programs who come from underprivileged backgrounds who go to summer school in order to be educated. there is still a greatness and a yearning out there that make mees very optimistic about this country. the problem is we spend almost all of our time talking about the mooch and all the things that are divisive as opposed to really thinking about how we support those things that really move us forward. and i think there's huge potential to do that. >> very good great to see you. >> great to see you. >> that was a lot of fun. >> thank you. >> melissa, thanks. >> my pleasure. >> are you going to be here tomorrow >> no, i'm not becky's back i'm leaving for two weeks. so, see ya. >> congrats. make sure you join us tomorrow "squawk on the street" is next ♪ good tuesday morning welcome to "squawk on the

street." i'm carl quintanilla with jim cramer david faber is off today we get strong retail sales for july up .6, nearly twice the estimate europe is mixed. 10-year note near iing 10.10 no. and netflix on his strategy to beat the competition first up, under armour's brian plank and intel's krzanich join kevin frazier in resigning from the manufacturing council not all of them worded exactly the same way. >> that's the most important thing.

there's different constituencies mr. frazier from merck was offended it wasn't immediately labeled as white supremacist, as opposed to extremism of all race and color. >> not mentioning the president by name. >> and kevin plank took some heat for being on the council. his constituency is made up of not just people who are shareholders and work there but people who he hopes to be able to get to endorse. so they all come from different constituencyies. like larry somers says, everybody should resign. it depends on your constituency. it is of no interest to the public what i think you should do i can tell you what i think the constituencies are does brian kzanich has a lot on the line to do this? he has a conscience. i know all three guys well enough to know

in the case of krzanich he essay man who doesn't like what's happening in washington. >> summers' point, you saw that card a moment ago, it's very striking he says i don't know how these ceos can face their children broader point -- he has been critical before -- it's not hurting your stock necessarily to be missed out if you really believe the president is not going to take your call if you're not on the council, that doesn't make sense and ceos have some sort of larger mission he references the marshall plan and how ceos participated back then. >> this isn't not -- okay. so, ford gets a call from roosevelt saying, listen, we want you to make tanks and he says no, i'm not going to do that because i'm not sure which side, you know, doesn't declare that, yes, we want to beat the nazis. this is a letter at the world war ii museum. gm says, are you kidding me?

of course we'll take that business let's pull it back a little. it's not ford saying listen we can't make up our mind because my dad says, whoa, you know. in other words like it was this condemnation -- i'm not debating what trump did i'm saying let's pull back you want to invoke marshall plan, i'll invoke roosevelt and ford why wouldn't you want to be able to say to the president, you know what? i think you're wrong on the paris accords or you're wrong on this you're not going to do that if you're not in the room this not in the room thing suddenly is being viewed as being complicit. look, do i know president trump? i was a judge on the apprentice for four years you could say, listen, that's just tv. frankly the world just seems like tv now if i could point out. but i do think if you're in the room you can say, look, i think you're off base. i don't think this is a

president who wants to take mr. frazier's call today but he may want to take -- you want to complain, say the guy is wrong the president doesn't impress me as a guy who is willing to sit down with ken frazier today but is willing to sit down with somebody else in the room. you get more influence i don't think that's completely wrong. if everybody is going to say i'm tired of this president and resign, 50% of the he was voted in he won the election. but he tells you that pretty regularly, in case you think he didn't win he tells you a lot. >> if you're keeping track, these ceos who have commented that they will remain, liverus, dell, immelt, schwartzman. a lot of others had absolutely no comment. >> i've interviewed four of those, in some cases many times, and they're people -- i'm not saying they're people of no

conscience or people who are lacking in conscience. i think there are people on a council and perhaps they disagree and maybe they speak freely about it. but i don't think that you can just say, okay, listen this is the time -- look at your kids. look, i like larry when larry was running harvard, i contribute -- >> he would have resigned several times from this administration. >> my kids would never let me join the darn thing but my kids also are -- whoa my kids are out there. i love my kids but i have my view and the kids have theirs. >> axios says the conversation has gone viral within corporate board rooms. that's why we're talking about it. >> yes honestly when i woke up i was like brian krzanich, got to talk about it alarm bells intel. i would rather talk about that

i was going to make a joke and say how about krzanich yeah that mobil acquisition is good i can't do that. he is a man of great conscience. these guys are all of great conscience look, do they fear the president? michael dell doesn't fear anybody. he's a tough guy. >> we're going to watch that story as it evolves later on today. let's switch to markets. futures are on the rise. north korea pulling back on its threat to fire missiles at guam. retail, empire are pointing to gdp in the quarter that could be above three. >> isn't it funny that yesterday finally we buried the hatchet over the september rate hike and you look at this and say hey there's a little room here nobody is saying there's room. i've been saying we need a september rate hike. this is a burning bush

you can't make a reference to anything anymore this is a sign from somewhere. everything is so charged you can't say that -- >> say it and we'll worry about it later. >> did the mooch get a cover don't talk about the mooch either forget him 2.2 is so -- i would say the rate should be around 2.5 and you should sell bonds. that's not controversial can i say sell bonds >> you're safe you didn't defend anybody. >> united states bonds i don't want to get in trouble saying, you know -- okay. >> so, we got the macro data home depot comes along and raises their guide for the second time this year. u.s. comps up 6.6. only criticism i've seen is citi that said the two and three-year stack is starting to decelerate. >> please. that was a great quarter the stock sells at 22 times earnings interesting debate with stephanie link, my buddy on half

time with scott. it's got to be perfect it was perfect but people are selling anyway you can't get away from the idea that 30% of what you can buy at home depot you can buy at amazon and it could be cheaper. home depot is lever to household formation, value of homes going up and not levered so much to what amazon does retail is really, really hard here i think walmart can do it. i would like to say i'm a buyer of home depot. they had a meaningful conference call if you don't want to hear what he says, my favorite cfo in the world, i think you're a fool she tells the truth. she's fabulous i want to hear what she has to say before i say buy home depot. >> we'll see what lowe's says later in the week. >> yeah. >> and then dick's and coach and advance in the next block. >> wow oh, my god another hard -- at least you

didn't mention under armour that much. >> i guess we do have a little more time. >> i was going to say under armour is directly -- i look at shoes and i'm thinking about dick's but then i looked at what kohl's says macy's didn't say that there was -- foot locker will report this week. this is a very hard group. one thing that is certain is that nike has not come down from that last quarter and maybe nike is doing better. we know adidas is doing better when you look at kevin plank and the heat that he got from steph curry, he also is a man of principal but has a business to run. if his stakeholders are saying i don't want to work for you anymore, that's problematic.

>> there's that, i guess also i'm looking at the breakdown of retail sales for july, for the month. building supplies and materials up 7.9. >> that's housing. >> sporting goods, hobby, music, down 6.1. >> gander mountain -- they had an absolutely great call completely noncontroversial thing. and what i'm really amazed by is he's adopted gander already. a lot of stuff in the system there. dick's basically said listen, the system is -- the headwinds here are remarkable, inventory we're going to maintain our marketshare position even if we have to be really promotional. that is echoing what macy's said although they didn't talk about market share but the need to have a good fourth quarter you mention the word promotional, you're finished you're finished. that's what this is saying. >> looking for the p word, right? >> to some degree. memo to ceos, don't use the word

promotional. use the word intense macy's killed it when they said we'll be promotional in the fourth quarter, that's it the stock went -- you can time when these guys use that term. by the way, can i just say that tjx showed you how to put some numbers up i was about to -- i was sweating this one out they had some terrific comps and raised guidance. it may be enough it may be not. this is another retail day you see something like dick's down this big or advanced auto parts. we don't even know what's wrong in that group but it's bad. >> 7 cent at $1.58 revenue was in line but comps were flat. >> how does that happen? >> coach does the shine come off a little bit today >> i look what coach said. you know, coach is saying, listen, we have to make some

changes to kate spade and they're going to hurt our quarter. why is that revelatory to anybody? when he bought coach and bought kate he said he was going to do exactly what he said suddenly it's negative you know, he said listen, we have to offset profitability from the pullback of kate spade. strategic and deliberate you cannot say that's bad. i would be a buyer of coach pending listening to the call. i think that was exactly in line with what he said. when he bought kate spade he said he was going to do this so suddenly we sell it >> coach is down comps are up four, slightly above the expectation. >> the fact that home depot is down on this quarter tells you we are in some sort of twilight zone in every aspect of the world right now. anybody have -- shannon, what are you going to -- she puts the gifts up on our -- >> she does. >> is she going to put up a gif

of like -- i don't know -- the eclipse. how about the eclipse? is the eclipse controversial my daughter lives right under the eclipse. >> don't look at it, okay? tell her not to look at it. >> really? >> a bulletin from our corporate headquarters the other day on safety measures. >> you can't even look at the eclipse anymore. >> i know. >> 100 years, you can't look at it. >> when we come back, a look at who has been cutting back on the fang stocks. ahead, we'll talk to the head of godaddy, blake irving. the s&p is exactly 1% below its all-time high and a couple of 1% moves the past few days. we're back in a minute finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low?

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quote, the more successful we get, the more anxious i get about the willingness of the networks to license their stuff to us. we knew this day would be coming that's why we started spending billions five years ago. >> a lot of people are missing points with netflix. sign-ups are rather marginal second it's the local programming. the freedom to do great local programming in south korea, the freedom to do local programming in brazil. hollywood doesn't do that. they don't call it best director in brazil or best actor and say, you know what? you have the freedom to do whatever you want. they're very -- you know, if there's is like you have the freedom to make a sequel to "captain marvel. people don't get that the actual people, the directors, worship that phone call. i had a guy named buster cohen working for me this summer at the street and he talked about the notion of how when they call it is such a freedom-begetting thing because there's not like

the suit saying, we need this to happen it's like just go to work. as far as the hedge fund managers that are out of these, tomorrow they could be back in by the way, the world did not end on the dip the hedge funds on the day of the eclipse, they're going to say the world ended. king arthur's court. >> i did take a poll yesterday and asked followers on twitter of the four faang stocks which is the least faangian when you look at the balance sheet to disruption netflix won they don't have the cash balances of facebook or amazon. >> i would think they have the most on the line to get everything right immediately when you tweeted the variety piece, immediately went on it and i thought it was a amazing because these guys play with a great open hand and give

you the secret sauce i asked reed hastings how they came up with narcos, scarface meets breaking bad now i see it's really sarandos talent the real competition here is your time. how much time you have versus playing "call of duty" versus e-sports versus "game of thrones. my life is made richer because i don't watch "game of thrones." it gives me a full three hours to do fantasy football have you to allocate your time correctly. >> we will take a look at your stuff on espn. >> right about now fantasy and reality switch reality i don't really care but fantasy is everything. >> you've been giving it to people on twitter today. you didn't fall off the turnip truck. >> who are they to even give me

some gruff >> cramer's mad dash we'll show you what he said last night on espn. premarket, dollar is up. futures up, as we said, as we look for three in a row. at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way.

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time for cramer's mad dash analysis at gopro today. >> they bought french's mustard

and frank's hot sauce. the latter you can put on a lot of things, especially the crow that goldman sachs ate this morning on their gopro sell to hold you can can put that stuff on anything listen to this while we continue to think sell through had long-term issues we underestimated the company's ability to put itself in a liquidity position so they go positive, knowing there's a new product introduction this is important. it's entirely possible that this new product introduction and they could travel to this level. it's a very important pro year there's been a lot of pro'ing of late and each guy is reluctant to say i am wrong but i applaud this. i applaud these people who say listen, i underestimated >> goldman takes their target to 10. >> right. >> product is the euro 6 it's not the last year, year before the analysis was they're going to be a media company with

consumption verticals. >> no. >> this is about a camera. >> i got out a gopro, when there was -- the key thing was i saw they were doing a lot of great stuff on surfing then i saw a pig on gopro. i went to hawaii to see my daughter went to a surf shop and said i can't believe they have a pig. sthee said wait until you see the goat we have on surfboard. that was it. that was the end then boom, i also want to point out that -- let's just say if you do get involved in this, therefore you feel like you should be involved in fitbit they're not the same and josh lipton does great stuff. too pained when he talks about gopro. but he's so great. people do not know how good he is on apple. he is the best on apple of any analyst, any reporter. josh lipton is fabulous. >> opening bell in 4 1/2 minutes.

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live from the financial

capital of the world, opening bell under 90 seconds on this tuesday, futures looking good. ten-year yields close to their highest in a week as retail sales and empire come in strong. we'll get more data later in the day. of course, you're watching earnings from retail home depot is the star of the morning. >> and i love when banks lead, i like it. and banks started the turn on friday remember that turn on friday, we had literally like a 4-hour bear market there and a lot of what turned the market was that the banks went up but also the semi conductors did not follow nvidia down and under close observance, nvidia was a good quarter there's a lot of bitcoin on nvidia bitcoin you almost have to talk about it every day is it a bubble >> wow on the show yesterday said when his dad starts asking about it,

it's usually not a good sign. >> i had a shoe shine in san francisco and the guy was short everything what's that tell you >> let's get to the opening bell and s&p bottom of your screen on the big board, thot 100 music festival in jones beach. you going? >> jones beach in the second, i have to tell you, may be the greatest concert of all time. >> over at the nasdaq, new york city council member daniel garodnick. si syncrony will be an early leader. >> doing a piece on alliance data there was a very important piece from credit suisse, called a house of cards, not a reference to netflix they were debating about

syncrony i think it may be the most mediocre of the card companies suddenly, i think they're going to revise it and say maybe there's something going on that's positive because buffett is there he also cut back his ibm stake. >> trimmed ibm, as you pointed ou out. >> i know ceo bought a lot of stock. so did jeff immelt we've been crushed thank heaven there's a yield but it doesn't protect you from real capital. >> filing of note showed temper selling his snap shares, 100,000 shares in q2. >> snap is -- i think a lot of people said look, you can't -- we won't get that much worse if the insider selling is done. my problem with snap is that i need a catalyst, other than the fact that it's down a lot.

i don't have one wish they could make some new deal that would make you sit up and notice you do -- media company take a big stake f disney suddenly took a big stake, which is not going to happen. >> nbc universal, our parent company -- >> we, too, have a stake disney, by the way, there's a piece about trying to put everybody together who is doing well viacom comes up as being really terrible and you have to stay away. disney comes out as being not so bad, i would say maybe that's my characterization of the report. it's good research about who is winning and who is losing in this new world gl changing quickly. citi morgan stanley, key corp, discover goldman, bbt. >> i think this is a group that hasn't done anything lately in the last -- and then getting on

fire as soon as rates started going higher citi, that's the one i thought had the best quarter i need to see jp morgan finally go back to 100 remember, that was my stand when we were at 93. go back to 93. when the banks go up, you're not going to -- you can't bet against the market it's really hard by the way, here is oil again going down. >> yeah. after yesterday's decline we'll get inventories after the bell tonight. >> right. >> and again tomorrow. >> that group is dead. >> so, 50 is -- >> it stopped at 50. futures, oil guys started selling futures. going back, i think, to 42 and then very difficult to touch the stuff. >> along with the bipolarity of the retail names is amazing, jim. they're never in the middle. they're either leading or truly lagging. >> tjx guided up they beat the number and stock

is down. what more does the market want from these guys? the answer is big etf that takes them all down. >> just about every -- i would argue all the top ten laggards are either in auto parts, o'reilly, foot locker, auto zone the only outlier there is corning. >> they are talking about the possible saturation of tvs tv makers are reducing production targets now you have to watch costco even though they had a great quarter. they sell a lot of tvs and best buy has been a stand out. maybe this is a call to take profits best buy this market is so hard. >> so what do you do with the sentiment over north korea, right? they're backing off of this guam threat. >> they're backing off i thought that was a good -- one of the reasons why the futures are up

i think that takes away, for the moment, the existential threat but not the amazon threat. >> that remains? >> amazon is looming over everything there's a cast -- when you short retail -- but that's what that is no one -- these guys do not pick up individual retailers and say i'm going to short that. they short the group and say, look, amazon is almost back to 1,000 after mediocre quarter that's what i want to be in. auto parts has always been rumored to be amazon coming in i was talking about live nation on thursday. and then, boom, they're in on tickets. home depot down $1.40 is incredible that was a good quarter. nobody cares. >> you think part of it is the threat, the idea that amazon could one day decide to somehow get into building supplies >> yes and there's just a tremendous fear of amazon everywhere

tremendous fear. >> interesting move by amazon, announcing this note offering to pay for all or some of the whole foods acquisition? >> they're a tech company, you know they're really a tech company. they can get away with it. they're not a retailer they can get away with it. not unlike tesla they got -- people who will buy that it's an amazing market, carl you could have one company so deep in the psyche of big hedge funds that they will literally bang down a company like home depot. when home depot is firing on all cylinders and has never had a better quarter and that's because of amazon i get all my tomato flats from home depot and, you know, look, if amazon takes whole foods and decides that they're going to be the garden season, i guess but i don't think that's their intent.

>> as for dick's, lowest since 2010 when dick's traded as low as 28.45 on that miss by four cents, revenue miss, comps miss and then the commentary that hunting license and athletic apparel. >> by design, ed stack, a good executive, by design more promotional. that's like saying by design we're going to take our stock down and that is just brutal i'm going to go out there on a limb about say there's some buys here i just really do not think that you -- you can buy -- home depot is going to be -- if you can get it below 20 times earnings, tjx at 17 times earnings tjx is the big recipient of all the macy's stores closing and all the -- i don't want to say sears. who the heck knows what's going on there but all the macy's and jcpenney's stores closing. i go to tjx across the street

here, i get some great bargains. honestly my wife says that's not how we make money no i go to tjx, buy socks, a belt they have nice shirts, good amazon stuff, under armour stuff i mean crew socks there, really good price. >> we'll get target tomorrow and walmart thursday you mentioned gap already for one of the -- >> i think it could be good. >> is this the kind of environment you want to print, right? >> yeah. target, good that it comes down a head footlocker going down off dick's unbelievable nvidia is down 1.50 premarket. this is a weird market only thing that's working are the banks but i have faith when banks work we have to hear from all the floor people. >> you added nvidia to the charitable trust. >> anybody on that comps call realizes there's -- i hate to use the term tesla without

referring to the actual car but they have a tesla chip there was a bit of a gap now it's so much cheaper, runs cooler, faster nvidia, i remain convinced, is the future. >> you brought that in and got out of, remind me, wells >> wells i couldn't take it anymore i think they have to pull that board. i remember when wells announced that they had scrubbed it and they had every single bad cross promote and then they come out and say they have more cross promote. i'm wrong for 12 cents right now. 12 cents is -- maybe there should be more to it. >> we're glth going to watch that dow is up 28 points. lot of cross currents here let's get to bob pisani. bob? >> market leadership of the semi conductors and biotech sector leading us banks are now resuming a leadership role. i think that's a very important

factor goldman down second day in a row as tensions ease in north korea. we talk about advance auto parts, o'reilly, auto zone, dick's, home depot we're weak across the board. not just earning reports have been down. look at these retail stocks. there's so many of them essentially at 52-week lows. urban outfitters, finish line, burlington, l brands i could go on and on and on. the whole sector is essentially suffering through what may be a secular -- not just psycyclical decline that we're on. two-day pullback and essentially the whole global market is looking really well. just look at the shanghai. we talked about slowdown in china three months ago it's a not showing up in the charts here. we're just off an 18-month high in shanghai. emerging markets, a big theme all year global economy improves. dollar has been weaker

eem. emerging market. we're essentially at a 52-week high a few days ago. speaking of emerging markets, look at brazil remember we were talking about all the corruption returning in brazil the market had dropped in right again near multi-year highs. it's come back in the last six weeks here this emerging market breakout has been great for material names globally base metals have been breaking out. you want to own the base metals here, the aluminum copper and zinc futures, metals here. three-year high. we're looking at a one-year chart. it's been great for the global mining names not necessarily u.s. but global. etf you want to own here is pisk rio tinto. look at that that's just -- that's a one-year we're off of a two-year high i think you get my point here. the markets are really strong all around the world we've been over emphasizing europe and under emphasizing the far east and the emerging

markets. on top of that, the credit markets have really been strong. i was a bit amazed at this story on friday. there was a lot of chatter amongst the traders about tesla pricing that seven-year bond 5.3% the rating was a b minus this was a junk bond deal in the middle of august in the midst of the biggest geopolitical crisis in years and they lapped it up of course, we have reports of amazon putting together the bond deal for whole foods numbers being thrown around. ten times the tesla deal and the pension funds are all lining up. they all want that we have stock markets and credit markets also firing on all cylinders. jim mentioned it briefly but it's important to see the trends continuing double-digit growth year over year in online sales for a couple of years now. it's been double digits, do it yourselfers, despite home depot being down, still strong here. furniture sales have been strong

throughout the year. that's another sign people are putting money into their homes i always joke about the restaurants and bars but it's been up. low single digits for more than a year now 2, 3rks 4% finally the department stores continuing to be down a bit here sporting gooi good ining goods,d hobbies down maybe the whole ulta and elf beauty story is not as strong because the gains last year were so strong. it's not that people are spending less. they're spending a lot on their home, on beauty care products. they're just spending it in different places, a lot more diffuse. right now the dow sitting just fractionally up 22 points. back to you. >> bob, see you in a bit here on the floor. let's get to rick santelli ten-year yields. still up on the data that rick brought you earlier. >> oh, yeah. definitely much different look than we have sub 220 at the end of last week

but, you know, caution tis the seasonality. i'm not talking about the holidays in december i'm talking about what we saw today in great strength and retail sales across the board. we're seasonally adjusted. look at nonseasonally adjusted offers a much different picture. we want to always include everything seasonal adjustments, of course, haven't worked very well with gdp. but they seem to track better, of course, as we move toward the end of summer for retail sales two day two year and two day of ten-year basically it's a parallel shift. up 4 on tens, up 3 on twos and the continuation and reversal of stocks yesterday look at june 1st of tens, what you really want to jump out at you here is that basically we held june for the most part all of july. and there's a lot of wood here as we seem to turn it around in august same could be said for bunds on

lower levels, of course. you remember at the end of june mario dragi talked about exit to bunds. they couldn't quite hold their very short visit to the 60 basis point level. foreign exchange, where all the volatility is. although it's being shared more in treasuries today. look at the two-day dollar index, obviously it's responded to data and equities rise along with the rate rise. if you look at it from the beginning of july, couple of things that jump out at you, toying with the 94 handle. we were above it now we're below it mirror image over 50% of the dollar index, most traders are paying particularly close attention to that 118.50 level euro slowly giving way we'll have to wait and see back to you. >> rick santelli in chicago, thank you.

jackie deang lielis is at te commodity desk. >> after a 2.5% slide yesterday, he can quit gains not helping oil. there's still a concern about overhang in the marketplace. api will kick off the data this week, this afternoon that report will come out. eia will be tomorrow expectations for 3.5 million improve but flat inventories in gasoline, that is a problem after the build we saw last week in the industry, big voices continue to say rebalance is happening. that may very well be the case the data is indicating it's painfully slow if gas isn't drying now it won't do so in the dead of winter. 10% gain in the month down to less than 1.5% from a technical standpoint, oil is back under the 2 hyundai moving average momentum certainly to the down side carl >> jackie deangelis, thank you very much. when we come back, exclusive

with ceo of godaddy, blake irving the ten-year yield close to the highs for the week back in a minute chances are, the last time you got a home loan,

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what are some of your biggest tips for drafting a fantasy football team this year? >> first of all, you can't draft -- i'll make some exceptions but you can't draft any player from a team you hate so much that you actually hope something bad -- for example, the giants see this right arm >> yes. >> i'm happy to cut it off as long as i don't have to draft the giants same as my alarm, happy to cut this one off as long as i don't have to draft a cowboy you have to have some loyalty. >> that is jim on espn last night talking fantasy football people should understand is real really, really important to you. >> yes, i have two rings from

the league from mad money. adam has been gracious to be a partner with me and that does kind of amount to inside information. but, look, i am a firm believer if you pick players from another team -- like for the giants, i can't pick him i can't root for someone against my franchise, okay i can't do that. and i counsel people that you can't have a sunday where you root against yourself. there is reality at the end of fantasy. there is reality. >> imagine how many rings you would have if you didn't abide by those rule. >> good point. i think when i saw ezekiel elliott not being able to play until week eight, i said to myself there's a guy i don't have to think about drafting when i have drafted giants, which i did initially at one time, i hated myself every weekend. adam had to talk me off the

ledge. i communicate with him just mostly to get mojo he will say to me, how could you have ever picked -- and it will be a giant i stopped doing that brandon jacobs was the guy i picked, all right? i said it was no free lunch when i picked him. >> an amazing season enthusiasm for the league, do you think, will diminish in any way as a result of whatever controversy -- >> no. i think it will still -- everything is going down in the end it will still be good the fan duel world, you needed that for the fourth quarter because there was a reason to watch the fourth quarter we lose that if we don't do that because the fourth quarter is so important in that world. i still think fantasy -- i advise people the raiders. when your spouse says hey, you're done. you watched your 1:00 game no it's important to watch football from 12:00 all the way through to 12:00 that's our day and if it costs me -- let's just

say i'm willing to do that. >> an understanding woman. >> no, not at all. not at all but that's okay. that's why we have two houses. >> jim, we'll take a break and get stock trading wi y in thoua minute as dow gains have eased a bit. we're up 11. don't go away. we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. going somewhere? whoooo. here's some advice.

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let's get to cramer. >> for wynn. steve wynn has talked endlessly about what happens when he really turns the jets on the answer is that stock goes much higher. big fan of cnbc. and a fan of sunday. want to wish her the best wishes. >> so happy for melissa, taking a couple of weeks off. and as for wynn, i want to know what his own purchases have done. >> he bought in the 50s and 60s. such an inspiration. people listen to his call. he was actually willing to take on the communist chinese

by the way, they are communist, saying they were delaying things he doesn't bow down to anybody and he is the kind of guy who truly we have to respect for him speaking his mind on comps call. the most outspoken ceo i know other than john ledger. >> what's up on "mad money"? >> cyber security, udi mokady. i think it might have been transitory there's nothing like cyber security right now everybody needs it i suggest people check your bank accounts. >> jim, good show. >> yeah, good show far afield. >> things don't slow down in august. >> no, they don't. >> see you tonight, jim, "mad money" tonight 6:00 pm. when we come back, more reaction from those ceos who are departing the pridt'esens manufacturing council. dow is up. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade

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street." i'm carl quintanilla with sara eisen and david faber is off today. >> our road map begins with ceos making a statement ceos leaving the trump's manufacturing council in response to charlottesville. retail results, tjx, dick's reporting this morning we'll bring you the latest. and boeing's stock surge as it ramps up plane production we'll go inside a boeing manufacturing plant. first, breaking economic data coming across the tape at the top of the hour. let's get to rick santelli in chicago. rick >> up 1.5%, making it the best read since june of 2015. that's a pretty good number. over two years with regard to a

month-over-month percentage change that large. we have an august read for national association of home builders their housing market index for that, we head east to diana oleck and sara. >> four points in august for the highest level since may. national association of home builders, wells fargo index stands at 68 anything over 50 is considered positive builders say they're seeing stronger demand from buyers and chairman mcdonald says that's due to job and economic growth, low mortgage rates and growing consumer confidence. also due to a severe shortage of existing homes for sale. new construction comes at a premium, builders are starting to strip down some homes in an effort to meet entry-level buyer. growing demand may also be getting some juice from the rising stock market. index's three components, current sales conditions rose 4 points to 74 sales expectations jumped 5

points to 78 and traffic increased one point to 59. only component still in negative territory. builder confidence remains strongest in the west. weakest in the northeast latest read on housing starts tomorrow morning at 8:30 eastern time for more, go to the web. back to you guys. >> there's nowhere else to build in the northeast we have to get the boomers out of those homes, right? >> absolutely. that's what's keeping the stock low. >> diana oleck with the latest housing read two more ceos announce that's leaving president trump's manufacturing council. let get to eamon javers outside trump tower. >> the president woke up here at trump tower for the first time since he was sworn in as president this morning judging by his activity on twitter, in a combative move, retweeting a picture of a train with the word trump on it,

smashing into a cnn reporter then it was deleted. a spokesman saying that was retweeted inadvertently. a list of three ceos who announced they would be leaving the manufacturing council on nt wake of his handling of the charlottes vil charlottesville incident over the weekend. frazier, plank and krzanich saying that they were leaving. others saying they would stay on the manufacturing council. some of those ceos have left because they resigned from their jobs and haven't been replaced on the council others have left in protest of the president's policies, actions or inactions and, of course, some who have issued statements saying they are staying and some who have issued statements where it's not exactly clear where they come down take a look at the statement from dow chemical, andrew liverus.

it appears to us and what we're assuming here is that he is staying on the council we're trying to get clarity on that his statement says icon dem the violence this weekend in charlottesville, virginia. dow will continue to strengthen the social and economic fabric of the communities where it operates, including supporting policies that help create employment opportunities in manufacturing and rebuild the american workforce that manufacturing line seems to be an indication that liveris will stay on the manufacturing council. although he does not expressly say that kelly, i think the degree to which these statements by these ceos have been parsed is an indication of the struggle around many american board rooms as ceos and their teams figure out how to handle this, with some arguing they need to leaving the council and send a strong argument and others saying it's better to be at the table and have a voice in the room with the president at the white house investment difficult decision for american companies this weekend. >> and some having no comment whatsoever, eamon as they try to

weigh this and take as much time as they can. good to have you in the city outside trump tower today. tensions between north korea and the u.s. cool down the s&p hoping to build on the gains, after having its third 1% gain of the year let's bring in a couple of our favorites here bob dulles and chief investment strategist at loophold group do we set aside the turmoil that north korea had supposedly thrown the markets into last week >> well, as you know, carl, this kind of back and forth with north korea has been going on for years and years. obviously, it's gotten a little more heightened than the earlier discussions. these conversations are not new. the tension is not fun obviously, any wrong move would not be good for markets. but i think the markets are moving on, focusing on the

reports you just mentioned at the top of the hour. retail sales from earlier, empire manufacturing the economy is doing just fine, thank you. and earnings haven't been so bad either. >> jim, the retail sales numbers today, does that give us confidence that whatever lull we saw in activity early spring and summer is now being made up for? >> i think so, carl. i like a trio of things that i think is good for this market. one is what bob mentioned, the economic momentum here is pretty darn good. the citi surprise index has gone from minus 80 in june to minus 35 retail sales, good employment. japan post a big number. canada has big gdp numbers earnings have been good. in combination with that, there's no break on it in the sense that interest rates aren't up this year on the ten-year yield is down year to date dow has fallen 10%

faster than nominal gdp. excess liquidity thirdly, i think there's a wall of worry that we're still climbing, carl the list of things to be worried about is pretty pronounced you're supposed to be worried because valuations are tie high, vix is too low we've got too much faang concentration. we should be worried about the fed. we've got geopolitical risks and nuclear holocaust. i like combination of good momentum, no break and a wall of worry to keep this market going. >> yeah. it sort of sounds like cnbc last week, bob. just when you hit the volatility, all the bears come out of the closet and all these excuses for why the market is absolutely due to a pullback how would you describe sentiment and how that's driving the price action right now >> i think jim hit the nail on the head sentiment is skeptical

yes, there's optimists it's not where we were a few weeks ago. still skepticism represented by the kind of questions i get asked by advisers, the amount of cash sitting on the sidelines. there aren't a whole lot of people that are euphoric and can't wait to get in we have further to go as long as the fundamentals, economics and earnings are good. >> jim, what do you think is going on with the consumer advance auto parts is down 20% this morning coach is down 12 we'll talk more specifically about these earnings later but is this just a complete change in behavior here we're looking at is there anything to be worried about, given how strong the macro sales are this morning >> it has more to do with technology changing the world, amazon changing the world than it does with weakness in the consumer you look across consumer statistics, they've got full

employment they've got even half full employment, good solid job creation going on. high job lever rate. rising real wages. it's been phenomenal confidence among consumers is very strong. i don't think there's a lack of ability to buy i think it's being shifted to other areas than the conventional mall retail outlets and it's leaving some of these traditional stalwarts flailing i'm not sure it has to do with weak consumers as much as it does a change in the culture of how we consume goods. >> bob, this morning, kevin brady of ways and means said that tax reform is still on track for the end of the year. how do you think -- what point do we get back to a conversation about policy, either promises or practice and not to bring up the manufacturing council defections, but has that done anything to drive a wedge between the white house and

american business? >> did he happen to mention the end of which year? you get my point i think the calendar, in terms of a budget reconciliation and debt ceiling and the absence of a whole lot of coalescing around tax cuts/tax reform. i think we'll get something next year but smaller than anybody would have thought on january 31st this year. >> bob doll, jim paulsen, guys, thank you so much. we'll see you soon. >> thanks. >> let's get back to that conversation du jour on ceos and president trump. it's a complicated relationship. want to bring our own andrew sorkin outraged in private. many ceos fear the wrath of the president. with an endorsement, andrew, from the former treasury secretary, larry summers. >> i saw that. >> straight out calling on ceos to bail on any manufacturing council. what are you hearing in private? >> yesterday, of course, the

second squawk was over and that tweet went out not just from ken frazier but then the reaction to it from the president and then, of course, later in the day he doubled down on his statement against merck. as i called around to a number of ceos to ask them, a, where do they stand and what do they think about all of this, i can't tell you how many of them, really, i think, were both disturbed/furious with the president and yet felt, look, i don't want to say anything public if i get out there, could he come after me? what does this mean commercially i feel a moral obligation to some degree to talk about the violence, the hate publicly. and a lot of them have come out and done that. obviously, you saw that throughout the day yesterday also brt, which represents 200 ceos coming out and publicly condemning the hate and violence in charlottesville but not necessarily the president. how do you react to what the president said or didn't say

what is in his heart and then the other thing is the different constituencies a lot of these executives want to say something publicly or privately to their employees as a leader but are also worried about the political ramifications for consumers, right? if you're a pepsico, coca cola, whomever, you have consumers of all stripes. and what are the ramifications there? >> i think that directly relates to under armour's kevin plank, redemption of sorts for him after he caused a bit of controversy with his top star steph curry, having a pro-business president was an asset. >> i can make the case that it cuts both ways are there people who this morning are going to run out and buy under armour as a result of what he did? i think there probably are some. literally just to support what he has done.

ofr on the other hand, there's a huge number of consumers on all sides of this, to put it in president trump's terms, on many sides of this, that may have a different view and very well may not buy the product. you know, we talked about it earlier, from pepsico made comments that were construed as pretty critical of the president earlier this year. actually, right when he was first elected and there was a boycott against the company. so, at the same time that i imagine there are others who may have bought the product in support of her. >> it's a tough decision. >> one other piece of this -- ken frazier is a major piece of this what about the companies that do business with the government, right? merck, one of their biggest buyers of drugs is the government intel has relationships with the government is there a true impact is it just the fear factor is it just a tweet or does it actually have an economic impact directly in

terms of a contract? >> andrew, i think what's interesting is that these counsel councils were put together short after or in transition where expectations were high and still are in some circles. what would be the perspective if they started a fresh council today from ceos that say what happens if one day i want to get out? would i be treated like frazier? >> carl you make a smart point you're absolutely right. what took place over the weekend between immigration ban, between the paris climate accord, these are real issues that would today make it much more complicated to start one of these things. of course, there's the other question number of ceos said to me on the phone yesterday afternoon, how much impact am i having by being at the table i like being at the table to some degree because of taxes, health care reform, all these things are happening but i'm not sure i effectively am being a

pawn in this, in terms of -- or is the president being a pawn in this are we all being used as props, if you will? there's a multidimensional story as to who how these ceos are reacting. >> and corporate conscience, it relates to the google story we were talking about a lot and how far should i ceo go in expressing a moral opinion it's one thing to protest under policy this was not a specific policy. >> i think what's happened -- and i think it's true of maybe the last seven months, 12 months, past couple of years, if you're a company today -- and i think harvard business review was the one to say you don't no longer just need a business policy or business strategy. you need a -- your own foreign policy you might need a moral policy.

i think that we have changed, to some degree what the corporate world should be about and that in itself is a big debate. >> that's your next column we look forward to it. andrew ross sorkin, thank you for joining us from midtown manhattan. tjx, coach, home depot and dick's reporting results most of them not faring too well we'll get to the numbers how the soaring stock is helping to ramp up production at the company. phil lebeau is at a boeing plant. the channels you love. your favorite shows and movies. making your iphone into more of a... oh my tv is ringing. hey...i'm in the middle of a...a second iphone from at&t? okay!

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we do business where you do business. ♪ ♪ results from home depot, coach, tjx and dick's. courtney reagan has been digging through the numbers. start wherever you want, courtney dick's down 17%, hitting multi-year lows right now. >> the trend continues not as bad as the stock movement suggests but it's not wonderful either although dick's sporting goods is a different case, shares down 17%, hitting nearly seven-year lows missing across the board, particularly with comp sales and providing a forecast that's sharply below analyst's consensus because it's decided

deeper discounting is necessary to hold on to market share in the back half of the year. weakness in hunting, license goods and athletic apparel more than set off strength in e-commerce, footwear and golf. coach beating on earnings largely due to a tax rate. stronger than aanticipated there. gross margin fell and revenues missed, too. citi says some charges cloud what's happening with the coach business shares of coach are lower by more than 12% or so as well. on the earnings call, ceo victor luis noted that handbag sales were $400 or more, up from 40% last quarter and then when asked about the amazon threat, president josh schulman said, quote, we don't see that as a true luxury play and where many of our core competitors are playing. we're more interested in engaging directly.

dow component earnings beat. now the home improvement retailer upping its full year sales in earnings. forecasters not much not to like but sales still under pressure it's a retailer, after all tjx, parent of marshall's, tj maxx, guidance for earnings are below the street tjx has a conservative history investors are apparently looking past that this morning, those shares bucking the trend higher by almost 2% sara >> tough crowd. >> right >> to be a retail investor these days. >> courtney reagan, thank you for that rundown for more on what you should be buying and selling, let's bring in managing director atwells fargo. of course, i know you both like

coach and tjx. simeon, you cover under armour and nike both getting hit. anything to worry about on this deep cut in dick's guidance and heavy promotions >> sure. multiple times we've talked about the idea that the channel matters and we see that in general. we like the brands you would rather be with the brand. when you have such a large specialty store channel for the athletic, every time you get another one of these cuts you have to wonder where the sales are going to go. that leaves us concerned, particularly on under armour as you're watching the evolution. let's call that maturity from growth within that framework, i think this is something that's hard to ignore we need to keep focusing on t you're seeing it across the board. athletic and we'll get into the handbag conversation but this idea of brands and boxes and where those boxes will ship those sales is an important one. >> let's get into that conversation with under armour sales down 3.5% on that cut.

you like coach anything to worry about in the guidance here or are you still confident in that turnaround story? the stock had run up a great deal ahead of this result all year long. >> yeah. look, i think part of it is expectation and a tough time to report for retail. the department stores last week kind of ruined the setup in the q2, which had been fundamentals are improving and the call now is kind of so what what do these businesses look like going forward if you had told anyone that 12 months ago or 12 months today that coach is going to put up their best comp in five years in north america, everyone would have taken that. the stock is up a lot. outperforming. nuances with the kate spade story. it's still very much intact. >> simeon, let me ask you, as you respond to that, i thought it was interesting that coach said they don't consider amazon a quote, unquote, luxury play. look, nike realized that they

kind of have to get on to that platform and the average income of people who are amazon prime is pretty good why not have coach and these other brands make a big splashy move on to amazon? what's the risk for them >> longer term it's hard to imagine that everyone won't have some exposure to amazon. we're not longer term yet. the longer you can hold out and control your distribution, the more you want to do that it makes sense to the extent that coach is seeing this turn around in their stores continue to sell at full price and control that as much as you can. if you think about nike, search on amazon for nike products you'll get around 70,000 results. people are buying nike online. if you want to have some share of that, any control of that is better than nothing. and if i can, to ike's point, sentimentals are really important. two companies we look at, only two missed earnings this

quarter. 93% of our companies beat their earnings this quarter. the stocks don't reflect it. by the way, one of those two is amazon think about where the setup and sentiment has gone that's very important to keep in mind with retail and with all the rhetoric around armageddon, few companies are crowded into from a stock perspective, you have to be careful. >> stock acquisition, we had questions about amazon and their ability to absorb new categories to disrupt the take at the time was they're probably done for now, right let them digest this move into grocery. i'm not sure why the street is sort of tortured by the notion of what else they can disrupt. what other categories they could kill. >> thea i think what the problem is, to simeon's point, brands over retailers is how you want to be positioned now if you're a retailer selling third-party goods, sporting goods, auto parts, grocery, you're guilty until proven innocent because the amazon

boogie man is out there and he might come around the corner and scare you. multiple margins will be under a microscope in a bigger way than they ever have before. that's very new to this space. >> this whole brands over retailers theme, we saw that in the earnings and heard a number of retailers say it. doesn't it have to be brands that are regaining pricing control, though? brands like coach and last week kors, are going. that's been rewarded by shareholders who is doing the best at that? >> you brought up kors at the beginning and now. look at kors and ralph they did not become core stocks last week. they reminded us they might be value stocks brands that are doing -- when you're shrinking to grow, it's ease toy shrink. the question becomes can you start the growth these companies showing this margin elevation as they pull back sales, it's the first sign of that progress and we're talking about coach

right now, which is probably a year, year and a half above coach and ralph. we want to look at those brands as well. we think the core setup is interesting here and we're watching ralph every time you have one of these general retailers selloffs that creates potentially opportunities. >> we'll leave it there. thank you so much for discussing some of those names. >> thank you >> when we come back, how about boeing's soaring stock giving another boost as it ramps up production of planes lievg live to a boeing 737 plant next >> just starting to ghfit back into positive territory. stay right here. we'll be right back.

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good morning, everyone i'm sue herera here is your cnbc update at this hour chairman joseph dunford arriving in beijing as he continues his travels in asia, wants to solidify the iron clad commitment to seoul and tokyo. espn reporting toxicology report

showing there were five drugs in tiger woods system including vicodin, xanax he was arrested in may driving under the influence. he pled not guilty to dui but will plead guilty to reckless driving. >> and the mooch was on with stephen colbert last night, talking and trump adviser steve bannon. >> who is leaking now? is it steve bannon >> well, i've said that. >> i'm just saying say it now to these people. >> i've been pretty open to these people. >> is bannon the leaker. >> >> i said he was and he got caught on tape saying he was i have no trouble saying that. >> is he going to be gone in a week >> that's up to the president. >> what does the mooch think >> if it were up to me, he would be gone. >> we will see that's the news update for this hour i'll send it back down to you, kelly. >> sue, thank you so much. sue herera

boeing is ramping up production on its model 737s phil lebeau is joining us in washington with cool glasses and more phil >> reporter: you've got to follow the safety guidelines, kelly. we're here on the 737, one of three assembly lines here in washington the reason we're here is that when boeing raised its guidance late last month a big reason it did that is because it has been increasing its profit marginsa well as its productivity and deliveries of the 737s earlier this year, it was 42 per month. now they are delivering 47 per month. they just made that increase with that step earlier this month if you will. next year they'll go up to 52 per month and 57 per month by 2019 our photographer will go in and give you the sense of the workers here on the 737 line a surge in this manufacturing of this plane is driven, in part,

by the new 737 megs. t backlog stretching out basically over the next six, seven years with a total backlog of more than 4,400 planes. that's why these rate increases are so critical that boeing makes them efficiently. >> we just broke to rate 47 earlier this summer. the most telling thing is that there wasn't much fanfare associated with it it went very smoothly. i think that's indicative of the discipline that we now really know we have to put in place when we think about these higher rates and rate breaks. >> take a look at shares of boeing versus s&p 500 this year, i get this question a lot, are they trimming the payroll out in the puget sound?

sochl of the 747s are built here not much production left with those right now. yes, they have trimmed their payroll while increasing automation that's the key to them being far more efficient and productive than they have been in the past. and it's also one reason why they're able to increase productivity on a monthly basis, not only to 47 right now, but then to 52 and then in 2019 up to 57. guys, back to you. >> for all of us aviation geeks jealous of you on that floor, the dreamliner gets all the attention. is there any doubt that the 73 remains their bread and butter >> oh, absolutely. look, they don't charge as much for the 737 as they do for the dreamliner and it doesn't get the headlines that the dreamliner gets but this, by far, the bulk of the backlog when you look at boeing, it's the 737 when you have a backlog of more than 3800 of the max, you have to cut through that as quickly

as possible. and that's what's driving greater efficiency, greater profit margins on the commercial side of the business yeah, this is the body that the bulk of the airlines fly worldwide and it is crucial that boeing raise that productivity and the monthly production numbers. >> phil, quickly, i've been thinking about the inside of those planes lately with this rockwell colins potential deal, and it seems like boeing does, too, that their suppliers don't get so big that they can bid against them. >> it's not necessarily that they don't want the supplier to get big but boeing realizes with the creation of an avionics division there's high margins in that area. boeing and airbus and the other airplane makers are looking at a. vionics saying the brains of the plane is where you can really grow the margins let's see if we can develop more of that ourselves as opposed to

saying, okay, yeah, we'll simply go to a supplier. >> phil lebeau with the safety goggles at boeing. >> so cool looking now i would wear those just to wear them they're great. i want a pair. >> phil, thanks so much. when we come back, ceos dropping out of the president's council on the heels of the unrest in charlottesville. we'll check in with pulitzer prize nnwiing columnist jim stewart. home depot dragging about 35 points off the index

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intel ceo brian krzanich becoming the third ceo to resign from the president's manufacturing council following his statements about charlottesville over the weekend. you touched about this back in february, risky business for ceos, an invitation from trump now we're seeing what it means to serve on these. and summers makes the argument that even if you're on them

willingly, you're not maybe getting the bang for your buck you might have thought. >> well, i think the question here is are you serving shareholders' interest by participating on these councils? it's a pretty high bar ceos do not always have the luxury of, you know, expressing their political views or even their moral views. they have a duty to the shareholders and that duty has generally meant participating with the trump train he did cross over, even a tad of white supremacy endorsement is a line people can't afford to cross. do you have the risk of a backlash under armour clearly does. pepsico ceo is probably in a hot spot there otherwise, look at somebody like boeing i mean, he targeted boeing early on i read about this last week. boeing went on a charm offensive

with him their ceo is on the council. it has paid off handsomely for them the president of the united states is very, very powerful. obviously at some point there's a moral line that nobody is going to cross and i think that flows if he hadn't rolled it back i think we would be seeing a mass exodus. >> what does the line look like specifically is it only about calling out neo nazis and racism or are there other elements of social and economic rhetoric that could possibly be crossed >> i think there are a lot of lines there, you know. it's hard to know where those are going to be or where they're going to pop up. number one you look at what's in the interest of shareholders that may be a somewhat narrow question the broader question, when you're talking about racism and white supremacy is what's in the interest of this nation and what is so bad for the nation that it would drag down the entire economy? and, you know, i don't want to

engage in extreme comparisons here but the establishment of germany went right along with the nazi program and it destroyed the entire country obviously that's a line that's way over there people can't cross that either political, moral or practical grounds. even a tacit endorsement of white supremacy will -- he pulled back. someone in the white house didn't recognize that this line was way too far over there and didn't do it faster is astounding to me nevertheless i think that is clearly over the line. >> what do you think the president has to lose by having this ceo exodus, three after this, two after withdrawing from the paris climate accord, one after immigration, uber. what's the status of these councils and how much do you think it hurts the president and his efforts as painting himself as ceo in chief? >> he has a lot to lose in my

view not all these ceos are republicans but they represent the shareholder class, the affluent population in this country, the well educated population many of whom have been a little queazy about trump and his flirtation about the party for a long time. preserving that extreme base will alieniate middle of the road republicans i know plenty of them and they are not happy about this. >> jim, we talked about the different constituencies that these executives have to handle. do you believe that sales are truly on the line, depending on the position you've taken? do you believe that, for instance, under armour either sees sales go up or down materially because of the move plank made >> i don't know. i don't think these things have a huge impact on consumer behavior unless, you know, a serious kind of boycott really

starts to take hold. if you're the ceo of a consumer company, why risk it why put your neck on that line and as more of them are willing to speak out and lead the council, you're less at risk by being targeted by trump. i mean, you know, somebody like frazier at merck doesn't have a lot of consumer exposure being the first one to go out like that is risky and immediately he incurred the wrath of the president can he go after every ceo on these councils i don't think so once there's a critical mass of this, there's not much risk in disassociating yourself from something. it's never going to be a positive and could end up alienating consumers. >> my other question, jim, is what about ceos who have come out and condemned in strong language the violence, bigotry, hate groups that said it's important for me to have a seat still at the table jamie dimon did not step off andrew liveris, not stepping off. denise morris of campbell soup

do these ceos have an obligation to stand with frazier, to speak out more, talk about moral issues or are they just there to talk about taxes and workforce development and infrastructure spending and keep quiet on social issues? >> i think their first question, you know, is -- and this isn't satisfying to those who would like to see them speak out but their first interest has to be what's in the interest of my shareholders they have a huge amount at stake in dealing with federal government and specifically with the executive branch that is really a tough call. i can see why they would swallow hard like i said, if trump hadn't stepped up yesterday i think you would see them all pulling out of this. he bought some time there. i can understand whythey're in a tight situation and are reluctant to attack trump. >> for those viewers who say

this is not business get back to business, get back to work, how do you get through the idea that we're sort of all over our skis, dealing in topics we're not used to in the financial press? >> that's exactly the point i'm trying to make here. at some point, business and politics merge you would love to think of them as completely separate they put on their business hat, their political hat and they're completely separate worlds it doesn't work that way f this country becomes consumed by racism issues, by divisions, by black and white, by white supremacists, by this turmoil, that is not good for the economy. that is not good for the health of business, you know. it's going to alienate not just consumers but at some point it will drag down the broad economy. people who are investors and are in business, they can't put their head in the sand and pretend these political issues don't have economic consequences. >> summers, in his piece, says that business confidence is the cheapest form of stimulus. and that is sort of what's at risk here. jim stewart, thank you so much

see you soon. >> sure. thanks as we head to a quick break here, take a look at shares of snap actually got an upgrade today. from neutral based on an increase in engagement with the snap chat parent stock is up a little more than 2% overl rkalmaet giving back early gains. "squawk on the street" will be right back i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that? even way out here? yes. even way out here.

one group of stocks soaring on the bitcoin rally are they with your money right now? go to trading nation to find out. more "squawk on the street" coming up.

welcome back to "squawk on the street." it's guest time. my guest today is with me. thank you for taking the time. toefrg do about risk is between your ears. you have it all down let's go through all the sectors. before we do, seems like

investment grade is boring s that about the land xap these days >> the landscape, is i think there are a couple things. one is credit spreads are tight. i mean we are at within high yields, ten year historical valuations, investment grade, high yield similar. there are a couple things driving. that one is gloeblg search for yield. partly that is driven by from domestic investor base where treasury yields are. but also importantly it's driven by where foreign yields r as we've been talking about, ecb is negative rates bank offa p japan is at zeier roechlt and we see it in our platform where the flows are coming into investment grade, high yield, municipal bonds. it's across the investment spectrum. >> one of the biggest fears the fed has in normalizing, although i think that is a really bad word these days, trying to undo some of what they've done is to worry about the strength in the dollar index seems crazy to think about worrying about the strength in the dollar index considering where it's trading

but to that point, let's go to merging markets. the unwinding of the confidence in emerging markets has a lot to do with theish knew dollars. dollar gets strong and then they're scrambling to make payments. >> emerging markets, this is our view, they're different than the 1988, 1998 prices for some of the previous paerdz. emerging markets are issuing more their government debt and local markets. and as a general statement, they have been on a growth and reform trajectory for 15 years or longer in some places. that is leading to not just a local investor base but really a global investor base if you were to ask us where to do we think some of the best opportunities over the next couple years are going to be, it is going to be in emerging markets. it's going to be in local emerging markets and in hard currency emerging markets. even in some of the corporate emerging market debt, that's going to be an area of focus for the market next few years. >> history dictates whatever you're worried about with regard to previous problems or prices,

environments, they never repeat themselves is there any way final answer in your opinion to come up with some type of a hedge, a simple hedge. it doesn't seem to be fx related as you pointed out but for any surprise in the emerging marketses which don't give you a big turn around time to move your portfolio much when the smoke starts to rise. >> we think the couple of things that you got to be focused on is tail risk is there is a global environment. fixed income has globalized. the importance of that point is that if japan were to move off, you know, you've been talking about with a zero rate floor or the ecb were to move from a negative rate to a positive rate structure in an abrupt manner, that will have reprecushions for emerge being markets and global fixed income. >> if i could change words, what you're worried about is how other foreign central banks, foreign central banks outside the u.s. try to exit that is a risk that you have to deal with. >> yeah. >> excellent. >> thank you for taking the time today. kelly, back to you

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my offer is $650,000 for 25% of the business. we have a deal >> we have a deal. >> welcome back to "squawk on the street." stocks erasing the early gains financials still sticking out as winners right now. discover, financial, fifth third, brighthouse all doing the heavy lifting to the upside. that's it for this hour of squawk on street let's go to the start of "squawk alley. back to you. >> dom, thank you very much. good morning it is 8:00 a.m. at go daddy headquarters out west. 11:00 a.m. on wall street. "squawk alley" is live ♪