>> what's your town in connecticut? what's your drive every day. >> mansion. >> i'm glad you're even able to answer that question make sure you join us tomorrow squawk on the street begins right now. ♪ good mobd morning. welcome to squawk on the street. with jim cramer at the new york stock exchange quite the week headed our way. the busiest week of earnings season a fed meeting. futures are soft europe is mixed on down beat pmis and the ten year at the 224. alphabet after the bell what investors should watch for the new democratic economic

agenda targeting what they call corporate monopolies and apple and the rock, what that partnership means for the future of content we'll start with earnings. the heaviest week of earnings season begins this week. 13 dow components. 180 companies are set to report. you can see the list right there beginning with google but all week long, mcdonald's, caterpillar, three of the fang names are this week alone. >> this is a week where it is one of those where i urge people to understand, it's going to happen so fast you can't keep track of them. there are some, tomorrow morning, caterpillar, mcdonald's, wednesday night facebook is going to be gigantic because people have been buying that stock endlessly we're coming into a week where the large cap stocks have almost all been up. talking about united health. they were terrific if you get the same thing you'll

break out here you will break out only wednesday when the fed announces it's bond disposal it stands in the way of what i think could be pretty food earnings don't forget a lot of companies are benefitting from the weaker dollar when you read the releases they're no longer but like had we this, that, we could. >> and what you just said brings us right to a caterpillar upgrade today. market reform. price target 125 their thesis is that we see, they believe, a five year plan in september which on peak earnings times 13 or 15 b eventually 204 they are so high on the street everybody else looking for 480 and 2017 6:45 and 2018. you can certainly say if you put a premium multiple on

caterpillar it could be much higher caterpillar has been in this range forever. commodities are all stronger you could make the case that caterpillar with big cost cuts it could do it and this is probably a name because as caterpillar goes there's a whole group of stocks that go. this is one of those where there will be an ibm and a visa and anybody that makes a forecast this week will have to change it every night. >> where do you stand on the need for financials to lead. goldman is cut at ubs to neutral. they argue the street appears to be counting on a turn in revenue

which they think is a big bet. in their words the optionalty here is not free. >> i didn't think goldman's quarter was nearly as bad as it looked because they're not so surprised in equities. they referenced that we should go to morgan stanley but this has been a big drag. if jp morgan breaks 90 and goes into the 80s even though we have that resolution that could be very very difficult to come back for. they're all honest but chevron is a company that could say, you

know what, 2018 is as bad as 2017 on friday they said 2018 will be good haliburton puts up a good number today. there's so many cross currents we have commodities we have oil. we have the really, really big moving nationals with coca-cola. it's going to be an exciting week but i think that each day you'll end up where you were the day before except for for faang because if alphabet doesn't deliver a great number tonight people will start saying these stocks trade together. even though they have as little to do with each other as coca-cola and mcdonald's even though of course diet coke and mcdonald's is so fresh when it comes out. >> jim mentioned the fed meeting this week. that, the imf cut it's forecast from 2-3 to 2-1. that's ahead of the fed meeting with the announcement at 2:00 p.m. eastern time it's being characterized as a place holder routers points out maybe this is

a meeting in which they start to talk more about other central banks and how those decisions are influencing u.s. policy. >> the imf is saying that we are being carried by other countries. this has been my thesis. the reason why i liked this quarter so much is there's so many countries that are doing so much better. so many continents that are doing better so you end up with, unless it's a very particular kind of group, ppg, downgraded twice today because it's a little weak. you get a nice tail wind from overseas when was the last time we had a tail wind from overseas? what that says is where to begin. i don't think the euro is done i don't think the euro is done a lot of people are starting to bet against the euro that could be a fools case. >> interesting these pmis this morning, they're market pmi second month of the slow down.

i totally understand that theory if you go over the conference calls on friday, particularly the honeywell conference call which was extraordinarily good conference call. they're saying maybe auto is fine you interviewed terrifically there's a lot of commentary about maybe union pacific was too down beat and again i think i like auto. ksu has a big upgrade today. what does kansas city southern do they bring awe toes up frawe to. a good read on how they think autos are going to be good reporting that bmw, according to some sources may have tried to fix elementsof their emissions.

now a slogan of a better deal. democratic leader nancy pelosi offering a new details promises three new proposals, creating jobs, cracking down on monopoly and lowering the cost of prescription drugs. the plan would create the role of trust buster focused on scrutinizing big corporate mergers that would have the pow tore review mergers after they have been completed. this is going to build steam before the midterm. >> the part that builds steam is

everybody wants pharmaceutical prices lower so maybe that so there's a lot of shadow boxing here and when president trump did run against prescription drugs and that whole rhetoric just went away when he got with the governor some people would say i always thought he was the governor just from indiana. >> watch for that in the washington post today.

a few rough weeks as you know. blue apron was trading down as low as30% off the ipo price bu a number of new initiations this morning helping him find a number here. all out with initiating bias today. goldman's thesis is that growth will accelerate, 12 month target is 11. 1.5 times eb to sales. goldman by the way lead underwriter of that ipo. >> i struggle. these all read as if nothing has happened with whole foods. they read as if the day that the deal came public is what they were focused on. i think all of these analysts, with the exception of barclays that has a very kind of hold, all of these analysts better take into account that the world changed when amazon bought whole

foods. anyone in the sights of amazon is bad maybe there's something going on they may be not victims. they may be winners. his argument at the time was that competition, when you're creating a new category everybody who is involved is building the mass audience and that there are there may not be barriers to entry but there maybe bare yes, sir to scale. >> there's 20 newcomb pet tos. you could argue it could be grubhub. they spawned a lot of competitors and they end up being the winners of come pet

tors but they did not go up against amazon it's true they created a category but then jeff besos said i want to be in this category every time you buy this stock if you do buy it you're going to get hit by a whisper of amazon as we all know there isn't anybody who has been able to say i amarikwason proof except for perhaps walmart which is not talking like that but i sympathy going to be able to make a very strong presentation saying we are no longer, no longer hostage to -- we are the brick and mortar play and i think that they are so i'm not, that's the only one i'm really -- >> i'm not jumping on the bullish train for apron and snap that fell to 1434 on friday. market cap has been cut in half since march 3rd. >> there's positive commentary about twitter today. one thing about twitter is people don't expect a real come back but they do say, you know

what, and this is my friend and he, i know he's the guy i talked about with netflix well, i mean, president trump has a lot of friends he goes into meetings with people he hates and said my best friend and anthony is talk about being a brother of him and modest top line growth expected for twitter and that would be kind of neat >> yeah, twitter earnings thursday i believe. >> i think that twitter is going to make a presentation that if the stock is above 20 it's going to be tough. because it's really had a creeping up move but sit twitter in many peoples minds and i think that twitter is starting to get a little bit more traction they better start talking about the president because, you know, they never reveal what the numbers are when the president tweets and the president is going crazy on twitter this morning. >> so you would want a break out

of how his engagement effects. >> they have always when you go meet them say listen we have lots of politicians who talk like honestly i this h this meeting but there's a mayor in spain that generates a lot of tweets guys stay focused. mayor of spain and president trump. i have a column devoted to president trump and he's probably the guy have to read the most because he tweets more than i do. if he tweets that nvidia is going to be up today, the guy is commenting about crooked hillary and i'm sitting there trying to do my job and then bingo he tweets and you have a one-two punch. >> yeah. >> a couple of people from high school were friends with him in high school. >> apparently he's had the nickname since 1978. >> wrong i was with two people calling him the mooch in elementary

school one of them said to me, we called him the mooch back then i said oh man that tag lasted. is there anyone that didn't at one point have some relationship with the mooch there he is. very statesman-like. >> as you're even speaking the president tweeting right now about sleezy adam schiff the totally biased congressman looking into russia. >> the crooked hillary thing that's kind of a, you know they do throw back thursday on that show, like at 3:00 a.m.? this is kind of like throw back every day. the krookd hillary, at one point let's say three years into his reign, if he still does the crooked hillary we'll be thinking about other hillarys and maybe academy awards and good actresses named hillary hillary duff

it could be anybody. at a certain point he has to let go after that hillary. >> when we return the rock and apple coming together. we'll fill you in on that. also ahead it's amazon the regulatory risk for besos under a trump white house. take another look at the premarket for earnings on the hill central banks, crude, more sqwkn e re cties what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think. visit aflac.com and keep your lifestyle healthy. aflac! oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea,

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apple is releasing a new video ad for siri this morning it's featuring dewayne the rock johnson. >> i found ten reminders. >> thank you very much. >> hey, give me a ride to lax. >> can get you a lift in 60 seconds. >> do you mind if i drive? i know a shortcut? what's the temperature in roam today. >> it's being used as a push to original content >> siri has been mentally overrun by alexa so maybe this is a way to get back into the consciousness.

alexa solves a lot of my problems siri sets my alarm i like this. sometimes i feel that apple feels, you know what, we don't need to do anything. whether it be original content or whether it be this. you know what, if alphabet feels the need and if amazon feels the need, i like apple being in the fray i think this is good siri has become a bit of an after thought for a lot of people i deal with. >> in terms of brand awareness alexa came out of nowhere and took a poll position. >> netflix conference call by the way, we really should have gone hit it again and again and again because really what they're saying is, you know, we're at the festival and we have movies in south korea and

hollywood can't do what we're doing. at the same time, dunkirk may have created a buzz for imax which has been down. i have been watching entertainment properties epr that's been going down because of a relationship they have with the chinese owned amc and i think that that's probably wrong. when you go to these new theaters or go to the theaters where you can order drinks and have dinner, that is just the savior in that industry. i have to tell you that i just love it. i'm not alone. those seats get packed i do think that imax is going to be down so much. >> it's a big chunk of twnd box office we'll countdown to the opening bell on this monday. don't go away. we, the people, are tired of being surprised with extra monthly fees. we want hd. and every box and dvr. all included. because we don't like surprises. yeah. like changing up the celebrity at the end

to someone more handsome. and talented. really. and british. switch from cable to directv. get an all included package for $25 a month. and for a limited time, get a $100 reward card. call 1-800-directv. so that's the idea. what do you think? 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,

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they came in at 979. i got brian goldman on tonight often times this stock has been slammed and it shouldn't it's been one of the great performers it has its own movies, it's own tv and a lot of that is going to come in the third quarter. this might be a buying opportunity. i'm not saying you bought it here, okay listen i get it. but listen tonight he is often told a terrific story versus the print numbers this is a conference call must he'll be on at 10:00 i would not take action until i listen to the call. >> one reason to tune in we should point out 39% in a year 50% since the beginning. >> it's been amazing

a lot of this old games. some people are saying some playskool numbers weren't that strong but talking about monopoly or whatever they have a lot of my little pony and he's incredibly resourceful. do not say i guess hasboro is finished that's a mistake that many people made in the last four years. >> jim has got them tonight on mad money. we'll get the opening bell in a couple of minutes. don't go anywhere.

hey. 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. there you go. you still need a pass.

>> busy week for earnings. i saw it 191 but trust me it's the busiest week and thursday will be the single busiest day. >> yeah this is a week where you go home and you listen to a day as well. that was a good quarter. people understand that the bandwidth of those that make decisions about money is not able to comprehend this week lots of mistakes made. >> let's get to the opening bell the s&p at the bottom of your

screen celebrating their 10th anniversary at the nyse. hib bets sports here at the open, jim. >> it's a sporting goods company that is more regional but people know them as a pretty big alpha. declining sales defeats 10%. that's really extraordinary. the climate sales along with significant pressure on gross mar jins result in a loss well look out dick's sporting goods because these are competitive. foot locker will be down a lot too. i don't think they are as competitive but we in the shoot first ask questions later and this is just a plain old bad

quarter. >> >> specialty retail. >> retail doesn't end. every time you try to bottom fish in retail someone says we're getting crushed in retail. that's why i suggest take a look at suppliers to retail i think that under armour got a lot of very good publicity this weekend because i think people were riveted to the british open under armour was there they're making a very slow come back but kevin plank has been absent i invite kevin plank to come on to talk about the momentum that is building for his company which i think is bad. >> that was a good quarter that stock has been frup 53. it's been a quite move up but this is again an affirmation

that perhaps the suppliers to retail are not being hurt by amazon maybe they're even helped by amazon witnessed how much we liked nike when they partnered. a very strong business in europe anybody that's been to europe knows they are an incredibly important part of the fabric of the great avenues of europe. you see their stores everywhere so let's not akwat thquait them macys. >> it's up 2.5%. beats by 6 cents they do raise their guide and i think people say wait a second do we want to touch ghaicthat we believe these are merit less and we'll defend ourselves the stock did fall about 3 points after that.

a global role which is the area, global role it's up but the margins were up. they had very strong engine growth arrow up 9%. that's the business that we are, i think i'm very focused on, they make a lot of parts for say united technologies. but it's down 4% overall, remember, it doesn't really have a ceo and as an acting ceo and in there is elliott so if you want to sell it, my charitable trust owns it then you're just saying that elliott doesn't have the pressure to put somebody on or make something happen. betting against elliott has been a suckers game in the last few months i like those guys because they come to play they're tough. >> no kidding. bloomberg aing the international

count did hit. >> that stock was way too far up. >> he's up a good guy and he's aing they cannot continue at this pace because they're exceeding their free cash flow up slightly. there were price target declines what they're saying is psychologically it really seems to control the oil price and it shouldn't and the u.s. will not be growing the way it is now i like this complex but i have been playing it from 43 long to 50 short in terms of mad money when i say that's going to happen again carl you earlier on asked about the financials

the fact that jp morgan put it on its stock, they have been just an anchor and they have concerned me along with the transports where the railroads really did not shine and then the airlines last week, wow. so we need the transports to be better >> they did have a short-term overweight on unp and csx. >> unp, that was just, i have to get to unp management which i love because i wanted to cheer them up. i wanted to say it's not as bad as you think come on, get on the band wagon but they're a conservative company and csx run so much that people expected a gigantic upside surprise and we didn't get it rails a real sign of weakness and people then saying the united states must be weaker but if you go over the cargo lines they're all really, really good

so i'm not giving it up even though after listening to the interview you probably should. they got a, they got to get a little more in sync with howell they're doing. >> fair enough we haven't touched on web md selling the kkr for 66.50 is almost a deal. >> that's been rumored so i felt it wouldn't go up but it finally happened but you know what, that's not a gigantic deal because david's not here so that would of course be very very funny stanley works which i felt would be better as being received negatively but then again that stock had a monster move and that's going to put pressure again on home depot and the story last week, a lot of the analysts defended home depot saying it's not going to be amazon because of varies but i

felt it was sherwin-williams that made me pause because i want to know how much has been spent on housing that's been a huge win for home depot. i'm concerned about that stock and lowe's they can't get their footing. >> sherwin-williams was bumping up against some highs up until the middle of july. >> ppg downgraded by very influential analysts you like to think that home depot could isolate paint from their big holiday season which is gardening but so far not so good home depot again an example of people trying to catch anti-amazon and it hasn't worked yet. it hasn't worked except for for walmart. >> ge, jim, once again the weakest stock on the dow today. >> the commentary read so poorly and my charitable trust owns it. i wish we didn't ge is talking about jp morgan which has really gattis liked ge and there's only a few analysts on the conference call

they're saying that the down side here is not cyclical. it's not just the economy not doing well because that's not the case they're saying it's secular. you were rather surprised that they didn't have because this is up and that's up and this is up but they don't make nearly as much money when something is good versus a honey well where you see a division that's up and they're just cleaning up, the turbine business for ge is quizzical. this review is not going to be done until november. the new ceo but a lot of people are coming out and saying that ge should sell at 23 that's where it would be roughly equivalent to some of the other cyclicals that aren't doing as well now one cyclical that is not doing well in the marketplace that i think is shocking is tool works, a rare miss on the revenue side rare miss. we have to do more work. i don't want to ever bet against

him. he's done a great job but that is is going to impact a lot of cyclicals because it's such a special company. >> in recent days we had, i think last week the journal tried to push back on this notion of a tech bubble. they argue that since the '09 low tech has been outperformed by real estate and consumer discretionary, we know why financials even. >> i do think that the tech bubble, when i look at the companies hah do really, really well, which is the largest warehouse company and they were one of the best perform establish off the bottom but i will point out that tech never went down as much as companies that needed financing and those would be the ones that bounce back. >> but you would agree within tech the last two weeks has been, it's gone to the moon. >> yeah a lot of people are excited about even though am may miss a quarter, we saw sky work

solutions. up a lot today and i find that the companies that are component makers are all doing well. the key will be texas instruments tomorrow people don't think of texas instruments as that important but they give you great commentary and i think the commentary is going to be excellent. >> facebook, 165. >> there's a note out again. i don't like this. facebook now on the analyst saying you have to buy facebook ahead. facebook has gone, it's a split decision when facebook is very bullish the stock does fly but when facebook does that kind of, you know what, worry about the ad load, this stock that goes down we're hoping that those of us, that the bulls are hoping that they say listen, video has finally started to catch fire. if that's the case the stock can really go higher. >> that's within $1 of an all time high. >> amazon won't quit because even though reports this week you would think people would be more conservative the commentary again is that amazon will

blowout the number and it's going to be amazon web services that does it so that stock has come in real hot to earnings. is that a good idea? i think maybe at this point you might want to wait if you haven't bought it. >> do you think when the president calls the washington post, the amazon washington post, is that a problem for them >> no, it's just funny. >> it's funny. >> it can be kind of funny. >> yeah. >> and they're talked about if they're going to have an investigation, what are you investigating with amazon? the ability to keep prices low for the consumer that's a suckers trade we're going to go after amazon because they lowered the price for $317 million americans that's a wrong headed approach i would not go after them. you can say predatory pricing. i can't find it. let's hope the rails stay stabilize. you notice when there's no negative news on tesla it goes up a couple of stocks are in the

zone. >> yes so the dow is down 40. let's get to bob this morning. >> good morning and happy monday everybody. the important thing is not even on the advanced decline line of break even in terms of sector moving up and moving down. having a good day. ten year yields moving on the upside that helps them. most of the other sectors like energy and text are either side of positive or negative. bio tech is taking a breather. semis are still up that's the other big mover up about 7% take a look at those auto stocks that were just up a moment ago they have been under pressure all morning over in europe and reports that the eu is investigating alleged collusion between german car makers on technology see the effect that's having on them here in the united states we're getting some interesting earnings movers right now. i want to point out stanley black and decker here -- there's yar red kushner arriving by the

way. you can see that they're having terrific organic growth they did raise their guidance for the year they came in in line with expectations up 8% for the tool business and that's very important overall because volumes were up 9% for them that means people are buying these tools like crazy that's really good news for the company. it's about 70% of the business is the tool business overall but heres something important, prices were down 1%. that means we keep talking about price pressure, deflationary pressure people are buying their products like crazy but still having to lower prices this is rippling through the entire economy the amazon effect or whatever you want to talk about it. it was noticeable with stanley black and decker here. this is one of the most consistent earnings growth companies. like honeywell consistent every year but better in terms of growth, 10, 15, sometimes 20% earnings growth per year is it any wonder people love this sock? it's up about 25% this year.

a consistent big grower overall here elsewhere guys talked about haliburton a little bit. they talked about the fact that their revenue was very strong. not just internationally which is 7% but north american revenues were up 24% here driven by increasing pricing going on through the united states and again, they are continuing to drill. they said business is still strong in north america. when they're going to cut back production is not clear but it did not happen for sure in the second quarter meantime earnings keep advancing overall. it's important to realize the reason the stock market is up 10% is earnings up about 10% right now dow down 42 points back to you. >> as you're talking live pictures of capitol hill jared kushner arriving for the interview with the senate intelligence committee they're calling it an interview about his dealings with russia he made public an page memo this

morning where he said there was no collusion or knowledge of collusion. that he had four meetings with various officials with ties to russia but the june 9th meeting he said was a waste of our time and he then texted his assistant to try to give him an excuse to leave the meeting early. >> and i thought that was -- to say these were not important but this russian issue dominates and it's confused a lot of americans. like wow, the russians there's been no context so it's -- i'm hoping that he says okay here's the narrative and heres what's wrong with the narrative. he should come out and give us some sort of time line because i think america just presumes that somehow the election was fixed by the russians and if that's not the case, maybe the investigation won't be as, viewed as being the make or break. >> you know what they're saying

now an internal conversation, trump has recently pondered the idea of nominating guliani to head the justice department. >> wow sessions well, these are things that just make it so that once again, i'm more interested in stocks. >> this is so far the earnings not doing it today but you get in situations where that makes it so that tax reform, where is it what happened to it? does anyone talk about it? and it gets more and more obscure and that's what a lot of people hang on to. >> check in with rick santelli good morning, rick. >> good morning, carl. so on the 19th the all time high in the dow, down 100 points. the s&p high that day too. 2473 here we are at 2467.

nasdaq is making new highs i don't hear nearly as much about that as i do about all the things going on with that crowd you just saw but i do think there's another group that seems to be ignoring the benefits of the trades we have seen. it's these guys, not really going anywhere we're up a little today but we drifted down look at year to date you can clearly see that this market is barely holding on to levels, what about a dozen basis points away from the low yield close of the year. now when it comes to the dollar index we're all a little nervous about how weak it's been but like much in the news there's always another side to the story. let's shift the chart back a bit. now there was a year to date chart. pay particularly close attention to where we closed i talk about it a lot. 102.20 we're down a lot

what over 7%? a little more. and the context to the move and the grander scheme of things and then finally if you want to switch into what is going up it's not so much that the dollar is going down except the euro is moving higher dragging the yen with regard to the weak link along with it just like the dollar index up to about 120 there isn't a

significant amount of resistance that's always something technicians pay attention to carl and jim, back to you. >> rick, thank you very much rick santelli. crude up about 39 cents. jackie at the commodity desk. >> good morning to you, carl less than a 1% move on this monday morning traders are pen ttentative as te watching the headlines out of st. petersburg it's opec members and non-opec players that agree to come together and cooperate to have this production cut put into place. they're talking about how it's going. how the compliance is working out and potentially what may happen down the line no major policy expected to happen here but everyone watching it closely. secretary general saying that there is a rebalance happening it is slower than they thought it would be but he is committed to the fact that it will happen and accelerate in the second half then you have the saudi energy minister also saying they have been having serious conversations with some of the member countries that haven't

been as compliant. we're talking about libya and nigeria here for example but remember this group is a group that needs to sustain this cut for 18 months and we're only half of the way or less than half of the way in and already some of these are emerging so there's certainly problems here and the u.s. producers are ramping production that's the caveat that the folks in st. petersburg today can't control. we're watching oil prices trading right now back over to you. >> overall yak i can, expectations for headlines out of the meeting, what do we think? >> everyone is always watching what opec has to say it could move the market around. i don't think we'll see a policy change today it's hard to see them say anything about a deeper production cut when they can't keep to the cut that they promised us already. right? >> yeah. very true. >> i think that the commentary can dictate what's going on in the u.s. but yeah these meetings, they have to come out and tell jackie we have to deal

with lybia and nigeria and i don't think we'll get a deal this isn't the meeting i expect oil to go up to 5 1. >> alphabet after the bell a busy week for faang stocks facebook and amazon later in the week. >> and go back to netflix you heard a story of listen, we don't really care what you think about cash flow. we're doing great. we're expanding and that was kind of the big, but i would say pass they got a big pass on it. alphabet you are have to hear something about the valuation and you have to hear monetization of youtube and if he done want to tell that i wish i could get on that call and say ruth aren't you beginning to make a lot of money? because they have got to tell a better story about what's winning. they like to talk very strong

financially. they are so far ahead, again i find myself saying, taking the role of someone, my charitable trust owns it saying listen this is what i would talk about but it hasn't really had a lot of. >> it's funny. you mention this morning with apple and siri you talked about it with unp and rail shipments. >> i'm seeing people just not tell their story. >> doesn't their caution say something? >> i don't think it's caution. >> you don't >> i think it's -- it's a guide. they need to guide tous figure out what's working they don't -- it's not ibm where it's like hey it's not working and we're sorry. it's much more of a situation where you say, you know what, this business is really starting to produce for us and what he they ought to do, not to be too harsh on them listen to the

facebook conference calls they have been elegant about saying what can work and what can't and there's no stone unturned. facebook is the master these other guys i think they have to be a little more understanding that we don't know what's doing as well don't take as much for granted they take way too much for granted. they don't even bother to mention that just show us the data but just don't say hey, youtube, it's okay no, give us some data because the data is better than just okay dow is down 33 we'll be back in a minute.

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she downgrades constellation brands because of the strength of the peso they make the beer there and bring it here. just the pace of alone if this stuff comes down enough you really want to buy it because they have been doing so much right and they also have an expansion, and by the way, this is about the slow down in craft beer and it's owned by constellation not having blowout numbers but constellation is diverse identified very heavy so

if the stock comes down to get involved don't forget all the growth in beer, virtually all the growth has come from the mexican beers and you wouldn't believe it. >> so hasboro tonight. >> yeah. can they turn it around? it is not clear because people hate it today. he reported a new course number. not a blowout number why? because of imports i think john is going to make a strong case. we have been in a trade war but we haven't put up our dukes. john's conference call was a good primmer and i can't wait to hear from him tonight. he's a good strong spokesman for american industry. >> japanese make noise about it today as well. >> taiwan imports skyrocketing

he calls them illegal imports on his conference call. we'll try to nail that one down too. the largest that we have they spent 7 billion but if you don't they can't compete and i think they're all trying to get the 232 which is to be able to stop all imports by saying it's a national treasure. we'll find out whether you should agree with that or not but i think it's done. >> that's a smart topic. >> always been a cut above all of our steel stocks and they increased their dividend year after year and boy i liked them. >> jim, pace yourself for the week. >> this is a big week and i always tell my wife just forget about me this week it's 3:15 to 3:30 on the alarm and the only person that keeps me company is not a person, it's nvidia my dog that got price target today bump and it didn't matter

and she's hopping mad. i named my dog nvidia because he answers to it. he has horse sense. >> we'll see you tonight mad money 6:00 p.m.. we'll be right back. [ indistinct chatter ] [ intense music playing ] it's here, but it's going by fast. the opportunity of the year is back: the mercedes-benz summer event. get to your dealer today for incredible once-a-season offers, and start firing up those grilles. lease the e300 for $569 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens.

>> dow is down 39. the start of the single busiest week of earnings season. eyes as well on the fed. opec as well. >> lots going on our road map starts with earnings over 180 companies all set to report. >> an economic plan directly at drug companies in corporate america. plus opec and non-opec oil ministers and will moves be named to curve global output got some macro numbers coming out. >> existing home sales down 1.8% to a seasonally adjusted rate of 5.52 million units that's lower than the street expected

we're only up 0.7% year over year compared to june of 2016. sales down across the country except in the midwest. median existing home price, that's a new record of 6.5% year over year. two things about this price though if you adjust it for inflation, it's still 9% below the last peak in 2006 also remember this is a median price so there's a shift going on higher end homes are selling than on the low end. that's pushing it higher why? inventory. 1.96 million units for sale. that's down 7.1% year over year. it's the 25th consecutive annual drop in inventory. at a 4.3 month supply. that's why homes are moving fast 28 down from 34 a year ago and the first time home buyer dropped down 32% of sales in

june should be closer to 40% so a slight miss down 1.8% down month for month for june sales back to you guys. >> thank you with those numbers. turning our attention back to the markets. stocks amiss ahead this season mayor indices all coming off record highs this week let's bring in the chief investment strategist. we're down this morning but still markets very elevated. earnings season thus far justify what we're seeing in the markets we had big runs in the market. you can't see the forest through the trees so the trees are the

macro environment and what the bond market is doing people are so focused on the bond market and the macro environment we're missing that companies are actually in good shape in america so they're using that as an excuse to pair back their portfolios especially given the run that we had in the worry with respect to valuation and the lack of response that we have seen on the fiscal side from the government so far. >> does that imply perhaps that up 10% year to date in the s&p is built in some of the fact that companies are doing well? what do you think is going to be perhaps the next significant catalyst as we see the dollar sink and meanwhile credit markets staying healthy? >> you hit on the key drivers there. earnings have been doing much better than we were expecting. at least in this earnings season the weaker dollar is a tail wind for u.s. corp. raerorate earnins

helping our companies gain some competitiveness against competitors and i think that the fact that we haven't gotten massive policy changes leave that as a potential positive on the back half of the year. >> so when we see what the dollar is doing, would you rotate multinationals that are going to have the tail wind? what do you do on the fact that everything is going to be moving on. >> you saw the quote unquote trump rally in the fourth quarter and then emerging markets in europe lead this year and you have seen the rotation already in some of the industrials where the multinational industrials have been able to take over some leadership but i think what the issue is is we haven't had this correction that everyone is looking for. one rarely happens the economic condition in the united states is positive but not growing like everybody thought so maybe we finally have a bit of a pull back here.

it's entering into this period historically. >> what's a pull back mean these days two? three? >> we would be all over that everyone is looking for that when you see that type of thing, it's probably going to be more than 5%. carl just jinxed it by asking. >> do you look at the way we invest your positions and say yeah they're expecting a 20% fall back. >> heres what i would say. jack is a client everything he said clearly is correct. what we think is this, people are positioned around the world in terms of u.s. equities for nothing to happen out of washington so if something does happen, one or two things happen markets are going higher there's been so many complaints about lack of action but they're

talking about having a second antitrust review that could reverse mergers that have already been approved. given the choice, i think maybe wall street looks at this administration and says still compared to what might have been this still better for the markets. >> well, i think we have always had within the law the ability to take a company apart. so effectively that isn't necessarily something true and new. there was the break up at at&t just to think of something that got started earlier in my career but i think markets are going to take their cues more from earnings if we can get the regulation change can result in earnings growth markets are going to look to that as being a positive but come back to having the top line and there's good

news to be said. i don't think this say market where you can be timing it what has to be invested and find out what your norm is. you have to be there and say that look what opportunities are being given to you on a single stock basis or industry basis and discipline in adding to those sorts of levels rather than hoping for some sort of hail mary in the sense that the world changes or maybe it's a 50% pull back. a 20% pull back tends to come with a various decline people aren't going to want to buy that they'll be looking to look for that next recession effectively being very much in their minds and we don't see that. so it's rotation and discipline as the keys to success there >> it always happens you're looking for that massive pull back and the minute it happens you wonder well maybe i shouldn't buy. why is this massive pull back happening. >> right exactly thanks so much. >> meanwhile as the russia investigation expands a shake up at the trump white house

press secretary sean spicer as you know re-signing on friday. meanwhile jared kushner arriving moments ago to be interviewed by the staff of the senate intelligence committee this morning he said in part i didnot collude nor know of anyone else in the campaign that colluded with anyone else in foreign government i had no improper contacts >> i didn't see anything new or interesting. i thought it was compelling we both work in the white house we know how crazy the schedule is and i went to a lot of these receptions and you don't know who you're meeting with always people come up to you and hand you cards so i read it and thought there wasn't a lot there

in his testimony and i don't think if you're trying to make the case that there's a collusion, i don't think he added to that case at all today. >> you know especially prior to an election that it goes into the transition as well but when campaigns are happening as he puts it on the fly, you could well forget a meeting. what did you think of its memo. >> i don't think you forget a meeting with the russian government attend of the day nobody explained why there were so many meetings with the russians during the campaign. it wasn't like they were meeting with dozens of governments let me tell you what i didn't spend my time doing. that's tracking down members of foreign governments to see if they had information on a rival campaign and one of the women in the room had the fsb, the you can seszsor to the kgb as a client so there may have been a explanation here but i don't

think anybody explained why this meeting took place in the first place. >> well, you know, the interesting thing to me was, for jared, you know, whether don jr. has a serious issue or not i'll tell but at least for mr. kushner he went to a meeting. he stayed ten minutes. he has notes on it and it doesn't seem like there's anything meaningful there. there were more meetings than usual but the russians were seeking out the trumps the trumps weren't necessarily seeking out the russians so if they were being polite if their former business associates you could see a scenario where a number of these meetings took place and it creates a bad impression but there was no actual there there i think that's what is going to end up here. the challenge for the trump administration isn't necessarily these meetings time will tell

it's that there's so much discussion and furthering of the case by the way the trump white house is handling this if they put this on to the lawyers and said nothing and stop talking about it and stop tweeting about it we wouldn't spend so much time talking about it. >> speaking of the way they're handling things, it's day four, what do you think? >> i think that trump respects him and trump at least appears to listen to him and that is a huge improvement so that if he can talk some sense into trump and walk him back from statements he will add tremendo tremendous. >> he isn't reigning in the president on twitter on the tweet storms over the

weekend and today the president calling sessions his beligered ag now we have the president considering naming guilliani to head the doj should we expect a change? >> president trump is going to people he's fully confident with president trump is ainner. that's one of the messages in the came pain. he hasn't won anything significant yet. he hasn't passed any major legislation. the only message coming out of the white house is really chaos. there was very little health care discussion from president trump about his top priority when they were trying to pass the bill so unless he can turn that around it's going to be a rocky several months here. >> >> those would cement in a

positive direction and they're not close to getting it done right now. >> your point seems to be coming back to you don't see huge warning flags on the legality of any of these meetings. or the investigation may either hit a dead end do you think the larger issue is the lack of attention to tax reform. we'll see about health care this week infrastructure is getting bogged down >> they have a communication problem. they don't have a communication problem. they have a discipline problem they're not focused on the things, the block in tackling needed to get complicated legislation through and.

>> i'll give you the last word >> it's got to be in service of the mission. there's a bipartisan opportunity at the beginning of the administration if president trump had gone out and been serious about infrastructure he might have gotten points on the board in the beginning he's not addressing the russia issue and his own worst enemy when it comes to communications day after day on twitter. >> we'll see what the response is while people argue it actually fuels his base which has been ultra supportive but a busy week ahead at least on the hill when we come back, oil ministers

are gathering in russia this week and holding a meeting on global output. we'll talk to a former executive when we come back. dow is down 47 adow by ge we're back in a moment it's a good thing we brought the tablets huh?

yeah, and i can watch the game with directv now. oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens.

work to limit it's own exports to 6.6 million barrels a day. joining us now is the owner and founder of husseini energy and executive vice president for operation. thank you for calling in this morning. good to speak to you. >> good morning. >> what can we take away from this decision to extend the production cuts. does it mean the ministers believe these target levels of production are effective and they're working in keeping the oil price steady or that they see no easy alternatives given the fact that we have north american production still high >> they had a contest and met on saturday and discovered what was the outlook going forward.

>> they then reviewed the detail and i think they came to a pretty goodunderstanding there so that was their role to check out the compliance and see what they would recommend for the future opec meeting coming up in september. >> you mention there's still faith that growing demand is going to help out in terms of getting the oil price higher do you actually think that in itself itself going to be enough to get prices higher what is the target level for prices that you think the group is looking for here? >> the dynamics are a little

different. they work together and then they're engaged with the russians and now they're implementing a coordinated approach they're not strictly looking at prices they're look more at the balance in the market and they had a pretty good opportunity now. i think the problem in the u.s. has more to do with the domestic organization a new inventory strategy in the u.s. called once in never out. it doesn't make sense. been going on for years. and that has to be managed can't be managed from above. >> that's a crucial difference with the united states is actually we don't manage most of the oil producers in the world to some degree, greater, lesser extent it comes from the top. this is what we're going to produce this year. we're going to control it and

expand it et cetera. that's not how it works in the united states. why does opec fall on its sword? does it really whenever time the price of oil prizes north american production, which isn't under the control of our government rises? it seems to be self-defeating. >> yeah, well, the way i see it is the inventory the u.s. has built up almost 50 million barrels year after year so just starting to see and not looking at the original map now this is costing the u.s. industry maybe 5 or $6 trillion in inventory lost not to mention we drilled for

uncompleted wealth so if there's something wrong in the model, in the economic model and i suppose at some point that investors are probably saying the price, you can't pick that from above >> how does the expectation and the plans for an ipo play into these negotiations what are saudi arabia's prior gattis when it comes to trying to manage the oil market to the extent that opec can ahead of that deal? >> i don't think that it's going to manage the market they're looking at an operation with a steady outlook. it's got the same investment

program and effective management and work force so i don't think they're really trying to manage it. that's something that's more opec and the ministers >> if we could go back to north american production and why it's running at the pace that you suggest is not economic, do you have any ideas why that happens? why inventories build? and i have heard expectations from people in the market that say a lot of these producers are hedged at $50 so even if it trades at 43 they're still making money because they're selling from previous contracts they have already written. >> so if you invest billions and drill thousands of wells a year, just to break even, it just, i

don't see how it makes sense in the long-term, of course, you know, if there's a shortage globally, it may make sense then but the other problem is there's a mismatch between the oil and refinery required on the gulf coast and u.s. refinally need a much heavier oil to get the product that then required primarily and the north american oil requirement and 20 million barrels a day and yet here sit being put into inventory it's not right for the u.s. market. >> yeah. mismatches across this entire market globally. thank you for your time this

morning. >> thank you. >> when we return, democratic leadership unveiling a new economic platform and right at corporate america plus a call from lawmakers for a hearing on amazon's whole foods deal. we'll talk to former acting direct athe ort ftc. dow is now down 66

>> the latest adding to the violence in that country where more than 1600 people have been killed since the beginning of the year tensions remain high over the newly installed medal detectors. in the latest incident an israeli embassy security guard shot dead a jordanian that attacked him with a screwdriver. it could eventually reduce their use. a u.s. college student is free following a week long detention in china for allegedly injuring

a taxi driver. he was released from a detention center earlier today more wet weather forecast for south carolina thunderstorms rolled through the region last night causing severe flooding local police forced to shutdown roads while rescuing one motorist that was trapped in a car. you're up to date. that's the news update this hour carl back downtown to you. >> sue thank you very much democratic leadership rolling out a new economic platform. it's aimed directly at corporate america and drug companies he joins us we tails. >> they're calling it a better deal and it's supposed to evoke the new deal and throw a little shade at president trump's art of the deal and democrats are setting their sights on corporate america and this campaign they're out with a new youtube video with all the big names in the party including bernie sanders. >> it's long overdue standing up

for the work families of this country and for taking on the big money interests they have enhanced enforcement authority and the power to review mergers even after they have been completed. one other proposal would take on prescription drug prices allowing for possible fiens on manufacturers. another proposal would also address jobs by giving businesses tax breaks for training workers now democrats are rolling this out to the news conference this afternoon in virginia. the tiny little town outside of the beltway and importantly it's in a contested congressional district where democrats are trying to show that they can connect with the working class voters now senator chuck shumer wrote in the new york times this morning. he admitted that his party failed to articulate a vision for the economy back in

november he said they don't want to make that same mistake in 2018. back to you. >> >> interesting turn here. thank you for that how much of the democrats new plan would impact drug price as good a key question obviously. meg is watching that this morning. >> well, the details of the democrat proposal may sound similar to those from another well-known democrat hillary clinton. investors will remember her tweet in fall of 2015 that promised to take on price gouging. 5% on biotech stock and helped contribute to the bursting of the bubble at that time. the difference today is we have a republican president and republicans control the house and the senate and typically not supported the same kinds of approaches as democrats have so what's in the plan today? it has three main parts. first it would create an independent price gouging enforcer that would identify quote unquote price increases and fines that would be directed

to the national institutes of health second it would give medicare part d the power to negotiate on drug price and third it would require drug makers that plan to raise prices a certain amount to provide the department of health and human services with justification for those at least 30 days before the increase takes effect there's a major focus on generic drug price increases like we have seen. the democrats specifically cite hedge funds and other speculative wall street financial firms that they say force major price increases on life saving drugs. there's a few more at the tails than we have seen in the past but the market doesn't appear too much stocks down 1. %. >> we'll see if that changes speaking of taking on corporations, democratic lawmakers are pushing back on amazons deal to do whole foods urging government agencies like the ftc to step up their regulation to help protect the consumer joining us is james cooper the former acting director of

the office of policy plauning. welcome good to have you. >> hi, thank you glaet to be here. >> we have been having this debate for a few weeks now what constitutes anti-trust in an environment where the proposed target is acting in disinflationary behavior. >> we're talking about the merger there's a robust antitrust frame work that can handle that under section 7. the ftc will review that merger under guide lines that have been around since the 1980s to look at to see if it's likely to increase prices reduce competition, reduce quality, those sorts of things would be bad for consumers soy thi so i think in that respect the amazon whole foods merger is likely to proceed under normal course and given the relatively

small market shares involved here it doesn't, it's unlikely to pose any problems under normal antitrust, under a normal antitrust investigation. >> so what are we to make then of many democrats coming forward, senator corey booker, the latest, that says he wants this to be looked at because he's concerned it's going to impact whether or not there's fresh food available in historically black neighborhoods. other members of congress come on the air and say they want a hearing to discuss whether or not to refresh the parameters under which we look at these mergers. does all of that come to the precedent that you cite or is it possible along with president trump himself who has been critical of the amazon washington post for example as he likes to say that maybe employment should be considered. is it possible to revamp our frame work right now for antitrust or no? >>. >> i would say is it possible? anything is possible

i don't want to speculate on the politics and you're right in identifying a undercurrent what i would say though is since the late 70s there's been a series of supreme court cases and bipartisan consensus and antitrust enforcement is that we should look at consumer welfare and almost all observers would think that's been good for consumers. it's caused them to get away from trivia and very special interest and instead focus on whether practice or the merger, whether it is some kind of contracting practice is going to actually raise prices. reduce quantity reduce output,

reduce quality those sort of things and the benefit of that analysis is that it's in large part objective you can measure prices, you can measure output you can get economists that are well trained in the field called industrial organization that can measure these things i don't think antitrust is the place to consider those. there's other considerations >> just to apply that process about a new frame work could an amazon down the road or some other large tech company make the case that it's ownership will be good for consumers because it tends to bring prices down as we have been saying? so in other words it does change the equation a little bit. you're not talking again about for example the potential merger of staples or office depo, a lot

of people said it's the biggest competitor here. potentially that would be something to take into consideration. >> i think again, what the ftc should do and i'm sure will do if you look at whole foods, this way you look at it and wouldn't seem to be the kind of thing that as you said it, it's likely to lead to lower prices and that's good for consumers. are there other concerns possibly and anti-trust should not be for them. and look into but the anti-trust la

laws. >> something else? >> yeah. exactly. last week talking of with respect to the amazon-whole foods merger, talking about reduction of jobs. that's something that a long time ago, we shouldn't include that in the antitrust analysis it's a policy yeah but antitrust, it's a better deal that was announced the other day by the democratic party. they wanted antitrust and goes through the antitrust process that we already have through the doj and ftc. they want an antitrust above and beyond that that could reverse a merger that had already happened do you think that's necessary?

>> no. i would say that that is a really bad idea. we have already got two antitrust enforcers. we have the department of justice and the federal trade commission they split along industry lines. then the fcc the federal communications commission also gets to review that for under a public interest standard after the department of justice or the ftc signed off on it i don't think that we need another layer. to look at this. we have another well developed body dates back to t1890s. we have case law we have practice agency practice that we have guide lines since the 1980s, the industry has become custom to.

they know what to expect we don't need another layer of anti-trust on top of all of that. >> never seems to stop the politicians. >> james thank you very much it's going to be a fascinating argument to see develop overtime james cooper, former acting director of the office of policy planning at the ftc. >> as we head to break, taking a look at shares of blue apron upgraded at goldman and a lot of them can now finally talk about this ipo based on expectations that it will maintain it's lead in the delivery service category that is a gain of 10%. $7.22 per share. but still well below the pricing the first day mayor averages in positive territory at this hour. nasdaq is in positive territory. s&p wer loby 4 squawk on the street will be right back

you heard michelle we have a fed meeting coming up. so i was have the adults going to have a meeting about what all our children can do with what's in our wallet. the only thing is that the qt is immediately. just because get a free window here they get a free window here. they can piggy back on the ecb. >> wait we have to bring the rest of the audience up to speed. do you think that mario draghi is going to actually reduce balance sheet? >> no, i don't.

>> anybody else agree? >> i do, i do. is that what you're referring to since he's going to keep putting some amount of money in that's going to offset about it. >> we know for sure through the end of the year it's 6 and 4 for ten. >> it's easily absorbed if i look it up in webster going to actually mean what you're saying easily absorbed to me sounds like our fed is going to actually try to do something meaningful with the balance sheet. but what you're really hinting at its the same as we're not really buying other than the run off but we have seen yields on the low side because the buying of japan, the buying of bank of england, the buying of the ecb negates the fact that we're not buying as much anymore. >> absolutely.

>> so what you're saying is they should do this to learn something that's really being offset. >> it doesn't sound like we're going to get a good answer to this question because most likely if the marks are going to hear people say oh the markets fine with us we have discussed this for two years. it's not having anything so that's why i said, what are you waiting for? >> let's put our hats on, we already looked into the crystal ball and neither of us see mario draghi bringing meaningful balance sheet reduction any time soon in the grand scheme of things do you think janet yellen or whoever takes her place after january or february is going to have some size of a balance sheet that's much bigger than it

was and a little bit smaller than it was or is right now and that's going to be the new home base we'll drop down to there and next time there's an issue we can raise it up just like we pulled in a hand full of rate hikes we can always take back. >> we don't know just to meet the amount of cash that's in circulation so we already know that the balance sheet looks around 2 trillion regardless 2 trillion we're at 4.5 now so yes it's all going to be in place so the academics we want this number where it is. we don't know. nobody knows but i'll tell you, again going back to the ecb, they're busy buying. if i told you right now, june 27th, if i told you this morning that italian bond futures are already higher they have been so active i know what the ecb is doing.

>> thank you for taking the time mike santoli back to you. >> rick, thank you very much let's send it over to john with a look at what's coming up on squawk alley. >> it's a big earnings week. alphabet that's google's parent is first out of the gate but then we have facebook, we have amd, we have texas instruments we have paypal intel and more. that's just a sampling we're going to take a look at at gng to make or break these companies coming up on squawk alley ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, 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.

a top technician is planning for a breakout. find out what it is on tdirang nation more "squawk on the street" coming up.

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. alphabet, parent company of google getting ready to report earnings after the bell. the cloud computing business is

a focus. josh lipton joins us with that story. >> that's right. heading into this report, alphabet's google unit has been making moves to try to strengthen that cloud business it was just a week ago that it officially added google hire to the cloud service lineup that's a new product that companies can use to manage the job application process. it could lead to more adoption of g sweep which competes with microsoft's 365. google made the big decision last month the g-mail messages are no longer used to sell targeted ads. already the company's corporate customers didn't have to worry about that scamming. google wanted to make it clear if you're a business that relies on cloud service, then your information is private and secure no doubt google has a talent and tech to compete here but when i last spoke to google cloud chief dianne green i brought up one challenge that she doesn't have a sales force to match rivals like microsoft, green dismissing that concern >> we're also investing very heavily in our partners. i would pick the latter. it's just a matter of luck and

tackling there is no rocket science there. and we are fast catching up. >> but in fact building a sales force is no slam dunk. check out microsoft which is now laying off thousands as it aligns its sales force with the cloud ambitions and when it comes to the cloud specifically, remember, infrastructure is a service and that segment going google is a distant third. they include revenue lines which includes google play and hardware that division jumped 49% to $3.1 billion back to you. >> all right that's a big number. we're watching that. the trump administration's new communications director anthony scaramucci has yet to get approval to sell his hedge fund firm he agreed to sell back in january to cleert way for a job working under the trump at md bgs the sale of his company has yet to get the green light from the committee on foreign

investment in the united states. we first reported on friday the deal did not happen and then late friday night the journal, "the new york times" and reuters report that it is being held up. i find that surprising that is a group of funds being a national security concern which they're supposed to be concerned with. >> yeah. i guess it's hard to know if they determined there is some kind of strategic importance to this fund to funds firm or if it's just a procedural thing look, you have a chinese fire. it is something that has to go throughout channel ands procedurals, who knows >> if you're anthony scaramucci do you want to be the focus of huge articles in "new york times" i held one up about the hazy ownership of it, the chinese government is actually been focused on in term of the buying spree overseas i mean it just feels really messy as he's trying to take on this role.

>> for those in the funds to funneled business, it's kind of a compliment, i guess, to think that it's of some national strategic importance. >> right. >> after the model is so challenged >> that's true >> many funds i don't know specifically the investor for sky bridge but they have other funds invested in them that's one of the big end markets. who knows exactly how many lines you have to draw across the page to figure out why this is going to go. >> 75-day review process it can be delayed over and over again. >> first time we've dealt with slowdowns. by the way, markets in a holding pattern. down about 60 points alphabet will be the star tonight. we haven't had ray chance to talk about it. cramer's point in the 9:00 a.m. he is would prefer to hear ruth talk about things that are working, specifically wamo and the competition with uber and then how youtube is monday he tiesed >> as opposed to saying we're getting it straight and taking care of costs, that's been her message since she got there. maybe focus on growth. the knee jerk reaction so far in general to earnings reports has

been skewed a bit negative we'll have to see if that change this is week you've been getting a punished a lot more for missing than you've been benefitting from beating. >> as you pointed out last week. when we come back, kara swisher on the big tech earnings headed our way. alphabet and facebook later in the week and amazon. her interview thwi cory booker on why he's worried about tech companies getting too big.

welcome back to "squawk on the street." as you can see, there markets mixed with the s&p 500 financial sector the only one in the green holding on to marginal gains at this point

this week head of that fed meeting we have coming up. the regional banks like citizens financial and key corp, regions, m & t bank up around that 1% to 2% area. those names are helping to lift this spider regional banking etf. kre, up about 1% or so on pace for the best days since july 3rd. however, this etf overall still down 2% for the year now i send it back downtown for the start of "squawk alley." back to you. >> all right dom, thank you very much good morning it is 8:00 a.m. at apple headquarters in california and "squawk alley" is live ♪ ♪