vironment whether you like what's going on politically or not this is an tount start talking about dignity in the country. >> dwroud have to have half of the country admit that trump serves his entire term they're not there yet. a lot of people just say look, this has got to end. we're not doing anything until we get rid of this guy. >> we had a decade and a half now of one side always resisting the president in the white house. >> thank you so much great to see you. >> thank you. >> right now it's time for squawk on the street >> the premarket is packed with news whether it's earning from amex, qualcomm, t-mobile, mario

drag hi speaking now the president marks six months in office today. futures are steady yields below 227 as philly fed comes in light road map begin with a stock rally. markets poised to open higher aztec stocks party like it's 1999 breaking through a nearly two decade old record. >> shares of american express, travellers and black stone all falling after earnings. >> and the amazon effect shares of sears are up sharply. the retailer announcing it's ken more products will now be sold on amazon. first up with all three major indices posting record closing highs in the middle of a nine session winning streak that's the longest in over two years as they break through the record close surpassing the.com record on march 27th of 2,000. that raised a lot of eyebrows. >> sure did. it's pretty broad based and yesterday was surprisingly much more biotech than tech there's lefation going on.

there's companies that are just being revalued on a daily basis. amazon being the most in terms of momentum, momentum, momentum and it is good momentum. yes it's true that regeneron lead the bio tech. yes it's true they lead the semiportion of the nasdaq but just be aware that this is very very broad based unlike the last time around when it was companies that surprised companies that were involved with the internet. this thing is involving almost every aspect of worldwide business and i think it's quite things out of a hat. >> not just proving the big three but the russell, the ndx, the mid kaps i think it was the xle for the first time since january. >> yeah i had summer associates last night to watch mad money and one of the senior guys just

said how is this possible given what's going on in washington? and you sit there and you say to yourself it never comes up and if it does come up, we are doing, we have worldwide growth. always amazing and it's playing into our company's hands it's rather amazing. it's really amazing. this is an incredible time where companies are saying that i know that we're in a country but remember we have tremendous, tremendous reach in europe and asia so don't write us off it's incredible to hear how much people are distancing themselves from our country even health care. >> well you have to have a global footprint in order to do that. >> it's happening. because remember during the period going into the great recession people are already

trying to diversify. brick is back. brick is really back and what's not back is the u.s. these companies are not saying hey, you know, u.s. is weak although you'll have some zero sums situations. t-mobile being zero sum. they are taking business with another company. it's remarkable to listen to united health that was breaking out yesterday and have them just say don't worry about us we are not connected to it it is not hurting our business. >> right but they're not doing business around the world. >> no. >> that's not an example of what you're talk about. >> even here they're setting up a dual situation when they say okay they're not going to do anything for health care but we have come up with our own strategy to deal with and do nothing so we have the companies saying we're not going to even

look at it nothing is going to happen and the international companies are basically saying we're interactive companies. we're not captive to trump and we're not captive to the democrats that southwest airlines that narratives are very aware of how miserable washington snchts a couple of points of concerns today the three month t bill is showing nervous about october. extensively debt limit shows that argues that highly levered companies, student with loans are not ready for normalization in short-term rates. that the risk of recession brablth about is more acute now. >> why would he say that, come on, man. bill has to get more focused the student loan problem, yes, it's been a problem.

look i love bill but that's an ill advised state. business has been very strong and more and more impactful. and student loans and data and much smaller in terms of reaching the individual. >> technology is solving so many problems that -- now i am in a

constant battle. it is not easy but when you're surrounding yourself with young people as i do at various places you hear these things and we had them on and they're attacking that problem so i'm just, i don't want to create new problems. am i worried about the debt situation yeah because it's pure chaos. i wish they would stop coming on and just get something done. roll up your sleeves, take your jackets off, remove the ties. >> disrobe completely? >> why not. >> go have a beer or something. >> whatever it takes. >> what happened to republicans and democrats having beers. >> not allowed anymore. >> the level of partisanship is conceivably something that is going to hurt our country in the long-term. already is. >> i'm waiting for the moment. >> the inability to actually come together to meet the bigger problems that we have over the long-term. >> which is why the outpouring of support from mccain. >> let's use this moment to

salute an american hero and just get together just in the spirit of this guy who obviously spent so time and deserves everything. >> great american. >> true. great american. >> you know this morning that john ledger basically said that at&t is just going all in time warner they're just happy to lose customers. i think ledger by the way, who might not, you know, john ledger, last night had a conference call that basically reminded me of why that company is doing so well he gave new earnings forecasts >> ask why they went first in reporting and he said because we're the best. >> i just love it where he says

sprint, gives it away and still can't compete. given the expectations people had they added more subs just generally across the board it was a good quarter for the company. cap exis going to be at the high end of the range for them and then it comes back to m&a which we talked about. i mention many times what sprint does and soft bank of course controlling sprint, trying to perhaps gain some leverage these exclusive talks coming toward the end with comcast and charter. he said i don't know >> it's the opportunity for

t-mobile and sprint to get together the numbers, the cost efficiency numbers are enormous that said the antitrust potential is also enormous and so they've done pretty well. what, they're up to almost 70 million subs and while he continues to try to gain leverage for the talks the best leverage is performance and t-mobile is performing so well. >> so maybe if verizon hired louis c.k. to be on the call it wouldn't impact. >> wouldn't help so much. >> conference call was beautiful until he bored the heck out of him. i said will you please make this call as good throughout: i thought it would be an hbo special next time. >> yeah. well. >> why aren't other people -- i've asked over and over again why aren't other businesses have ceos like active salespeople or

whatever it's usually the lawyers. he has a very shakespearean view about the lawyers. >> kill all the lawyers. >> yes. >> he had a nice video posted through the tweet going through the highlights of the quarter. it's a very unique way to communicate with investors. >> it's a very trump-like way. he has broken out the mode when you're talking about at&t is focused on big time m&a frankly every quarter, verizons massive marketing blitz looks like it might disappoint i bet it also cost him a real pretty penny. >> also sprint and even sprint would agree some of their promos are not sustainable. they're not meant to be responded to. >> the talk about a dividend as well gives you a sense that they really do believe that the company is going to be something that they're going to be doing a lot of wouldn't talk about it

even a small dividend but still most of the returns still proved share repurchase that's another positive sign now there's no doubt, it would be fast nating to see whether we ever get to this end game of consolidation that so many people have talked about where the continuing surprise would be the ability to take every single new customer so to speak every single point of growth that's it. we should get rid of this idea on a monthly basis but this fighter that just simply won't stop >> i don't follow. >> i know he's not i'm just saying we need you. >> at&t needs him? to what, fight john ledger >> yes yes.

>> i need you to diagram that. >> i just think that ledger is, you have to have somebody at his level to stop him. >> he's like the mountain in game of thrones. >> i was thinking belichick but i've never seen anything like him in corporate america there's no one like him. >> there isn't. >> when we come back, one stock is getting a boost from the amazon effect. may not be who you think also ahead the ceo of unio pacific. we'll find out what his companies earnings are telling him about the economy. nasdaq is shooting for ten straight wins today. the last streak longer than that we have to go back to 2009 more squawk on the street from post 9 in a minute think again.

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>> launching ten more products on amazon. the ceo said the move will significantly expand in the u.s. where market share has fallen over the past six years. >> it really is whirlpool. he finds himself up with the one company that's done the most to destroy his chain, amazon.

i think he had a lot to do with it oh you mean combined with amazon >> yeah. i think he had a lot to do with destroying his chain i'm not sure that i place blame on amazon. >> it's just a short squeeze stock. >> no, there's no share. >> he's still on some too. >> and cfo and home depot and it says sears is a fabulous share builder. one of the reasons why home depot is so great is it keeps donating shares. i have a way to do it. you get into the logistics secondary, it's already too tight and they are the last delivery of things too big for ups and that is just, the winner here is logistics. not lampert. what is he going to do go issue shares? to get back the loans he keeps giving. >> maybe he can sell his shares

on amazon too. >> that's an interesting idea. >> stock certificates. >> having delivered to your house. >> that's such a great idea. >> yeah. >> kind of like you put it right next to the catalog. shares of sears. are you going to go to sears this weekend and get some shirts >> no. >> what about some slacks? >> i'm not going to k-mart either. >> i don't ever shop there i bought an alarm clock there about ten years ago. excuse me where are you alarm clocks do you think i look like an alarm clock person. >> it's been a slow and steady decline for this company for a long, long period of time. there was so much hope back when it came to real estate value he has a descent job of being able to stay afloat. he has spoken at least openly about their need to have it.

they passed the time frame for all of that stuff. >> they say it's the natural interface. we're excited that kenmore has the functionality. consumers will love the convenience of cooling their home, starting their laundry and more using only their voice. >> yeah. because we see the difference is is rather than push the button to start the washing machine i can say washing machine start. well, that is really, i mean when we talk about the major innovations of our time. are you kidding me really voice activated. is it really that hard to push a button you get me someone that will put the stuff in that's different. my wife makes me do the laundry because it's a humbling experience to be in my house i've done it a couple of times i'm not going to say i'm a professional wash and fold guy but if alexa could wash and fold

that would be good alexa wash and fold. that's what you want >> but you think the rest of it is oversold? the idea that you can turn on the lights. >> it's a great press release. it's a great press release it gets the stock going, my kid versus now turned back on alexa. they turned on alexa. >> privacy issue >> they feel like alexa knows too much about them. it's like a spy organization >> there has been a question as to exactly when sit recording or not and what amazon's keeping. >> or what they give to law enforcement if something happens in a home and alexa is on. >> you still do it alexa start my washing machine what is that here's how you start a washing

machine. is that really the innovation? >> sometimes you have to use a dial. >> is that artificial intelligence. >> the drier is more push. >> it takes longer to say alexa start my drier than to push the button that is 21st century for you. >> when we come back, cramers mad dash we'll countdown to the opening bell we still haven't gotten to calls on nike and pfizer we'll talk qualcomm, amex and more when we return. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and.

it is so hard tofigure it out. and and there's really nothing you can do

it was eventful. it got everybody excited the conference call was the other way. it was a damper. i got the sense and promise earnings and they can overdeliver in the second half i would not sell the stock. >> you wouldn't? >> i would not sell the stock. >> any read through either visa or mastercard? >> they're trying to get off that train i thought they just don't want to be there. i think that they really kind of want to do the loaning look i'm not saying it's a tired brand. i'm just saying that it's just not like mastercard and visa they're going the other way. they're going to talk about how they are dominating the world and going from a cashless society. they're just doing okay. it's a blowout it's doing okay. hah sounds boring but there's no

reason to buy or sell. >> take a look at qualcomm a few moments from now stay with us on squawk on the street

the opening bell in just over a minute. the president marks six months in office today. align technology, nvidia act vision and win. >> also going international. it's cystic fibrosis. >> yesterday. >> that will be approved by everybody. everybody wants that. >> that's my dog enough said. >> activision. >> he's doing a fabulous job. >> well, that's china. so this is what i'm talking about. it is just, people and i am stopped every day about this. >> had something to do with anything going on in washington. >> right and that's why you can still have a rally and the reason why the rally is still

happening is people keep thinking well he has to pull these stocks back but it has nothing to do with these stocks. it's tpg celebrating their ipo at the nasdaq. another ipo. we haven't hit qualcomm too hard here jim. >> i felt that the key quote was they talked about apple, we had a strong relationship with am for many years we intend to continue and there was a short story spread rapidly by the bears if you take qualcomm at their

word. >> pretty strong and of course not getting paid by the suppliers to apple. remember the licenses were actually there and there's other customers. >> it's hard for analysts to estimate where that's going to come in and overall there's a bit of disappointment with the quarter but the question for qualcomm, the center of everything is how is this going to be resolved he did say on the call he this it will be settled at some point but there's a lot of litigation as we spent a lot of time talking to you about and we'll in the future talk about as well a lot of litigation back and forth between qualcomm and apple suppliers. apple of course to qualcomm, and jurisdictions around the world as well that are involved. >> it did have a feeling of how was the play mrs. lincoln. it really did. >> yeah. >> it is

the apple in the room. but i will say this, the fact is is that the stock is not down that much so somebody must think something good is going to happen here. >> the longer it continues, the one, i mean, apple is a, has the ability to go forever, right the richest company in the world. >> unlimited. >> richer than the u.s. government. >> so you need to figure out ways to pressure them to perhaps come to the table and settle maybe in the court of public opinion and obviously through the courts but that takes time. >> this is going to be resolved before western digital toshiba >> no, that one is going to be resolved sooner don't you think? western digital had such success so far. >> they keep winning with the superior court judge and i think that they'll win big at the end of july. supreme court is going to rule in favor of western digital and the lockup expiration of snap. snap has to get to these people right now. i need that press release.

square listened to me. there's 1.2 billion free to trade. that's a lot of stock. but 4 million shares owned by early investors. these guy versus to stop doing whatever they're doing and get to these investors and issue a statement saying we're not going to sell. do they understand the concept or do they say we're going to do what we want what's the matter? >> i liked it. >> he liked it he didn't do this. >> jim we got brent above 50 for the first time since june 7th. wti similar picture people wonder if the market is beginning to worry about availability of summer grade products what's going on here >> i think they'll lower the

boom on this whole thing and say some bad things but i believe it can go to 50 in the interim. this is in the hahns of the speculators and every time it gets to 42 or 43 they push i don't and say goiths to go to the 30s and then there's a big short cover and it goes to the 50s and our companies go to the oil and futures markets to be able to pay their bills. >> but your call about, you said mid 40s, you're right. >> thank you to my technician on this 42, 43, it's too shorted and they ought to start realizing there is a pattern here since this is happening now since february every single time. >> wow. >> you know, morgan stanley's market value is virtually equal to that of goldman sachs. >> do you know why that is people are starting to pay a

higher price to earnings multiple. >> back to that. >> did you listen to the call? there's a moment where he talked about all the companies and how there's not a lot of competition anymore and i thought that was a great moment it talked about a tremendous consolidation and it's why morgan stanley should be vald much higher. >> i'm surprised by that i hadn't looked in a long time. >> they made such a great case. >> i'm aware of the move up on the stock price and aware of the pact that goldman sachs has not been anywhere near it's 4 5 2 week high although it hasn't been that bad. >> it goes higher. period end of story. >> just look at how they're responding this week morgan stanley had strong numbers. >> key by the way, the best quarter. key bank had the best quarter of any bank and that's because the net interest margin which is what they all want was at 3.3 up from 3.13 and the stock is down.

you know, so it just shows you this group is still not light. still not light. >> all right jp gorman has to get to 100. just has to. >> beth mooney is coming on. >> yes >> what is it going to look like when it's light? >> janet yellen. >> sthu going to feel? multiple expansion that's what it is. >> people are willing to pay more or what >> bank of america and without rate hikes this group is adrift and janet yellen put a stake into this group when she did that thing when she was on the hill. >> then she is followed up by boj today which extends their 2% inflation target draghi and i'm quoting very substantial degree of accommodation is needed.

inflation likely to remain at current levels for several months. >> it's not going up. >> you keep talk sog what if you did get all of those interest rate increases >> nobody's perfect. >> nobody's perfect. >> greatest end to a movie. >> billy wilder. >> yeah. a couple of calls. >> it was the greatest netflix once again i just have to push netflix here for one second. >> netflix is not up today. >> netflix is not snup. >> i haven't checked it. >> nike is up though >> i love that recommendation. supply chain

mark barker who is -- i'm now calling him a recluse but he's doing things with flex to deliver new products so quickly. he is back to being number 2 dh is what i wanted. >> underarmor following suit not too far behind today up another almost 2%. >> wow i think that look under armour bottomed there's enough sports affiliates that are in under armour that i think it's fine. i am worried about home depot. people are taking this thing. >> depot down almost 3%. whirlpool down better than 4. >> people are just -- i won't mention the stock because we said we're not going to talk about it. >> this is the real world consequences in the stock market for real companies. >> right people felt they can't beat amazon. >> right. >> people felt they couldn't beat amazon and suddenly sears is amazoning home depot so that's what's happening.

the companies that can't be amazoned are going to keep diminishing. netflix said they couldn't. >> it's not just appliances. it's lowes and some other names in the building space in general. >> yeah. >> sherwin-williams although that was -- >> wow so the loss of market value and home depot is multiples of the entire value of sears. >> right and home depot doesn't come out and defend themselves. >> is it a threat? >> now you combine on amazon. >> the amazon geek squad. >> i don't know. home depot has been acting really doggy so maybe this is,

wow, retail is just awful. every day we get, just when we think we're called out we get back into amazon retail is, what can i say, you don't want to be there. >> unless of course you define retail as amazon in which case maybe you do. >> i don't know what to say. i think this is an overreaction but i also know that the market when the market hears a whisper of amazon it takes whatever it is apart and you just have to wait five days it's the five day rule. >> amazon trading right near an all time high. >> oil companies so far immune from amazon. >> they are. >> doing well. dow is within about 40 points of its all time high but as jim said depot and travellers are weighing on the index. >> very mixed open right now no

decision on the qe until autumn. the robust recovery is what he's talk about the food stocks are doing well in europe. unilever had good numbers in here and they raised their full year profit margin so some of the big names on the good side there why are we up so much? we're in the heart of earnings season and the numbers are holding up well right now. almost 9% for the second quarter. those numbers keep going up. close to 10% if this continues and revenues finally come back after 5 or 6 quarters with very

anemic revenue growth so it's not just buying back stock this is why the market keeps going up global economy recovery sals the big help we had. this has been a broad rally. july has been a terrific month across the board we have the obvious tech leaders that we keep talking about like nvidia and broadcom and apple. but there's other groups that are out there. the consumer discretionary group has done well whirlpool was doing fine until the open we saw but it was also generally having a good month here. big help to any industry material versus done well as we have seen the dollar weaken here so a nice move up in some of the

new, some of the steel stocks and some of the fertilizers as well like the mosaic right now the dow down 11 points. >> thank you very much for more on what draghi is saying at his news conference this morning let's get to steve at hq. >> good morning. going into draghi's press conference there was a trade on whether or not he would give us advanced notice or sense of when the european central bank would begin reducing quantitative easing he didn't do that but sparked a lot of activity. first we're going to discuss in the fall we haven't even tasked the staff with figuring out the next step. they're qe is going to end in september. no science of a pick up. very important for central bank with only an inflation mandate the recovery is strengthening but whenit comes to time to turn around on qe we're not there yet achlt l

a lot of the combination is still needed there is the u.s. ten year it was up and then it was down now it's near the lows at 224. sail thing for the german ten year first yields were positive and then they came back and went highly negative on the day what interesting is the euro hasn't given up what looks to be a hawkish trade. it went up above 115 and it's stayed there, up near 115.5 and remained there even while bonds have gotten a more dovish signal carl as you know the currency traders are the most fun but the hardest to understand. back to you. >> indeed. a lot of cross currents on this one, steve currencies, the ten year now 225 or just below. >> 224 it was at 224. what's interesting is reconsideration. i think when you go into a news event and you're waiting to hear something you hear it even

though it's not said i thought draghi was dovish on the outset we know he has to do something but a reporter asked is september 7th the next meeting of the ecb is that even the fall? and he wouldn't say that he's not giving an inch. he doesn't want markets to watch his words very careful. >> does jackson hole play in here. >> he has to be there is is my understanding and there's a lot of talk and commentary that maybe jackson hole he begins to prepare markets for that turn around he cannot turn around policy but we make a mistake if we go

too early. >> we'll come back to you later on rick santelli at the cme good morning. >> good morning, make your prediction okay this is just me but if you're waiting for the earth to shake on mari drag hhi and policy clarity i'll take the other side of that back and guarantee it. at least my guarantee. listen the markets rule, the euro rules, central bankers try to rule and they get away with it for awhile but it's very counter intuitive, okay? a dovish move by mario draghi shocking and the euro is higher. we are in a world of finance where a select few are controlling the most complex mouse trap ever designed it's called the capital markets interest rates, global economies, and there's no human that could do that job the markets are a bit weird but they're consistent look at a 24 hour bunds, a lot

of volatility. look at a one week, a little bit of a drift but if you look at one week of tens we have the same drift, as a matter of fact they look alike if you change the scale from in the 50s in the bunds to the low 220s for tens here's where it diverges year today bunds they settle at 22 now here's where all the funds are at people i know that have been trading foreign exchange since they were first invented in futures in the 70s send me e-mail and texts wow this makes no sense do you know what, it doesn't make any sense because a group of people can't hold it all together the euro rules and seems like it wants to continue to rule when down came right back up. 114 handle now it's at the 115.70 mark. probably going to get to 116 and beyond if you look at a chart starting in august that's the last time

the euro was here against the green back it's about ready to take off there as well. might not make textbook economic sense but that's why economics is the dismal science. back to you. >> thank you very much rick santelli you might see headlines on chipotle today cell phone video obtained by our nbc affiliate shows multiple rodents falling from the ceiling of a chipotle on tuesday that fols reports of more customers falling ill this week at a location in virginia. a spokesperson says quote we learned yesterday that mice got into a restaurant and we immediately contacted professionals and small structural gap in the building as the likely access point we're having it repard we reached out to the customer to make this right is an extremely isolated

incident stocks not responding too much down about .5%. >> all of the restaurant business these are unfortunate incidents but you can't have stock rally on this. people have memories, these kinds of things keep getting reported could guilty or innocent down more from here i guess so i don't know like i said, i have been a big supporter of this, i'm a big supporter because of the way that i thought there would be no more instances and these are indicative of something that -- >> it's a rat. >> it's a suboptimal video >> he's not moving that fast for a rat. >> rats in new york move a lot faster than in dallas. >> it's not a foot race. >> it's bigger, stronger, faster. >> it's a tough business >> it's been outpaced.

my charitable trust owns it. people are concerned that the same store sales and mobile order. and you'll certainly hear. >> executives in starbucks believe their market value will exceed that of mcdonald's because it was getting close for awhile and it has gone the other way dramatically. >> he's done a remarkable job and the expectations were so high and i'm sure kevin johnson can. >> you saw the tweet yesterday right? a picture of ackman ordering food of a chipotle. >> that's great. he has to go in every day. it's not good. it's obviously not good.

>> oil price doing pretty well here up above 47 let's get to jackie at the commodity desk. >> oil prices are seeing about a .5% gain today testing almost $48 barrel. continuing the strength. i saw jim cramer in the hall way and he said it's going higher. he was right the momentum is to the upside here these prices are supporting the stock market as well but to continue to achieve record gains we have to watch the energy earnings next week very closely. i do want to point out for the second quarter we did see oil prices average about 8% higher than they were a year ago so that's going to be a positive thing at the same time in june you did see that drop in brent prices from about 55 to the $45 level so that may have an impact here so a lot of the analysts i'm speaking to are saying $45 barrel is not a danger zone for a lot of companies if they could manage their costs through this we could potentially see, you know, in

line, with estimates or we could potentially see a beat from there. estimates have been brought down about 15% so if we do see misses it's going to be a problem but right now we're trading around 43-37. back to you carl. >> jackie, thank you very much we'll get stock adg thtrinwi jim in a moment. dow is down 13 don't go away. excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that.

>> that's a remarkable quarter it's a major turn from the way things were. a lot of people were selling a lot of stuff today and uri says go rethink your negativity about construction and the country and it's doing a little better loan growth isn't going to be that good. it's a company that's e-commerce in china they listen to it. goat a call from one of our people i didn't know the company. they were going to come on and explain what they do. >> i'd be interested to know what they do as well. >> yeah. look these chinese companies are what people want so we talk about them what a weird day

it was a takeover bid. you might want to look at that union pacific was really good. nobody cared a lot of companies reporting good companies and they were like we're just going to buy amazon, don't bother us and twitter over 20 and nobody has a single thing just keeps happening. >> by the way, costello coming on in the 11:00 a.m. hour. talk about tech and valuation. twitter 20.5. >> wow. >> not bad. >> they won at 28. that was the number. >> all i can tell you is is that this is very quitely becoming a bullish stock. >> we'll see you tomorrow. >> absolutely. >> and tomorrow. >> and tomorrow. that will be nice on a friday. >> have a good one with ge down again. >> when we come back we'll talk profits on the railroad business and the economy with the head of union pacific. later on the tech landscape with dick costolo do you is down three

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welcome back to squawk on the street markets, s&p and nasdaq did hit

a new record high briefly. dow down about 9 points. oil behaving well here above 47. that's where our road map begin with the markets but both the s&p and nasdaq breaking through a nearly two decade old record. >> the president has tough words from the attorney general and we might hear the next few minutes as 32 million more people would be uninsured under the new senate obamacare repeal bill. >> plus the rails are in the red. union pacific slipping after they disappointed yesterday. the ceo will join us straight ahead. >> first up let's get economic data rick santelli is watching the numbers. >> leading economic indicators for the month of june. a bit more up .6. that's powerful.

as a matter of fact it is the best lead of the year for the series we opened up in january with .6 but here's where i gets interesting. to find a higher number you have to go back to 2014 so it has been awhile hovering around 2 and a quarter for tens and euro strength continues and we're trying to digest the words of mario draghi if only we can figure them out. >> markets mix this morning with the s&p and nasdaq both hitting record highs already earlier the nasdaq hoping to extend it's rally to ten straight positive sessions for the first time since 2015 welcome to you guys. a bar raj of headlines how significant is it that we keep seeing markets move higher. not just u.s. markets but global markets too. >> investors are beginning to

realize there's more risk in bonds than in equities at least near term with yields extremely low in terms of pricing around the world. and improving with a global economic recovery and economic expansion that exists in the u.s. >> i find it odd that everyone is so focused on this tightening that may be coming bank of japan backing off a little bit and even if you take the u.s. tightening at face value bond yield versus basically still sank right so what is the big concern for bond holders here?

>> inflation is backing away and the momentum in the data is starting to fade so we moved from a near stall in the beginning of last year as far as the economy is concerned and we accelerated through the year into beginning part of this year but it seems that we have hit sort of a cruising speed here we are in a higher gear. the economy is doing relatively well this quarter we think but it's priced in bond yields are starting to fade and we moved back down to neutral and we cut from overweight to neutral so i they ultimately we'll see higher volatility and maybe some choppiness with lower respected returns there. i think it's more appropriate to be a bit more cautious. >> but in fairness people have been saying more volatility show

wrus there is huge risk that you can't to hold that if this right away happens. >> it's the reality of the normalization process and it has the potential to ebb away the prices of kbising bonds because we do have these periods of slowing since the economic recovery began as well as now we have an expansion of 2.5% a year on the state side it's at a relatively modest pace so the markets can digest it more easily and as the economy gets better state side and globally corporation which is are focused on cost containment, consolidation in industries are doing better. >> i'm just looking here again kevin to reiterate what we're looking at in these markets. for the first time in at least decades according to the journal, the s&p the msci europe

and asia haven't had a 5% pull back i understand that's why you think the picture could change but what got us here in the first place? >> lack of availability of places to go with the money. longer term yields are low by historic standards the economy has been improving and earnings have been improving so that's all really good stuff but i think it's largely discounted into price now and you're starting to see a waning of the momentum from last year so as we went from a near recession nary type scenario in the early part of last year that is good and it's all been priced in but some of the momentum is starting to come out now and that's being evidenced in the data we're evaluating. >> i'm glad you mention that

john if the president tweets about the stock market can he take credit for what's been happening? because it's interesting that we pressed higher even as the health plan was falling apart. how much is this a reflection of washington policy and how much is central banks and other factors? >> it's largely a reflection of central banks and other factors related to the economy i think it doesn't hurt that we do have a business friendly administration we get at least a tax cut. this could improve nicely kevin same thing for you guys? do you expect something coming out of washington more on the fiscal side?

it would be a push while the fed is relatively easy that would all be good stuff there's two possible routes we could go down. one is they don't get something done that's what is being implied by the health care debate and if that gets pushed off then a lot of the expectations that were discounted into price need to come out so that's kind of the push and pull the yin and yang we don't know if that's going to happen. >> we can watch the dollar which is now below 95 for the dollar index. thank you both this morning. >> thank you. >> as we mentioned today would be ten straight wins for the nasdaq apple for its part also up ten in a row more than 30% for the year for more we're joined by the global head of technology good to see you. >> interesting the run it's had in the light of recent estimate

cuts market not sharing those concerns. >> this is a great iphone cycle and we highlighted the iphone 8 would be delayed so it does look like there's a lot of innovation going into the iphone a lot of new technologies and then a change to the touch id on the home screen so i think those issues are causing a potential delay here in the iphone 8 in my view investors are looking through this. >> would you expect then guidance for the september

quarter they could decide we're going to have the iphone event later than we typically do they could say i'm going to get the 7-s or 7-s plus. it will have an impact i don't think it will be meaningful enough that investors care i really don't. >> so at 150 now where are we on the cash. >> it's 17 times earnings. sugar water company is at 22 the fang stocks, well, i think there is a revaluation going on at apple underneath all of this. it's not just iphone 8 there's a revaluation because i think what they're showing is this say company that is not going by the wayside the way that a lot of consumer electronic companies did blackberry, motorola, nokia. it's always been a fear whether it's market share or it's

margins and i think in both areas they have been very very durable and i think look at the s-8 from samsung it's selling lower i've seen reports 20% lower than the s-7 so i think when you look at apple the long-term opportunity here is the middle class is growing around the world. they don't sell here but they sell a lot over there. >> apple has been a top five vendor in china. >> they were. >> either two or three i think. >> so we have to dissect it. they grew over 80% in china in fiscal 15. so those come off and roll off and i think with iphone 8 they'll regain the momentum. we go to china and taiwan a lot

but the comments were everyone is thinking about the iphone 8 everyone is waiting on the iphone 8 and this is coming out of taiwan in china they can regain momentum in china and as china's middle class grows that will help apple. they don't want these $200 or $300 phones. that's what some people can afford they want the iphone. >> you mention concerns about obsolescence, people thought that the apple watch was a swing and a miss and yet last night intel basically throws in the towel on consumer wearables it has good featured if they can

even improve it to a point that you don't have it tethered to a phone that would be fantastic. it was going to move 70 million units or something in those levels. >> it was definitely disappointing but luckily we're apple. we have a lot of resources iphone still drives the business so just think long-term. >> did you just say we are apple. stockholm syndrome going on here. >> think of all the pieces to the puzzle that am has that others don't or can't afford whether it's the car, the home, the home pod, all of these different, i think it's tough for guys to compete. >> would you come back to the watch? >> if i didn't have to have it tetherred to the phone i love the concept and the payment technology is amazing. but even the gps to use it on a run for example you can't get anything out of that they updated a little bit sense. i had one of the early ones. >> ultimately i think lit have

4-g technology and then 5-g and you'll be able to use it stand alone. there's no reason they can't. >> thanks. >> some news on john mccain you might have heard has been diagnosed with brain cancer. doctors at the mayo clinic found it out while removing a blood clot from above his left high yooi on friday he's reviewing further treatment options which may include chemo and radiation. mccain's daughter said in a statement cancer may aflikt him in many ways but it will not make him surrender nothing ever has the president tweeted melania and i send our thoughts and prayers to senator mccain, cindy and their entire family. the outpouring is truly bipartisan. >> he's a fighter as she and everybody has said but it's hard, it's tough to hear. >> when we come back this morning the president's harsh words for his ag and 32 million more uninsured we'll talk to larry kudlow about

the trump agenda on the six month mark meanwhile sears up this morning on news the company inks a deal to sell kenmore appliances on amazon they'll be compatible with alexa. home home depot and lowes in the red on this deal we'll be right back. protect business,helps from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. the power of innovative thinking. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out.

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have investors been too bullish on a trump growth agenda and should there be concern about the fate of tax trade and regulatory reforms as well joining us to discuss it all and the fate of the agenda is larry kudlow good to have you. >> thank you. >> we did have the speaker say this week in a radio interview that the tax package will be written in the fall. do you buy that? >> yeah. i basically do i'd like to have them start writing it in august i'd like to have them do the health care stuff now. trump said yesterday you're not going home until you write a health care bill i would have amended that. you're not going home until you write a health care bill and a tax cut bill. >> how can they write the tax bill not knowing how much they're going to have coming out of health care. >> never an important point, with respect, never. all that is is a bunch of accounting and process. >> but like a trillion dollars worth of changes and revenue doesn't that make a huge

difference as to whether they can do overall reform or just a tax cut? >> if you believe that the congressional budget office can estimate anything much less demand for health insurance over the next ten years i'm going to buy you dinner and -- >> i'm not going to take that. >> i'm just saying i disregard all of that stuff. the models are terrible. the key point here is just do it it's a policy point. it's not a numbers point you can stretch these windows to 20 years and it was a one year window and then became a two year window and now it's a ten year window. should be a 20 year window i'm finn with that there's no law that says you have to use cbo. i'm just saying there's a lot of models out there that produce different outcomes the key is the growth. growth, growth, growth and look i think that health

care thing is something of a fiasco i really do and i'm going to tell you though i'm putting the blame directly squarely on the senate and a hand full of grand standing republicans i'm not going to name names unless you ask me. >> wasn't that great >> it was spot on. i mean, these are people who were voted to come in and completely change the obamacare health system okay and they have failed they have not done their duty. but you're larry i don't care about deficits kudlow these

days. >> do you see the source on that it says people close to, not even the white house, close to the tax -- >> i use that sometimes. >> well, i wish you wouldn't you're a great reporter. >> thank you. >> that article is wrong i can just tell you, i have been down there a lot and they're calling in the bull pen right now so we've been down there a lot. >> what i'm hear as good the same 15% or 16%. >> 16. >> on corporate. >> that's what i'm hearing. >> more than some would report it. >> right that was the campaign number with 15%.

repatriation and immediate expensing and you can throw in the doubling of the standard deductions for individuals. >> sounds like you need to be at the senate and not the white house. >> that's all you need. >> are they on board >> neutral though larry. >> that depends. that's the thing deficit neutral is better than revenue neutral. you're right about that. absolutely deficit neutral includes spending restraint deficit neutral includes things like asset sales that are not being calculated regulatory cross reduction trump hasn't gotten his big legislation. i grant you that and the health care thing was a fiasco. much better shape on taxes. >> we spent the last six months talking about lobbying efforts on border adjustment you make it sound like it's going to be a cake walk in three months the house has to do a

budge and the senate has to get rid of the health care thing but senators have been working with various others in the white house and they're doing their job. they're not that far apart see the beauty of the tax thing i'm not saying it's going to be easy overnight i am saying it could well be done this year that's a good high probability before it's up the republican party is badly split on health care we know that wall street journal. on business mostly and small business and the doubling of the standard deduction, they're basically united on that there's accounting issues. i agree. i just want to say six months

later i'm going to be -- i'm giving trump, first of all on a pass-fail basis which is probably how you all went to college. on a pass-fail basis. >> i didn't go to brown, okay. >> neither did i pass sale basis i give them a pass on a letter basis i'm going to give him a b all right when he gets his tax cut i'm going to move it to an a and i want to adjust give me a second his regulatory reductions have been terrific. his -- particularly in energy. we're taking russia out of the energy business in europe because of energy exports. because of opening up all the fracking and lng stuff he wants to do. >> although i will say the oil export and natural gas was actually of the last administration. >> that's correct but they did everything they could to use the epa to hold it back. trump basically. he had not succeeded in

everything he made some mistakes. i absolutely agree with that he ain't perfect never s. but to me my way of thinking he ended the war against business he has ended the war against fossil fuels and he is looking out for america. >> really quick you read the new york times interview last night sessions was the first senator to endorse him the first cabinet nominee. why would you say those things about the attorney general >> mr. trump is not in a good mud about that whole story i regret jeff sessions is a good friend of mine he was trumps earliest guy i don't know i'm not happy with it i think the interview with baker was a pretty good interview. i regret that. i don't think that's great. >> the do you -- are you concerned about his view of who the fbi director really reports to >> no. no carl.

my, i would like to see the administration when the issue and meetings come up to be more transparent. the phone books, the log books, get that stuff out as soon as you can. >> it's a radical transparency like the journal has been called. >> i would like that very much that's the theory when, you know, forecasts early and often but when you make a mistake get it out there and say okay i missed that one. having said that, i don't still see any case of collusion with trump and russia in the campaign i just don't see it. other people in the administration may have a harder time, or in the campaign may have a harder time so i agree there's an achilles heel thing going on there absolutely. i hope jeff sessions stays with ag i think he understands what trump wants. look i'm going to defend trump on the business things and growth things i'm going to defend him a lot i'm also going to defend his foreign policy first of all he complete changed the middle east story.

completely changed we have the alliance gone and we're taking necessary military steps in syria we took mosul, that's huge regarding europe i thought the paris climate accord was a bad deal for this country. these are things you do when you're in boom time and maybe the evidence is better i'm not saying there's no climate change i'm just saying we don't know the models yet and i think trump made a bold move and finally on trade, a lot of people worry about trade wars, as we talked, i have disagreed with the president about his trade views and i'm a free trade view however look what he has done. we have not pulled out of nafta we're renegotiating and modernizing a 20 year plus treaty that needed it. i kind of like that. i think the stock market likes that too because all of this loose talk about blanket tariffs

on german cars and steel that's not going to be helpful to the economy. >> there's more work to be done there. i'm going to play something optimistic he gets a pass for those of you that went to brown and i'm going to give him a b and if he gets his tax cuts move it to an a so far. >> we got to go. >> thank you. >> thank you for having me did you get an a >> i got some and i got some cs too. >> no way. >> accounting. yeah i barely passed by -- soft ball i almost failed. i'll tell you the whole story. >> all right when we come back in addition to that we'll have the ceo of union pacific after his company reported earnings. investors focussing on the companies cautious forecast and o.j. simpson is about to find out if he's going to be a freeman come october 1st we'll go live to the rrti fily ero.e j. is being held. ry

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>> arizona senator john mccain recovering at his home after shocking the nation with news that he has brain cancer his doctors say he has glioblastoma that was linked to the blood clot removed above his eye. south carolina senator lindsey graham spoke to mccain last night. >> he said i'm going to have to stay here longer and take some treatments and i'll be back and we talked about five minutes it's going to be a tough week for him but he says i've been through worse. >> the israeli military says it shot and killed a 26-year-old palestinian attacker that tried to stab soldiers at a westpoint checkpoint they called for mass protests on friday against israeli medal detectors placed at a contested jerusalem holy site. transit officials are chewing on the notion of a subway snacking ban. it follows a trash fire on the tracks that crippled service on monday the food ban wouldn't be fair

but the nta called them incendia incendiary. >> good morning to you the department of energy reporting natural gas figures for the week we got an injection of 28 billion cubic feet this was actually less than expectations it is a bullish number less than what we saw last week. less than last year at this time less than the five year average as well. that's to be expected. this time of the year is when people crank up the ac natural gas prices crept over that $3 mark again total invenn story what the traders look at. they're just under 3 trillion cubic feet now at the same time its about 6% higher than the five year average. up 4% for the week but they're down 15% year to date. back over to you

>> thank you let's get to washington d.c aman from news out of a press conference with the attorney general. >> the attorney general saying here in a press conference that he is not going to re-sign despite comments from the president of the united states yesterday that the president thinks that sessions was unfair to him by recusing himself in the russia matter. the president also said he thought the attorney general should not have recused himself in the situation and didn't need to do it and he would have appointed somebody else if sessions told him he was going to do that sessions was appearing in a press conference about another topic all together it was interest baugz you had some of the key players in the trump saga all standing side by side you had the deputy attorney general and acting director of the fbi, all side by side here on stage all have been criticized by the president of the united states sessions saying he wasn't going to re-sign he enjoys the job and he'll do

it as long as is appropriate i believe we have sound bite from what the attorney general just said. here's what he said a moment ago. >> have the honor of serving as attorney general it's something that goes beyond any thought i would have ever had for myself we love this job we love this department and i plan to continue to do so as long as that is appropriate. >> as long as that is appropriate. you heard the attorney general say. not clear what he means by that or what his judgment would be of when it would be appropriate to step down. a lot of speculation by the president. also similarly asked about this and he very much wanted to focus on the topic at hand today to show that the department of justice is continuing to go out there and hunt down bad guys on the dark web in the case of this particular announcement here today. not very keen on taking questions about what his relationship is with the president of the united states

sessions also not very eager to talk about mr. trump personally but just saying it's an honor to serve as the attorney general. he intends to continue to do so carl. >> it's david. bloomberg reporting right now citing one person i want to make it clear familiar with a probe that special council mueller is expanding the investigation to include possible ties between the trump campaign and russia to also examining a broad range of transactions involving trump's businesses he didn't say in anyway he would consider firing mueller. >> the president very much seeming in the comments to try to put a ring fence around the investigation saying this is about russia nothing more he said he thinks it would be a violation if mueller was to dive

into the trump family finances here he did not come out explicitly and threaten to fire mueller if special council goes beyond that particular perview but that seemed to be implied in the comments and the president has the authority to fire mueller. what would happen if the president did zooir decidecide m is unchartered waters here not clear if it would be followed in the department of justice. what impact it would have on capitol hill but he did seem to be sort of toying with the idea in that interview just yesterday if mueller goes down the track we'll have to see how long his patience lasts for this investigation which clearly bothers him significantly. >> that's for sure jane wells is with us from outside of the correction facility where o.j. is being

held with more jane. >> hey, kelly. o.j. simpson will have to convince a parole board that he's been a model inmate in the nine years since being convicted and what his financial plans are if he is released. we do know he has about $300,000 a year in pensions and that's money that is exempted from the judgment in the civil case involving the murders in the civil case but the multimillion dollar judgment plus interest taxes and other cost could top $80 million. now simpson described himself as a friend to all on the inside. >> i would speak to more inmates than anybody here. inmates tell me their stories. some of them tell me their crimes and as far as burglary which i'm here for, robbery, i should say, they told me every kind of story you can hear guys robbed banks, robbed casinos,

one guy robbed a gun shop which i thought took a lot of guts. >> now in the last year, interest in o.j. simpson skyrocketed after fx won an emmy for its show the people versus o.j. simpson followed by an oscar for espn's documentary for the chamber of commerce it is a boom for the hand full of hotels and restaurants. this economy depends on ag, mining, the prison and even the tesla plant but they have debated whether to cash in on the simpson saga. >> they put them on our love lock plaza but we have been told that we should do o.j.'s picture on the back with love locks on it. >> there's still time to make these because the bigger crowds could even be out here october 1st. if simpson is granted parole that would be the first day he could walk free and guys that would also be the day before the 22nd anniversary of a los

angeles jr. finding him not guilty of murder bachbl back to you. >> which one is more severe -- robbery or burglary? it's like a crash course here for everybody as we follow this along. >> yes now he got parole earlier for some of the charges. he was convicted on 12 he's still in here for the armed robbery charge and i don't think it's the kidnapping but apparently they all talk to him and as you know everybody in prison has good friends. >> jane who has covered this story since literally the beginning. we'll come back to you interesting to see what happens at 1:00 p.m. eastern time. when we return from break shares of union pacific moving lower as the company rorts an eaeports as beat lance fritz is with us dow did take a tumble on the bloomberg headline we're down 55 now. whoooo.

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811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. is. good morning. >> good morning. thank you for having me. >> we've seen encouraging data points on rail traffic on port traffic. do your results and does your forecast ratifying this increasing bullish view? >> we had a very good second quarter.

5% volume growth is always a good thing for a railroad to leverage we also generated excellent productive $110 million and we saw that growth, it was concentrated in frak sand but other markets were relatively strong. >> close tore flat in the third quarter, what's in the third quarter. third quarter is facing a little bit more difficult comps than in the second >> it could be more like flattish against last year's third quarter. >> lance are you guys picking up any frustrated customers from csx? >> kelly, we're focused on making sure our service product for our customers is as good as it can be. the best in the marketplace and we have our hands full doing that and we're doing it effectively right now. as you can see in the second

quarter. >> do you believe that their transition to decision railroading is a wise one? is worth the risks it's causing here >> i won't comment on some other railroad's business plan or business approach. if you look at union pacific, we have been at this for quite sometime over the last 15 years or so we have generated 2,700 basis points of operating margin or operating ratio improvement and we have done that through a disciplined approach of pricing, of productive and of finding good return volume growth where we can we anticipate continuing to do that we guided that by 2019 we're going to take our current 63 operating ratio to a 60 plus or minus by 2019. >> yeah the long-term goal remains what 55? have you put a time line on that

>> we have not other than to say we'll get there as quickly as we can. a quarter like the second quarter of this year is demonstration of what we're capable of we generated 3.4 percentage points in the operating ratio and really stout productive. >> mr. fritz coal shipments were up 25% year over year. do you expect that kind of growth to continue i know the administration has been favorable to the coal industry of late but there's a natural progression toward natural gas that we have been talking about for years. one would expect that's continuing and therefore coal shipments would not be at that rate >> yeah, david we expect that coal is going to be about what it is right now for the foreseeable future there's more head winds versus tail winds as regards to coal not with standing what the

current administration is doing. clearly it's helpful when they take a more sensible approach to the regulations that the epa has been applying to the coal industry and what i mean by that isn't deregulating wholesale i just mean more cost benefit analysis being more thoughtful about the overall impact on the u.s. economy as fundamental changes are occurring to how we generate electricity but you put that all together and we believe that coal is going to be part of the electricity generation network for a long period of time right now it's generating something like 30% of the nation's electricity and that feels like about what it's going to be as long as weather and natural gas pricing continue >> there remains a, this is a little step removed from your business but there remains a big debate about electric vehicles in this country. how they'll be charged and what that will eventually do to electricity demand and coal demand where do you see that dynamic

going over the next few years? >> we have been keeping a close eye on economist vehicles for a number of different reasons. there's changes in the truck market and that could be a dynamic we have to deal with also what might happen to the finished vehicle market as more vehicles become electric and autonomous there's a lot of moving parts there. it could be a good news story for us and head wind for us at some point in the future there's a lot yet to play out. there's one thing that has us pretty excited and that is the technology that goes into autonomous vehicles for the road can also help us both in terms of where we use vehicles lik onramps, that could become automated guided vehicles or even some of the technology as regards to how we run our network. >> if you want to understand the u.s. economy it's hard to be in a conversation with you. lance we appreciate your time.

thank you very much. lance fritz. >> i appreciate it thank you. >> all right let's send it over to john forte for a look at what's coming up on squawk alley. >> former twitter ceo also current ceo is going to join us. techs at all time his.gh does he trust it what's coming next that's coming up on squawk alley. experience advanced safety technology at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer.

are investors turning on the central banks. the fund managers that say policy is too stimulative. find out me oronline nor "squawk on the street" coming up. ♪

if you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go? ♪ expedia. the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. one item not getting much attention as perhaps it deserves, the rapid growth of fee that's banks are charging their customers. bob pisani joins us at post 9 and he's got more on that story. >> and we move post 9.

we put it right over here. we're standing next you to this is a really amazing story the banks are reporting the numbers here we got this boring line called noninterest income it's a term that fees that banks charge customers for businesses and consumers. it's a business that is just growing like mad so for some of the large retail banks, it's close to 40% of the income look at these numbers here some growth and that makes sense. they charge for fees for years so they come in all shapes and sizes. you're a consumer. you know what they're like, transaction fees, insufficient fund fees and credit card fees fees for the deposit slips even. look at the typical ones a lot of complaints about overdraft fees, for example. the average overdraft fee for a checking account is $33.04 in 2016 that is down from 2015 before that, it had increased for 17 straight years. now that adds up to a lot of profits for the banks. j.p. morgan made $1.9 billion from overdraft charges last year wells made $1.8 billion. this despite the nakt by law

bank customers must choose to opt into a atm overdrafts. then there is atm fees, another one. fees are are high, particularly if you're taking money out of the bank that is not your own or out of your own network. so bank rate.com found that the average withdraw fee, $2.90. your own bank on top of that charge an average of $1.67 more. that is a 2% increase. you put it all together, the average fee withdrawing from a noncustomer bank is $4.4.57 tha a record high. some get the fees waived you get the message s there any limit to how high they can go? there isn't. it doesn't appear to be. despite the existence of the consumer finance protection bureau, there is no regulatory limit on what banks can charge for service fees on department accounts so guys, if i want to take out $20 from the bank and they want to charge me a $20 withdraw fee,

there is no legal regulation that prevents them from doing. that. >> it doesn't take much to say they shouldn't ab loud to do this get people behind them. >> clearly reputational risk and there had been attempts for lawsuits saying these are unfair practices. for credit cards, there have some restrictions on the kind of fees they can tharnlg for credit cards. but just an ordinary bank account, basically they can charge whatever fee the market bears. >> like the airlines >> exactly >> just like the airlines. >> exactly >> bob, thanks >> let's get over to the cme group. rick santelli with the santelli exchange rick >> kelly, i don't know if we have anything to talk about. let's see. why don't we start out with the quote yesterday, still ringing in my ears we all said it nobody says it like jim grant. radical monetary policy gets more radical monetary policy drogy? >> you see that box right now. he's got a huge balance sheet which is the size of the fed's >> bigger. >> bigger? yes, you're right.

dpenlding on the currency exchange and he's now using that to manipulate the markets so now whenever he says some word that somebody didn't think, you get a huge move out of the market he is the first, second, third and fourth most important person in the european bond market. he's probably the second most important person in u.s. bond market after janet yellen. that is the problem with radical monetary poll sichlt they're infectively taking over the markets. >> when i talk to many men and women that trade in this room and many that used to trade in this room trading somewhere else, i always hear something like, well, it doesn't make sense. our fed is kind of trying to do the right thing and snub our currency is down this is the radical policy you no he what many traders tried to short the euro because they expected mr. dove it's easy to expect mr. dove he always shows up but look what happens. the euro goes the other way. they recycle

they push the market in areas that are counter intuitive >> i agree with you. i think you have to keep in mind when you look at the euro strevength, you have to look at the fed, too the fed argued at least at some point that they were going to raise rates four times that should have led to some more movements in the market but now the market is saying, no, you're not going to do that the fed talked about reducing the balance sheet they're going to reduce the balance sheet september at a minimum amount it's such a push-pull. the larger issue is the whole discussion of the market starts with one central bank, the ecb, ends with another central bank, the fed. then maybe if we have time we'll talk about inflation, gdp and the other traditional banks. >> you wrote something that i really like. you wrote that regulatory collapse is a big benefit to the market give me the short version. >> three things are in the trump trade. health care, taxes, which consumes about 95% of everybody's discussion

the third thing is regulatory or a business friendly environment. by most metrics, regulatory pace is down by records right now >> it's what i've been saying all along. it's not necessarily what he may do with his administration, it's what they're not doing adding more regs or getting rid of some. jim, thank you carl, back to you. >> he'll have to be -- >> rick santelli when we come back, twitter ceo on twitter's soaring stock, above $20 da di vuaons and more last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and.

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stocks mostly lower. material stocks are the biggest laggers. sherwin williams and newcorp which reported earnings. shares down 1% so far after second quarter profits missed estimates. the steel maker said imports continue to negatively impact u.s. steel industry participants so keep an eye on those shares that does it for this hour of "squawk on the street. let's send it downtown for "squawk alley." >> good morning. it is 8:00 a.m. at qualcomm headquarters in san diego. "squawk alley" is live ♪