origin's new rocket factory with jeff besos sitting on the roof right here there is the sign that says rocket factory coming soon he looks pretty cool up there. >> he does. >> have a great weekend everybody. make sure that you join us on monday right now it's time for squawk on the street. ♪ good friday morning. david is off today the futures are just below fair value as markets study earnings from ge, honeywell, ebay, visa, microsoft, the ten year is back belo

cash flow turns positive in the industry segment is that enough >> there were notes about you are the bynes. i don't understand what happened maybe john flannery can understand what's going on that's an issue. things are trending to a $1.70 so much for the $1.80 and one time two bucks is it disappointing? i think there are people that felt that he would go out on a high what he did was he went out as

the business is and there's no shenanigans, there's nothing just a very honest look at a group of companies, health care but natural oil and gas, not great and terrible so air space, when you line it up against honeywell another 3% organic growth fabulous and you are what your record says you are. >> flannery starts august 1st. they do back the prior guide of 160. >> it's just that 160 is now -- i was hoping they would trend toward the higher. >> $2.19 is not happening? >> i don't think my view would be they have to take that off the table but it

was never really on the table. it was wishful and i did not think when nelson peltz who by the way he welcomed and praised some people were saying he never praised what peltz was saying and have to imagine that nelson is very disappointed this morning and i imagine there will be some changes. >> what is fair here and when i see something like the power division be bad i say to myself let's just bring those people in and say is this the way that we should have a conglomerant because if you can't deliver i don't want you in our bench. ge is very odd they don't like to be criticized the great once they accept it.

i remember when i sat down and i said dave i don't get this i don't get this do you know what he said i don't either that's my kind of guy. not like jim, how could you criticize us. >> let's do honeywell. beats by a couple of cents they raise 17 but estimated 709. >> i look at what he is doing and, you know, i just think that once again he is put, you know, he got dealt a really good hand. so let's give him that too and i think he wouldn't mind saying that which is that yes guilty or innocent a good hand but he's willing to undo anything

he will break things up. ge almost feels like a c conglomerant and honeywell is like a full house. you can't improve on it. the one thing about ge is its like failed and you try to throw them back. >> right >> a lot of stroils watch. we'll get to other earnings later in the hour. good news for the tech sector. nasdaq extends to 10 for the first time in almost 2.5 years installed dex the 41st of the year microsoft has better than expected results on last night's conference call. take a listen to this. >> i'm proud of the progress particularly the strength of our commercial cloud results fy 17 was a tremendous year of customer momentum with cloud ai and digital transformation: our

technology was of an intelligent cloud and intelligent edge and it's resinating with businesses everywhere. >> cloud up 11 asure nearly doubles: some made it seem like they had been written off completely and it's a rebirth. >> yeah. everything was great i happen to be a big fan of the cfo. very competitive guy but the call is terrific stock weaker today if the ftc wants to stop amazon i think they can take the 509 billion dollar company that is microsoft and merge it with walmart and then you suddenly have it

>> that what it would take and walmart is trying to get all supply dwroers move off of amazon to go to the cloud and you need the 100 million shoppers every week of walmart to get the data and you have 5,000 stores around so you have the distribution much better than the whole foods that amazon bought of course they're not going to get together i sent my analysis so he can have a fun friday. >> no response yet >> no: no response yet but he's cool but what it really says is this is what it would take to stop this company and yes, i

postulate derpo postulated it. but what it takes to stop amazon to have the biggest retailer in the world and one of the greatest software companies in the world, the greatest get together and it's going to be hah hard and that's not going to happen that's how far amazon is ahead of everybody home depot is so good but think about it you need web service and that's not going to happen even though i said i'm happy to introduce him to doug. >> we love when you play investment banker. >> why not costco is right there.

it's wild and whacky but that's what amazon is the great cloud company and the great retailer you need another great cloud company and another great retail tore stop amazon or else the government gets involved. >> jim is mentioning a story here the ftc is said to be examining pricing practices. the investigation is part of a look at the pending acquisition of whole foods and involves complaints that amazon is misleading customers about the discounts that it offers corey booker out with a warning for amazon the government needs to apply a critical eye to large companies becoming larger particularly in tech this consolidation all over the country is not a positive trend. i'm sceptical of this particular merger highly sceptical of it >> remember we broke up standard oil and we broke up gm and dupont you have to go back far to read about my days but gm and dupont

were together and the government felt they were too big and dominant more than 100 years ago. standard oil controlled the pricing of oil this is much more gm and dupont that didn't control anything but there was just a belief that that company was too big and they succeeded in government this would be amazing but what you would do is say web services has to be separated from retail. it would be monumental if they did that that's what they have to do. i don't believe it's in pricing. it would be hard because you'd have to say prime creates it and i do not believe that's a fair criticism: i think the government will fail this is not microsoft making you take the browser this is much different. >> the question is whether this becomes some sort of central pillar of a democratic platform in 18 or 20 right?

>> you're going against a company that's dramatically reduced the cost of everything that you used. the government raises the cost of your life and amazon lowers the cost of your life. who would you like to break up >> yeah. we'll find out. >> what do you think of that walmart? >> when david's not here i don't have time to tweet it as fast. >> earlier this week david shamed me into work. >> do we have that sound bite. this is what was said earlier if the control room can play it fast enough. >> oh, guys. >> no, not happening. >> maybe when we come back because it was -- i was supposed to have the day off and i'm here because i was shamed into working. that's okay. he's the youngest guy at the company. the older guys get to take the day off. former congressman barney frank on the 7th anniversary of dodd frank and the president's push

to mismantle that law. the earnings flow continues. gm, cat, m donalds, amazon. >> next week is so much fun.

i'm going to cancel friday. >> he's going noisz a couple.

>> right now i'll tell you i won't. >> it's all right. i feel bad. >> so earlier in the week david and me shaming jim. >> and here i am. >> in not taking today off. >> she doesn't watch the show so she may think i'm here for other reasons. she's not happy. >> with david not here we have to watch out for m&a >> yeah but david crushed me nick expected me to be here once i said on air that i committed. >> you are here for the 7th anniversary of dodd frank signed into law on this date. the white house and gop lawmakers trying to roll back since election day financial sector up. data shows that u.s. bank profits are near the precrisis peak with ten of the lenders earning a combined $30 billion

last quarter we have capital one to look at. >> we have a lot of regionals too. they're all making a lot more money with less loan growth. that's important i would put huntington bank and suntrust in that regions financial. all of them have limited loan growth but the bottom line is testaments are intact on these higher prints and i think that's very interesting can you imagine they get loan growth beth mooney last night, she is the ceo of key was absolutely saying given washington we're not getting the loan growth but key must be bought if they get loan growth, if we get the 3% or 2% these companies will prove to be fabulous bias i'm not kidding. there's real strength out there.

so they keep banks too small for making up to the tape that you're going through it doesn't happen. >> no it doesn't and jamie dimon illuded to that but it's very much in the present. it's hard to get a loan and i know i have a really descent balance sheet. it doesn't matter. they're not interested if you're taking some risk they only want to give loans to people that don't need them but if they look at what you're doing they really suggest you do it with cash this is not a tenable situation. they have got to start giving loans to people of 20% down that are legitimate you cannot get that on a house you cannot get that from most bankers in this country because the regulators don't like to see it it's time for change. >> yesterday you talked about amex you said it was compared to visa a little dull and now we have visa with payments of 12. >> oh my there's charlie sharp.

i don't think al would like that u.s. growth was 12%. remember china is coming they have done great things in europe this stock is going to go over 10 i say that because that conference call had no holes in it and thinks are accelerating in visa. if they get china really rolling. of course they have declared a trade war against us maybe it goes away but i really and truly love the conference call al is doing a fantastic job. he's very good. >> so you don't see him as bothered by the ten year back below 225. >> no because we're seeing capital one suddenly with a decline in charge offs i like the general tone of what's happening in the banking sector just obviously growth. when your biggest misses are colgate and the underperformer that is ge, i'm okay with that i'm okay with that the call was perhaps the most important call of the morning. now hi the release and i want to

pull it, i want to read this while the outlook in north america remains robust, the second half of the year, we are now also seeing more positive signs in the international markets. this is important. the previous quarter he did not see that this is a major change from a man that has been very bearish and he's saying that ending. the international orders are coming not just from the gold fairy and russia, but very good from russia but more importantly i think from shallow water drilling think mexico mexico is back >> a very important call. >> we do have an opec meeting in st. petersburg. >> you take a company that was the first to realize that things aren't coming back and fired a lot of people very early ahead of everybody else.

think it's going to bounce now saying it's going to be good and the record i would say is by far the best in the industry. >> stock as you can see up in the premarket. we'll see what happens in the opening bell before that we'll get kramers mad dash and countdown to the opening bell take another look at the premarket as we wrap up this trading week more squawk on the street from the nyc straight ahead do you t? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you! so we're doing it. yes! start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done. american express open.

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no matter how small or large before you dig, call 811. keep yourself safe. >> just about 7 minutes until the opening bell. >> the stock had run so much yesterday one of my absolute favorites just a terrific ceo came on air and i thought, i wanted to say to him, will you cheer up you just delivered a quarter of a lifetime but the problem is when you have a fabulous ceo like lance he's not going to say we're going to have another quarter of our lifetime. he's too conservative for that

you deutche bank saying you're going to downgrade carl maybe it comes down a little more but they are doing so well and i want to congratulate them. i think that they were too conservative but the great guys are conservative and lance someone of those great guys. this is a good long-term buy right here many of the cargoes are looking strong. >> it was more encouraging about the th quarter than the 3rd. >> yes and remember we have a lot of those situations where people are saying the third may not be good but wait until the th ibm did that union pacific has a lot more in the bank i'm willing to say i'm willing to look through that and ibm no because ibm does not have the trust of wall street right now union pacific earned it and if it comes any would buy it. what a power house company. >> it's been, people watching the transports at some of the recent record highs. >> they have been rolling over

as of late i don't like to see that the airlines are probably getting oversold because united continental did not deliver. i look at lance, i feel for him because basically, he came in hot. that was a dpraet number but some ceos come on air and they're not going to beat their chest and say we're going to repeat in the super bowl they don't do that belichick, he wasn't dismissive of you wearing a hoodie but he did have a belichick like quarter. >> fan expectations need to be managed. that's true. femontg bell in a w mes. don't go anywhere. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days.

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lease the e300 for $569 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. >> the opening bell in under minutes. it's going to get really active next week. 180. >> i want more people next week. there's a lot of snap decisions that are made by have many money managers do not take your queue from the stock market take it from your research, go home, listen to the calls, look at the notes next week has been a vast

mispricing people will buy up 3 people be sell down 2. i really urge people to take a deep breath next week. it's four weeks a year where people make a lot of mistakes and one next week. >> on this show we try to move past the noise of politics as much as possible but the headlines on the paper today involve things like trump asking about the scope of his pardoning powers looking into the pasts of mueller investigators. how much of this is worry about next week's senate intelligence hearing? >> it does have a nixonian feel to it. nixon was always trying to figure out who he could fire could he fire maybe the most distinguished person like mueller. so this is a multiple dampener stay focused on the companies that can challenge by being international. 3-m is not hostage to what's going to be talked about.

>> between the earnings and the hearings next week. >> it's going to be rocky and i want people to be ready for it maybe even raise a little cash because it's going to be rocky >> let's get to the opening bell on the s&p here at the bottom of your screen. at the big board this morning, it's hospitality trust celebrating their first day of trading today at the nasdaq ringing the bell in honor of their own iop. >> well, you know, it's a very strong theory, been the one that has walked away with all the share there but i love that whole group. it's a great secular trend. >> >> i was just going to say this week in particular the dow had a series of anchors around it's ankles. goldman, ibm. >> these are as they said in a cla

classic star trek they're wearing cement golashes and i don't like it. some are saying maybe we're being too aggressive but i would tell you on the other hand don't sell on this what a fantastic call. i know sky works could be down a little i like the way they put that quarter together but we're going to be heard. there was a very quizzical downgrade of a couple of the high growth oils over at city. taking eog down is a mistake oxy not a mistake. they are very poorly run. >> ge is not just the biggest dow lagger but the biggest s&p which doesn't happen too often. >> now you're selling it before a new ceo comes in and i question the wisdom of doing that do you think john flannery doesn't see what's happening and says this is no good but there's people that say i want the

middle market whose small and medium size business could do well look at cintas the largest uniform company in the world and they make it from small and mid sides businesses and it's on fire i come back and say do not give up on the american people and do not give up on small business. do not give up on international companies but some of these companies ge and ibm that have been serial disappointors take your queue from microsoft and visa they are very well run international companies that happen to be based in the united states. >> visa is the offset to ge today. the biggest gainer on the dow. >> visa is very well run i bet she spends one day a month at home. one day. by the way since i live next door to him until recently he spent about one day at home a month. >> yes that's the life. >> i had to clean his walk i was out there. not with a snow blower by the

way. i'm talking about genuine shovel >> jim, a little twitter, still above 20 but lower today for the first time after closing higher for 12 straight days the longest streak since going public. >> i do believe that what's happening is, i mean, people are starting to talk about that they have a better filter it was going to come in and take a lot of share he was talking about he's going to be second to twitter but no one is in the same tear as baseball. >> which earnings we will get as well. >> that's one where if we have this kind of negativity i monitored the last 7 quarters and you have the show last night

was extraordinarily good. >> facebook market cap, added market cap since the dollar was named in february of 14 almost 300 billion. it added market cap. >> well some guys, some executives are just remarkable now he's very unassuming and maybe i should call him by his full name but what he is is a competitor and what we have to mention is he is well ahead of where i thought he could be. i cruz critical of where he could be in the cloud. i said come on you're dreeaming and he said i'm not. i'm going to make those numbers. he's making the numbers. he's very impressive.

>> ebay, did meet for the quarter. revenue slightly above but they're talking about a marketing spend jim that will cause the current quarter to fall short. >> but they're still giving you hope i'm not a big fan of ebay. i like paypal, the spin off but i felt that ebay s when i read the numbers i was surprised to see the stock down because everybody was joyous about the second half. not unlike like j and j. a couple of downgrades to sell today. i'm not going to distinguish and give you the analysis because i believe it's so off point but i think ebay is fine it's not a runaway it's not great it's not anything that you would name your dog after. >> you feel the same way on clorox today too right. >> yeah.

ai remember when coal gate was something you could set your clock too but the coal gate quarter inspires me to recall how great the unilever call was. you know how we refresh at 5:00 in the morning and 5:30 he has to do two calls because he's that good. >> was it cintas you mentioned it's an s&p leader today. >> good. >> they're now the number one uniform by a mile. i did a couple of features on it for mad money. it's really okay that's what i'm talking about. people firing first and then thinking about that was a

mistake. so stay focused. i'm not going to say that for ge because ge i have to do a lot of work on because it's the type of thing where you're say as good the dividend okay and i know the dividend is okay i know the dividend is okay. i know it's -- i know. >> yes yes. >> see that video will be replayed that's a youtube, i'm going to play it on youtube right now and say what a clown cramer is. >> we're going to get a lot more information after the august 1st, flannery takes over whatever reset there is. >> and i believe, now look my charitable trust owns it i own it personally because we work for the company and what can i say, i'm all in and i have been all in and i can't own stocks all the s&p stocks to own, let's just say also comcast, parent company. >> one thing we're allowed to

own. i want to ask you about a report out of city today. they argue that bond yields in order to start to damage equities would have to hit 37 before you bring the risk premium, the long-term average on equity risk premium do you buy that? >> no, no. because the world and the stewart millers, he's fabulous, they would tell you we're absolutely fine here i don't think they would say that at that level because then you're starting to talk about a mortgage rate that maybe 7 that's where you're going to start blocking out people. now there is, remember because of how many you have to put down, these companies have to cap more gauano nomorgans but i that move you can talk recession but i'm not going. >> few people are. >> remember by the way, just so people know, again, i am a

europe bull and i think europe rate versus to go up but that would still not impact us as much of that. >> b of a this morning has a headline, chooses dublin as it's eu base post brexit which is going to be interesting to see. >> have you ever seen the book of kels at trinity. >> no. >> probably one of the great historical, i happen to love dublin been there multiple times. my wife and i have degrees from gennis in pouring. she succeeded. she has three or four grandparents from ireland. that makes her the right to be irish. >> b of a has that news, sustained that uber reached out to their vice chairman. >> really? >> to run uber. >> are you serious >> according to them. >> from bank of america. >> holy cow.

wow. i buy uber if she went i would, she's very smart. the top people at bank of america have been through. they walked on coals they have been through a ring of fire so to speak he's great johnny cash. >> you see the dow down 72 no need to tell you that's largely ge let's get to bob on the floor. good morning. >> happy friday. generally to the down side for most of the major sectors. let's take a look. it's been a good week overall. we have healthy rotation so you can see how flat the market open has been and you get a little far up in the leadership and start selling off a little bit and that is a very key story but also here is the land stories in north america. they went out of the way to

highlight how big the land revenue is up. 42%. fracking revenue is up 68% they describe the activity as robust oil isn't where everyone thought it was and hast true they went out of their way to talk about how advanced the fracking technology is coming and this is the gift that keeps on giving. it's driving down the price of oil and gas in the ground. this is one of the great technology stories and it just keeps getting better you see after a horrible year they had to keep taking the numbers down

we're reach a bottom in the last month in a lot of the oil stock. it's finally looking like there's some kind of a bottom there. we'll keep an eye on that. we'll talk more about oil next week meantime honeywell down right now but this is one of the monster performers year after year after year. historic highs yesterday for honeywell. good numbers maybe a little concern on the mar jins but the q-3 guidance is higher than the street overall what this company is is brilliantly managed and one of the most consistent earners, gainers, look how beautiful these numbers.

we have been complaining but you're look at these brokers they're doing okay and they had good numbers and very good comment about client activity the other day being much higher than anticipated e-trade said the same thing. a whole bunch of new customers higher customer activity was stronger you can see they haven't done anything all year but since june they turned around as well good report. up 5%. it's a bit of a surprise given the low volatility and low volume we have been seeing we're again seeing the characterist ix of this market which is the rotation

we have ch robinson with a mix yesterday. the comments from the ceo of csx yesterday fossil fuels are dead. that got a lot of comments it was a volvo like moment when they said we'll stop producing the internal combustion engine is dead but that continuing rotation on big names like banks we get other sectors moving forward. carl back to you. >> thank you, bob on the floor don has been listening to ge's earnings call this morning has some highlights at hq. >> so this is very much a conference call that's geared toward this idea of transition and if you look at the stock price premarket we do know, ge generally comes out with the earnings beats and marginal decliens it wasn't until later on during

the call when they pretty much reestablished their forecast and outlook for 2017 and then really declined to give any update on 2018 that you saw a little bit of that sentiment shift to the down side hence the 4% down move premarket that carried into right now as opposed to the 1% moves that we saw earlier in the session. during the conference call a lot of conversation split between the cfo, the outgoing chairman and ceo and the incoming chairman and ceo and they pretty much put a lot of color around what was going to happen with regard to why ge was being more closed lipped about what's happening in the future because of the transition plan they spoke on the call, specifically john flannery speaking take a listen to what he said with regard to the transition plan being put in place for general electric. >> as you know my official start date is august 1st and we indicated earlier that i'll be doing a full review of the

company and will be back with my views. we're on track with this process. i'm in the middle of a series that dives into each of the businesses looking at everything you would expect what is the market outlook where can we grow? where can we improve margins what returns are we getting on investment. >> now this plan of attack, at least plang out and forecasting and taking stock of ge is going to happen all through the next few moss back over to you. >> selling this stock is a mistake. you're betting that john flannery doesn't know what he's doing. that's been a not great bet according to my sources at ge. real bad bet. >> stock obviously off the

initial opening lows. >> yeah but john flannery that's the new sheriff in town. he's not going to take this nonsense where ever there's fat they're going to cool sculpt it. >> you'll keep us honest on any other headlines to the degree we get some on the conference call. the nasdaq aiming for an 11 day win streak. >> it's a little bit thuf morning though we are lower here the nasdaq up for ten straight days. that's the best win streak since february of 2015 if they were to go 11 it would be the longest win streak since in 2009 the four main stocks that have been the drivers of this over the last few sessions. microsoft which of course is strong on the back of those great results, amazon has been lower today after an advocacy

group lodged a complaint what's been interesting here has been the strength of health care biotech up 2% this week helped to drive the gains for the week on the nasdaq, intuitive surgical selling off a bit despite strong earnings. athena health continuing to rocket sounding very upbeat saying yeah we're listening to what our shareholders are telling us and not addressing the elliott management complaint directly saying the board will talk about that at a later date however he says look change is hard and this is going to be good for us. he ended with paul basically saying this is going to be good for us we're going to come out from this on the other side stronger. back to you. >> thank you very much sources telling nbc news the trump white house is expected to name scaramucci as the director. he served on the transition team

and sold his stake in sky bridge capital earlier this year as the white house tries to pivot on communication strategy. >> old friend from the goldman sachs day. known him for a long time and he has accomplished great things. there was a new york times piece a few years agatha had an interesting bio of him but let's just say he is different. >> look forward to working with him hopefully. >> i'm sure he'll be here a lot which is good and of course you're welcome on our show all

the time you can't suddenly say i don't know you can't say he's not my friend because he's now there what are you going to do can we just say we have no, it's not about friends it's about money but you do have a pre-existing life. what are you going to do >> that's well said jim. other news this morning, mcdonald's is unveiling the mc delivery collection. it's branded clothing including jogging pants, hoodies burger pillow, flip flops and onsie and it's part of the partnership with uber eats and the expanding delivery across north america. they're going to hit this hard it seems. >> he is a man not to be trifled with the stock is up 60 points. steve knows that i use a mcdonald's apron every day when i eat my salad so i don't ruin my tie that the tie the network gives me i sent him pictures of it but he's the man i sure wish that we could spend

time with him because there's nobody better. >> mcdonald's has not traded below the 50 day since you have to go back to january. >> remember they thought he was a one trick all daybreak fast pony and by the way, he has been known to, if he finds there's a bathroom not clean, that changes overnight. this is a detail man that understands technology and affinity the implicity of the menu which has given him the buy into the franchises and when i spoke to him he makes it clear. he says it's about mojo. >> we look forward to hearing it next week cmg is now 535. >> there was a debate about who

has the bigger and more informed and i'd rather not go there. >> we'll get trading when we come back with jim dow is down 81 we'll talk to jim stewart that says the president should not take the reagan approach to tax reform and he'll explain why we didn't have rick in today but take a look at how the bond market is fairing with the ten year below 225 ♪ no, please, please, oh! ♪

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>> so there were concerns about do it yourself being soft. they're fighting a trend where we need to know about whether housing spend has decreased. paint was not a strong category. it was above trend but not a great category when they reported last but i want to emphasize that people are paying 21 times earnings for home depot

and the multiple, the price to earnings multiple could go under 20 even though it a great company and everyone knows have liked it since, i have liked it. but i do recognize when they're out for a stock and they're out. >> good week jim. >> it will be at home depot later today doing some gardening. i'm going to do power gardening this weekend my kind of gardening is different for most people. it's really a gatorade plus. it's not, but then later on and friday afternoon it becomes very much of a mess. >> yes. >> you have to go. >> what's on mad tonight >> we're going to summarize the way that people think about stocks right now and have to tell you a lot of people will like the show. carl. >> good stuff. >> i made the right decision coming into work with you and david as always your rye nature

really made it fun. >> is that five or six. >> thank you for debating me. >> just leave it on 7. good weekend see you tonight. >> thank you so much. >> when we come back the future for dodd frank 7 years after being signed into law. we'll talk to the former congressman with the dow down 77 sd it's all yours.

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>> welcome back to squawk on the street mike at post 9 in the new york stock exchange david and sarah are off today. it's not just ge it's caterpillar and dragging down the index not so bad on the s&p. crude down more than a percent. >> we'll be talking about that on the road map another big day for earnings ge, honeywell, microsoft among the big movers ge sinking through early trading. we'll bring you more on why. >> president trump expected to name a new white house communications director and he is no stranger to wall street. plus happy birthday dodd frank we'll discuss the state of financial regulation with one of

the men behind the bill. barney frank. >> market moving lower this morning. this after the nasdaq notched it's 10th consecutive daily gain joining us is jp morgan global market strategist. what do you think of the earnings picture when you see what's come out of the oil sector this morning. does it tell you what you should be doing yesterday. >> it's going to be slower than the first quarter. not double digits. earnings are coming in around 6 or 7% but the most interesting thing about this earnings season is the lessenning about u.s. politics and focus on good global growth and weaker dollar so it's shifted much more to the good global story. >> you think it's less of a story in the second half.

>> if you take a look at what it's been for companies themselves at this pace in the earnings season fourth quarter we had around 16 mentions of trump, the administration, that lessoned to 8 in the 1st quarter and it's only been two this quarter so the focus is shifting. >> i wanted to go with those aren't positive mentions because of the hopes for tax reform and then now not mentioning it maybe it's a bad sign right? have they given up >> no, i do think there's much less expectation whether it's from the private sector, whether it's from investors. there's less hope of stimulus but there's also other positive stories. it's not that there's nothing holding the market here. >> you mention the global growth picture. also the weaker dollar related to that. you seen actually some weakness in the european equity index just recently. the german market, euro stocks down 4% from their high. not a big deal maybe but then the flip side is the strong euro so can we basically sustain

these levels in the u.s. market when you see that choppiness in that story >> so the growth in the euro zone started as being driven by a weak euro about exports. that was the story that's no longer the story the growth is being driven by the european consumer and european investment. we just have to tweak how we invest in the euro zone. it's not the international companies. it's a domestically oriented european companies. >> it used to be stocks or bonds was a question of consequence. for years now you have been able to do both now the ten year yield is back to 2.2%. are you ever going to have to make a choice? like right now, what would you do >> we would pick stocks. it doesn't mean we don't want to own any bonds whatsoever but we do think that bond yields are going to move higher

we can't forget the normalization on the balance sheet as well as the second half of the year. this is a pause for us and you should drift higher for the remainder of the year. >> so you don't think yellen last week, draghi this week, delaying their target. >> they're the last ones here in the race but i think that the tune has changed for the other central banks. confidence is the name of the game here now. they feel confident about growth and the labor market they just want to tow a fine line between patience and confidence and maybe had is typical. you see stocks decline more versus those going up when they beat does that mean we priced in what companies can give us this learnings season >> there's a fair amount priced

in and i don't think a lot is priced in in terms of political expectation but at this point there is certainly a fair amount that's priced in in terms of domestic growth. the upside could come from further dollar weakness. that could be an interesting catalyst for earnings to get revised higher later on do you think that's too high? that number is too high? >> if we look at the ten year and relationship between ten years and stock prices they only change around 5% >> to go from 22 to 3-7 it's ultimately low but wow that's a huge jump. >> well i think 5% is a historical number.

it's probably closer to 4% as nominal gdp. 2% growth and 2% inflation but we're still miles away from that miles from when interest rates become a problem for margins and earnings in the market. >> right now junk bonds yield 5.5% and then we have the stock market priced off of that so even if stocks would be okay it wouldn't be a smooth ride. >> would it be a smooth ride beneath the surface? some sectors won't take that in stride those very defensive sectors. >> thank you. >> thank you guys. >> take a look at the big earnings movers this morning revenue down 12 from a year ago. honeywell also on the top and the bottom line. as they exceed prior eck peckations that decline is sort of on a

price basis it's not doing huge damage to the dow today but you might argue otherwise. >> the stock sort of bounced off it's lows. you clearly had some idea out there on the street that maybe it got washed out and with an incoming ceo, august first, that maybe they would take the opportunity to set the agenda a little bit more as opposed to deferring it to november and basically leave the strategic questions hanging out. >> you wonder when is the kitchen sink quarter coming right? so a new ceo can be a tremendous catalyst microsoft, for example, but do you have to get through the first range where they lower everybody's expectations in order to build off a lower base? >> it's just the business mix that ge has right now and they

now have a sustained target. you can't really call it dirt cheap yet. >> the rebound in aerospace for honeywell. you wonder if that gives them ammunition against dan lobe that's been agitated for a spin off of that. now they can say look 2% growth there has been flat for so long. that has to be a bright spot for them. >> we talk about last hour the dow seems to get a lot of attention. every other day or so. goldman and ibm earlier in the week today it is ge and ties in with an earlier point about the market paying attention to misses. >> i think the hot poles show up more in the dow. you have 30 stocks it's going to be conspicuous but even if you look at the losers on the s&p 500 it's been earnings related disappointments

so it's not dragging it all down. >> it's down despite better than expected results this quarter powered by strong cloud performance. stock up 19% for the year. gentlemen it's good to see you both. >> thanks for having me. >> a little bit better than expectations the business is doing well from a cloud perspective. commercial cloud growth grew 56% versus last quarter. a lot of the investments are really paying off and you're not only seeing revenue growth but operating income growth as well and that's why people are excited about this story it sets the tone for an earnings compounding story over the next few years that's really difficult for any other company

at this kind of scale to replicate. >> you read the report the challenging in computing are being overshadowed what we hope to see them do is emmulate facebook and amazon and kind of creating that garden and selling people more stuff in that so if they can do that and tie that in with all the cloud effort that they're doing this could be a good stock over the long-term. >> i wonder if we're at a spot now where the overall end market for cloud services and software is growing so fast that we don't have to be too worried with amazon and google and everybody else and how long might that last >> everybody likes to make these things out to be mutually

exclusive. and these companies are going to help fuel that over the next few years. when you look at enterprise software companies they're the arms dealers of the digital transformation microsoft is well positioned because they not only have relationships at the enterprise level they have the scale too and that's very unique among all the players. >> can anybody ever catch up to amazon >> it may be hard but he's right. microsoft is in a good place they have great customer relationships. great corporate relationships. number 2 is going to be a big company as well. so they'll be fine. >> what do we think of the linked in move

the thing microsoft is trying to do is bring in new business applications where they can talk about what they can bring to the company. everybody has had office forever. but it's tact car length there's pretty exciting things they can do in terms of integrating it in with office as well. >> with a lot of agreement that the story has aways to run and people are secure in this growth picture the question becomes what do you pay for the stock? ultimately it's certainly a premium to where it has over recent years, microsoft does but still not quite up to where alphabet does or even some of the larger, you know, kind of fang names so what's a proper valuation for the company right now? >> well, you hit on the right topic and we have struggled with

that we're waiting for a tact departmentactical moment but there will be a chance to step in. >> at this point in time you're taking a long-term view around earnings compounding and you look at that relative to the broader market it's still attractive on that front >> thank you the ftc is probing allegations of discounting at amazon consumer watchdog says an analysis found that 61% of the list prices were higher than the prices for the same item in the previous 90 days

>> so this group wants the ftc to stop their purchase of whole foods until they end what they call this deceptive pricing which is if you go on the website and it says we discounted it from x and they say actually it was never x. nobody ever puts it at x, you walk into stores all the time and there's a quote unquote msrp and nobody seems to charge that so it seems like typical retailing practice and some don't care bt it. they care about the service. >> essentially somewhere this is a list price for this. >> it's a made up thing obviously. >> in many retailers as you say. what's ironic is on the other hand people are saying you know what this is going to be a

machine for predatory pricing and they're going to use their advantage in other areas in prime to bring prices down to uneconomic levels for the competition. so are they fake or excessive discounters. >> we talked about the deal earlier which raised the question if going after amazon is a platform how does the public respond when so much of it is inflationary they don't have a strong opinion yet but you know exactly what they're thinking they're concerned that labor is suffering as a result of what's happening with amazon.

especially when they're employing thousands of people. you saw how do you recount jobs at the bureau of labor and statistics they show you the make up et cetera, et cetera. if you work at an amazon fulfillment center, is that a retail job >> right. >> it's like how they put it in consumer discretionary. >> when we come back, happy anniversary to dodd frank. former congressman will join us to talk about the future of his name sake bill and health care hitting the pause button we'll discuss that and whether or not we're going to get tax reform jim stewart with us on that topic. dow is down 77 off the initial lows don't go away. a used car,

hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about.

what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. wall street slooking to a new administration to roll back some of the regulatory burdens of that law. joining us this morning former massachusetts congressman, 1-half of the dodd frank act it's good to have you back good morning. >> thank you, good morning to you. >> we had you on a lot over the past 7 years to talk about this specific law, how it's evolved, impact it's had. do you feel anything different on the 7th anniversary that you

haven't felt before. >> yes some reassurance. president trump was some what contradictory and ought to be a key that president trump was contradictory. he talked about how he was going to be tough on wall street but also how he was going to roll back some because it put an end to irresponsible practices so the question is what was his approach going to be and it seems clear that there was not going to be any sustained serious fundamental assault on the basic outline to the bill. to give a little bit more flexibility. with regard to the largest banks i don't think you'll see any

change whatsoever legislatively. the house did pass a very far reaching bill to cut back on everything no one is taking that seriously including the house members. but other than that i'm pleased to see there's reacceptance of it based on the fact that none of the negative consequences that people talked about for the economy in general have taken place. >> well, there has been criticism about loan growth but what do you think about randy as a potential top bank regulator at the federal reserve the american bankers don't believe that it is true there's been some migration of

lending from the smallest banks. they have overresponded but whatever i think we can make that flexible. but there's no showing whatsoever that there's a problem getting loans. goldman sachs established a new lending facility as far as he is concerned i expected when the trump administration won that they would employ people that would not use the power to the law as rigorously and by the way, i do feel this. one of the most important things that bill did was to regulate derivatives that had been totally unregulated and the irresponsibility was a single biggest damaging factor. essentially the trump administration said yeah, that

regulation is is going to stay in place so i think with others there will be a nice rigorous use of the powers but they'll still be there and i believe this about anybody else i don't believe they won't use their powers they're less likely to be as nervous as some of us were that bad practices but i have confidence that they are given to incur the kind of debt that could damage the stability they'll step in. >> you mention there was no legislative assault on main parts of the bill. does that apply also to the cfpb at this point? >> yes, i don't think that the legislation is going to touch the cfpb the house did but frankly the

house has been an outliar. it's interesting that one of the leaders of the house financial service committee as it was that was really outside of the consensus. the house bill would substantially reduce the ability of the cfpb. i don't think you'll see a lot of republican senators eager to vote to cut back on the consumer bill in any case i can tell you this, that can't be done on the whole to cut back on its powers. there are a number of democrats that represent states that donald trump carries some of them up for re-election. it's pretty popular. the public remembers what happened in terms of no regulation they remember bad mortgages and

they remember irresponsible derivative bets and aig in general and the consumer bureau so no i don't think that you'll see any consumer bureau scope. >> it's always fun to get former representative view of what's happening now. talking health care or what have you but as you look into the fall, do you buy the speakers arguments that tax reform is closer to consensus than some believe? that corporate rates are within reach? that this could get done this year >> i don't know. >> first of all they have to pass a budget because you can't do this by a 51 vote majority unless you have reconciliation so yeah they might be able to get to some agreement. whether or not you make this deficit neutral but at this

point they seem to have a serious problem getting a budge passed a year ago or in december i would have told you sure they'll be able to do this but the inability of this republican party to work together and it's an inability that stems from the president. you have a problem it's very hard to run a government competently if a substantial number of the people involved don't believe the government has a problem that's the problem in health care and with regard to tax cuts yeah if all we had to do is the corporate rate but there's a despate about how much deficit they're willing to accept. i wouldn't make any prediction frankly at this point i'm not sure that if a fire broke out in the senate that the republicans would get the votes to pull the fire drill october will be interesting.

>> president trump expected to name wall street phenom anthony scaramucci as the white house communications director as early as today he called him last night and again this morning and offered had him the job but there is reportedly concern in some parts of the white house that he doesn't have the experience. scaramucci is no stranger to wall street or to communicating for that matter. he founded sky bridge capital in 2005 and recently sold his stake at the hedge fund as he prepared to join the trump administration sold it to h and a i meant to call him to find out did that deal ever close because h and a has been under incredible pressure from the beijing government about overseas acquisitions. they got their credit lines cut and i tried to find out. try to find out late teerd press secretary sean spicer will reportedly stay on he has had a lot of possible

jobs >> it's a place holder right now. >> the institution that many republicans would like eliminated. >> when we come back, pulitzer prize winning columnist jim stewart is with us why the president should avoid a rigging approach to tax reform still under pressure off lows the dow down 43 points ge and others dragging the overall market down. looks like right now nasdaq win streak would end at 10 but it's ua ol.early and only down smal sqwkn the street will be right back stay with us han making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim.

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u.s. officials say the trump administration will ban american citizens from traveling to north korea following the death of university student who died in june after falling into a coma in a north korean prison secretary of state rex tillerson decided to impose geographic travel restrictions for the

communist country. >> a powerful earthquake shoot shook greece and turkey leaving 2 tourists dead on the greek island the quake caused a two foot sea swell that hit shorelines clark amid a dispute 800 palestinians gathered for friday noon prayers at the old cities lion's gate which is one of the points of violence and justin bieber has been banned in beijing because of past bad behavior the city said it was acting in the interest of imposing standards and cleaning up the domestic performance market however it did concede that the singer has talent. bieber is currently on his third world tour you are up to date that's the news update this hour i'll send it back downtown to you carl. >> sue, thank you very much. with the health care bill now stalled the gop agenda is

shifting to tax reform as you know it's been three decades since the last major tax overhaul and it's considered a must win for the white house. joining us is jim stewart. takes a look at whether or not jim you can go back to 86 and do what they did then you talked to dave camp, this is going to be an interesting series of columns for you. >> exactly one thing i want to say up front is that i feel, i don't care where you are in the political spectrum i think we need tax reform i hope this administration can accomplish something constructive i do and i'm trying to be that way but the reason i spotlighted reagan right away is that everybody loves this man, republicans, mild of the road, democrats. they all hail this so i said why don't we just go back and do it again and as i got into it i realized dave camp a couple of years ago tried to do exactly that and you run up against some really tough issues that were not there then that are there today.

the biggest one of those is there were some bright targets for raising revenue in 1986. massive tax shelters and huge investment tax revenue so you can use that to cut rates. there aren't that many loop holes and there's not a pot of gold and the biggest loopholes are for real estate developers so the main way that he raised revenue was to get rid of all the tax breaks for real estate developers. >> there were a million deductions before ronald reagan and all of them went away and we were left with mortgages and 401k. >> now irving wants to get rid of state and local taxes now the plan did that but that doesn't really get you very far. i mean, camp was able to get the corporate down to 25%. he couldn't do a lot with individual rates three brackets top 35 but then a surcharge so

didn't do a whole lot there. that is a tough problem that they're going to face now. >> broadening the base, everybody agrees this is a good idea in principle when you have a much broader group of people saying taxes it's less lumpy. when you rely on capital gains up and down like crazy broadening the base means going deeper into middle class and deeper into lower income individual people argued flat tax everybody should pay something but that's really politically difficult. >> one of the brilliant things about the reagan plan is it was primarily sold on the fairness issue they weren't equitable system nobody is talking about fairness now. the minute you start saying, if you just say here we have winners, here we have losers, the losers go crazy.

that was one way now people were saying you can raise revenue that immediately ran into a fire storm because the importers lose, the exporters gain you have winners and losers and all the losers starting with walmart went into full lobbying mode can't even be talked about they're going to have to strategically use some of the reagan things and then also, i hope the white house that president trump will say well i'm a real estate developer second and there's some loopholes here that i benefitted from he said that in the campaign and he knows how to close them so let's close a few of these. >> or if maybe comprehensive tax reform gets placed on the too hard pile where does that leave us you're talk about tweaking the corporate rate down. >> collecting and getting tough. >> this is a good point too because i feel that the administration and this congress has to do something here they have whiffed on health care now.

that is a huge issue and there's other big, big, big promise has been tax reform and boosting the economy and if they just fall into more in fighting here i think that's politically a disaster. >> the ultimate number really matters. they can only get down to 25%. that isn't, when you look at the effective tax rate look at just the companies that reported this morning. not a single one of the big ones is is paying above 20 or 25% i know the overall number is much higher but if you want to effect growth you must get lower than 25 or 20. >> i think you do. i think they can when they get to 15 i don't think so but there's another option does it have to be revenue neutral and how much growth is going to stimulate. reagan also cut taxes in 81. the deficit soared so i don't think you can count very much on growth but you can

maybe count on some and it might be possible to be totally revenue neutral. not anything like the crazy trillions. >> but when you go back and look at the tax revenue from day one from ronald reagan's presidency from the day he left, tax revenues doubled they doubled i mean, he cut taxes and yet tax revenue went up. now we had a deficit because he dramatically increased defense spending revenue wasn't a problem. >> revenue was fantastic and by the way that reform was widely credited with a lot of the incredibly strong economy which is why the revenue went up so much if you can deliver growth and you are going to raise higher revenue with lower rates no question about it but given the demographics and the aging baby boom population that's really a stretch. we have to use some reasonable growth molds here and we have

the tools now to estimate that so i would say if it's not quite revenue neutral that's not the end of the world you can push up the deficit a little bit but not totally blow it open and that's never going to fly with this congress because there's enough republicans that are not going to just lap the definite in order to come one the 50 votes. >> no one agrees on the cbo forecast anymore and people believe that agency has been partisan influenced. >> or they have gone outside their core competency. i don't know what they know about health care compared to budgets, right >> there's a lot of work that's been done by the staff on tax reform over the years. they know what they're doing and the optimist in me says it is possible it's going to take some political courage. take some political leadership it's going to be cutting breaks for the real estate industry and we may not get to 15 but it

could be way better than what we have now and way fairer and something that people can have some trust in. >> maybe after multiple attempts 86 was not reagan's first swing. >> it took three years i was reminded when i read your column. >> he also reached out to the democrats and it wasn't this my way or the highway kind of thing. now if the republicans have all the branches of government now so in theory they could ignore the democrats but why not listen to them a little bit too >> great piece. >> thank you. >> as we go to break take a look at shares in chipotle. 350 is a new low for the year. awfully close to multiyear lows. health con serns abocerns about restaurants. ge down year on year is one reason that stock is down almost 4% but off of the initial lows of the morning we'll go through those when we come back.

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down more than 3% in the morning. don has been listening in and joins us with more. >> it's not just muted in terms of guidance. there was no guidance given at all and that's one of the reasons you saw an acceleration of the moves to the down side and throughout the course of the premarket that is now carried over into the regular session of trading. this is a one keyword type situation for ge and that's transition it's the last time the current ceo and chairman will be manning these conference calls august 1st comes the time when john flannery takes over the ceo

job as well. so when we talk about the way these things are moving about there's a reason why these guys have declined to provide an outlook for 2018 sit because they're still trying to work on what that will be period john spoke on the conference call with regard to whether or not the company is in limbo with regard to this transition phase and this is what he said. >> jeff laid out an frame work for the year already so there should be no change in thinking around that. and you have our outlook for the year i look forward to a robust look around the company and not worried that we'll be dead in

the water in the meantime. >> he mentions november. they will spend the next few months trying to put together and resetting some of the expectation and guide lines for each of the multiple business units and as we approach that november time frame a lot of perhaps question will be around whether or not this company has provided the right business mix and whether those expectations are in the right scheme for the overall company ge but a huge number of questions left to be answered i'll also say this, it has been since 2001 since he took over that ceo chairman job, this analyst community has been along side him for 16 or 17 years now so there was a lot of at least on the phone call a lot of not congratulatory but more see you later, wish you well, that sort of thing so that came about the call as well, back over to you. >> a very long tenure although ge has that characteristic thank you very much. for more analysis we're joined

now by morning star thanks for being with us this morning andrew, just characterize exactly wall street's response here obviously some disappointment given what the stock is doing. what more do investors want to hear whether about the plan forward or the operation of the company through the rest of this year >> it's a good question. i think you said it already. people wanted to hear something about the 2018 outlook and there wasn't much about 2018 i think jeff talked down the numbers here in 2017 a little bit toward the low end of the $1.60 to $1.70 range i don't think people necessarily liked that i think we newcombing in that it was going to be a bit weak and nothing is really surprising there. the biggest issue is that they kind of left us in limbo without waiting for this november analyst day. >> so barbara with everybody

having to wait for more specifics, what do you think investors should want to hear about the details of a plan, whether it's about the business mix, the structure of the company, different points of emphasis under a new ceo >> i agree with everything that's been said up until this point and say that the market doesn't like uncertainty so i think that explains the downward movement in the share price today so it's pretty clear that ge feels comfortable that they're at least going to be able to do it early 2017 2017 doesn't look all that bad the uncertainty is 2018 and beyond it's a little bit more, let's call it detail and connected to ge's longer term process that will make the market feel the same going forward and it's negative talk and the company faces and i think investors need to be a little bit more comfortable and as

bright as we think it is and it's the opportunity to see. >> on that note andy, 3.7% right now, the negative cash flow last quarter had some people so worried started to question is that dividend safe is this put that to rest considering so many people buy the stock for income >> he always has had weaker first half of the year from the second half of the year, that's how we model it. that's how they talk about it. so i think dividend yield is safe here. we argued that and one of the worst days of his career and had to lower the dividend we don't think there's any real risk there especially as we do think cash flow is going to wrap up from here. >> barbara what's going to get

investors more comfortable with the valuation of this company? do you think they have to stick to the $2 a share guidance for next year hanging out there not yet afirmd or do you even think that just any clarity on what they're going to earn in the next couple of years will be enough to say at $25 a share, it's worth a shot. >> any sort of additional clarity on the long-term process that ge shares gain a little bit momentum than we've sewn recently at the end of the day this is a long credit cycle company and that comes through. >> all right thank you so much. >> now let's send it over to john forte he has a look at squawk alley. >> millennials are actually

doing with these implications for snapchat, facebook, instagram, more, the numbers might surprise you on squawk alley.

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we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. investors put more money into hedge funds than they took out. leslie picker joins us. >> that's right. finally good news on the beat. investors put $6.7 billion into hedge funds during the second quarter. it was the first time in six quarters that hedge funds saw in flows. what got investors so excited these days interestingly, it's the strategies that offer protection in a rising interest rate environment. think nondirectional beta reducing credit and

multistrategies. investors are pouring capital into computer driven strategies have been very trendy among lps these days they're chasing underperforming returns. so-called systematic strategies returned 3.17% in the first half of the year which compares with the more traditional human led hedge funds which gained almost 6% that's according to data and the returns net of fees still underperformed the s&p 500 index. now underperformance has been a key reason for redemptions over the last few years investors have opted to move the money into passive funds that have been generating higher returns for lower fees or private equity which has a similar fee structure to hedge funds but has been able to justify them with better performance. even if hedge funds start outperforming again, there is no guarantee that these investors will come back that's the warning in a new report out this week the research shop writes while the industry is firmly positive

for new flows in 2017, one can't help but to feel the ground is not as steady as it seems. so while the data is coming in positive for hedge funds in 2017, they may not be experiencing a complete revitalization yet guys >> fascinating picture of some of the flows, leslie we'll watch that that's for sure. thank you very much, leslie picker back at hq. dow is down 80 points. paying attention to the markets. we have to keep our eye on germany. the dax down almost 2% here. lowest since april the euro is having some impact >> the euro is roaring it's down 4% even the broad european markets have been outperforming the u.s. we'll see if it's a leading indicator or just a reflection of what is happening in the fx markets. >> i think -- >> it's both, potentially. >> i think it is definitely. at what point did draghi get

nervous? it becomes this push and pull with central banks >> a little game of chicken. we'll see if jackson hole is when they talk about that. >> that's right. he's coming for the first time in a couple years. as much as you can get in central. >> yeah. >> this is the world in which i operate. meanwhile, oil, too, has gone into the red speaking of jaw boning, whether it's rates or crude, there is an opec meeting next week in st. petersburg. >> why do we bother offering opec >> the football pulled away from energy stocks again. they had a nice bounce the first part of the week losers today >> my point is fracking, every time prices go up, fracking comes back right? we are now what drives oil prices way more than opec. >> that's right. 1:00 today >> good way to spin it positively >> when we return, the nasdaq trying to finish positive for the 11th straight session. we'll talk with jean munster

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welcome back to "squawk on the street." utilities the only sector in the green. this as oil prices fall on some renewed concerns about possible oversupply in the global markets. big laggers is transocean and chesapeake energy. a slew of these energy names are expected to report next week on monday we have petroleum and big energy will provide a bulk of the reports next friday, of course, with chevron and exxon due out before the opening bell on that day. so as we talk about energy, oil

prices certainly a focus to day as oil prices are down 1.5% overall for the day. we'll see if that sticks around for the afternoon. that does it for this hour of "squawk on the street. let's send it back downtown for the start of "squawk alley." back to you. >> all right dom, thank you for the good work this morning it is 8:00 a.m. at microsoft headquarters in redmonday, washington it's 8:00 a.m. on wall street and qua and "squawk alley" is live ♪ >> good friday morning welcome to "squawk alley." we're at post 9 of the new york stock ch