goods, computation error resulted in an overstatement. they issued a weak first quarter profit outlook. they are expected to report quarterly results before the bell next tuesday. shares up about 12% over the course of the past year. certainly another retailer to watch. that does it for "squawk on the street." now let's send it back to the team for the start of "squawk alley." >> thank you very much, dominic chiu. it's 11:00 am on wall street. "squawk alley" is live. ♪ good friday morning.

welcome to "squawk alley." joining me, mike santoli as both john forte and sara eisen are off today. downgrade that's hurting the market somewhat. first up, lester holt exclusively interviewing the president after his firing of the fbi director james comey. take a listen to what he said about that process and his decision. >> regardless of recommendation, i was going to fire comey, knowing there was no good time to do it. and, in fact, when i decided to just do it, i said to myself, i said, you know, this russia thing with trump and russia is a made-up story. it's an excuse by the democrats for having lost an election. >> for more, we're joined by jared bernstein, former economic adviser to former vice president joe biden. gentlemen, good to see you. good morning. >> good morning. >> jim, we would like nothing

more to talk markets, earnings and macrodata, but this washington, as cramer said, sideshow, keeps distracting the market. how do we tie what was said with lester yesterday as to how markets and investors might behave? >> listen, if you think gridlock is good and the economy is fine, markets will be fine, cramer is right. this is just a side show. they did great in the 1990s. there's a huge scandal in washington, slowed things down. everything was fine. if you think that's our scenario right now, this is absolutely a side show. but if you think there are big things that need to be done, if you are counting on there being big tax big, big infrastructure spending plan and that is part of your bull case, this was not a good week for that case. >> where are you?

>> whe >> i think we need sweeping regulatory change, tax change. i'm extremely pessimistic. this doesn't seem like impeachment in 1990. this seems more like watergate. you had a terrible economy in the early '70s. i think we can do better and washington is part that have bull case, i think. >> jared, if you're looking at the developments out of the nation's capital as a threat to the economy. >> i think jimmy's words are extremely sage. the only way in which i would disagree with his story there which, again, is probably the most coherent one i've heard, is that from my perspective -- >> thanks. >> -- i don't think the economy needs a big regressive, wasteful tax cut. i guess i should say the government doesn't need that. because we face a set of fiscal challenges down the road.

demographics alone, not to mention geopolitics and climate. it strikes me as really kind of dumb. in that sense, i'm not disturbed by the absence of a big, regressive tax cut. that said, the economy is trucking along and all of this noise is just noise. >> listen -- >> we don't needily need a giant fiscal package, but we need to increase the long-term growth potential in this economy and i would like those things done sooner rather than later. >> jimmy, i would ask, what should we be looking for to have a signal that is might be seeping more into the public consciousness or behavior? we don't really see consumer confidence going down. we're not really seeing this spread beyond kind of a washington kind of bureaucratic process type story.

>> it's absolutely seeping into the morale on the republicans on capitol hill. there's a realization setting in. a little momentum after the passage of the obamacare replacement act. now this happens. when does the public get that? it's like drip, drip, drip. republicans will stick with the president, though, until they see that translate, i think, into lower approval ratings. so far, they've been sort of sticking around that 40% range for the president. >> let me make two comments. first of all, i don't think that there is anything that this president can do to nudge up the growth of gdp. get some basis points to the right of the decimal place. but i think that the idea that the trump administration is going to do something to take 2% to 2.5 or 3% is fundamentally

wrong. i think the down side really does have to do with health care. not only is the system completely gummed up with what i think is a draconian replacement to obamacare but a lot of people could get hurt instead of trying to build on and improve obamacare, which does need improvement, we're kind of getting distracted. >> interesting. two developments we got this week, guys. one was buffet and monger saying health care, not taxes, should be the focus of our attention and head of aetna, jimmy, saying single payer is a debate we need to have as a nation. did you see that coming? >> listen, republicans have been talking about replacing obamacare with a consumer-centered, market focused plan and they've had an opportunity. it has not gone well. this is what i've been writing. that may have been the opportunity to change the direction of health care. that is not going well. and, again, i've been writing this. i think that the odds of single

payer system in our future have gone up, i think, significantly over the past six months, where republicans have been unable to come up with a coherent replacement. >> more smart comments from both jimmy and warren buffett. i really thought what buffett said was so perceptive. the thing that he really kind of hit on was why are we talking about a big corporate tax cut when the pressure that businesses really face is from the health care side? that doesn't mean the corporate code doesn't need reform. it really does. the statutory rate is too high. it's a big mess. if you're thinking from the perspective of a buffett who is thinking about the economy more than ideology, boy, did he nail that. and the idea that they're thinking about single payer and these guys are, too -- >> i didn't say i was in favor of it. let's be clear. i didn't say i was in favor about it. >> it is worth noting, guys,

that all the countries we compare our corporate tax rates to have some kind of single payer, right? >> excellent point. we go around saying, boy, we have to get to be like these other countries by lowering our corporate rate. why not say we need to be like these other countries by having a single payer plan? >> too many balls in the air to juggle right now. good exchange. good to see you both. thanks. >> good stee you, too. >> have a good weekend. as we head to a break, listen to mark cuban talk about china's influence on tech. >> facebook, google, netflix, they're hiring all over the world, trying to dominate. our biggest threat is china. because we can't do things with computer vision and facial recognition. >> that they can? >> they can do whatever. they get to push ahead further. >> sure. >> they're getting too far ahead of us. >> hear cuban's thoughts on snap next and talk to an early ipo

investor, after the first public earnings report the other day. stay with us. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

investor mark cuban weighed in on snap yesterday. >> i think they're going to get better at selling ads. i'm starting to see more ads. they don't seem to be intrusive. i don't see any let-up in the people that i follow. i try to follow a different selection of people, whether it's nba, kids that go to school with my daughters or whatever. i don't see any drop off. you know, i don't see the risk factors that other people are talking about. if they're able to get their act together from a revenue perspecti perspective, i think there's some upside. >> weighing in on snap and what it means for ipos. smart capital's general partner, megan quinn. welcome back. >> thanks for having me. >> it involves the street getting past this notion that

hypergrowth social can work without classic network effects we've seen. stocks like facebook and twitter. can it? >> i think it's worth remembering that we're still in the early chapters of the snap story. i mean, the company really only started monetizing, in earnest, a year ago, still building out their measurement tools and the company has indicated they're building for the long terp. what they do have is a highly engaged, very coveted audience. almost 50% of 18 to 34-year-olds touch snap every day, spend 30 minutes or more every day in the app. revenue will follow those eyeballs. >> i don't think i'll get you to disagree with that, lubin. how concerned are you about user growth and would you have preferred to see it bigger? >> no. i'm very pleased with the engagement metrics, seeing an uptick in average time spent per

user. we know snap currently is not very focused on growing outside of the developed world, which is north america and europe. so i'm not very concerned. on the monetization side, you're only really counting north america. for example, here in france, you barely see any ads. so i'm quite, quite pleased with the fundamentals driving the company and the business. >> megan, imagine for a second that snap never became public and you happened to be on the company's board. they had the results that were reported publicly a couple of days ago. my guess is that the private valuation would not have gone down by 20% the next day. as a board member of snap, what would you have said to management or what would you be advising in terms of what you need to do to show better progress or would you basically have said, look, everything seems on course for the long-term strategy? >> i would never pontificate on what it's like to be in a board

room on a company that i'm not. i think it's all about getting your house in order and continuing to build. again, this is a management team that has said we're not focused on short term. we're focused on long term. we're going to innovate in product. i think that's a good value proposition, particularly for a product-driven company and leadership. >> you think cuban has a point here, luben, where it is truly, depending on your generation, the value of this particular platform is opaque to people of a certain age? >> yeah. this is the case today. i think we do see the trend that is starting with the older generation and like mark cuban said, i'm obviously very active on snap chat and i don't see any signs that the friends or people that follow are posting less or less frequently.

similar who-to-how facebook appealed to older generations once it expanded beyond universities you'll probably start to see that with snap chat as well the next year or two. >> megan, do you think that same disconnect that's occurring between generations is go iing between advertisers and snap? do they see the distinct possibilities of this format at this point or do they still have to be educated on why there's virtues to their approach as opposed to facebook where people say we'll make it a tv-like experience? >> still a bit of education to d do. >> there's the old joke, megan,

that s pichpiegle is instagram, joke that's made its way through. would you be worried about zuckerburg stealing your lunch? >> i think evidence indicates that evan spiegel is a product visionary. my personal view is that iron sharpens iron, that ultimately as consumers we really benefit. >> especially at this price, one of the original prices. good to see you. thank you so much. we do have a news alert this morning on ebola and outbreak in the congo. >> there is one laboratory confirmed case of ebola in the

congo. on may 11th, the ministry of health in the democratic republic of congo notified w.h.o. and partners of a lab-confirmed case of ebola. other reporting shows this is part of nine cases they're looking into, in the congo. this is a remote area. not populated but we'll keep an eye on it and see if they confirm more cases, carl. back to you. >> thank you very much for that. we'll look for further headlines. when we come back, shares of corning are up this morning. first installment of apple's pledged $1 billion into the manufacturing fund. we'll hear more from our sitdown of the executive producer of veep and why the best content always wins. dow is down 32. at fidelity, trades are now just $4.95.

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frank rich is the executive producer of veep on hbo.

we asked him about the best platforms for content and whether or not netflix can become hbo creatively, faster than hbo can become netflix. >> i do think it's a valid race. i do think it's a bit of an oversimplification. first of all, there's some terrific programming on netflix. secondly, hbo is making huge leaps in terms of technologically making itself available to a broader audience. so in the end it may all washout. but it's a good way to frame it now. i think what's good about it, it does describe two different parts of a culture, in general, that are on a collision course, not just in television and not just with these two networks. how do you do creative work and entertainment in general at a time when people have so many options and can watch anything

they want at any given moment. all the kind of things we used to talk about is all gone. this whole culture is being reshaped. it's possible there will be a third way that's not the current hbo or netflix model that will yet emerges. we don't know what over the long term snap chat means for, you know, the things that we do, to take one example or whatever is coming behind snap chat. >> whether it's facebook, apple or -- >> right. it's all up in the air. it's a very scary time in some ways but a very exciting time. as someone who grew up in the days where there was three broadcast networks and that was it. and even the idea that there would be a public television channel was considered radical or that the 6:30 news would go from 15 minutes to half an hour is considered a revolution, i sort of like this faster pace in the way that everything is being shaken up. >> interesting. rich has done a lot of his

creative work mostly in-house at hbo, tying his kite to their sail. it's not a binary race. >> no. >> everything is fanning out. amazon today, hulu with their new bundle. >> right. pipes. content. and networks on some level. one of the distinctions, hbo, obviously, is bundled in a different type of subscription mostly and they sequence out their shows. it is fascinating. it feels like somebody will come up with something to knit it all back together. it reminds me a little bit of when cable was considered to be so vastly different from broadcast networks, the type of content. actually, the reception. >> better reception, racier content. and all of this is coming together at the time of the upfronts when we'll get a much better look at not just product for the season but advertising revenue at a time where it might go back to zero. we'll see. >> appetite of advertisers.

it's not just we don't want to get as much money. they just don't know how to reach this fragmented gr eed gr. to hear more from rich, go to cnbc.com/binge. let's get to seema mody with the european market. >> on track to finish relatively flat for the week, which began with reaction to emmanuel macron's election in france. on that note, y titalian g7 official says the minister's statement will use the same wording on trade, currency and monetary policy used by the g20 in germany. g20 ministers dropped their pledge to keep global trade open, failing to convince a trump administration to endorse a multilateral approach to trade. news regarding the planned g7 statement out of italy, sending

the euro to session highs, 109 against the greenback. on the m & a front, vivendi proposing to buy havas. such a purchase would be 30% of the stake. another winner, astrazeneca up sharply after announcing its immunotherapy drug was shown to reduce the risk of death from lung cancer. steel maker arcelormittal, and richemont acres weaker than expected profit as both are being impacted by china in different ways. mike, back to you. >> seema mody, thank you very much. retailers, those stocks

getting wrecked again as macy's, nordstrom and jcpenney report earnings. what the future holds for those department stores. more "squawk alley" is next. doi? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

good morning, everyone. i'm sue herrera. police and rescue crews rush to the scene of a nursing home and rehabilitation center in ohio

after reports of an active shooter. a police officer was shot and the apparent shooter was neutralized. no further details provided. north korea demanding spy chief accusing him of being a mastermind of a plot to assassinate north korean leader kim jong-un with a biochemical weapon. pope francis, flying to portugal today to visit the shrine of fatima. francis will make two portuguese shipper children saints. commander peggy witson and flight engineer jack fisher of nasa making electrical repairs in the four-hour mission. you're up-to-date. back downtown to "squawk alley." carl, back to you. >> sue, thank you very much. jcpenney hitting an all-time

low this morning. courtney reagan joins us with more. >> it's a bad week for retail. there's not enough sugar i could find to sugar coat everything. jcpenney, rounding out the doldrums. far worse than analysts expected. the retailer did beat on the bottom line, thanks in part to management. like other retailers, february was weak for jcpenney. sales and traffic did pick up in march and april. sephora, fine jewelry and home are among the stronger categories which falls in line of the subsectors of retail that seem to be performing at least a little better. 405 department stores did beat the earnings. nordstrom slightly beat the estimates. dillard's comps were in line but still negative. individually, department stores shed 11% or more, with macy's leading the way down, down more

than 17% in a week. macy's, jcpenney, sears, they're all closing 100 or more stores while still investing in digital offerings. shoppers who do buy online and in store spend typically 50% or more than a shopper to goes through more than one channel. outlets or stores like tj maxx, unique small business retailers and on amazon. carl, over to you. >> courtney, busy day for you. thank you so much, courtney reagan. post 9, joining us, rbc capital markets. wish it were under slightly different circumstances. given everything jcp has been through to say it's the worst price since the ipo in '78 says a lot, brian. >> it does. what the market is saying, these business models are broken. the question is, what will be the order of chapter 11 and

chapter 7 filings for a lot of these department stores and so i think looking at enterprise values right now, trading at three, four times and free cash flow yields at 15 to 20% tells you the market don't believe a lot of these companies will be around five to ten years from now. >> and guys like lambert will speak out, rightfully so, saying talk like that isn't helpful. >> i actually agree with brian. i do think when looking at our store models, jcp and sears are the two most likely to have a high default -- high probability of defaulting. and what's interesting is that macy's, believe it or not, their score is becoming significantly down from last year, increasing their probability of default, too. the biggest problem is that they're not resonating to the largest group of consumers, the millennials, sitting on massive amounts of inventory. if you take macy's, for example,

they have calvin klein, ralph lauren, jessica simpson merchandise that does not resonate with the millennials. not just about the value proposition and getting the consumer the convenience of shopping but also rethinking the merchandise and the branding. >> brian, one of the conspicuous things about this sector is what's not happening. people are saying these are cheap enough. i'm just going to buy the company. let it shrink in private hands, often what used to happen. what's that telling us? is it essentially -- is there anybody who will basically say there's going to be some value here and that will put a little bit of a floor? >> yeah. so, no. there are six retailers sitting in private equity portfolios right now that are going through some kind of reorganization. we think the banks would not be very smart right now to lend. the retail business model is broken. you cannot have 6% to 7% ongoing same store sales declines in

your brick and mortar businesses, deleverage your occupancy costs and store labor costs ongoing. business models are broken. go through another year of consolidation. abercrombie and fitch have acknowledged they've received some interest. coach is acquiring kate spade. there are pockets around. it's very challenging. private equity, unfortunately, has lost a lot of money trying to buy businesses that have a near-term issue. this is more structural. >> we got some research this week, looking at the inning we're in, with regards to store closures, right? some argue that to shut down a quarter of retail space or repurpose it at last year's pace would take 30 years. are we look at a decade, at least, of store closures? >> i think it will take a long time. a decade ago, actually, we were talking about how the retailers compete with walmart's everyday low prices. today it's how do we compete with amazon?

retailers are changing the strategy and will continue to do so. reducing the footprint is a really good way to go because it allows the companies to reinvest that money in e-commerce. again it's not only the e-commerce and reducing the footprint but rethinking the brand and also the merchandise. because you have to appeal to millennials, the largest group of the population right now. >> what's interesting is, is there some cyclical, cultural aspect? basically it's a clothing problem for the most part, right, for most of these chains? >> yeah. >> all this research saying social media -- people brag about the deal they got, not the label, right? >> yeah. >> is that a phase or is that pretty much the world we'll be stuck in? >> you look at fast fashion f forever 21, they control 20% of the specialty mark. they become a huge, huge problem. we've been in a deinflammatifla.

they don't care about bragging about logos anymore. they want to spend $10 on healthy juices, and to soul cycle. if you can't instagram it, they don't want to buy it. >> you must have some favorites in the space. is it shoes, accessories? >> it is. athletic south of outperformance, we believe lulu lemon is well positioned and have interesting things going on. burlington stores still taking market share inside off price. and we think coach is well positioned now as they acquire kate spade in the next year, we think coach could make several acquisitions now and finally get some consolidation happening in luxury. >> coach is an interesting story. because there was a debate about whether it's a turnaround, so to speak, or just a reset of expectations. >> yeah. >> you set a new floor and build a business on a lower base. >> they definitely change.

they adjusted to the market. they were able to not only restructure and give their stores a facelift but they came back after few consecutive negative quarters to a 3% of their sales. 3% reflects healthy consumer spending and that's unheard of right now in this retail environment. the fact that they came at 3% is very strong. but it's not all bad news. consumers did spend their money. they're also spending it not only at the household products, appliances but also at the cosmetics beauty retailers, we're seeing ulta, and the intra-perfumes. >> has the market figured that out, brian? if you look at the performance spread among those categories -- >> when you look at the xrt versus s&p 500, we haven't seen this big of an underperformance since the recession. i think active money managers are clearly looking in their consumer discretionary sleeve.

we were surprised to see macy's down 17%. there is no buyer on the other side right now. all their money for active management has to be on businesses that people think will be around in five years and, obviously, right now, seeing these kind of traffic declines, brick and mortar declines, investors are very skeptical that there will be any kind of good news in specialty soft lines right now. >> good discussion. thank you, guy. >> yep. get a quick check on the markets. dow managing to trim its losses down to 11. we'll keep our eye on that and on the ten-year. rick santelli, what are you watching? >> you know, i'm watching the markets in general. even though rates are down today and the stock market isn't necessarily on, it's not far way. yields are still much higher than they were right around and under 180 before the election. yet, boy, it seems like there's an awful lot of bad news out there. why aren't the markets

listening? we'll talk about that after the break. ahh. where are mom and dad? 'saved money on motorcycle insurance with geico! goin' up the country. love mom and dad' i'm takin' a nap. dude, you just woke up! ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ geico motorcycle, great rates for great rides.

we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. let's head over to rick santelli now. >> thanks, mike. how are you doing? we all remember the credit crisis really well. i'll tell you one thing. you didn't have to pick up a newspaper, listen to the tv, to see what the market were doing. things were ahapphappening and

markets were moving. fixed income market, yields were in a freefall. when we had the tarp to try to traes some of those situations, the markets were front and center. market movement played a role in how the politics and the policy, at least at that point in time, panned out. one thing i don't see now, when i look at the news, there's a lot of big stories out there with a lot of big things attached to them. fascism. when i look up, i don't see that. i don't see this big collapse. one of my favorite bond movies is "skyfall." i don't see yields sky falling. i hear a lot of talk from sky fallers. in the end, i think the most

important aspect is to try to keep some type of notion that even though markets aren't the ultimate definer of what's going on in politics, if this were the end of democracy or if the president was really a fascists, i couldn't imagine that markets would act the way they're acting. it doesn't make sense to me. it almost seems as though some in the news are trying to bait the markets into that type of activity. i would leave you with one or two really simple common sense comments. when fascists get rid of people that work for them, usually the get rifd part is a little bit more intense than being shown with a baseball hat at home with a smile. doesn't that somewhat make sense? or when a fascist's orders aren't followed they usually don't listen to the courts with respect to that solution or

answer, or whatever it is. so, listen, politics -- everybody is allowed their opinion. when it comes to markets, it might not tell you the next move politically. it might not tell you exactly who is going to win or lose an election. but i'll tell you what, i don't know a market that would miss the end of democracy and still be close to 21,000. mike, back to you. >> rick, thanks. little perspective there. lot of people talking about an apparent disconnect. good context. appreciate it. when we return, let's get a sneak peek of cnbc's annual disrupter 50 list. four of those companies going public this year, including snap. who will take the number one spot next? more "squawk alley" after this. at fidelity, trades are now just $4.95.

we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

we're taking a look at the performance of the companies on last year's list and what to expect when these fast-growing private companies graduate from the list to go public. julia boorstin joins us to take a look at that. >> most ipos of disrupter 50 companies since we started the list five years ago. they're part of an overall surge of ipos expected to continue, putting 2017 on track for the first annual increase in ipos for four years. 24 u.s. ipos in the first quarter of the year, tripled the number in a year ago quarter. and there is a robust pipeline.

33 new registrants. and renaissance etf that tracks ipos. a company from the 2013 disrupter 50 list, shopify, its stock up more than 115% year to date and gained almost 250% year over year. now, in contrast, while snap and trulio both had big celebrated ipos, their stocks have been struggling. snap, of course, out of the gate but plummeting on its first earnings report while twilio but stock started to drop last fall and splumted after its most recent earning report, on news it's losing a chunk of its business from uber. and then there's okta and cloudera. so far they're trading above

their ipo prices. we'll see if that changes. the 2017 disrupter 50 list will be revealed tuesday on ""squawk box"." carl? >> julia, especially with in response to the president's tweet about whether it would be wise to cancel the press briefing. he writes may i suggest questions submitted via twitter. a perfect record and we distribute to the world not just those with the tv. it's get iting a lot of brush bk on social today, julia. >> there's been a loft talk about the fact that president trump has used twitter to communicate with the world. there have been a lot of questions to twitter about whether or not they've been able to from this.

i remember asking around the last earnings report whether or not their increase in users is a result of the pact president trump used twitter so avidly. he said it's part of the growth but, that's not it entirely. i think this is all about twitter trying to make itself the platform. make itself the public record for politics. trump is using it as a mouthpiece. why not make it official for things like these press conferences this trump doesn't want to do anymore? >> among other things, the tweet does suggest what twitter sees as its edge. basically, you have a perfect realtime record and also, the global reach. i don't know if those things are virtues to the president necessarily. reaching people oversea, who don't have tvs, but it shows you what twitter's self-image of its value is. >> yes, twitter is trying to tap into this value that it's this real time record. real time conversation. it can be interactive.

twitter has really not been able to profit from the fact president trump has used the platform so frequently. and i think now he's sort of going out on a limb and trying to make the most of this. i mean, it is kind of an unusual move, but from twitter's perspective, why not? trump already tweeting all the time. can't blame them for trying. >> we're still asking whether or not the acceleration in user growth is hardly due to the president's engagement. you have to know what the president is saying any particular moment. thanks for that. we'll watch for the disrupter list next week. when we come back, alphabet and uriber are going to trial after a judge's referral to the u.s. attorney. travis' ride sharing company could be facing criminal charges. more on that with the dow down 14.

al a pha bet's lawsuit is going to trial. morning. >> good morning, carl. that's right. the judge's orders came down late yesterday and here's what

we know now. now, first, this court is going to stay in the public eye. something that uber very much wanted to avoid by trying to bring it to private arbitration. secondly, could halt at least some of uber's work in self-driving cars, but we don't know the extent because the details are still unders tech rarely. we should find out later today. but perhaps most importantly, the judge has called for a criminal probe for the trade secrets raised by this case. now, taken together, it's a major twist, so not surprisingly, both companies have come out swinging. waymo says this was a desperate bid to avoid the court's jurisdiction. we welcome the decision and look forward to holding uber in court for its misconduct. uber saying it's unfortunate that they'll -- we remain confident in our case an welcome the chance to talk about our independently developed

technology in any form. they did decline to comment on the case's referral to federal prosecutors. guys, the civil trial is scheduled for this october. it will certainly be interesting because it will put a lot of sensitive information in the public, we could also hear from some high profile people such as larry page or travis. so that's set for october. as for the potential criminal investigation, it may be too early to speculate because i want to note when the judge referred this case to federal prosecutors, he took no position. so early, this is unfolding and there's a lot more to come. >> we know cal nick is no longer going to be going to the conference at the end of the month. some very high profile pdispute that involve big amounts of money. >> absolutely. keep in mind, this is a

burgeoning industry. this is going to be very, very important. not just to both these companies, uber's future and it's you know, huge valuation depends on what they're able to do in this industry and also, this could give waymo a big leg up if it delays uber's plans to develop their own technology. >> we're going to be watching that in the weeks to come as well. thank you very much. can't talk about the market day without discussing ge. it's down 2.5% on this downgrade at deutsche bank, which we'll talk about in a second. reuters is running with a headline that says that immelt has told the mexican president's office he will double pufss from mexican suppliers in '18. that's reuters citing the office of the mexican president. we've reached out looking for clarity if we find detail, we'll get it to viewers. >> interesting, unclear, in what

part of the business, whether that was a vast increase, but yeah, tons swirling around. the stock's been horrible. it's been a big underperformer for a while. a lot of complaints to sell of the earnings quality, which has been an issue, too. so, big question is is it so underowned and basically, a 3.5 yield, does it get washed out. >> someone called to note a kitchen sink downgrade because they talk everything from cash flow pressures to valuation, to even the idea that if succession becomes a story at the company, would that be a positive catalyst for the shares. they argue that a successor could argue that to the downside and work against the stock. >> the market sometimes gives the benefit of the doubt if it were to come to it. >> we mentioned this earlier in the week, worst s&p stocks of the year.

we're going to watch for news flow over the weekend. a lot more news to come. over to scott wapner and the half. >> top trade this hour, bull run. stocks can keep climbing. he's with us today to debate where your money will work best. with us today -- mike wilson is with us. morgan stanley's chief u.s. strategist and let's begin with the markets and his call that the s&p 500 can reach 2700 over the next 12 months. welcome.