welcome back to "squawk on the street." all sectors flashing green this morning with financials and real estate and tech all leading the charge industrials, however, also up almost 1%. propelled by aerospace suppliers like arconic and also about it transport clz are bouncing back after a month of losses. the top performing transportation names this morning, railroads, norfolk southern, kansas city southern and union pacific and airfreight and logistics names including expediters international and u.p.s. with that, i send it back downtown for the start of "squawk alley. guys >> all right thank you very much, morgan. good morning it is 11:00 a.m. at merk headquarters in new jersey and 11:00 a.m. on wall street and "squawk alley" is live ♪

♪ good monday morning. welcome to "squawk alley." we're at post 9 this morning jon fortt is off this week also joining us on the phone today from morgantown, west virginia, is kara swisher. good to have you with us this morning. busy day this morning merk's ceo stepping down from the president's manufacturing council. we've been looking at that story. >> good morning. here's a statement from ken frasier of merck our country strength stems from the diverse & contributions made by men and women of different faiths, race, sexual orientations and political

beliefs. as a matter of pefrnl conscious, i feel a responsibility to take a stand against intolerance and extremism. that resignation by ken frasier of merck did not go well with the president who put out a tweet shortly thereafter, really within the hour saying that now that ken frasier of merck resigned from the manufacturing ago council, he'll have more time to lower ripoff drug prices so the president going on the offense here against ken frasier and african-american ceo who has been at his side at numerous events at the white house here during the course of the president's nearly eight months in office now. the question is what will we hear from the president today if anything else about this the president arrived, asyou see, moments ago here at the white house. he was shouted questions by reporters, whether or not he supports the white supremacist or nazis he was asked those questions did he not respond in any way. he is going to be meeting now with the attorney general jeff sessions in about a half hour's time and also the fbi director

christopher rahe of the fbi. they're meeting at 11:30 here at the white house. we don't expect to see that on camera, carl it certainly possible that the white house will add an additional event or on camera opportunity for the president later throughout the morning for him to continue to address this racist violence that we saw in charlottesville, virginia, over the weekend. we'll have to wait and see if there are any scheduled updates from the white house carl >> outside the white house, thank you very much for that kara, we're going to lean on you this morning for your expertise in talking and dealing with leaders of american business we have so many cross currents we have charlottesville and the reaction to what happened across the country much it's going to be a busy week for trade relations as the president signs this order but did the relationship between ceos and the white house change at all as a result wlaf the president tweeted two frasier? >> oh, i think it's going. to it's going to have to this is ridiculous i mean at some level -- i mean already the tech ceos, they

don't have any influence over, i think, or sort of just shrugging shoeld berz trump and, you know, swallowing hard and dealing with him, i think if they stick with him on this and with ken frasier did is so brave to do and absolutely correct the tech ceos don't follow suit, i would be so sorely disappointed and surprised because this is at the heart of what tech is supposed to stand for which is the future not the past which is tolerance, not intolerance. so it will be interesting to see what reaction a lot of them have over the next two or three days. >> specifically, kara, i'm thinking about tim cook who has intervened and spoken out on social issues and causes but also stood about it president's side when it comes to discussing policy issues, manufacturing in america. i think he is going to be sort of the answer to this line about whether you should engage in conversation for the sake of the country and for business and for

americans or whether you should not condone these types of policies >> well, you know, i spent some time with tim recently obviously, you know, he's a very -- he's a tremendous ceo. he has a lot on his conscience he talked about these thing ms. time he has to do it again. not just him but, you know, the head of ibm, the head of intel these are all people that have been trying to cooperate with the president. i know tim probably talks to them behind the scenes more than publicly calling him out but i think that at this point, you know, especially with what they're doing to frasier -- what he just did to frash clier whics astonishing, they could be next. jeff bezos, allof them 'tacks their businesses. s is to perplexing and disturbing that you don't know what to say about it but certainly tech and especially tech workers just don't tolerate this kind of stuff. and so especially last week when last week was all about first amendment issues in sill cicon

valley surrounding the firing of the google employee. they have to figure out what line they want to draw here. >> kara, the president may speak later today. if he takes the opportunity to sort of, you know, vehemently come out against what happened and all forms of, you know, nazi -- neonazi, everything on the far right that white supremacists and so forth and so on and goes on at great length about it, is there anything he can say today or going forward that you think will stem the need for the departures you talked about from tech executives from his council? could he do anything at this point that would change your mind or their minds about that >> i don't know. i think the thing with merck

he can attack that guy but neonazis, that's hard. i think anyone like this weekend several different internet companies that you facilitate a lot of web sites and godaddy made a declaration about the daily stormer. i think patrion, paypal, many others have to startconsiderin especially some of the groups if they're determined by the justice department to be terrorist groups, you know, twitter has got to figure out what it wants to do. silicon valley has been pulled into all of difficult stuff that's been going on in this country and cannot ignore it anymore because they're the most important businesses in this country and should be setting the tone for a -- for the future secondly, because they create the tools to facilitate a lot of the weaponization of social media including by the president. this is a weapon he is using against the merck ceo just for disagreeing with him you have to think hard of what that speaks. the people that make the decisions have to think hard

about what that means. >> but at the same time, these same people now then put in that position of strog decide for themselves or going off a list from justice or what have you of who crosses the line and who doesn't. and they will be accused in light of -- as you said, what happened last week of further shutting down the operations of those who disagree with them >> well, it's not -- you know, they have done that with isis. they've done that with a lot of things so i think that they have to decide what -- how they want to conduct businesses i note workers in silicon valley when they rows up on the immigration issue have strong opinions about keeping open immigration. i think they probably have strong opinions about opposing neonazis which is stonishingly there are sides here you know, i think it will be a really interesting question. and the thing about that google really did bring out the idea of what precise sfree speech and what is your responsibility of who is using them? it's a very difficult -- there's

no question it's a difficult issue. but the ceo of merck not considered, you know this is not considered to be even fast forward as most tech companies as pharmaceutical company is walk ago way from this i would be surprised if a lot of tech companies did not do the same >> kara, one thing about the price action in the market today is investors don't seem to be paying a whole lot of attention. merck shares are up. best day since july it 27th. what does that say about what investors have come to absorb and die yest the president's rhetoric >> they ignore him now it doesn'tmatter does it matter, carl it does actually what he's doing. like what if tomorrow jeff bezos said something he's gone after amazon and "washington post." he keeps blinking the names. you know, i think investors just are rushing off. this is nothing but noise. but it still matters to the workers and to people to create this stuff so obviously nobody -- the

investors are not paying attention or doesn't think this has an impact. i think it does eventually you have to think about the kind of companies you want to build and corporations really have led the way on so much good stuff that's gone on, even though we attack corporations all the time, there are so many companies have been at the forefront including apple around all these social issues. i think they have to wait in i don't think they have a choice >> it's so tricky. they have customers that are on both sifdz tdes of the aisle they have customer that's are trump supporters and agree with him. a lot of people agree with him it's hard to make a business decision and as ceo, i don't know that executives have ever been in this position. >> yeah. i think taking a stance against neonazis and white see premcy is okay for branding. i don't know

i think will work okay for apple and facebook they're good on that one it seems like -- force. >> as you say, as you say, kara, every company has to draw that line themselves for their own circumstance >> i feel i have an easy one like joe biden says -- >> so where are the companies? >> kara, thank you so much >> i agree with you. i don't know we'll see. i'm going to bug them. why don't you? i'm going to ask them. >> we are. >> kara swisher on the phone in morgue an town, thank you. so we have beyond merck other companies wading into the controversy and for more, we're going to go to diedra who has reaction from silicon valley specifically what did you find? >> good morning. there are a few companies that have been drawing a line before the rally in charlottesville became violent over the weekend, air b & b is a company that took a stand. last week the company began removing users who were using

the platform to book rooms and venues for parties go daddy another one that kara mentioned saying yesterday that hit given neonazi website 24 hours to move the domain to another provider after it posted an article attacking the woman who was killed at the rally. now before it could do that though, annan mus appears to have taken over that site and writing that it will shut it down permanently then there is social media some uses have taken mat nears their own hands like a twitter account at yesyou'rerace chist is exposing people behind the violence ofrt weekend. one such outing led to a man being fired from his job at a fast food restaurant in berkeley now as some tech companies like air b & b and go daddy have pulled their services though far right groups are providing their own what's amounting to a shadow silicon valley some activists have joined another social network called gab. and a crowd funding platform has

sprung up as an alternative to patrion who banned some users. with the events in charlottesville, tension is it building between the liberal tech world and america's far right thach continues to build as you were talking about last week google fired employee james damore for a mechl ywriting a md he has become an out right hero. thank you. >> thank you very much coming up, ceos and mcdonald's seize will join us with his thoughts on ken frasier's executives from the president's manufacturing council. but first, a quick check on the markets. dow is holding ton a 150 point gain the s&p 500 and nasdaq up over 1% we'll be right back. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!

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merck's ceo stepping down from the president's manufacturing council on the heelgz of president trump's response to the violence in charlottesville over the weekend. joining us now is ed rensi, current head of rensi consulting, welcome to the show. >> thank you for having me it's a tough day to be on the air. >> so let me ask you, straight up, if you were still at the helm of mcdonald's as a ceo and in onest advisory council's for the president, would you step down >> yes, i would. i'm not sure i would have done it exactly the same way. we cannot tolerate hate groups in this country. neonazis or otherwise. we ought to ban the kkk and

everybody like them. hate has no place in this wonderful country of ours. i would have called trump up and told him what i was going to do and given him an earful. i think much of the problems we have in this country today should be laid right at the feet of our professional politicians and the ruling elite if you think back the last 16 years, the republicans and democrats alike have been pitting our society once against the other to capture votes it's despicable behavior i would resigned, i would have told trump in advance i was going to do it unless he changed behavior and for trum tp to send out that tweet that he did about, you know, the ceo of merck behaving badly and ramming the cost of pills up is despicable the president of the united states ought to know better. he ought to behave better and he lost a fan in me i would have resigned, god bless him. i'm glad he did it and had a conscious to do it and other ceos better take a hard look.

you either part of the problem or port art of the solution. if trump doesn't welcome them being part of the solution, then they should leave. >> the tweet your referring to from president trump in response to ken frasier's departure, he says now ken frasier resigned from president's manufacturing council, he'll have more time to lower ripoff drug prices. >> yeah. >> how would other -- how do you think other ceos are responding right now? how are they interacting with their pr teams when are we going to hear from them is it enough to come out and condemn it >> no. i think we ought to have a dialogue in this country and ceos represent a lot of audiences. customers, employees, their supply chain they need to be very, very clear about what will and will not be tolerated. our job as ceos is to return great value to the shareholders and stake holders of our companies. but that involves social

conscience we have to dolt right things for the right reasons. i think we ought to be bolder and less concerned about our public images and talking about the reality wlaf is going on in this country our educational systems are falling part our social structure is deteriorating. our infrastructure is going to hell these things have to get fixed and somebody has to show leadership >> ed, all those things you talked about are things that the white house is working on with the help of american business. why you would turn your back on the president when there are still things like tax reform and infratruck stur a infrastructure and opioid crisis to be fixed? >> the content of your character counts not just the color of your skin. we better wise up in this country and understand we need to have a moral center and the president of the united states works for us. and we ought to challenge him. i wish he had put me on the council.

he would have a battle every day with me. and i'm sure mcmaster and kelly and those guys, they're tough people and i'm sure privately they're giving him a performance review. we better get together as a country and celebrate our diversity, celebrate our differences, and celebrate the wonderfulness that comes out of all that so i'd be challenging him every minute of every day. and we should. and if he doesn't do a good job, we'll boot him out of office we can't boot out the senators unfortunately and members of the house of representatives because they're entrenched ruling elite. we need term limits for them >> he lost a bit of the fan he had in me. characterize your support for him prior to this. >> well, i'm -- i consider myself a social liberal and a fiscal conservative. and i like the fact that he wasn't either republican or a democrat he's an independent. and he speaking to a lot of people in this country that feel abandoned by both political parties. and i thought here's a guy that

could proerhaps rally i wish he would shut up and listen more to his advisors and heed their advice. so i'm a little disappointed right now. >> so just want to take what you said which is that you would have given him an earful they should have put you on the council. you would have challenged him and he needs people to challenge him. and yet at the same time you're saying that people should leave this council, therefore, pacicly leaving him with like minded naem might reinforce the tendencies instead of improve and challenge him. couldn't there be room for somebody who wants to say, i want to do what ed rensi said. i want to get on there and help get rid of the situation if everybody leaves and boycotts, isn't that going to divide it further and make his behavior, you know, more insulated than it is now >> well, as i said, i would have done it differently. i would have called him up and had a dialogue with him and said you go public right now and change what you said say it differently say it the way you feel it and

mean it, and change that tweet that you sent about the ceo of merck. if you don't, i'm going resign that tells me you're not listening to anybody >> so who's going to do that then if instead, you know, these people are going to leave f business leaders who can bring that experience to bear on the president, just walk away. they feel like the public pressure on them is too great. they don't want to be associated with that. who does that leave? >> that leaves all of us, ceos and otherwise bringing pressure to bear every day saying this is wrong. this is wrong. fix it fix it fix it and in four years we'll boot you out. he'll become irrelevant if he doesn't change his behavior. he is going become irrelevant. and the speaker of the house and this president of the senate are going to have to step up and be bolder in how they lead this country. we got a lot of great leaders in this country mayors and city councilmen and aldermen and membersst house and members of the senate. there are a lot of leadership in

this country it's time thatw we hear from thm in a nonpartisan fashion. >> ed, trump campaigned as ceo in chief, bringing business experience to this white house, becoming a white house interacted with business we saw parades of ceos and the first few weeks coming up. and there was a lot of happy talk and optimism about bringing back jobs and bringing corporate taxes lower and spending on our nation's infrastructure. and everybody felt that we really have a pro business president in the white house, especially after they felt a lot of the regulatory burden of the prior president, president obama. does that change with the social policies pulling out of paris climate accord and now the response to charlottesville? he is still a pro business president? >> i think yes and no. i think pulling out of the paris accord was the right thing to do the behavior of those nazis in charlottesville was

unacceptable trump's reaction to it is unacceptable he can change behavior he's a ceo of the country. he should be focused on strategy and not tactics and he should speak out for the values and the morality of this country and to do otherwise is shameful i think he's one of the most intar tick lat peoplei inarticulate people i ever heard speak. i think he has good ideas. he can be good and bad but he's our president we better support him or change him. one way or the other he's got to get a different behavior pattern >> ed rensi, thank you for your candid thoughts today on this issue. >> happy to do it. >> former ceo much mcdonald's. >> i'll be sticking to the teleprompter from now on i don't know about you >> believe me, even though this is a little out of what we normally do, it's the conversation that is happening in companies and board rooms around the country today

>> it became a business issue when ken frasier stepped off by the way, he's not the first ceo. elan musk did it after pulling out of the paris climate accord. the question is what role do the ceos have at the advisory council and it is worth it to stay on to advise the president on foreign issues? >> we'll find out the answer to that quechlt. we're going to keep an eye on recent ipo stocks like blue apron and snap after both companies reported disappointing earnings last week renaissance capital manager will join us to talk about where the companies are head solid action on the indices. dow is up 143.

welcome back you might have noticed some recent ipo stocks like snap and blue apron struggling through the first several weeks of trading. dom chu joins us and the general state of ipos. >> what we have with snap and blue apron are high profile ipos investors get a lot of runway out of the stocks because they are perhaps viewed as indicative

of the overall health of the ipo market are they really if you take a look at the shares, yes, they moved quite a bit lower over the course of the last couple of months here. blue apron and snap specifically down about half the value from blue apron, snap off 34% if you look at the overall scheme of ipos with regard to its performance versus the s&p 500, they have done pretty well. so far year to date, the renaissance ipo etf is up 24%. the s&p 500 up 10% so more than double the performance. as you look at the way the ipo market is set up swreshgs seen a decent year in terms of the overall setup. 91 ipos price sod far, 54% more than last year $22 billion raised that is more than double what we raised last year 100 ipos filed 25 of them are health care related. it's not all negative with blue apron and snap if you look at the better performing ipos that we've seen so far this year, floor and

decore, up 72% redfin, up 66%, canada goose had a rough time but still up 50%. and then petiq up 40%. there some reason for optimism that year to date can be a good indicator for what is to come in the second half. we want to figure out if the market volatility recently had any impact overall on the markets. back to you. >> all right dom, thank you my suspicion is maybe it's the icos kathleen smith is here from renaissance to talk a little bit about what more about what is behind all these trends, kathleen you manage the etf there here's the issue seven involved with the new file coin they told us earlier, his dad is asking if he should be buying bitcoin. ipos, are they just not that exciting anymore >> the ipo market is not the place for easy money and that means it's harder on

the companies but investors are doing fairly well once the companies accept the fact that they have to value their ipos properly. >> so maybe you're saying it's a safer place than it would have been 20 years ago for investors. but then do you have some of the high profile examples where snap and apron have struggled a little bit >> they have given us a bit of a hit in returns the third quarter between that and little bit of the macro environment. but i would say overall it's the ipo market is unusual. it's kind of a paradox we're hitting all time highs and the overall market and, yet, ipos are being priced more carefully in general if you exclude snap and blue apron. and i think that's because maybe the money that's in the market by individual investors who have abandoned stock picking and are into etfs. so real i didn't think ipo market is a place where the pros are. and they don't really try not to

lose money in their own -- they're a little more knowledgeable and, you know, push back on the pricing so i think there some of that. >> so that's a good thing. >> it is a good thing. it is. now it's kind of flip-flop usually at this point in the cycle you might expect investors, individual investors to jump in with both feet. we've had that over the years. now we have this flip-flop so all of a sudden in the private market, we're seeing highly valued companies that think they can come public and get that exuberance that has happened in the past it's not happening now kind of an unusual circumstance. so it's good right now for investors. >> if they're coming to public markets and meeting the pros, as you sort of characterize, it's not like the private markets are dumb money right? they've been valuing the companies at higher valuations and are just as smart as the street >> well, i it this difference is the private market, we're talking about a small number of investors. the public market, we're talking about a different kind of price discovery. so basically i think we have

this huge backlog of companies that we ought to see coming out. and they're really slow to come out not because they don't want to go public, it's because they don't want to mark down the inve investments that the private investor has in the portfolio. >> which is more important, the two quafrters before they go public or after and has that changed? >> absolutely. it's the quarters following the ipo. it is everything >> do companies realize that that's been a big problem. >> i always thought underwriters, their job was to help the companies, you know, manage investor, tell them, you have to manage investor expectations and blue apron and snap are just the poster children for that lack of managing expectations and i think it might be that some of the companies are in an echo chamber where they can do nothing wrong privately. they've been chased after. they've been courted but the public market, they're not seeing the same thing.

they want the company to do what they expect to be done and both blue apron and snap certainly did not do that at all. and they have suffered the consequences so far. >> but redfin and goose, man, strong performers. i love that redfin app anyway, thank you. it's not everybody just a couple, not everybody thank you. and when we return, jeff seinfeld will be us with his thoughts on ken frasier's exit from the president's manufacturing council and the president's decision to immediately hit back in a very public way what does it mean for other executiv othcociesn e unls because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it-

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good morning, everyone i'm sue her air yachlt here is your cnbc news update. more than 200 bodies have been recovered following heavy flooding and mudslides in the capital city of sierra leon. relatives digging through mud in search of loved ones military personnel have been deployed to help in the rescue operation. russia's main intelligence agency says it foiled a plot led by two soviet born militants fighting for isis in syria authorities say they arrested four people suspected of plotting a series of attacks, two of whom were supposed to blow themselves up on moscow's transit system el chapo is scheduled to appear in federal court in brooklyn today he was transported this morning in a high security motorcade he is looking to replace his public defenders with private

attorneys. and renaldo has been banned for five games after shoving a referee following his red card on sunday. he the miss wednesday's return leg of the spanish super cup plus the first four matches of the spanish league season. you're up to date. that's the news update this hour carl, back downtown to you >> all right sue, thank you very much sue herrera. let's see how europe is closing. let's got the european close. >> sharply higher, carl. european stocks sharply higher mimicking the u.s. market. move may be driven by the fall in the euro which is finally backing off the level of $1.18 can we get the camera over here so people can see that terrific worst week of the year last week for the european stocks. neighbor is helping. european stocks reacting selectively to the piles of data that we got on asia this morning. the industrial production and retail sales dispintd. the markets much more focused on japan's gdp which came in at 4%,

way better than the 2.5% expected plus the last three quarters were revised upward german yields off the session highs. they moved higher as we saw the safety trade get sold off, the risk on trade go on in europe. and as a result, the ten year yield for the bund had risen sharply. now we see it coming off the highs here we have specific stock stories to tell you about. fiat chrysler up is. automotive news reporting that a well known kline he's carmaker made one offer to buy the italian and u.s. listed company. barons made headlines by saying netflix stock could fall 50% shares of voekz wag cone rise 50%. it's up nearly 1% today in response still in correction territory as can you see. down 11% over the last month carl, back to you. >> all right michelle, thank you. merck's ken frasier stepping down from the president's manufacturing council on the

heels of his response to the violence in charlottesville over the weekend. joining us is jeffrey sonnenfeld, a dean for leadership studies at the yale school of manage ment. good to see you again zbhchlt good to see you. >> are there case studies at yale on how you're supposed to react when you're a ceo in this situation? >> no. great question there's no blue print here we can see which ceos are passing the exam on this one and which ones are failing there say real test of leadership character ken frasier is truly the american dream here he is a ceo of who rose up from poverty his father was a janitor, a janitor that read two newspapers a day and quite focused on eld indication, encouraged ken to go through college. they were all big fans of supreme court justice thurgood marshall as an inspiration ken soared at law school and then did he a magnificent job as ceo these last six years at merck where they produced

more drugs than anybody else in the business and of all things to hit him as one of the few african-american ceos we have who's been a leader on abuses and drug pricing he's taken on through his role with farm yashgs the industphard associations and others and pointing out where the real profits in the industry go which is 40% going to the prescription benefits managers and thins. he's been the courageous leader in the space not to mention what they're bringing out with the drugs that are 1 of 60,000 deaths a year for lung cancer. they came without this great new cancer fighting drug 15% of their r & d goes into fighting drugs and great last quarter. i mean, gee, how can you pick on a worse target so fire back on than the president picking on ken frasier? >> let me ask you about another one that you know well and that is the ceo of pepsi. she is also on a ceo advisory

board for the president. she tweeted out heart broken by the violence in charlottesville. hate and intolerance are betrayal wlaf we stand for as americans. can't get an answer from the company about whether she's still on the board but presumably so unless she announces she's departing from it is that enough as a ceo? she's also being the american dream, rose to the top and is condemning this active violence and condemning the hate but also maybe stay onboard to try to influence policy? i mean this is the tough sort of internal struggle and debate that i think ceos are having right now. >> just in the drive into the studio here i got 11 e-mails from fortune 500 ceos of outrage. say it publicly. rather than pick them off one at a time this is the whole reason we have the business roundtable for collective action. i'd like to hear from jamie dimon who is a good friend and donald trump has been a frevendz mine and ken frasher is a friend

of mine. where is the voice of the collective voice, the business community? you know, last month on the fourth of july there were -- there's a family of four struggling in the water off panama city, florida and then four people went out to try to save them they had nine people all drowning nobody knew what to do 80 people on the beach bonded with their arms and saved them much that's collective action. i think those beach people could teach, beach goers could teach a lot of the ceos right now about leadership this is the u.s. chamber of commerce where is the business roundtable 40 years ago the founding generation of the found business roundtable would not do this they would have joined ken frasier in a second. they're thinking of more clever things to write on coffee cups y not get out there and say something? >> well, we have heard from jamie dimon, jeff. we had him on our air last week. >> on this matter?

>> and his point is -- exactly you expect him to somehow turn his back on the unveiling of serious tax reform because of this that seems like a leap >> you know, out of self interest, since you raised the self interest angle, tax reform, regulatory reform, trade matters, if he had don't have the support of the general public, they're not going to get this through so out of serious and own self interest you would think they would rally. i think some will start to see more people even speak out on such matters because hthey are the most trusted. unlike clergy and public officials, they have soaring trust factors right now in terms beingmajor influencers in society. ceos are highly respected. no mat bhater what you by this company or that company, they're a force of moral integrity if dwoenlt hang together, then we all hang separately can you start picking off ceo after ceo the way ken was tacked

wrongly by the president on the exact wrong issues to attack him on but you can take a look at any ceo, any one of us we're all vulnerable f they work together collectively. that's how they fix this thing someone said in "enemy of the people," the strongest person in the world is the person that can stand aloevenne and ken frasiers showed us who the strongest person in the world s. >> thank you for your time. >> thanks. >> jeff sonnenfeld dow up is 147. "squawk alley" continues in a moment

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coming up today, so much for all that volatility with stocks sharply higher to dashgs is the rally back on strak after last week's turbulence? we'll debate it. plus yshgs barons says netflix could drop 50% over the next few years. of course, we're going to debate that controversial call as well. and a key week for retail giants home depot, walmart, target, foot locker all reporting. we'll go through that and much more with jim cramer who is with us for the hour today. "halftime report" noon eastern we'll see new ten. >> all right jim had a lot to say this morning, scott it's going to be good. we'll see new a few minutes. tech stocks up this morning following the worst weeks for the dow and s&p 500 of the year. the sector is up 20% year to date many wondering how much room there is to run. we're joined by paul meeks and ggv managing partner hans

tongue good to see you both >> thanks for having us. >> looking at the winners today, didn't take much for the north korea tensions and concerns to get softened here. and people went straight to nvidia, paul z that make sense >> i think nvidia is a whole, they had a decent quarter. they did slow down a little bit in data center which doesn't worry me a lot but worries me modestly i think that stock is just a hold at this point much it's clearly not a bichlt it got down to technical support and there it found a support and then bounce i think it's a hold. >> hans, i'll get your take here too. how much of this is about what we got out of earnings season? how much of it is about the color that central banks seem to be feeding us and if rates do -- if the trajectory of rates slows, does that in fact favor tech >> well, i'm not an economist so i won't comment on that. in general, we see that the sort of smart phone penetration and

internet penetration and mobile shift is robust in all the sectors we invest within tech. >> paul, i was going to ask you whether you saw this barons cover over the weekend i'll put it up here. that to me looks like they're putting netflix on a blockbuster sign doesn't it look like that to you? suggesting the company is vulnerable because it's going to pay so much for content and everybody else can kind of do their own streaming down the line if can you cut out the middleman and go to direct streaming, so that's going to hurt your revenues at netflix. in the meantime, the cost of other deals and also to produce your own content is rising

has the business model changed it does worry me >> hans, what about you? >> well, i think in addition to the amazon stuff there is so much focus and adding more to the services and for users on amazon prime. that's going to affect a lot of companies. companies. to pete you have to be different and offer a more unique experience >> but i wonder, paul, fit tleedz some valuation questions content. we saw from the shonda rhimes announcement whether investors are putting enough of a premium on content and whether investors are giving a fair enough shake through streaming. >> it will be interesting to see how it plays out because as we do know, the cable part of disney is the driver and the driver within that segment is

espn, and when espn goes a la carte, i think there's going to be a lot of folks that have been holding off only for that reason, to cut the cord, and now they have no reason not to and now they will. it's going to be very interesting to see the shakeout with all these related companies over the next couple years. >> hans. >> we don't have cable at home anymore. there's a thing about cutting that cord. besides espn there's really nothing else you ccan't get from netflix or hulu and so forth even the younger users, millennials, my kids are on an ipad looking at youtube all the time >> hans, i assume they're screaming cnbc on their tablet, your kids? >> that's right. >> paul, what are you? >> first of all, i am on your app 24/7 on my smartphone so i

am the best advertisement. >> there's only one appropriate answer here. yeah, go ahead. >> i do agree that it's going to be very interesting to see how this plays out because you'll have a differentiation between the folks that are just providing the pipe and the content. if they don't get together and lever off of one another, there's going to be some real hell to pay. >> hans doesn't have cable, that's what i got out of this. hans, paul, thank you guys see you next time. >> thank you. >> sure. dow up 148 points as we head into the -- not into the close, as we head into a break. netflix down three-quarters of a percent today. disney marginally higher we're back in two.

welcome back with the dow up 145 points right now we're pretty much sitting at high levels be sure to stick around this afternoon for "closing bell. james damore put out a memo that sparked a firestorm. it will be interesting to hear his thoughts on the acretion and what he thinks about any change in the company's culture we'll be right back.

take a look at stocks. strong rebound after last week which was the second worst week of the year for the s&p and the dow. 150 point rally for the dow. s&p higher led by financials, industrials, information technology all quite strong we knew this morning when the yen started weakening after that better japanese gdp it was going to be a calmer day than we saw last week. >> a heck of a number at 4%. meanwhile this time tomorrow we'll be talking hopefully about home depot, right, and coach and

some of the retail names headed our way. >> walmart on thursday. >> it's interesting to see how much video is bouncing back. it's up 5.5% a pretty strong bounceback. >> i would note that merck shares are higher by about six-tenths of a percent after president trump went pretty hard on ken frazier. >> best day for those shares at least for the month. let's get over to wapner and the half ♪ guys, thanks so much welcome to the halftime report i'm scott wapner top trade this hour back to the rally after the second worst week for the year for stocks, the major average sharply higher this hour. raises the question of whether that bump in volatility is all about over with us for the hour today, stephanie link, john and pete najarian and jim cramer is here. he's the host of "mad money. the stocks bouncing back jim, a