>> how many you have, about a dozen? >> well the biggest one is the honda and the panasonic, yes, and this is the indy car series, verizon is for the seires is league sponsorship and i have a personal one here, too. >> you got to go home because you're going to be mobbed. >> it will be ghmega, international news for japan is huge especially japan has been suffering from 2011. >> right. >> the tsunami and earthquake. >> thank you. and concongratulations. we'll see you doing opening bell. right now time for "squawk on the street". ♪ >> good tuesday morning. welcome to "squawk on the street". i'm carl quintanilla with jim cramer and david faber at the new york exchange kicking off a

holiday shortened but jam packed week. futures are lower. s&p on a seven-day win streak. europe relatively mixed, ten-year 224 income and spending in line. case shiller in line as well. our road map begins with the president back on twitter, reigniting harsh rhetoric with germany. >> it is a tech led rally. amazon and alphabet getting near the $1,000 mark. the summer movie season, is it in trouble? the shortened holiday market week see if the s&p will extend its win streak to eight. the president wrote we have a massive trade deficit with germany plus they pay far less than they should on nato and military.

very bad for u.s.. this should change. it suggested german automakers behaving badly. is it too to imstop being so polite on germany, jim? >> it is the european union and germany is emblematic but you look this morning we don't want to raise rates and don't want to get off of life support. germany has numbers that are extraordinarily good and i do think that the mexican buildup of cars by bmw and mercedes posted -- bmw we build a toon of cars is a bads in mistake. he's saying, i wish he were more specific, they should be building their cars here and not where the big plants are in puebla, and they should be like the american companies are committed to building here, very harsh rhetoric, not exactly helpful in terms of the market but certainly if he can try to

get those plants where outside of where they are in a big ksu line because i've seen it, the plants are near where i have a place in mexico and it's rather extraordinary. >> the president's tweets after pointed comments from angela merkel on sunday. >> yes. >> she indicated more or less it's time for germany and europe to go its own way without u.s. leadership. >> right. >> that's what his comments followed. if there are growing tensions with germany, does it matter to the stock market? it wouldn't seem to. >> i don't think so. what matters to the stock market is far more of what we're talking about, the s&p being up endlessly but driven by the same stocks, which i think is something we have to talk about, but when i look at the attacks against germany, i think that in the end bmw and mercedes could fold like mark fields folded. remember mark fields, he was going to build small cars in

mexico, had a big plan to do it. there are mexican plants being built right now. i think he's trying to get about, mw and mercedes to commit to building more here. so far that worked with american companies. the japanese to some degree caved. maybe it works. maybe some of the german companies say we hear you, let's stop building in mexico, the next plant will be in birmingham. wouldn't shock me. >> reports out of reuters the ecb when they meet june 8th may drop their downside bias and the pledge that says fiscal stimulus if needed. >> only italy is in trouble. there was a weird article about italy and russian ties that italy wants to make good with russia, italy is a troubled country in terms of politics, but the rest of, italy's not come back one bit. italy, the economy there is just bad, but some of these other

places spain is pretty good, france coming back, germany good. it makes sense. >> when it comes to the playbook for another week obviously a shortened week, more of the same. more of the same. we'll end up talking a lot about geopolitics and heightened tensions and talk about trade but none of it seems to have an impact on the stock market. >> no, but at least it's not talking about the thing, it's a diversion from the russian probe, although it seems to always entangle people again and there was grover norquist on arguing for grover believes in no tax whatsoever. >> none. >> he doesn't want tax on rugs. he wants rugs to be just like running, forget tax, tyou know, to nail down rugs. the marx brothers, duck suit. >> that went a little too deep on me for that, sorry. >> it's not all that deep but

funny been. >> on grover you're right. >> he's saying something will happen. >> pushed back on "the journal" story that said the boldest ideas are on life support and he says there is consensus on all the things and we'll read the obit on tax reform six more time before it gets done. >> 2025. >> no, something small will get done. if not we'll hold out hope for 2018. it would help some of the valuations. there's a company that you talked about on friday that is probably the strongest retailer in the country, that is alta. i mention it because the tax rate is so high. lot of the retailers need and restaurants pay high taxes. >> they do, they are typically amongst the higher taxpayers. with the border adjustment tax, that's -- well, back to this point, norquist may have his point of view but all of the

revenue raising mechanisms in tax reform -- >> are gone. >> sent away. >> you can do a temporary without running afoul. >> that's what "the journal" says is increasingly likely. >> i think the republicans want something. i think the democrats want something. >> first you need a budget resolution for fiscal year '18 and that gets us back to the budget presented what was it last week and a lot of the fuzzy math people say exists in terms of double counting. that's the first battle that has to take place. debt ceiling potentially an issue come mid dle of the summe. >> apparently before the summer. freedom caucus said they want cuts with increase in the ceiling. dems although severely hypocritical might ask for the same thing. would you expect that before summer recess? >> i guess so. >> he actually sunk down in his chair. >> so negative.

buy nvidia, that's the environment that -- not to be again facetious, the environment, what thrives in the environment we talked about are the tech stocks that don't need any help from the government whatsoever. it's not like all the market goes down. it just gets more narrow and we want the transports, which are up about 10% to start showing sop mojo but it's all csx, norfolk southern and a couple others. >> it's individual investors as well. >> nutani had a decent quarter. i moon i get that. apple, betcoin, geez, we talked about bitcoin all weekend. >> we'll watch ma'am zone and alphabet as they approach 1,000. last week they had record highs. every day it's mcdonald's and adobe. >> 3m going back and forth with that company, with inga tuline.

that company is a great industrial that hit a high and my hope is that more join that. but it's been narrow. the industrials a lot of them have not done well. the banks have stopped entirely. >> which is why the nasdaq comps up over 15% this year doubling the performance of the broader s&p. >> well put. >> thank you. >> four times the dow gained for the month. >> the dow is like verizon. david i look to you, verizon's got to do something. >> yes, they may have to do something. >> you say ge was a bigger disappointment than the phillies over the weekend? >> the phillies are the worst team in major leagues. >> you said six of one half dozen of the other. >> ge is the worst industrial i follow in terms of what should happen and the phillies are the worst baseball team. the phillies are not going to shake up top management because they were given a bad hand. >> they have some time to rebuild. >> so does ge have that time? >> i don't think they do.

>> you don't? >> no, i think they're under pressure to perform. >> i look at that board they seem happy, david. >> over the next four to six months. things can change and quickly. >> david is giving us the high sign. >> i'm just saying we'll watch it. there's a reason we talk about it often, performance of the stock price last week was notable, falling below 28 again last couple of weeks. the key is ge's ability to deliver on cost cutting that they have previously promised and the goal has been widened but they still are not abandoning the earnings goal. >> the cash flow must be positive or jeff immelt is going to go, of which is a low bar because they said it was going to be cash flow possible. >> we know there are plenty larger shareholders but they will be potentially vocal if certain things are not met. that's not going to be a surprise. the question to your point on ge

is, what will the board's posture be? >> look at that model. they have so much related to energy, more than i thought they would. they have to get this thing closed but the cash flow, the fact that the cash flow was negative is why we're talking about this. that took every idea with the ceos next five industrials i book them on their money and they were, let's say people were pretty aghast and when you go back and forth they said don't worry, ge said the orders are good but there has to be cash flow. you talk about deutsche bank sell, saying they are cash constrained and that made me feel like the dividend, which i own ge personally, and if the dividend which is 3.5%, the deutsche bank is basically it's cockroaches and spam because it's thermonuclear war coming are coming for the dividend. those survive. >> to your points and carl's as well about the performance of the dow, verizon's yield is

5.1%. the cash flow is prodigious and they'll probably go out and figure out a way to buy something. >> back to watching the health of dividends and big industrials? >> no, just that one. the rest are really, really good. that's unfair to bring up the ge thing, too negative. way too negative. >> it's completely different company than it was ten years ago. >> when we see a good cash flow number this quarter and things will get back on track. they have to get back on track. >> i want a transcript of what he said in the last three minutes. one thing about cash flow and what are you -- >> the cash flow is negative but the cash flow would be positive, okay? >> all right. >> i was setting a low bar and then jumping over it. >> okay. >> it's like olympic pole vault, setting it at six feet.

>> you're not being completely inconsistent. >> just somewhat inconsistent. >> sometimes that happens. when we come back disney leading the pack during a disappointing memorial day weekend for hollywood. we'll talk about why. look at the premarket despite all the worries we mentioned the dow is 35 points below a record close, 89 below an all-time high, something it's not done since march 1st. back in a minute. finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management.

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hollywood is off to a slow start for the simmer shall the worst memorial day weekend to are a box office since '99. "pirates of the caribbean: dead men tell no tales" grossed $77 million. "bay watch" way major disappointment $23 million. the film cost almost $70 million to produce. any theories as to what's going on here, jim? >> i don't know. it's kind of shocking because the weather in a lot of places was conducive to going to the movies. disney has not been able to break out of this one kind of funk. anything that takes your eye off of movies is going to bring it back to, frankly, espn, and espn is not what you want to go back to. disney is a great long-term

hold. i don't have any catalyst to make it great. there will be another movie in three weeks that will be fabulous. >> we sat here and ridiculed john carter and months later it was "star force awakens." disney down 6% for the month. >> i know, some of the classic growth stocks are not what people want and i don't know there's a funk over each one of these. nike we could talk about tiger woods i don't think it's relevant. >> disney because of the performance of its movie, those are strong, "pirates of the caribbean" is not as trong in the u.s. because of concerns about cord cutting and the latest numbers we got over the last few weeks indicating what went on during the first quarter and how many people really did disconnect in full, not even taking the over the top packages that are starting to proliferate but choosing just to go without entirely. >> i think there's a lot of companies that are like disney no, real catalyst. we're seeing valuation

downgrade. i saw a downgrade of intuitive. these are the winners and the money keeps going toward them. i look at disney and i hate to say it's resting. sounds like it's a human being but it's kind of just consolidating after that move from 93 to -- >> back to our earlier conversation, apple is up 32%, facebook up 32%, amazon is up 33%, yahoo! up 31%, alibaba is up 44%. >> what is your point? >> haven't these already made their moves? what year can you expect in these are the biggest cap companies in the country with enormous accretions of market capital for three months. >> i don't have a catalyst for them. >> five months now. >> they move so much. amazon the numbers are probably too low. let's look at alphabet. the piece about last week it's worth $70 billion i think that's

too low given the fact everyone else is consolidates and when ford threw in the white towel that was an example you can't go against wamo. >> doesn't the studio business fit into your stay at home thesis? >> very much so. >> movie numbers blamed on gasoline prices i'll stay at home, thanks. >> it's funny. take two, if you look at take two stock the stock is at 77, why? because the esports phenomena inside they own the nba, own every team in the nba for esports. look at take two. activision blizzard second last performer after vertex, only down last year because people thought the drug didn't work. dominos move is insane. netflix, these are stay at home.

this stay at home thesis is so strong that if you go over the best buy quarter which was remarkable, it was about connected home, they even invoked the old days when they used to do the movie theaters. >> right but people were going out to best buy to buy the stuff so they can stay home. >> well that's true. yes. that's true. >> that is true. >> that's a prodigious thesis you're coming up. he tried to get me with prodigious. how about wane's stock, is that part of it? >> i have no idea. >> i rest my case. >> we'll get kramcramer's mad d on the other start of the break. more "squawk on the street" straight ahead. clouds can't connect? michael, can we get this data to...? look at me...look at me... look at me... you used to be the "yes" guy. what happened to that guy?

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♪ >> greg almon. >> tim seymour is in a band this weekend we were at john scott's, i was begging to hear eddie vetter, no devoted to the almon brothers. it was the right thing to do. >> seven minutes until we get started trading, tuesday, but first trading session, first mad dash. >> a real interesting call out of morgan stanley raising numbers from micron. why is this important? the pricing remains robust for d ramps. lot of felt they were about to roll over, au contrare.

this is a stumbling block to profitability. >> why don't they? >> there's not enough supply. the new version of d ramps are harder to be able to -- you can't just build a plant like it's gypsum board. they're too hard. i like this call but when they do come up with a plant that makes the additional d ram, that's what morgan stanley was thinking. >> r.g. is implot the spud stud. >> you he showing tremendous -- you're agile today. >> thank you. >> you're yankee like. >> it's not just planting a crop of potatoes and having them come up. it's more complicated. >> wesson was sold to j.m.

smuck smucker's, speaking of fries, oil. been to mcdonald's lately? >> no. >> why is that stock at 150? >> i do not know. >> not just clean bathrooms. great products. wendy's doing great, red robin gourmet, i got a coupon, that thing is hitting it out of the park. >> all right. we'll keep an eye on all those stock. opening bell a few minutes away. stay with us on "squawk on the street". their experience is coveted.

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a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future. you're watching cnbc's "squawk on the street" live from the financial capital of the world. the opening bell in just under two minutes. busy week headed our way. jobs numbers, auto sales. we already got income and spending and the pce deflator, so we're hoping good signals on the consumer. >> autos that would be a godsend out of nowhere. carmax, auto nation those numbers are looking bet eter. everything is overhung from the notion of tesla and uber. thoughts go out to travis for loss of his mom.

geez that was terrible. travis is kind of a wild man but wow. i feel bad. the autos if you look at gm and all the hooplathere doesn't seem to matter. they can't get it going. >> ford on the cover of baron's, a bullish take on their future even as the fte says banks are pulling back on auto loans. >> there's a lot of stuff about the fico scores being up. i am not as worried as i should be. some of the better banks pulled back. the auto companies are never lean. >> let's get to the opening bell, s&p at the bottom of your screen, we hope you had a great,

long memorial day weekend. at the big board next gen energy celebrating its recent listing and nasdaq the 2017 indy 500 winner takuma sato. [ bell ringing ] just met with joe and becky during "squawk box". there's a fair amount of research on consumer names like coach, pvh, auto zone. >> pbh was a great catch. kris swiss close to target. this is europe and some asia, remember. manny tirico saw it coming. by the way his heritage brands, izod, they have all those little, they have the little stores in a lot of discount malls and they're doing well. tanger may be oversold as experiential. coach, what can i say, when that

deal closes with kate spade they have critical mass. coach had good numbers. people are looking for individual stocks within an otherwise wasteland and they've come up with two of these and i'm not fighting it. i think it makes a ton of sense. it needs to do an acquisition. >> why? >> vf-ization they'd come in and buy something and immediately make it so that the supply chain was good, and it just hasn't come together. remember they had a change, new guy coming in, north face seems to have peaked, very hostage to some of the sporting goods stores which have done quite poorly, mountain that kind of thing, a lot of supply. columbia sportswear is terrific but even that stock struggled. pvh has come across as being tommy hilfiger and calvin klein

boutique brands that really work in europe so it's not a u.s. trade. i think it's important because i keep hearing europe is so good, europe is so good. can't fight it. >> what do you make of this bloomberg report that apple is working on an a.i. chip in. >> i saw that. look, that's -- if i was really, if i took it really seriously in nvidia, the maker of the best maker of artificial intelligence chips would be down today and it's not. i hate that talk about the iphone supercycle, that is the kiss of death. we had a supercycle for coal and supercycle for fracking sand and those were talked about at the absolute pop. you have to tamp that down. i talk to tim cook you want to tamp that down. mum's the word, they say nothing but skyworks has done well.

broadcom has done well because they are parts suppliers to apple. >> qualcomm hasn't done as well. >> but that's a war. that's brother against brother, david. >> that is a war. question. >> that's vicious. that's not harvard/yale. >> no? >> not harvard/yale. >> no collegiality whatsoever. >> none. that's like some really, like whoa, that's like university of miami in the old days versus like some of the schools, great 30 for 30, i always loved the u, where they come in, listen we're taking no prisoners. the u being just amazing program. florida state versus the u, a little more like that. >> yep. qualcomm has been on the offensive a bit lately firing back at apple. we haven't heard from them in a while. of course they did file lawsuits all over the globe. >> you haven't gotten an email in the last 38 hours? >> i'm happy to hear from all sides. >> apple doesn't send emails

every 35 seconds. >> no, they don't. although i'd be happy to hear from tim cook. >> we all would be. i got my apple bill this weekend for some music, and i was hoping maybe it was like from tim. you know? no. it was just again that same thing, how much i pay them that service revenue. what a monster service revenue. >> speaking of service revenue how many prime customers are there at amazon? they won't tell you. >> lisa ordered 17 rolls of paper towels. the box came sky -- i said what is that? >> pantry. >> it's the paper towels for the summer. i said don't we go to costco anymore? >> some people do. i bet you the overlay of prime and costco memberships is pretty large. >> i think it is. i think we were lazy. i didn't like it at all. but she doesn't watch the show so i'm fine. she doesn't even know i have a show. >> we'll watch amazon as it continues to toys with pennies way from 1,000. ge at 27.20 is almost back,

there we go, $1,000 on amazon for the first time ever. not accounting the three splits since the ipo. >> isn't that incredible? isn't that incredible? >> yes, that's the way you draw it up 20 years ago on paper and say this is the way it's going to go and it did. >> very few people held onto it. there was always so many downgrades. >> the first shareholder letter he wrote was prophetic in terms of what he was looking for and what he wanted to accomplish and he's still at it. harder than ever. mr. bezos. >> goldman sachs upgraded autozone saying it's overdone, amazon is moving into autoparts. overdone? they didn't do anything and people were scared. one of the things about ulta, someone asked about amazon. guys, listen to me. i no he that perfume, i know you can get a lot of this stuff that they sell on ulta, estee lauder

but you cannot wash people's hair. amazon and jeff bezos cannot watch people's hair. i don't care how many plants they're -- are you listening to me? they're not blowing out hair. that's 9% comps, mary dillon, in the front of the store 14%. coloring hair, bezos never, never. >> it's not something he has to worry about. >> he's in and out. >> yes. that's true. he has the same challenges. >> keeping it nice and neat. >> just telling you. >> very tight. >> one of the areas like pat i don't think you'll get a pad in a big krcrate, big corrugated. >> ge at 27.20 is close to nearly a two-year low. >> ge and industrial, a leading industrial, david, it's a leading industrial. david? >> yes, sir. >> ge is a leading industrial. >> it is a leading industrial and still is, leads in many

different areas. >> what would that be? >> locomotives, engines, solar power. turbines, oil and gas. clothes. >> you're right on everything. you're right. >> those are all big global businesses. >> health care. >> huge health care franchise. >> infrastructure could be good. turbines should be good. lot of people go on natural gas. coal, as a convention to people with respiratory illnesses. >> given the glut of natural gas we have already and having in this country one would expect the coal industry despite the efforts of the trump administration would similarly be challenged. >> of course. geez. natural gas so many pipelines coming from marcellus in pennsylvania. >> and "the journal" is saying something you've talked about for a long time as a by-product producing enormous amounts of natural gas. >> they do not have enough pipe. that is the big story, and the president likes pipe.

the president goes back into the i like pipe thing, that worked. pipe thing. >> you don't take seriously promises to source it entirely with american made steel. >> you can't -- well i have to tell you, newcorps would disagree. they have spent a fortune to get in that business and newcorps is a low cost producer if you'd stop allowing the flooding of oil country tube in from other countries, including mexico. that's pipe tubing. >> right. well mexico takes an enormous amount of natural gas from us. >> they have to. pamex is a pathetic parity of what it used to be. >> why? >> because they don't drill anymore. they drill very little. they don't develop their business and they kept prices low and nieto wants to change that but it's tough to deal with

that bureaucracy so yes, i think they'll be buying oil or gasoline and natural gas for the significant future. that's a big market for us and why there are so many terminals down there, that's a big place for it. we're selling a lot of oil now. we're importing from the saudis and exporting but that's the way it works. >> the way it goes i know. >> the saudis sell it a little bit underneath because they never want to lose market share. >> amazon at $1,000 for the first time, the dow is down some 29 points. ge is the lager there. dominic chu on the floor. >> amazon encaps lats the tech consumer discretionary theme. we are down about 31 points for the dow so far, the s&p off fractionally as well. the nasdaq hoping to pace things just about flat, slightly in the green because of amazon. if you look at the week we just had, the last one week of trading the sector playout has been interesting because it's been an interesting mix of both

cyclical and economically less sensitive stocks. telecom discretionaries at least tech for right now to lead the way higher and then the energy stocks and financial stocks so far showing some resigns of weakness. over the last week technology and utility stocks outperform as well as consumer discretionary and consumer staples, so an interesting barbell developing in the market. if you look overall at the real picture for the outperformers we do know and some of the underperformers as well that energy stocks are showing real signs of weaks. oil $49.25, off 60 cents per barrel. the energy sector are some of the lagers after we saw 19 straight weeks of gains so oil pressure again a big part of the market. one thing i want to point out with the amazon trade it's not technology, it's consumer

discretiona discretionary. look at the last ten trading days of the major sector etfs out there most traded in line in terms of volume or slightly below where they have the last 06 days. the one exception is the spider technology xlk shown an increase in the last ten days perhaps giving you a sign where more people are placing bets. an outperformer carl the 20% year-to-date gains versus discretionary at 11%. lot of people are putting their faith in large mega cap technologies. >> thank you. to the bond pits this morning, rick santelli is at the kcme. >> we're trading in the low neen 90s, 93ish. october 26th last year the last time the curve was this flat and the main reason of course isn't so much that the two-year is

screaming high per it's that the ten-year is melting lower like chocolate on a hot day. let's look at a hont month of m. granted we have been lower, the low yield curves for the year is around 2.17 but we are below that 02.30 and bund headed lower. one-week chart of bunds. they lost the 40 handle. may hasn't been kind to bund yields either unless you've been long in which case the move down has been something you would enjoy. if we look at another chart of the dollar index for the month of may, it had a rough month as well, and that actually finally makes some sense, maybe the dollar index was giving us all a heads up that yields well they just weren't going to be able to jump back into that 230 to 260 range. one of the channels is global economic growth. europe seems to be measuring up but in the states it certainly

seems it's steady as she goes for quarters on end and some of that growth jump we're expecting hasn't materialized. one week of the dollar versus the yen is very enlightening. you see how the dollar is getting hit, in terms of the dollar/yen the dollar is continuing to weaken as you see on that chart but maybe the euro hovering and backing away from the 112 handle. there's the one week of the euro versus the dollar. any areas that might give it trax in the 97 handle the euro versus the dollar is comfortable with a reest issance level slightly above the movement. back to you. >> thank you very much. when we come back, walter isaacson on same-stock valuations. the dow in the red down 24 points. we're back after a break.

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talked about ford and gm a few moments ago getting auto sales on thursday but tesla up 1.5%, 329 is awfully close if not at an all-time high. >> tesla is part of this overall money flowing into the nasdaq but the autos are up. i notice i think that this call out of goldman to buy autozone may be getting a little traction. maybe the barron's piece about ford. if you're looking for value this group has it. >> not for tesla from a value perspective. momentum without a doubt. >> momentum look the nifty 50 is what people are talking about. the idea that there's 50 stocks that have been anointed of which tesla is certainly one of them. nifty 50 being a period in our time in my life where there was a narrow group of stocks that just went, kept going up and that was regarded as being negative. >> but because they were secular

growth names. >> exactly right. >> in an economy that wasn't doing it. >> exactly right. the playbook has been dusted off i think because people feel that we've got one of these situations, where the fed will raise and the economy is not that strong. who can triumph over that situation? the one thing that makes me feel better if you start seeing more than clorox, maybe procter & gamble i'd like to see that group do better. it's a nor row market. if we could see the transports rally and some industrials catch a bid i would be more inclined to like it. i think it is a narrow market. i wish we'd see some health care beyond just the big biotechs. >> banks not benefiting at all despite saying they're going to tighten in june which is coming up. >> horrible. they should be acting better. look there's enough groups to make it so that i'm not fearful. when i look at the transports and take out csx and southwest air, i got nothing to cook.

you got tucker's down, the expediters, all the companies that do logistics. >> take out ulta and a few others. >> to your point, narrow market. >> the mall. it's a new market and that's something that the gray beards, people have been around a long time don't like a narrow market. i say give it time but you need tax reform to get more for the domestic companies that aren't paying a lot. i don't want to write off the bank. the banks are doing well but the stocks poorly. we keep getting the tech companies. if micron cashes fire, marvel had a great tech last week, a couple of them broadening in terms of software as a service, sales force doing quite well, s&p doing quite well. >> yes. >> these matter so we can't be too negative. i know they're expensive but viva is doing well.

lot of companies whose stocks are doing withal to reflect a lot of growth. we'd all like to see some banks move up and maybe some of the broader health care names like a merck. merck. >> it's okay. it's been all right. >> a lot of stocks are kind of stalled. we need to see some takeovers. >> it's a tuesday but it's another week -- we have seen a low level of m&a activity in terms of big head leans. >> like to see china doing better for datter pi caterpilla. >> if that continues you will take a summer break. >> yeah, i will, listen, july and august, let's go to the beach, let twitter dangle here for a little. twitter was doing good. time for jack dorsey to say i've

won in square. he got me as a customer for caviar. >> consolidating. >> jack you got me as a customer, sarah fryer can run it, step down. she's a fabulous cfo out of goldman and devote full time to twitter that, stock goes to 2, i just gave him as re recipe. >> did you it. >> jack sometimes watches we'll see if he responds. >> he's not like john ledger. >> we'll get with jim in a moment. later on exclusive with leon kuku cooperman of omega advisers. think again. ork? this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment.

new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov say carl, we have a question about your brokerage fees. 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? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

♪ time for cramer stock trading. >> long weighted consolidation in oil it starts small and maybe it gets bigger. this is ensco buying atwood oceanics. i'm not saying this is the beginning of something major but it's made so much sense for the companies to combine because

they just, there's too many of them and not enough business to go around. so i thought this was significant from the point of view that atwood's been hanging out there for years and ensco used to be a $50 stock five years ago. these companies need, this is offshore, offshore has been dismal because it costs so much money to drill. keep an eye on this idea maybe the oil service companies are recognizing you know what? it's join or die because these stocks are dying. just dying. >> ensco was 50 bucks not that long ago. >> with a yield, incredible. >> what's tonight? >> talking about the best of the nasdaq, a stock that nobody knows about that is just extraordinary, and we're going back and we're looking at it and you want to watch because it's the one that i think is the leader in this market. and it's not one we talk about and that's wrong. it's because it's so opaque to understand. >> you got to tune in. >> this was what i call genuine

tease. >> that was good. you got my interest. >> good. >> i might tune in. >> there's a prodingious amount of work my team has done. >> "mad money" 6:00 p.m. eastern time. when we come back, historic day for amazon hitting $1,000 for the first time ever. alphabet is not far behind. dow is down 30.

♪ greg almon, welcome pack to "squawk on the street". i'm carl quintanilla with sara eisen, david faber at the new york stock exchange. markets this morning 37 points to the downside for the dow on a shortened week but one that will bring a lot of information our way, a lot of it involving the consumer, whether it's income and spending, auto sales, jobs numbers on friday. >> our road map for the hour begins with a shakeup in the staff at the white house. the president just returning from his week long trip abroad. we'll get you a live report straight ahead. amazon shares trading above 1,000 for the if, time ever.

we'll break down the company's upswing. >> sluggish start at the summer box office. memorial day weekend sales hitting its lowest in nearly two decades. what it could take to revive the industry. >> centennial swnt consumer confidence. >> three seconds our may read on consumer confidence, expecting the number a little under 10. we ended up a little more than 120 than expected, 117.the, looking for 119.8. that follows a 120.3 so obviously a bit lower. just to keep in mind the march read was 124.9, that was the best since december of 2000. this is the weakest since february, which was 116 and change, so it isn't a bad number, it's just not exactly what we expected. the yields are pretty much on the low yield high price of the session at 222 for ten-year, 217, 218 area is what we're

watching for low close of the year. we're getting awfully close. back to you. >> rick, thank you. we're looking at a mixed market this morning, try igto match last week's strong performance where the s&p and the nasdaq hit record highs. s&p looking to extend its daily winning streak to eight would be the first time in several years if we do see that. it's down fractionally about a tenth of a%. nasdaq remains positive. we bring in christian and paul former chief investment strategist at wells capital. christian i'll start with you on the economic data, carl mentioned better consumer spending and incomes. is the data good enough to justify these market gains we're seeing on stocks? >> i think you are seeing still' globally synchronized growth rate, that gets the markets to the right level i think at current levels. having said that, things are slowing in the u.s. for sure and

i have the data today kind of indicates that. people are tightening in china. i think the risks in the market are rising but we'll tread through it one way or the other. >> what about you, jim, what is the best advice at this point for those at home watching this amazingly resilient stock market, wait for a pullback or is it safe to keep buying? >> i think i'd continue to average in if you're not in this market, so my guess is we got another leg coming this year yet before maybe we face high enough interest rates to take the wind out of this rally. we've been in pause mode most of this year, three, four months and the meantime we've calmed down a couple hurdles that were bad for stocks, a big rise in interest rates that stopped and big rise in the dollar which stopped, both of those kind of could become challenging for momentum. i think the economic price index turned negative to me that means

we might have another period where positive surprises could emerge again and we could have a market that's fueled again by data coming in better than expected. >> or is the fact that the economic surprise index turning negative at a 15-month low as doug cass pointed out, mean not all is well in the u.s. economy when it comes to the rebound and perhaps the bond market is telling us that. >> what the bond market is telling you growth in the u.s. is not 3% any time soon. i don't think the bond market is telling you it will not be 2%. there's reason to be concerned. however, i think all is not lost just yet. we have a lot more data to look at. i think the underlying strength in the global economy including the u.s. is quite good. >> jim, you talk about averaging in, we got u.s. equity outflows eight to ten weeks, we got the atlanta fed doing their thing back to 3.7. the core pce down from the last

few priors. what would you point to if you had to look at accelerating growth? >> well, i think, carl, that we've certainly had a slowdown here in the united states. there's no doubt about that coming off fairly strong numbers but what is incouraencouraging maybe a rarity, while the u.s. suffered a slowdown the rest of the world has held pretty firm. most of the economic surprises there are still positive and that's rare for this cycle. we've been the sole engine of growth in the world and every time we would slow the entire world markets would pull back. this time the u.s. experienced a slowdown without a pullback in the markets and i think that's because we're no longer the growth leader in the world. so we may grow, continue to grow 2%, 2.5% but if the rest of the world is also growing with us now in the balance of this recovery, that's a huge difference, it's not so much a faster recovery but a broader recovery, and that could demand higher valuations across the

spectrum from here to overseas as well. i like the overseas markets better but i also think u.s. will participate. >> that's been a big thing. i want to read you the latest trump tweet because it relates to this conversation on what we can expect in the economy. the u.s. senate should sw itch to 51 votes immediately and get health care and tax cuts approved, fast and easy. dems would do it, no doubt. exclamation point. how much is baked in with regard to health care and fax reform? >> i don't think the markets are pricing in a significant probability of either of those getting done in a hurry. if that was the case markets would be higher than where they are. i think what the markets are pricing is a synchronized global recovery and jim's point is a good one, emerging markets is where the action is from a growth perspective at the moment. they continue to surprise on the upside and if china doesn't slow, despite the tightening measures i think the overall growth picture would still look quite good in the second half.

i think if you're going to be an investor, buying international stocks, emerging market and european stocks is probably the best action you can get in the market right now. >> you really think none of it is priced in, jim? do you agree with that? we're looking at a 15% gain for this market since the election. business and investor confidence have soared along with profits, and investment. doesn't that have to do with implementation of tax health care policy restructure, deregulation somehow? >> i agree with chris mostly, sara. i think the move to the right of center control of government has been a positive for confidence among private sector players. i think the biggest thing that's helped is the idea of less regulation going forward for the next several years but i would say this about trump at this point. trump came in with great, high expectations, and became nothing but a disappointment so far.

but now just like the price index, the trump index for positive surprises is certainly negative and virtually no expectations, i don't think the market has no expectations for anything being done this year, which means it may be a positive surprise if they actually get something accomplished. so i look at trump from here as not much risk of disappointment but some potential of surprising going forward. >> your point is well taken, jim, but we had grover norquist this morning on our air saying consensus is still for deep tax cuts on the corporate side. they got paul ryan saying i'm going to deliver something to his desk by the end of the year. there is, you are actually saying policy expectations have bottomed? >> i think so. i think it's been so thoroughly disappointing from where people started on this, that they don't have much expectation that much gets done and i agree with chris. most of the continued fuel under this rally is a broad based,

maybe broader than ever before in this recovery, participation across the fwloeb globe in this recovery for the first time and not what trump is or is not doing but we'll see what happens. >> i think the politicians have a consensus and expectations. markets don't. markets have to some extent given up on all of that and at the end of the day, this is really a rally driven by the policy impetus that we got out of china in the first and second quarter of 2016. we are living off of it, hopefully chinese policy makers don't make a policy mistake again and slow the economy down too much to correct the market. i think if we don't get that the markets have room to rally on a global basis. >> we will leave the conversation there, with you guys in agreement about a lot of these issues. thank you for joining us. jim paulsen and krishna mamani.

when we get back the president returning from his first trip abroad. we'll look at the domestic agenda and potential shakeup in the administration. live look at amazon shares passed $1,000 fair mark for the first time ever, down to 99 and change. dow is down 50. we're back in a moment. just like the marines did. at one point, i did change to a different company with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children, and that they can be protected. we're the williams family, and we're usaa members for life. call usaa today to talk about your insurance needs.

president trump talking nuclear option this morning on twitter saying the u.s. senate should switch to 51 votes immediately and get health care and tax cuts approved fast and easy. dems would do it no doubt. for more, steve mcmahon democratic strategist and jimmy, cnbc contributeor at american enterprise institute fellow. good morning to you both. >> good morning. >> this one idea here, steve, is it likely that republicans enough republicans would back something like this? >> i don't think so. i think the republican that he's going to run into first is mitch mcconnell. long time ago i worked for senator ted kennedy. he used to say presidents come and go but the united states senate the greatest deliberative body in the world doesn't and i don't think it will behave donald trump's way. i'm not sure with a 51 vote

threshold he could get much of his agenda passed other than tax reform. health care doesn't look like it can get 51 republicans in the senate. even mitch mcconnell said that. if he wants to get anything passed he has to move to something that can get 51 votes, whether it's the nuclear option or not. >> jimmy, we always ask our guests to try to mind read the president. what does it saying he's saying this now? >> you don't have to mind read the president because his mind is appearing on twitter in a real time basis but trying to tyke it the next step beyond that. i think what i would say is this agenda is in trouble. it's not, despite the fact taxes, the tax part of it is moving along, it's not moving along, he's talking about adding more money to health care. i'm not sure what he means by that. what republicans would like from the president is not even leadership at this point. just stop tweeting because it's only confusing the situation and

what he said about taxes and health care did just that. they just want to do their own thing. >> just for the record, jimmy, can he get 50 votes from republicans on health kcare or n taxes? did senator mcconnell say they didn't have 50 votes? >> if they change the rules right now they could not. there are deem divisions on health care and even taxes, you'd think a general unified theory here, there isn't. deep divisions about how or if to pay for the tax cuts, so that's why we've been talking about 2018 now for at least the tax cuts and health care seems to be bogged down as well. that's what that 51 vote tweet tells me, that's a red flag. >> and steve, it's important to point out both health care and tax reform are going to be done on reconciliation requiring only 51 votes. one on the fiscal year '18 budget that would be health care and facial '17, fiscal '18 for

tax reform and a budget last week that seems to mix all of this in. what is your sense if any progress is being made? >> i think the president is desperate. jimmy lays it out well. this is a makeup call to washington that his agenda and he realizes is sinking and it doesn't have 60 votes certainly but doesn't even have 51 votes for the things he wants to do most this year. i would suggest the only thing he passes requiring the minimum number of republican votes and widest range of republican agreement and that's corporate tax cuts, individual kax tuts ken the question whether or not it would be paid for is a question republicans punted. they don't care if it's paid for, they want to pass it. i don't think it's good policy or the country but trying to get a legislative victory it may be president trump's only path to a

legislative victory in 2017. >> jim, let's pivot to his comments about germany after what merkel said sunday in munich, germany and the eu can no longer rely on the u.s.. is there value being tougher on germans at least the trade policy? >> listen, he makes a point about european defense budgets, i think that's a volume alid po. at the heart of some of his trade critique is really a poor economic theory, trade deficits are a, the result of bad trade policy and b, trade deficits are bad. so is this like a negotiating stance, perhaps. if your end game is to create trade agreements where the u.s. must have trade surpluses in order to find that as a good agreement them he's going down the wrong path. maybe it's a negotiating stance but i just worry where that negotiation is supposed to lead. >> steve what is your read on

that? >> i think jimmy is right again, it's a negotiating stance. i don't know where that leads. he likes to be the guy in the room demanding all the attention. i think on the question of burden sharing something a lot of democrats talked about for a long time the united states pays billions and billions of dollars to dchbtd other countries and those countries should be doing a little more themselves that's an area where he could get agreement. i don't think he'll get there by lecturing nato or our european allies but the hoenotion of fairness and equity is something he could pursue and get democratic support for. this is a president who needs a win and i don't see how he'll get one behaving the way he's behaving. >> i get he made a lot of campaign prom sises to bring down our trade deficit and bring back american jobs and manufacturing through there's a larger question about american leadership on the global stage. he finished his first nato and g7 meetings with no commitment

to multigovernmental trade organizations, a commitment to free trade and the commitment to this major climate deal that every other country signed off on. you wonder what the implications are going forward not just international relations but economic relations swle. as well. >> republicans used to attack democrats who said they want america another country on the u.n. roll call between angola and zimbabwe. it's ironic we have a president at this point seems to be with drawing from the international role whether it's trade, whether it's the fence or climate change. this is an interesting experiment what the world looks like without u.s. leadership. i just hope it's an experiment that doesn't turn out to be an aarming one. >> we'll find out hopefully as the president said a decision later in the week. steve, jimmy, good to see you

guys. >> when we come back robert kaplan, dallas fed president casting doubt on the trump administration's goals for economic growth. look at stocks this hour, of course, you can see we're down on all the major averages. "squawk on the street" coming right back. apparently, i kept her up all night. she said the future freaks her out. how come no one likes me, jim? intel does! just think of everything intel's doing right now with artificial intelligence. and pretty soon ai is going to help executives like her see trends to stay ahead of her competition. no more sleepless nights. - we're going to be friends! - i'm sorry about this. don't be embarrassed of me, jim. i'm getting excited about this! we know the future. we're going to be friends! because we're building it. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan.

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dallas fed president kaplan casting doubts on the white house economic growth. steve liesman joins us with more. >> thanks very much. dallas fed president robert kaplan says he has his doubts over whether or not we could hit that 3% growth rate. he says productivity along with labor force growth rates determine what the growth rate can be in the economy, and he says some trump policy proposed could be helpful and some like trade and immigration could hurt, most of all they don't exist yet. >> i don't know what's going to be enacted and as i just said, some of the things that could be enacted may actually be negative for gdp growth. some could be positive and i want to wait and see what

unfolds and i think the better bet is to stick with a base case forecast. >> the base case is for 2% growth in the years ahead. it's also for two more rate hikes this year and beginning to reduce the balance sheet but he's concerned about the recent weakness in inflation data but he thinks they will strengthen out in the months ahead and added the current level of the stock market is not a major cause of concern. >> my own view if there were some correction in the stock market that could even be healthy but also looking at the stock market, other people can comment on whether the pe is too high or too low. i look at the fundamentals, earnings growth which has basically been positive and so i don't see a bubble out there. i don't see excesses or imbalances. >> he says economy growth will be sluggish and not upside to

the current 2% growth forecast. >> good stuff, leads us to art cashin this morning p the nasdaq 100 hitting an all-time high as tech stocks like amazon continue to lead. art good to see you back. >> thank you. >> kaplan's point as we look at bonds at 222 and the spread remains fairly flat, why do you think they're so insistent on moving in june? >> i think they think they have to move. we've looked at them for a couple of years now and we've got one rate hike per year and i think they're a little bit behind. i think they're leaning to it because the market believes them. they almost never hiked unless there was a 70% or better belief in the market that it was going to happen. if the market is giving them a free hall pass they'll take it. unless there's a major surprise in the payroll number. >> we get this done this coming

month and this discussion is about another one in september or balance sheet, where does it turn? >> it will begin to shift a little bit to balance sheet, september is a possibility. i don't think the economy is humming long enough to make that a virtual certainty. that may put it under question. you'll probably get a september or wait until december kind of routine and see where they go from there. we have to see if any of the political agenda gets work down. i find it difficult to believe they get much doing, but you have a couple of people on today said they believe you can get something done before year end. >> despite declines we looking athe month of may shaping up to be a positive one. which sectors outperformed technology in the s&p 500, beso

ids that, utilities, consumer staples, real estate, defensive yield sensitive stocks continued to carry this rally. i wonder if the changing dynamic tells us about where we're going. >> it raises a few questions. the fact people are going defensive about utilities rate hikes come up. you can get a yield, what will a comparative yield be? that tells us there is some mild consensus maybe things aren't quite as robust as people think they are. i think the economy is still in question here. we have to keep a sharp eye on it. ooze i said last week when you have a market that rallies back from a sharp low as this one did from wednesday usually it goes into a consolidation phase.

i do think they're probably due for a flattening out. >> jim mentioned narrow stock market these days even called it an echo of the nifty 50. is that concerning given what the whole period was about? >> having lived through the nifty 50 it is concerning. those divergences become a little bit of a problem and where all the younger viewers among the 50 stocks that would never go down, names like polaroid and avon so it's not a forever buy necessarily. >> your take on some of the geopolitical event you've been watching. you always watch that. are there market implications for the merkel speech over the weekend not being able to rely on some of our common allies and trump firing a tweet this morning against germany on trade and defense. >> the g7 meeting doesn't sound

like it was a lovefest and i think that is of a concern. somewhat unusual, we'll have to see you get other pickup and the strange thing is the president benefited from his trip to a degree. he got reasonably good headlines out of it. now he's back to face the other headlines about russian influence and collusion, it was not helpful to have merkel come out with the tone she came out with. >> she's also running in a domestic election. >> we'll see more of that, but it can put strain on what's going on. >> art thanks. art cashin. >> you're welcome. >> when we come back the next steps in pushing the president's economic agenda, what it means for the markets plus the venezuelan opposition threatening goldman sachs after the bank made a big bet on the country's bonds. we have details coming up. "squawk on the street" will be right back.

good morning everybody. i'm sue herrera. here is your cnbc news update at this hour. at least nine people were killed and 15 injured in a car pom explosion in baghdad only hours after 15 people died in an isis claimed bombing outside a popular ice cream shop in the capital city. the second blast went off during rush hour near the state-run public pension office. north korea airing video of leader kim jong-un giving field guidance at the test firing of a ballistic missile which reportedly took place on monday. state media says kim expressed satisfaction with the launch. manchester's victoria station resuming services this morning a week after 2 people were killed in an explosion at an arena concert in the city. the station which is attached to the arena had been closed for a forensics search. manuel noriega has died.

he recently underwent an operation after suffering a hemorrhage following brain surgery. he had been a key ally of the u.s. but was forcibly removed in 19 the and later jailed on drug and money laundering charges. he was 8 years old. that's the news update this hour. sara, back downtown to you. >> sue, thank you. shakeup in the administration this morning. the white house communications director is leaving his post as the president returns to washington from his first foreign trip as commander in chief. eamon javers is outside the white house. >> reporter: michael duffy submitted his resignation back may the 18th. he told the president he would stay on while the president was on that overseas trip that you were just referencing. he's back and the news it out that michael duffy wibke will b

leaving the white house. rumors are swirling further staff shakeup at the white house so we'll watch for that later on today. meanwhile the president is doing some of his own communicating this morning taking to twitter on a number of controversial topics, here's what the president's been tweeting so far today including this comment "we have a massive trade deficit with germany plus they pay far less than they should on nato and the military, very bad for u.s.. this will change." there president trump is going back on his apparent feud here with angela merkel of germany over whether or not the germans need to stand up on their own in terms of defense spending and the rest of europe as well. spending in terms of nato. and the bottom line in terms of gdp. "russian officials must be lamping at its u.s. and how a lame excuse for why the dems lost the election has taken over the fake news." the president pushing back the special counsel and russia investigation saying it's all fake news. finally "the u.s. senate should switch to 51 vote immediately

and get health care and tax cuts approved fast and easy. dems would do it, no doubt." the problem for the president there is that mitch mcconnell the republican leader in the senate said he doesn't favor that maneuver in the senate. they like to keep the filibuster in the senate. it gives individual senators power. they like having power so that's not a change that's likely to happen even under republican control and all of this happening sara as the president is now facing skraut know of jared kushner in terms of the russia investigation >> i guess with congress on recess the best news for the white house they can't have hearings on russia. >> that's good news and we'll see if they can reposition some of the staff here and sort of reset the white house a little bit, white house always looks forward to that moment where they can say it's a clean slate, we're moving forward and here we go. so maybe that moment is coming for this white house, we'll have to wait and see. >> eamon thank you so much for the update.

for more on everything that's going on there, we are joined by steven mayro and tony fratta, former white house deputy secretary. good morning to both of but. >> good morning. >> good morning. >> the question, tony is on the com chief stepping aside is this the first of many as the russia investigation picks up steam? >> it may be. there's lots of leaks and intrigue about what might happen to the white house communications operation and i think we're going to have to wait and see who you that plays out. mike is going to leave, i think it's a tough place to be a communications director or press secretary, because there are lots of voices and lots of people pulling in different directions in the white house. it will be interesting so see who they get to replace mike. >> steven let's talk about the germany relationship. i think there is an economic and

market implication for this. for instance president trump promised numerous times he'll shrink the trade deficit with germany. eight not clear how he'll be able to do that. even if he taxes german goods come into the u.s. why would germany buy american manufacturing goods? what is the strategy here qulond t beyond the rhetoric? >> the rhetoric is the strategy. in many ways it looks like president trump sees each and every tweet and headline as the policy in and of itself but is distected from the process of how government actually works. i think the real message out of the flap between angela merkel and donald trump in the last 24 hours is that it's an issue of not whether or not trump is going to have a major sea change and go full populous isolationist but keeps ala s s a

aoscillating between the factions in the white house. europe sees inconsistent leadership from the united states and to that, for them that's weakened leadership that they don't know if they can trust ever. >> who has got more leverage in this situation, tony? >> you know what, it's, it depends on what you think is, are americas interests here. that's been one of the things that's been troubling as you watch this kind of relationship whether it breaks down and sustains itself this way, if you think about it only in transactional terms, there is alegitimate question other nato countries paying the right share to contribute to nato. that's a legitimate issue. you see our relationship with nato as transactional if you do not pay we will not be there for you it misunderstands america's national interest in the security of not just europe but bodder areas and broader issues,

so look, you hate to see kefrage bei leverage used this way where we're not trying to get just money but the protection of vital interests. >> to the point of economic implications i don't know if it was a coincidence but angela merkel hosted prime minister modi of india today in berlin, appearing identify side by side, a message of unification. i wonder what all of this will mean ultimately for the u.s. in the world in terms of our economy, our contribution to trade, and to global growth. >> if you look at all cut through all the chaos and all the confusion coming out of washington and the white house, what we're telling our client at beacon policy advisers focus on the congressional lane which is health care and tax reform, which really at this point

actually with the white house in turmoil, it price more space to congress, but let's actually still in the executive lane is this whole concept of the america first agenda. for now the markets team to continue to discount the rhetoric until they see trade war or increased military conflict. but it's not just about what's going on right now the u.s. inside the context of the g7, but closer to home. recently we've seen the official announcement of the intention to renegotiate nafta, and coming up in the next week, we have an issue of whether the u.s. is going to slap big tariffs on sugar coming out of mexico. we'll see it come back to the u.s./mexican issue as well. >> we'll wait to see those tad policies from the administration. thank you for joining us this

tuesday morning. goldman sachs getting some blowback after it helped the government from venezuela. wilfred frost? >> julio borges comes from the opposite party of nicolas maduro has criticized after the company bought distressed debt of the state owned oil company president letter accuses of goldman sachs are making a quick buck off the offering of the venezuelan people suggesting the purchase was akin to helping to prop up the maduro regime and saying a future government should not honor the interest payment. goldman sachs bought $865 million of the bonds first issued in 2014 at 31 cents on the dollar. the company stated they had bought them on the secondary market from a broker and did not interat with the venezuelan government and added we we can

life there can get better and we made the investment in because because we believe it will. the bond were being held by the venezuelan central bank at the point of purchase, something gaxz had not been aware of and likely played into the reaction by the opposition poll significance borges who implied it benefit the maduro machine. it is small relative to goldman sachs assetagement aum of $1.3 trillion, $40 billion in emerging market. asset management is just 9% of the full goldman sachs revenue stream. guys? >> that is some good perspective thank you, wilfred frost at hq. when we come back a rough start for the summer box office. "pirates of the caribbean" leading the slowest memorial day

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and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. let's get to rick santelli at the cme group in chicago and get the santelli exchange. hey, rick. >> good morning and thank you, carl. i like to welcome mark skausen my special guest. >> my pleasure i'm here in salt lake city and beautiful day after memorial day. great to see you. >> well listen, beautiful day, is that going to lead to a more beautiful perception of the growth in the u.s. economy? we saw an upper revision of q1 gdp to 1.2, atlanta fed is handicapping this quarter at 3.67, so getting closer to 4%. your thoughts on gdp and gross

output, another area you pay attention to. >> gross output is a measure of spending at all stages of production. it includes the supply chain and that's where it's booming. i didn't accept that low figure for the first quarter of gdp under 1%, when you saw that gross output was growing at 6%, and that's because the supply chain b2b spend something growing tremendously and that's the response the first indication that business is really pumping up and very active about the trump administration that things can actually happen that would be positive and look at corporate earnings, corporate earnings increasing at a 13% rate. the fastest rate in six years, so that's an indication of an incredible bullishness on behalf of business, not consumers, not government, but business is in the driver's seat right now.

>> when we look at durable goods and we get orders nondefense aircraft which aproxy for some capital spending that's been on the stodgy side. how can you reconcile those two issues? >> gdp does not include the supply chain, the b2b spending going on to move the production of goods and services. that figure is positive so analysts on wall street now start, need to start looking at gross output and b2b spending which i highlight in the b2b, b.e.a. the government comes out with the gross output sta stick and it's ignored by the media but they need to because it shows business spending not just on fixed investment but economic activity could move the production process along, that's really expanding so that's very

upbeat and optimistic. >> you know, i like the sound of that, but i still see that the ten-year yield has been coming down because growth seems to be disappointing based on what we're concentrating on the most. in the last few seconds do you think some of the good issues you're underscoring will slowly tans mitt into the normal quarterly numbers we get with regard to gdp, your final thought, mark? >> the supply chain is the earliest stages of production taken does show an expansion and i think that will show up in final output in gdp statistics, so gross output b2b spend something what we need to be looking at. it's very positive. >> thank you so much for your interpretation, mark. david faber, back to you. >> thank you very much, mr. santelli. coming up on "the halftime report" an exclusive interview with leon cooperman, omega advisers ceo.

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turns out it was a slow start to the summer box office season. our julia boorstin joins us from l.a. with more. actually we're going to wait on julia, wait till she gets ready, and welcome our guest from fandango. good morning to you. worst in years. >> domestically it was pretty low. internationally, make not so much. pirates of the caribbean grossed over $63 million. over $60 million in china and russia. domestically, however, a lot of people barbecuing this weekend. >> what happened 18 years ago? i'm curious. things seemingly are moving only one way, aren't they, in terms o people's willingness to go to the box office? >> there are lots of options now. i think film critics are more

important and more influential maybe now thain've ever been before with so many options for your entertainment. options over the weekend, people are looking for quick decisions. they're looking for reviews. help me make a decision. do i go barbecue or see "pirates of the caribbean?" >> we have julia boorstin now from l.a. julia, what is it? netflix, barbecues, or a poor selection for the weekend? >> we had "pirates of the caribbean" and "baywatch." it's a familiar idea. will's nothing fresh about. they saw the trailer. the trailer was pretty funny but the reviews were not great really and "baywatch fell flat." pirates did well overseas. i think what we're seeing is in the u.s. there's a little bit of a franchise fatigue, but

overseas they're still seeing it as a market. there's a lot of potential for the studios overseas but in the u.s., people would like to see something new. >> erik, speaking of seeing something new, "wonder woman" is getting good reviews. what are the expectations there? >> i think the reviews are going to kick it up a notch. 96% right now. if it sticks around it's going to be the best that starts with the "man of steel," "batman" and "superman." franchi franchise fatigue, i don't know. i think it depends on the franchise. >> yeah. the whole sequel thing seems to have legs.

>> they like the extended universe now. >> julia, talk winners and losers. disney has the top two, "pirates of the caribbean" and "guardians of the galaxy." who else? >> "beauty of the beast" came out earlier this year. it topped $500 million which makes it the eighth film ever to top $500 million in the u.s. disney has about 20% of market share. so disney is definitely winning the year so far. but looking forward, warner brothers the one that has the most potential for the year. "wonder woman" has the potential not just for the film itself plus the $100 million-plus and what it could mean for the rest of the comics franchise. everyone would like to see "wonder woman" do well because it will expose the trailers for

the rest of moves coming out for the rest of the year. >> paramount continues to suffer. "baywatch" is a paramount movie. >> it is. >> we know a new person running the studio had nothing to do with green-lighting that film. >> it will take a while before the studio chief can have an impachlkt but "transformers." there's a fifth "transformers" film and there's a question of how can you do well with a fifth one when people are familiar with the story line then. >> erik? >> you look at the kwft fafas "fast & the furious." it's eighth. it tends to perform like a beast in the national markets. >> it's all about international. >> that's all about universal i

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the streets. i'm indicakate rogers. they're down between 2% and 3%. energy is also this month's worst performing sector as well as this year. down 13% since january. now we're going to send it back downtown for the stark of "squawk alley." >> thank you very much, kate. "squawk" aulie is live.