation by goldman sachs, the book runner. >> not good. >> the book runner say move to 28, down and these are the guys doing the deal. so what happens, david? do they have to upgrade or say, listen, we hate tesla, how about some stock? >> well, listen, it's refreshing to see an underwriter and the analysts at the same firm be on a different page than the underwriter. by the way, it's not as if this company doesn't sell a lot of bonds and stock, hang on for the offering. i mean, may 2013 they raised a billion dollars, $660 million from bonds, rest from stock. february 14, 1.6 billion in convertible notes to help build the giga factory. august of '15, $738 million in stock. may of '16 about one quarter of

a billion for the model 3 and call it yesterday 1.1 billion through common stock and convertible. so we're talking $6 billion raised by this company since it went public in june of 2010. >> good info. that's a good tabulation. >> this is what you need to do when you're not profitable but people believe. they believe. >> right. right. >> and in addition to being an incredible entrepreneur and a visionary in some ways who actually makes things happen, musk also is a man who can market. >> is he trading the tesla hype cycle as goldman says? is he part of the hype cycle? now, will goldman -- >> he's the main part of the hype cycle. >> well, i've got to tell you, you got to get -- just how they parse janet yellen, they've got this hype -- they've got to get rid of the hype cycle new in the recommendation where they go from sell to buy and say trading

the tesla model 3 cycle. >> carl, musk owns about 33.5 million shares in case you want to keep track at home in terms of his net worth. >> he's serial buyer. >> yes, he is. we'll talk more about tesla, gopro which some analysts playing catchup on that one as well. cramer's mad dash and count down to the opening bell. take another look at the premarket, futures up 67. back in a minute. hello, my name is watson. i am helping 8 million taxpayers get the largest refund they deserve. one million people can benefit from precision cancer care. 197 million passengers can fly with less turbulence. i am on my way to working with one billion people. i look forward to working with you. i am on my way to working with one billion people. i'm vern, the orange money retirement rabbit, from voya. i'm the money you save for retirement. who's he?

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music? are you hearing that? >> i don't know. carl knows the kind of music. >> it's mad dash snap music. >> unless it's gershwin, i'm out of here. yesterday, alternate facts, david, not fake news. >> be careful with the evening standard. >> my nephew reminds me i'm alternate sane. an analyst i know you have respect for the rigor. >> yes, good firm. >> well, david, they started snap. >> they just hired a new software analyst, got to run that whole -- >> yes, snap, crackle, pop. >> this is more media company, i guess. >> starts with a sell. way too expensive. but david, i think the most important thing to think about here, pete. no hope for profitability. can i remind you something we didn't talk enough because i kind of blocked your thrust, nonvoting stock is starting to look a lot like fantasy racketing.

right now i picked villanova at the top. does it matter? no, because i don't get to vote. well, you don't get to vote with snap and i think a lot of people are starting to think, wait a second, what happens if snap goes bad, can we be activists? >> no, there's no chance of that, but you can't be active in facebook or google either were they to go bad. >> that's true. >> given market capsize, it's unlikely. >> but they peaked and kind of outsmarted the market. >> do you agree? >> i think that facebook made them peak. look, facebook is tanks and snap is calvary. you know? i mean the cowboy doesn't fare as well. >> no, it didn't in the first world war. >> no, second world war. by the way, don't forget the germans mostly horse drawn army, people forget that. >> that first world war, yeah, they were still wearing -- >> my grandfather was pershing on the horse. >> really? >> yeah, we have to go, i think. >> yeah, we got to go. we have to hit the bell.

we're going to have the outer wear maker canada goose celebrating its public debut. we'll bring you that opening trade and also talk to the ceo. yes?

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the financial capital of the world. couple of minutes here until the opening bell. busy day as we work our way through the skinny budget, as we're calling it at the white house. the court challenges to the travel ban. obviously continued reaction to the fed yesterday. dutch elections. and then an ipo here, jim, we're going to get in canada goose. >> this is an incredibly powerful deal. why? private equity. going to go to a premium. apparel. these are all the things that have been lacking in this market. and i think that people -- it's going to make people who are on the sidelines, and a lot of p/e i think is ready to come public. but i had columbia on, which is the closest thing to these guys. they had a pretty good season. it doesn't hurt that it's 17 degrees. >> yes. >> this thing's charged. coldest day, ipo. >> we are going to talk to the ceo later on this morning. ticker symbol will be goos

ringing the bell here at the big board it is parka maker canada goose celebrating its ipo today. over at the nasdaq, st. baldricks foundations. good turnout for the ipo with limited bricks and mortar exposure. >> right. by the way, very high price point. very good gross margins. really good gross margins. so immediately jumps to the top of the cue of my apparel stocks that i follow passing columbia, much more in a tiffany world. tiffany stock has been red hot. i would tell people, look, this one they can get the margins even better. there is a lot good here. but again, weather dependent. when tim boyle comes on, he comes on all the time for columbia sportswear, unless you have some sort of technical aspect, which this one doesn't, if you have a bunch of -- if you believe believe in global warming, which i know epa

doesn't, this is not necessarily your best trade. remember, epa's kind of settling -- there is no global warming. >> i know. the great coral reef's not dying. >> no. polar icecap's not melting. the south is as big as ever. >> it's a hoax. >> some other retail, dollar general we have that to chew on, along with william sonoma today, jim. >> william sonoma, a lot of people felt, i went over the call and i don't think it was nearly as good as people were excited about but the issue was it wasn't as horrible as people expected because william sonoma's missed quarter, missed quarter. pottery barn was okay. i thought dollar general would have a better reaction given the fact they -- positive comps, still opening stores, i got to do more on dollar general because the conference call is so important. they drop bombs in the conference call. i mean real bombs. i'm talking h-bombs, not just

a-bombs. >> really? >> yeah, like easter island kind of stuff. >> by the way, we got a lot of the video yesterday released of various h-bomb experiments that had been done. that was pretty scary to watch. >> declassifying a lot of old tests. sort of a reminder of the power of those weapons. >> in the book "downfall," which is the single best by richard frank, my dad was in the sixth. he was in the division that was supposed to land first in the southern movement. they said that they could wait a couple hours and then it was fine to go in. a couple hours. and my dad's division was just going to hit the beach. because it would have cleared. boy do we know nothing. we actually didn't know there were 90,000 people killed in hiroshima. the emperor didn't even know -- felt it was just a regular bombing raid. >> yep. we'll keep our eye obviously on tillerson's trip as he goes to beijing, seoul this week. gopro is up 13%. they do see q-1 at the high end of their forecast cutting a couple hundred jobs.

j.p. morgan says we're going to look at the glass half full on this and maybe get to full year profitability. >> yeah. i thought that was interesting. skinny down the company and the company's guided down, guided down, guided down, guided down, guided down, so, you know, eventually you hit the number. remember, i told you groupon had done that and groupon's a buy. >> i know, you turned on groupon. it was no longer too early to buy groupon. and you still like it. >> groupon and gopro, i know it's kind of like an anagram, you know, kind of like rosemary's baby, but i do think that if you wanted to speculate op gopro, you could do it. >> we're going to talk to nick woodman in "squawk alley." cowen's point is shorts will be squeezed before the analysts managed to change all of their estimates and ratings. >> probably. probably. that's what we've seen periodically with the ones that get down all the way. though they tried the game on blackberry and failed. this has a little more staying

power. i'm not -- look, i don't want to play short squeezes. that's really not the game. it doesn't last. it doesn't. >> no. >> this is not a pallendrone, it's more of an anagram. >> got it. >> evercore calls on united and -- have they gotten cheap enough? >> the delta ceo gives this talk the delta is going to be -- no kidding, major outages, the stock immediately reacts and gets hammered on the first part and then does a big u-turn on the second. and so then you got an upgrade today. i think delta's very cheap. i think both the oils and the airlines are trying to put in a bottom, furiously put in the bottom. i think the airlines are very cheap. i like that group.

now, i wish we could get back to where we were yesterday because they had an island reversal, david, you know, island reversal, technical term. >> not familiar with that one. i've always stayed away from technical analysis. >> when you get head & shoulders. >> i know the head & shoulders, shampoo if you have dandruff. >> this kind of reversal, remember you said on the shorts a lot of shorts were caught on the delta cfo comments and he's terrific, the delta cfo. you got a lot of people betting against him. i think that's a fool's bet. >> oracle within pennies of 17-year high. got to go back to the boom. >> ellison's back. ellison's back. he's bigger than ever. never take the other side of ellison in anything. in sports, in business, i bet you in cards he'd kill you. probably in hand-to-hand combat he'd kill you. >> like chuck norris. >> no, you don't want to go --

>> or steven segall. >> superior attitude and superior state of mind, that's why he was able to defeat all those guys. ellison just has it. remember that? when he said that's why he's winning. >> ellison said that? or steven segal. >> no, steven. >> i'm still working through the anagrams and pal lan droems. i can't process as quickly as you, you know that. >> how about shazam backwards. >> i'll keep that in mind. bob backwards. >> do you know what shazam is? >> no. >> athena, who's the last? >> mercury. >> infrastructure, jim, not in the budget specifically. >> no. >> mick mulvaney saying they hope to be part of a plan introduced this summer. >> 2019. >> that's what you said after talking to u.s. concrete. >> u.s. concrete.

said, jim, even 2018 you're just way too bullish. 2019 the money flows. >> the money flows for? >> for infra. and remember on the wall, now, he put in -- >> why would you -- >> what? >> i just don't even understand why you have an expectation it will ever flow. you've got a conservative group in congress who are not happy about deficit reduction as it is, are not necessarily going to be pleased with whatever comes in tax reform and/or even the aca doesn't do enough, there are still deficit hawks out there. why would you think when we have a budget submitted by this president that he's not even taking entitlements at all, i'm channelling rick santelli here. >> yes, you were. that's okay. >> where do you think there's going to be additional spending? >> i thought gay cohn told you why. because they can do 50-year bonds. make america great funds. >> private-public partnership. >> instead of make america great again, they can make america's highways great -- >> that's a fair point.

if they can keep -- >> but gary cohn said maga. >> keep it to a manageable number and have a lot of private companies involved. >> this is savings bonds, give it to your kids. because everybody believes in infrastructure. everybody. >> that is true. >> but those stocks are way -- i mean, chicago bridge and iron, maybe they benefitted from the $47 billion in liquefied natural gas plants that are going up, but no, you don't want -- if bill sandbrook says infra's not coming, he's put in for the wall, everyone's put in for the wall. >> there is money allocated for at least the planning design of the first installment of the wall. >> millions of yards of concrete is very expensive. millions of yards. you know, when you put concrete down for like the world trade center, for the hudson yards, the levi's stadium, that's a lot of concrete. that's nothing compared to this. nothing. this job is so big it's to require every concrete mixer in

the world. you know if they circle a certain way it spews and the circle another way it's fine. keep that in mind. >> yeah. cemex is going to get some business in the end. >> yeah, they're all in texas. texas is booming. i can't stop talking about how great texas is doing. >> really? i haven't heard you talk about it before. >> well, it's the first time on this show, but on the same alternate same show i talked a lot about it. >> i see. okay. >> lastly, people are talking about exits. ackman at valeant, buffett at walmart a few months ago, today reuters saying starboard at macy's. >> i defer to you, mr. santa klaus of macy's. >> yeah, not a good performance there for starboard macy's. of course they initiated that position not along before jim and i did a panel in which jeff smith came for delivering alpha. >> yeah. >> they didn't deliver any alpha. stock went up after that of course. they were pushing for a significant split of the

company, trying to monetize and realize a lot of the value in its real estate. that has not really happened though macy's hired a very capable guy to run real estate and to do certain things. they didn't get obviously what they were really looking for, which was the big kahuna of the 34th street location and what you conceivably could do there and how you could -- they're not engaged in any talks with hudson bay, which has moved onto try to see what it can figure out in terms of structure with neiman marcus who knows, but yeah, that was bad. >> that was what? >> that was a bad investment. >> yes, bad. >> activists make plenty of bad ones. comes back to stock picking. >> i sold macy's bonds when i was at goldman sachs. even though i was at goldman sachs that doesn't not qualify fe more the administration, but i sold macy's bonds and they went under. >> as feder ated. >> said we could be in trouble and then the real estate value

of mall properties kind of in general went down and then macy's same store sales went down. so they picked the high water mark of the department store of which by the way i've got to tell you terry lundgren would tell you that. he's a very honest guy. if you go back over his conference call, he talks about how everyone got excited because sales were up that year and then the staggering secular decline in the mall. that it happened at a pace -- it's happening right now. the pace is so -- there's guys in retail who are saying i was with some retail guys last night said the shoppers where are they, i always say the same thing, on the couch. on the couch buying with their cell phone. they would rather -- they don't go to the store. the malls are empty. they're empty. i go to the mall at night when i go, you should come with me to the short hill malls at night. bring your bowling ball. >> sounds spooky. scary. >> actually, i like the short hills mall. it's a great place. a lot of my ideas from there.

j. jill. >> that's right. nasdaq is this close to an all-time high, not quite there. dow's up 33. let's get to bob pisani, bob. >> good morning, guys. while we're waiting of course for our friends from canada, canada goose to open here, markets open nicely here, europe's up nicely. euro's up. of course the dollar was weak yesterday and of course the netherlands election helped. take a look what's going on here and carl's right. we're just a whisker from new highs right across the board. remember the old high on the dow jones industrial average 2115, so do the math there we're 34 points away on that the s&p 500 old high 2,400, so we're about 14 points away there. nasdaq composite, nasdaq 100 already hilt a new high, so we're five points, six points, carl's right just a couple points away from new highs right across the board here. sectors, folks, old leadership is back. call it the reflation trade, some call the trump rally, yesterday beaten up groups like energy and reits were rallying. huh-uh, this is old guard back

here, financials, tech, materials, there it is, the reflation trade all to the upside here. the big debate of course last night, this morning, what happens post fed here. so the fed is moving from data dependent to the idea we're going to keep raising rates for a while and the market seems fine with this as long as it's gradual. gradual means three this year, three next year, that's what the fed said that's why the market was okay with what happened yesterday and the market rallied. some people are now debating whether the market has fully discounted the effects of the trump rally and continue to give the trump rally the benefit of the doubt and will it rally that much more even if they do pass it. i think that's completely wrong. i think there's a lot of room for the market to rally. let me remind everyone why we've been doing well on the tax cut idea and what's going on. so the stated corporate tax rate is about 35% right now. but the effective rate is 26%. that's what they're actually paying here. there are numerous studies, numerous in the last two months that look at changing the rate to 20%, most of them conclude that earnings will go up

anywhere six, seven, eight, nine, 10%, thompson reuters was 8.7%, that is a huge move. what is happening right now is, yes, we've seen some effect from that. even though it's not the sole reason the market is rising, this screen is arguably the primary reason the market has been going up. so the none of the companies have actually raised their numbers. none of the analysts have raised their numbers. just the market has vaguely anticipated this is going to happen. plenty of room once you actually get something and companies say, oh, yeah, our numbers are higher right now and here are the numbers we're going to see. that's why i'm more optimistic. look at canada goose, $12.78, that's u.s. that we're waiting for right now, that was the price there. this isn't going to open any time soon. this is a dual listing here in the united states as well as toronto stock exchange. toronto stock exchange haven't opened but we're going to open the stock here in new york and then a few seconds later they're going to open that in toronto. i don't anticipate -- it doesn't

look like anything imminent's going to happen. this is going to be well past 10:00, maybe 10:15 or so before we see something happening here. i want to point out mule soft however another stock big business enterprise software company waiting for that to price tonight. also down here at the new york stock exchange. they upped the terms of that earlier 14 to 16 now, it was 12 to 14. we've seen some of these tech companies go recently, so we saw nothing in january or february, then we saw snap, presidio and mulesoft and couple others filed on monday. the calendar's starting to open. i'm telling you one week in april we're going to see seven, eight, nine ipos come right out of the box on us. finally i want to note propetrol holding tonight, we'll see if they can get out and price right in a difficult oil environment. oil slightly to the downside today. dow's up 39 points. just shy of historic highs. back to you. >> bob, thank you very much.

bob pisani. let's get to rick santelli in chicago as well. good morning, rick. >> good morning, carl. what a fascinating day yesterday in the fixed income markets. we backed away from what technicians have been calling significant resistance especially in the long end. look at a two-day of twos. we lost some ground. yes, one-week of tens stopped around that 2 pnlt.60, 2.62 area pretty much all technicians have been talking about for a long time. look at december 1st because mid december we had a pass and keep that chart in mind about how the mid december left side and the right sideline up. that's going to be important in a couple of charts down. now we open the chart up to september 14 and you clearly see all of the areas that tug and push rates back down. does that mean it's over? no, al maturities are slightly up today. the real area to go below to see some real buying pushing rates down would be the 2.42 to 2.46 area. if we look at the chart next,

this is why i wanted you to remember december, december 1st of tens minus bunds. notice right on december when we were testing that resistance area in tens at 2.60, we saw that spread was much wider. the fact that we tested the right side much lower, quite simply to spread between tens and bunds is acting different. this formation tells me that we are going to continue to drift a little lower. i just won't look for a lot of basis points, but of course we'll let the market tell us. dollar's the biggie. if all you did was watch the dollar you wouldn't have gotten in trouble and most likely wouldn't have been caught short at the top of the range on treasuries. one-week of the dollar, december 1st of the dollar, can't get it sea lagegs. euro basically unchanged after our fed changed rates yesterday. back to you. >> thank you very much. we are on ipo watch over here awaiting canada goose's opening trade. when that happens we'll bring it to you live along with an interview with ceo dani reiss.

and later mark hurd on how his company plans to benefit in this economy. goldman up for the first time in eight sessions. >> about time.

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take a look at opening trade here as we await canada goose. we'll see what the opening trade looks like. interesting we don't normally see protests around ipos, but in this case peta, the animal rights activist group is actually buying some shares, around $4,000 worth of shares so they can attend annual meetings, submit shareholder resolutions because of what they're saying are bad down harvesting practices, jim. >> yeah, it's chiefly the fur, the animal fur. because they use poultry feathers from already killed -- not that -- if you go to the website, they have a good list of -- >> it's coyotes, right? >> yeah.

and that is the issue. and the question is that, you know, they'll make a lot of noise but you got to go to the website and read the full story. they deserve that. you should go to the canada goose website. you can see pretty much everything. a lot of people are split on this, i know, but it's the fur that's the issue. i think in the end. >> got some early indications there priced at $17. dual listing in toronto and the nyse. what'd you make of bob's comment a moment ago that we're going to be walking in here the not too distant future with half a dozen ipos? >> oh, the day. remember in 2015 -- i forget, amber road came public, there were seven of them, i said that's going to be a great beer, of course it was a software company and that was the absolute top. it was the absolute top. and that was the end for almost every one of the high growth techs. they were selling at eight, nine times revenue. so what happened is that was really it. so when that day happens, guys,

i'm either going to be on a beach somewhere or we're going to have to tell the truth about what i think. >> when we come back we'll get stop trading with jim. dow's up 40.

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it's time for cramer and stop trading. >> does it again, fantastic acquisition of scott trading, fits in perfectly with his whole safety and protection division, one of my favorite divisions. funny i thought honeywell would be in bitting for this. i think numbers should go up. 3m has been one of the great stocks out there. look at that run. it's not done. >> wow. >> that's a great -- that's what we call a core portfolio holding $2 billion fits right into a division people saying a little sluggish. a lot of respiratory fire protection for firefighters, that's one of inga's growth areas. it's been fantastic group. >> proxy for global growth. >> yes, it is. he once said to me they don't roll back safety regulations. they tend to increase them. very true. >> what's on mad tonight? >> we're going to dissect canada goose. we're going to give you the skinny about whether canada goose is something you want to be in, where it fits in your

portfolio. really just much more about what is going on. i also feel like i'm going to be compelled to talk about dollar general and the bottom being reached there. >> all right, jim, good show. i'll see you tonight. >> wow. i'm not related to -- >> just -- >> yes. >> we'll talk with former congressman barney frank and canada goose's ceo on his company's public debut.

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♪ good thursday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen, david faber at the new york stock exchange. markets trying to add to that post federally yesterday, approaching little by little new highs. we're taking a look at the budget today, as we also take stock of the dutch elections. >> our roadmap for the hour does begin with the budget blueprint. president trump rolling out his spending proposals. so what sectors will actually get a boost and which will take a hit? we've got the details. >> stocks are in the green after the fed made its move raising rates for the third time since

the crisis. >> plus, canada goose getting ready to ipo right here at the new york stock exchange. we will speak to the ceo. >> first up though the president's budget priorities are in focus this morning, who benefits, what gets cut, let's get to our john harwood for more details. good morning, john. >> carl, this is the skinny budget that new presidents always offer in their first year. we'll get a full document later in may and of course another one next year. but it's got a very simple and clear idea. president trump said it in the opening of this document. he said a budget that puts america first must put safety as the number one priority because without safety there's no prosperity. so here's the core trade that's in this budget. $54 billion increase in defense. and a $54 billion offsetting decrease in domestic programs. obviously when you shake that out 10% increase in the pentagon, very good for pentagon contractors. a substantial increase for homeland security. it includes $4 billion for the

wall both in '17 and '18. construction will benefit there. big increases for the v.a. and very large increases on the other side of the budget on the domestic side 31% cut in the environmental protection agency, the president's going after climate change programs. 28% cut in the state department. big cuts in commerce, in agriculture, in labor, in education. all of this is going to be very difficult to achieve. why? because to achieve a $54 billion increase in defense and cut in domestic spending, you've got to change the budget caps that exist in law, that takes 60 votes. all the republicans and eight democrats, that support is not likely to be there. and people like senate majority leader mitch mcconnell have already said big cuts to the state department are not going to happen. these budget wars are just starting, guys. >> john, thank you very much for that. helping us set this up, we're keeping our focus on the budget today joined by phillip swagel,

former assistant treasury secretary for economic policy and former congressman barney frank of massachusetts. good to see you both this morning. philip, as john's point about some of the rules here and getting that 60, is he right? >> absolutely. very difficult for changing budget caps. we've been living with that sequester for years and i think that's what people expect to happen, stick with the budget caps. >> congressman, i can't imagine there's a lot in this budget that you're a fan of, but it definitely tells you the president is backing up the priorities he set in the campaign. >> well, i'm puzzled by a couple of things. first of all, the president has boasted about his deal making capacity, and there's one thing he talked about in the campaign that i've been talking about for a long time forcing our wealthy allies to do more. there's no question he's right america has been overspending on behalf of the defense of people who should be able to do more for themselves. and i'm glad he said that, but he's just undercut that argument because what has he done? he has just said to them, oh, by

the way, you know my complaint that you're not spending enough, you really don't have to worry about it because i'm going to more than take up the slack. if i'm one of those countries who he is threatening that if you don't step up we're going to pull back and then i see him with this incredible increase that i don't even think the defense department could handle, that takes the pressure off them. secondly, i would like to see an explanation where it is he thinks we haven't had enough military strength. yes, we have terrible problems in afghanistan and trying to get things done, but it's not going to be new ships and missiles, the problems we have, it's not that we don't have sufficient overall fire power, we can defeat any combination of countries in the kind of war building up for, that's why you have people like john mccain or others saying, hey, wait a minute, you're making a big mistake cutting the state department. so as i said, i think there's a great inconsistency here. and i will make a prediction as i look at what's going on here,

pretty soon you're going to see the trump administration telling us that you really shouldn't too much worry about the deficit in the short term. i think this is building up for a total reversal of one of his pledges which is to start bringing the deficit down. >> yeah, something that they have continued to stick to. we heard from gary cohn in an interview on cnbc just last week, philip, let's talk about the big win ner this has to be the defense contract, the $52 billion increase in defense spending. >> yes, of course. some will end up with contractors and equipment builders, absolutely. >> where else do you see winners and losers? i mean, the epa budget gets hit the hardest. a third of it would be eliminated. which industries does that help? and which ones does it hurt besides the department itself? >> it's got to help the energy industry. i'm thinking of the energy exploration and transportation. and you're going to see both the change in regulation on the environmental side and then different climate for approving

projects whether it's transportation like pipelines or exploration or federal lands my guess is that's the big winner in this. >> can i say i think that's true as to the traditional energy, fossil fuel and others. but this is going to be hurting other forms of energy, renewable forms of energy, there will be cutbacks in research. that troubles me cutbacks in research in general, particularly there's a big hit coming for the national institutes of health, an area where america does very well in global competition. it's a way in which you improve the quality of life and structure. i was struck for example one of the articles i read well they're going to be cutting back on training money for nurses. nursing is one of those things we can do to provide decent jobs, good jobs for people who may be losing in the manufacturing sector because of technology or trade. that's a good job for people. and you can't put a needle in somebody's arm from mumbai. it's a good local job for people

and they're going to cut that money. >> congressman frank, i mean, typically we refer to these kinds of budgets and often are dead on arrival when they do arrive in the house and senate. knowing those bodies as you do and their composition at this point, what chance do you give then to at least some of these cuts actually taking place? or do we end up with a budget very similar to the one we had last year? >> no, i think you will see some shift. there will be some cuts. i don't think as philip said you're going to see the caps removed, but people overemphasize that dead on arrival. i will tell you having served 32 years, presidential budgets are very significant factors. they don't get passed as is, but they have an impact. i think you are going to see a reduction in funding for the nih. remember, the caps may constrain the increases in the military, but they will not constrain the -- they don't prevent the cuts. the other problem is this and

there's been this budget gimmick the conservatives have been pushing, it's the oco, combat funding so there's money that goes for the war. he's apparently going to step up american military participation in afghanistan, iraq, maybe even something in syria. again, i think contrary to what he was talking about. but those funds kind of get put in there off budget in a way. he's going to shift and i think you're going to see important services including in the research area which is important long term for the american economy including our ability to export cut back. >> philip, the secretary of state in japan was asked about the 28% cut to states budget. he said what can help explain this is as time goes by in his words there will be fewer military conflicts that the u.s. will be directly engaged in. does that make you wonder why defense spending needs to go up 10? >> i think the administration will explain itself. my guess is they're going to

look at readiness and say, you know, look at some of the aircraft that they've been, you know, run down, we need to put the money back into readiness. but that's an explanation that the administration will have to give. you know, i look at what's going to happen, what the impact of this is on the economy and later this year we're going to see an increase in spending and probably lower taxes. so that's going to have a significant economic impact later this year or into next year. >> how about layoffs? i mean, when i see 31% cuts for the epa, 29% cuts for the state department, how many federal layoffs are we talking about here? >> you know, it's hard to say. it will be thousands. that will have an impact. mostly it will have an impact in the washington, d.c. area. but the economy here where i'm speaking from is very strong and my guess is many of those people will find other opportunities. >> congressman frank, every year it seems the national endowment for the arts, public broadcasting, you know the whole group of them are a target for republicans. is this the year they finally

defund all those programs? >> it might be. you know, the republicans are in control. i think this is going to be a test. one of the interesting things we have here now is for many years now the republicans have had the excuse that they couldn't do these things because the democrats wouldn't let them. now they are in control. and they're having troubles here. you see this in health care. the most striking thing we've seen this year is a bill that they passed when barack obama was president to totally repeal health care, they knew what they wanted. it passed both houses. it went to the president's desk. now they have majority in congress again, why don't that pass that bill they've already passed? the reason is it could become real. they were kidding. and this is a problem now with some of these things it was nice to be able to rail against them. i don't know because they have constituents. you know, the national endowment for the arts, the major elite high end arts people may be hurt a little bit, but they have other sources of income.

the national endowment of arts does some art work, most importantly it will be felt most in smaller areas. so, no, i don't think so. i have so say those are lesser issues but also not much money there. so i think what you get is disproportionate political pain for a lot of republicans without any common gain. i think what philip just said is correct, he said it sort of politely but i think you're going to see a big deficit explosion. you asked it very well in the question, if we're going to have fewer military conflicts, why do we need $54 billion? especially talk about a readiness for what? we're not getting into conventional war, we're getting into problems with insurgency where most people worry about to wage those kind of fights in the middle east think hurt by the cutbacks in the forms of combat that should accompany military activity. >> philip, there's the added point you mention tax receipts

if the economy does run hot, but all these savings we're talking about could easily get wiped up if interest rates go up 100 basis points. >> that's right. and i look at what the fed did yesterday as just the beginning, right. if you look at the forecast that the fed put out yesterday with the interest rate hike, they're way on the low side. the most optimistic forecast there is 2.4% in 2018. if we do better than that, that means the fed will start raising interest rates by more than and faster. and as you say that will have a fiscal impact. >> could i just add one point. what we've also got today is further reputation that trump's complaint he inherited a mess could not be more wrong. of all recent presidents he's inherited a better economic situation than anybody i can remember. maybe george w. bush from bill clinton, but there were starting to be some softness there. this notion that he inherited a mess is totally refuted by every economic statistic we have. >> so then why do you think his

trade messages resonated so much in some of the rust belt states in this country? >> oh, because this is current. look, i voted against the nafta and i voted against tpp and i felt both bill clinton and barack obama as much as i admired them both made a mistake. trade is overall good for the country. it has negative effects within the country in distribution. and they should not have gone forward with that without accompanying it with measures to offset the negative distributional effects. the economy he's inherited now is good, but you don't overcome a years of bad distributional impact with a year of good statistics. so, yes, people are angry about that. but there's another reason why i think he resonated and where he's going to have problems. people are dissatisfied with governance. all over the world. there are a variety of reasons for that. the way the economy works, it's not just trade, it's tech no lo --

technological trade. he has control and i do not see him as being very happy with that responsibility. >> on that note, congressman, philip, appreciate your time. we got a lot to sort through over the coming months. thanks a lot. >> thank you, guys. >> thank you. >> and we haven't even gotten to the fed yet. when we come back, the federal reserve finally making its move raising its benchmark interest rate a quarter point. we'll break down the impact on your portfolio, savings and more. plus, ipo day. canada goose set to go public right here at the new york stock exchange. we'll be joined by the ceo dani reiss. much more ahead on "squawk on the street." the dow is up by about ten points. stay with us. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions?

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we are awaiting an ipo to open here at the nyse. canada goose, ticker goos. it priced at $12.78, indications now show it could open significantly higher. bob pisani has more on the action on the floor. bob. >> significantly higher. our friends from canada are very happy. ceo with a big smile on his face right there. remember sara mentioned $12.78, that was the above the range. new indications now we were at 18.50 to 19.50, just a second ago as i turned around they upraised it $19 to $19.50. we're dealing with 50% above the price at this point. why? well, number one, most importantly it's profitable,

revenues are growing 43% increase in revenues in the last nine months overall. now, here's the important thing too. families selling, bane retaining investment in the company here. important thing here this is a dual listing. it is listing in the new york stock exchange as well as in toronto, but this is the primary listing. so this is a little unusual. it's going to open here first and then seconds later it will also open at the toronto stock exchange. when will it open? the $24 question, indications are very tight. i'd say ten minutes or so, 10 to 15 minutes. i'll stay down here let you know. we'll come back and give you some more information. right now it's got to be a lot of very happy people and a lot of ski parkas all standing around me looking at each other with the happy smile everybody has down here when they suddenly realize that their stock is going to open and they're going to do very, very well. guys, back to you. i'll stand here and wait for you. >> a lot of expensive coats around. bob, thank you. keep us posted.

the federal reserve raising interest rates yesterday for just the second time in three months. our senior economics reporter steve liesman joins us now with what was pretty big market reaction. how are you digesting it all, steve? >> absolutely. i wonder how the fed was digesting it. usually they like it when the market rallies after it moves, but some are not so sure that smiles and a rally in lower bond yields are what the fed had in mind for markets from its rate hike, goldman sachs writing we feel quite confident they were not aiming for a large easing in financial conditions. the primary part of hiking rates is to tighten financial conditions, perhaps not suddenly but at least gradually over time and yet stocks and bonds as sara said rallied powerfully on the back of the fed rate hike. its forecast also for three rate hikes this year and fed chair janet yellen's comment so far fiscal stimulus from the trump administration is not factored in to its forecast. >> there's nothing that we've done or anticipate that is a speculation. i think it's fair to say there's

nothing that's speculation about preemptive responses to future policy moves. >> now, maybe the market got its confidence from a chart like this showing nine officials are looking for three hikes or 75 basis points tightening this year. it would take six officials to change the median to four. and that's a pretty dramatic shift, but it is possible. over at hfe they write enactment of fiscal stimulus could be a trigger for raising growth and funds rate projections later while absence of significant stimulus could still keep the fed on track for three rate hikes a year. so next chance 50% in june, final hike in december, but president trump and congress they may have more say if that's the case than actually chair yellen and the fed, sara. >> steve, people wonder what's in the water in minneapolis. what's up with the doves from that part of the country? >> well, the speculation is that someone like neil kashkari worried about inequality. some say let the economy run hot

and allows people who have experienced and always experience worse outcomes from unemployment rates and are the last people to benefit from an expansion, let them benefit and then raise rates. so in other words if you were down below 1% for a while on inflation, well, maybe you could let it run a little hotter before you cool off the economy. >> so, steve, there are some openings on the fed and more coming. what do you know about when those appointments are going to get filled and within the fed is there concern that there's going to be people that are coming from a nonacademic world that they may not be as familiar with the models and their thinking? what's the feeling on this? >> so i'm better off on the second question a little more. i think the fed is concerned, but i think they have a sense of the foundation of the institution that they can abide one person or two people that have very different takes on how the fed should operate its policy. it's when you get into the possibility that the

president -- you have very different ideas that the institution could change dramatically. remember the presidents remain appointed by the boards, it's the governors appointed by the president have to be approved by the way by the senate. so it's possible that could be a break on extreme change over there. but i still think that president trump is looking at more what's the right way to say it, conventional people when it comes to policy. kevin warsh, john taylor, somebody who hasn't come to mind a lot but somebody they could be considering is rich clarita, a guy like that with a conservative credential is somebody i think would be applauded by both sides. >> as seen on worldwide exchange this morning. >> excellent choice, i was thinking that this morning. >> steve liesman. >> always selling. a tweet from mcdonald's getting some attention in the last few moments from the corporate account. quote,@real donaldtrump, you are actually a disgusting excuse of a president and we would love to

have barack obama back. also you have tiny hands. >> what? >> that was the tweet from mcdonald's. it was quickly deleted. we've reached out to them for comment. of course that's not the first of high profile accounts being hacked with stuff users did not intend. we are waiting to hear back. >> it was a little less than an hour ago and you might imagine certainly on twitter getting a great deal of play. but we haven't heard from mcdonald's yet. obviously assuming that their account was hacked. but we don't have -- >> rogue intern. what a nightmare. >> president is said to be certainly an aficionado of fast food including of mcdonald's. >> and kfc. >> i know you just tweeted that yourself. he does like his big macs too, i believe. >> we know ceos have a whole new level of engagement with the white house. this is probably not what they have in mind. >> all right. as we take you to break, canada goose is expected to start trading pretty soon. and of course it will do so right here at the nyse. we're going to be joined by the

company's ceo dani reiss. back in a moment.

mcdonald's out with a fweet

now just saying, quote, twitter notified us that our account was compromised. we deleted the tweet, secured our account and are now investigating this after that tweet earlier now deleted regarding the president. just fyi. >> also john harwood reminding us that the head of communications for mcdonald's is the former white house press secretary under president obama robert gibbs. recent cuts to nasa and amtrak among those left out in the president's budget proposal. our morgan brennan has more on which transportation stocks might be affected most, morgan. >> hey, carl, that's right. so some sweeping changes to transportation proposed both on the ground and beyond. we'll start with the d.o.t. budget. 13% drop from 2017. no more subsidies for commercial air service to rural areas, cuts to amtrak's long distance service, which isn't a moneymaker but does account for the only amtrak service in half of those 46 states that it does serve. in response amtrak's ceo wick

moorman, these trains connect our major regions, provide trial vpgs and revenue for northeast corridor and state supported services. one of the biggest changes, privatization of air traffic control, which has been shot down before, the concept transfer those faa duties to a nongovernmental organization. now, advocates say this would create an efficient system, mean better implementation of the massive multibillion dollar next gen tech overhaul. major passenger airlines could potentially get more power, more say in that process. satellite operators, rocket providers, potential losers, regional and cargo airlines in the past warned this could potentially give too much power to those big passenger airlines. this could also have big implications for nasa, which has been testing tech with boeing, united technologies and honeywell. and speaking of nasa, nearly 1% funding cut for that agency as well. so acting administrator

lightfoot saying overall still a positive budget. much more reliance being called for in terms of commercial space companies, that means could be a big win for contractors like lockheed martin, boeing, orbital atk and aerojet rocketdyne, also privately held companies like spacex. >> morgan, good stuff. thanks for that. for more on the president's budget blueprint we're joined this morning by donald marin, chris lu, good to have you both. >> thank you. >> thanks. >> chris, early reflections on what you've read so far. >> this is an incredibly heartless budget. it is hard for me to imagine a budget more at odds with the president's promise to help working class americans, cuts in education, job training, assistance to the homeless, low income heating, meals on wheels, this does not reflect our country or our country's values. >> donald certainly reflects what the president said he was

going to bring those who voted for him. >> you know, it does. i think the main thing viewers need to know is this is a very, very skinny budget. the things in there cover only about one-third of federal spending. nothing in there about taxes, nothing in there about health reform, nothing about the president's new infrastructure initiatives. really we're looking at a slice of what the government does and clearly what the president wants to do is cut back on domestic programs and increase defense. >> so what's your expectations for the timings of those other things, which is clearly at least what the stock market is focused on. >> the timing keeps being longer than people have previously expected. it's hard to legislate. our founders made it hard, right? we have a house, we have a senate and we have a president. and you need to get them all on the same page for something to be enacted. very hard to see how you do that on health reform. we see on tax reform that even, you know, a proposal that has a lot of support in the republican house is going to have difficulty in the senate.

so all these things are going to take a long time. >> chris, i wanted to pick up on your point. you called it a heartless budget. the president did promise he was going to beef up our defense to make america safer in the world. and he's going to put america first when it comes to policies like foreign aid and bringing the money back to try to increase spending on things that are important to him like securing our borders, building a wall. so it does fulfill a lot of the campaign promises. >> you know, but i would point out a couple of the pretty serious contradictions in this budget. he wants to bring back manufacturing jobs, but eliminates the manufacturing extension partnership in the department of commerce. he eliminates the economic development administration in the department of commerce. he slashes job training, education programs which are going to help people get those middle and high skilled jobs he claims he's going to bring back. so this itself runs against his own campaign promises. he is promising a big infrastructure bill, but he

takes $500 million out of the department of transportation's budget which does exactly that. >> donald, i also noticed and we haven't talked -- we're dividing up in terms of winners and losers. oversight of air traffic control moves from the government to an independent group. this is something bob crandall told us yesterday would be a good thing. would it save taxpayer money and be more efficient for the industry? >> almost none of these individual line items are significant big dollar things. that could move the needle a tiny bit, but from an overall budget point of view it's really not important. what is whether you get a more efficient operating system out of it, i can't speak to that specifically, but i'd say that i hope that's the approach the administration and the congress bring to this is to look at all these programs targeted for changes and ask really whether they will make things better off. >> is it your view that at least from an employment standpoint the government has been bloated in recent years?

that there is room to cut maybe not 20% but certainly double digits in some of these agencies? >> so the size of the government workforce has come down systemically over time, become a smaller and smaller portion of what we do in this country. they're undoubtedly programs lasted beyond their expiration date and there should be changes there. but again, you know, we've cut enormously on the domestic side. and i would hope that the president and the congress would apply this close look to defense as much as they would on the domestic side. >> chris, i wonder if you think we're going -- if we're due for a reckoning with a crisis, a health crisis, something regarding ebola, something that would reverse at least the mindset of this budget that the government can do more with less? >> well, i think we need to recognize what donald just said which is that the legislative process will go for a long period of time. you also already have members of congress including lindsey

graham who've said that parts of this budget are dead on arrival. so i don't think we should take this too seriously, but it certainly lays out the president's priorities. and you're 100% right. it is important to shore up our defense and our homeland security as well. but whether it's dealing with a pandemic, whether it's dealing with high poverty, which has a whole series of societal risks as well, we've brought the rate of homelessness down in the obama administration significantly. these are important policy gains that become reversed by this kind of budget. i would also point out one of the great ironies is you have a president who claims that he's going to bring coal jobs back and is going to help coal country and he's cutting the appalachian regional commission, which has put in hundreds of millions of dollars into that area. so this budget just doesn't make a lot of sense. >> but i think what they would counter is that the deregulation and the corporate tax cuts that they are promising and that are priorities on the list

regardless of this budget are going to help make industries like coal competitive, donald. do we have to think about this budget in terms of deregulation, slashing the epa 30% and other sort of regulatory agencies? isn't that a big boost for american industry? certain industries, i guess. >> so it may be a boost for some specific industries. i would say, you know, coal is going to be in trouble because of natural gas regardless. as we continue to expand our natural gas supply here and as companies increasingly use that to generate electric power, there isn't actually that much you can do to bring the coal industry back. >> donald, a quick question just on the budget itself. this is brought up in our last interview with congressman frank. this off budget allocation to the wars in afghanistan and i believe iraq. i mean, that continues, correct? >> that does. >> that's money being allocated, but where does it actually end up? how do we treat that? >> so it's subject to somewhat different budget rules. this is a complicated challenge and

different budget where people use different baselines and different pools of money. those things continue. you know, those activities and those theaters continue. and like any administration the trump administration is going to use some of that to make it easier to accomplish what they want. >> guys, that's a good examination in this early stage. chris lu, donald marron, appreciate your time. thanks very much. when we come back, canada goose going public at the nyse this morning. we'll talk to the company's ceo straight ahead. plus, nike getting called out in china. we'll tell you what they're accused of and how the company is responding when rereturn. kevin, meet your father. kevin kevin kevin kevin kevin kevin

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good morning everybody. i'm sue herera. here's your cnbc news update at this hour. in maryland a second federal judge blocking president trump's travel ban ruling that it discriminated against muslims making it unconstitutional. now, this follows a federal judge in hawaii who rejected the executive order on wednesday. british prime minister theresa may rejecting a call from scotland's leader for a referendum on scottish independence before britain leaves the eu, saying now is not the time. this comes as the brexit bill received royal assent from queen elizabeth freeing the government

to start the formal process for leaving. spacex has successfully launched a new commercial communications satellite into orbit on its falcon 9 rocket. unlike previous uses of the falcon 9 this rocket did not make an attempt to land. and according to career builder, a survey that they did, 41% of employers are hiring college educated workers for positions that had been held by those with high school diplomas. and 33% are hiring more workers with masters degrees for positions that had been held by those with a four-year college degree. changing workforce. that's the news update this hour. sara, i'll send it back down to you. >> sue, thank you. nike on the hot seat in china. a consumer protection show aimed at uncovering abuses by companies that airs on state-run cctv says nike falsely advertised its basketball shoes. the show saying that nike claimed the sneakers had zoom air soul cushions inside when they actually did not. nike responded to the accusation

wednesday saying it learned in april of last year that 300 pairs of its hyperdunk 2008 ftb were actually sold in china and they did inaccurately state that the shoe contained the soul. consumers were contacted and offered an apology as well as compensation. the company releasing a statement, quote, nike is committed to providing consumers with the highest product quality and service and will fully cooperate with the government regulators regarding their inquiries. clearly a serious response to, guys, what eunice yoon told me and our thanks to her for helping us out on this, is an important show, is an influential show. and when companies like this are highlighted, it's sort of their worst nightmare. other u.s. companies like apple and mcdonald's in the past have been accused and have apologized and done something about it but comes at a particularly uncomfortable time for nike. north american growth has slowed down, china is the bright spot for this company. grew sales 17% in china last quarter.

we're about to learn if that's continued because we get nike earnings on tuesday. but clearly as an american brand that's already worried about trade tensions between the u.s. and china, you don't want to have this happen. this show seems strange. i don't think we have anything like it. it's sort of a 60 minutes meets "dancing with the stars." i don't know, there's singing and dancing, but it's actually really serious when comes to calling out consumer mispractices. >> well, if we don't have anything like it, we soon will, now that we've talked about it. i like that idea. let's get to rick santelli now for the santelli exchange. good morning, rick. >> good morning, david. i'll tell you what, this is a guest i've been waiting to have on. bob, my health care guy, thanks for taking the time today, sir. >> good to see you again, rick. >> listen, bob, i've been reading your output. you seem to be much more aligned with rand paul and senator tom cotton about repeal and replace and having a separation that you think in order to do this right you need democratic support.

on november 23rd you said it was three things, repeal, replace, transition. why don't you dig in now that you see the plan what your thoughts are. >> well, the republicans have kept their promise. the house republicans have their plan to both repeal and replace. it's run into enormous difficulty both on the far conservative side of the republican party and amongst moderates. the congressional budget office scored it said that many millions of people would lose their insurance. so as i said earlier, the house republicans, republican party generally and president trump have a tiger by the tail when it comes to obamacare and repealing it. they've got a plan out there right now that -- >> bob, i have to cut you off. we'll come back. we have some breaking news. >> okay. >> carl, back to you. >> thank you very much, rick. we take you to post five over here where we will see canada goose opening for trade at about a 39% gain. pricing at 17, canadian, i should say, i think is about 12

and change here. >> yeah. >> early indications were in the mid 17s to mid 18s. and off we go. we'll talk to the ceo in a few minutes. >> this comes two weeks to the day from the snap ipo, which was a successful ipo with an opening price that looked a little like this one. it also comes at a good time in terms of the weather. it's been a cold one for canada goose. if you don't know the company, they make very expensive parkas, $500 to $1,000 parkas that are trendy right now. we haven't seen a luxury good ipo in a long time. let's get to bob pisani out there at the post with a little more reaction on this opening trade, bob. >> sara, $18 that's where we opened. remember price $12.78, i'm quoting dollars, american dollars, 18 almost a 50% increase. a lot of fluctuations. not as high as snap, how does that happen? well, this is a big, big game of bids and offers to get up very high, high price up there some

people say i'm in for a million at $17 and suddenly the price goes to $19 and that person says, wait a minute, i don't want a million at 19, i want a million at 17. i don't want it or only want half a million shares now and that's how you get people dropping in and dropping ut. it's all part of that overall process here. but this is a successful ipo by any stretch of the imagination. i've emphasized the reasons, in your opinion one, profitability. they are profitable. number two, growing revenues, 43% in the last nine months. now we turn our attention, mulesoft pricing tonight. trade down here. big business enterprise software company and propetrol, a big oil services firm, fracking company, going to be down here tomorrow also pricing. we'll see if that happens. again, remember the important thing, oil recovering in the last couple of days. a lot of happy faces down here and a lot of expensive parkas. back to you. >> all right. there are also some protesters, peta protesters not happy with the coyote fur around the neck. we'll show you that. and talk to the ceo first on cnbc here dani reiss of canada

goose just went public here surging in the opening trade. let's get to rick santelli now for the san tetelli exchange. >> thanks, sara. bob, back to you, i look up and the republican cleared another bill in the hurdle 19-17, continue, bob, with your line of thinking. >> well, so the republicans are on their way to repealing and replacing obamacare. and it's been a very difficult week. it's good to hear cleared for the republicans, good to hear it cleared the budget committee because it says paul ryan is still on track. the republicans have got some problems here. the congressional budget office has said more than 20 million people will lose their health insurance because of it. you know, you and i have talked over the years that obamacare was a massive transfer of wealth from the middle class to lower income people. middle class people really saw big health insurance rate increases, don't get subsidies to help them. low income people did pretty well under obamacare. now what the republicans are

doing is they're reversing that. this is a fairly massive transfer of wealth from low income people, particularly older low income people back to the middle class. the republican plan is pretty good for middle class folks. they'll be getting much better subsidies. but the subsidies for the low income people, the medicaid expansion and so forth is where the republicans get the money. and that's where they're going to have difficulty as they get to the senate now and many senators in states that expanded medicaid are worried about low income people losing their insurance. >> listen, we only have about 20 seconds left. bob, i'm asking you to look into your crystal ball. do you think there's any way that senate markups can come back to the house and this bill can be reconciled and signed by the president? >> i expect that it will be, rick. here's the big thing to understand, this house republican bill will see some very significant changes before it's passed onto law and the president signs it. but the thing to keep in mind is obamacare right now is in self-destruct. it is not sustainable. it's getting worse.

there's no way we can continue on the obamacare track we're on. this has to be fixed. and democrats and republicans will have to figure out a way to do that. >> wow. we're asking a lot i think these days, bob, it's always really cool to listen to your opinion. straight down the middle of the road. thank you so much. >> good seeing you, rick. >> "squawk on the street" gang, back to you. >> rick, thank you. we are watching the opening trades here for canada goose. ticker symbol goos, it's the maker of expensive parkas chr, h are all over the new york stock exchange today. stock up 30% right now and we welcome to post nine the ceo, dani reiss, congratulations. >> thank you very much. thank you for having me. so exciting. >> the timing, did you see we were in for a historic storm and decide this is the week we need to go public. >> we like to joke we have connections. no. certainly the weather has been great. certainly it's a good start for us. it's a little long time in the

making. the company's been around for 60 years, the last 20 or so years been a consumer brand, growing around the world building it in the right way. we're really excited. this is not a finishing point. this is a starting point for us and it's overwhelming. >> how long ago did the process begin, this idea of today? and why? >> you know, i think that we're a global brand, we believe in things bigger than ourselves. we're from canada, there's not a lot of global brands from canada. the opportunity to be here and to trade publicly not only on tsx but also the new york stock exchange is so exciting and something in which to be able to have the world become a part of this is special for us. we believe we're bigger than that. >> it's funny we're showing video from davos because we were talking to steve, managing director at bane capital. >> great guy. >> core for you. bane will retain some control, most control, correct? >> absolutely. they're still very much involved in the ownership of the company

as am i. >> who's paying $900 for parkas? >> you know, we've been a very broad market segment. we appeal to younger demographic, we appeal to, you know, retired folks. i mean, people gravitate to our brand. we provide function, quality, craftsmanship. our products last for a lifetime. and i think people buy into canada goose, they buy into the authenticity and the fact that it's going to last for a really long time. and you know, the history and legacy of the brand. and the brand is a reputation, and i think the reputation has been built over many, many years. >> how much of that label -- i noticed a couple years ago, i started to see a lot more of this, certainly in the new york city area, is key to your growth? i mean, is it a status symbol, and are you selling it that way? >> yeah, we sell function first. i've been hearing for years people telling me, dani, i saw your logo, and now i see it everywhere. i heard that for the first time probably ten years ago, and

there's still people discovering us today, learning about canada goose for the first time. so you know, i think that that logo is actually the inverted north pole, it's actually the north inverted, and it stands for canada, the canadian brand. we are very, very proud to export the canadian brand around the world. it stands for quality, for craftsmanship. all of our core products are made in canada. we've built the largest manufacturing infrastructure of its kind in canada, employ over 1,000 people. we're very, very proud of that. >> you're coming to market at a time where trade is obviously top of a lot of conversations. trudeau making comments even today about trade relations between the united states and canada. does that interfere with the narrative at all? >> i don't think so. i think that canada and the united states have historically had a very strong trade relationship, and i think that that's going to play out, you know, that's good for us. and i think that whatever degree there is uncertainty in the world, it's, you know, everyone's dealing with it at the same time, and i'm very comfortable that we'll end up in the right place. >> we were talking earlier about

apparel. it's been challenged, especially in the mall. your retail bricks-and-mortar exposure's pretty minimal, right? how many stores? >> we opened two stores this past year. they performed extraordinarily well. and you're right, we have minimal exposure. our strategy's to open more stores slowly and be careful and make sure they're in fantastic locations, and we've had great experience with it. >> but you are independents stores, correct? and that sector has not done well. so, how are you posting 20% revenue growth with such challenging traffic and sales numbers for department stores? >> we have really fantastic partners in the department store channel here in the states and abroad. we've been doing very well with them. you know, we're building relationships with them. i think that we're helping drive traffic into stores. canada goose is a brand which is in demand, and that is an important strategic part of our business today and will be going forward. it's very important for us to have relationships directly with our consumers and to build that aspect of our business as well,

and we're doing both. >> where's the expansion opportunity for you? is it going global, more than just the u.s. and canada, or is it in different products, away from just jackets? >> it's a great question, and really, our opportunity is in everything. you know, we feel that we have a tremendous amount of geographic expansion opportunities. i've met with a lot of people while i've been on the road for the last two weeks, and a lot of the investors agree that we can grow, in the united states for sure, internationally, europe, there's a lot of runway, asia there's a lot of runway, and new products. we are committed to creating best-in-class products and every product we bring to market will be the best in the world. >> there are animal rights activists outside who have taken your company to target. peta's going to own some shares. they say you mistreat animals, both for the feathers, and i guess you kill a lot of coyotes. how do you respond to those who say, you know, we won't buy this product because you don't treat animals well? >> we use fur for function fur, first and foremost, you know,

and we believe and our customers care and we care about the ethical and sustainable sourcing of all of our raw materials. and to that extent, we've put in place a robust traceability program so we know that all of the raw materials we source are in the right way. and in addition to that, for people who don't want fur, we have many, many products that don't have fur. at least half our product doesn't have fur in it. so, we believe in what we do and we're standing behind that. >> dani, thanks for coming to us first. >> thank you very much. i appreciate it. >> dani reiss is the ceo of canada goose. they're up on the opening trade. paul ryan on capitol hill holding the his weekly press briefing, taking some q&a. >> so, end of the fiscal year, we're at the bca cap level, so i don't see a big issue there. we just got the president's budget submission just this morning. so, this is the beginning of that step. what i'm encouraged by is the notion that we're going to begin

rebuilding our military, which is something we're all very worried about, the hollowing out of our military. it's something that we believe in fixing. and so, they just got this process started. so, this is a long, ongoing process. this is the very beginning of the budget process. and no, i'm not worried about the end of the year. it's end of the year -- august 28th is where the funding lapses. i'm not concerned about that. i think we'll hit our benchmarks. >> question about the president -- [ inaudible question ] >> this is news? >> to what extent are you two absolute partners -- [ inaudible question ] >> we are. i just spoke with the president about a half hour ago. i speak to him pretty much every day. i spoke to him twice yesterday. so, we are clearly in sync on this, working havendemand glove this, and the president's team. we are working extremely closely. i have to tell you, i am very pleased and very excited, and i've got to tell you, it's

something i haven't seen in a long time. this president is getting deeply involved. he is helping bridge gaps in our conference. he is a constructive force to help us get to a resolution so that we get consensus on how to repeal and replace obamacare. it's been very helpful. and so, we're working hand in glove, listening to the concerns of our members. as you know, now that we have our score, we can start making improvements and refinements. clearly, the main parts of this bill are going to stay exactly as they are, but we're making improvements and refinements based on the feedback from our members, and the president of the united states has been mediating this. the president of the united states is the one who's bringing people together, sitting around a table, hashing out our differences, so that we can get to a consensus document. the goal here is get to a bill that can pass, that we can pass and that actually is great policy. and the president is playing a very constructive role in this and literally hand in glove, every day we talk, we compare notes. our teams are fused and working together, and i'm very excited about that. [ inaudible question ]

>> yeah. of course he's unorthodox and it's constructive in many, many ways. >> on health care, is it likely you'll pass a bill -- [ inaudible question ] >> no, it's -- what i just said is he is making it easier and better for us to pass health care. the president, his involvement and his engagement, his listening and his negotiating skills are bringing people together so that we can pass a bill. so, we have a bill that we can pass, get consensus on, and make good on our promises. >> bring up something about wiretapping. all of that something that -- [ inaudible question ] >> sure, it's unorthodox. here's what i see with the president. did you see him yesterday in detroit and tennessee? the president has a connection with individuals in this country. no offense, but he goes around the media and connects with people, specifically and individually. this is a power that we haven't seen since ronald reagan. and so, what this president is

showing is that he knows how to connect directly with people. that helps us bridge gaps in congress and get republicans unified so we can deliver on our promises, and that is extremely constructive. kerry. [ inaudible question ] >> yeah, there really isn't. so, we talked about this. we talk about this fairly often, the president and i do. i would say there is no intri e intrigue, divisions between the principles. i can't speak for low-level staffers or outside groups, but the principals -- the chief of staff, the vice president, the budget director, hhs secretary, the president himself, we're all on the same page. we talk constantly. our teams are working together. so, there really is no schism whatsoever. and of course you're going to have this chattering class

stuff. that just happens this day in age. it's something that, "a," isn't true, "b," isn't intimidating or daunting to us in any way, shape whatsoever. i'm excited at the fact that we have a president who likes closing deals. we've got a president who thinks bold, thinks big, wants to act, and wants to get us to the finish line, and he's being very constructive in doing that. yeah. >> you've been arguing that your plan is inspiring people to buy coverage -- [ inaudible question ] they're going to go up. they just won't go up as quickly as under obamacare. so, how many people do you really think are going to be motivated -- >> so, what cbo says is we'll bring market stabilization innocent rim. we we said we're not going to pull the rug out from under people. we're not going to change it tomorrow and people won't have anything. it will take time to offer products in a new unregulatedsetting. so, not only are you going to be stabilizing market in the meantime, you won't have catastrophic double-digit

premium increases. you're bringing those down. when your reforms kick in premiums go down, and this is before we get to phase two or phase three. the cbo estimate, which shows that our reforms, when they kick in, bring premiums down, bud more importantly, cbo ignores, because they can't score, what tom price is going to do to further bring market competition and freedom to bring prices down. so, we're very confident that this bill, which already shows will lower premiums, combined with the things that price will do, and also state-based high-risk pools. let me just go back to one thing. >> we take you from the speaker to the president meeting with the prime minister of ireland in front of a bilateral this morning. [ cameras clicking ]