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 ♪

♪ good tuesday morning welcome to "squawk alley." joining me at post flnine this morning, sarah eyeseyer eisen. also joining us is roger mack in a my good morning to you. a lot to get to to dafrment first up, f-a-a-n-g stocks several hedge funneled managers bearish on the stocks in the second quarter third point, aprpaloosa and soro are liquidating 18 stakes in those areas. they speak out on the company's streaming strategy versus fellow f-a-a-n-g stock amazon you wrote an op-ed in investing in the stocks two days ago do you seenlt. turning as we're getting the filings to day >> i don't yet and, in fact, what i am really curious to know is where the

money went that was taken out of the stocks if you look at by funneled, the sales weren't in general huge. most of them look more like trims than, you know, lots of dumping. and, in fact, the thing that i think everyone looks closely at tech recognizes is that the faang stocks are leadership stocks for a really good reason. their market power has given them huge advantages, competitively. as a result, they're fundamentals are a lot better than everyone else the issue now is that as good as the funneled ales -- fundamentals are, they're rising more rapidly. so the expansion is particularly great in this group of stocks. and so to me, the market call is the one you have to make so if you're not -- if you're putting these into other stocks, i don't get it i think the fundamentals are better in faang than elsewhere but i can see people going to cash >> even though the market power that you're describing has obviously had cultural

consequences, you're not happy about, others have pointed to the rising risk of anti-trust group because of that market power. you don't think that's a turnoff if you're just in it for the investment >>, no i'm saying if you're just in it for the investment, none of those things is a real threat in the near term the reason i wrote my op-ed is because there is no appetite in our government for serious anti-monopoly regulation we haven't had -- we've been going away from anti-monopoly regulations since 1981 and i see nothing -- right now there is talk. lots of people i think in congress are open to the idea but not enough to actually get in legislation passed. i think the country just hasn't focused on it. there are other issues that worry people more. i don't think that's a super big threat i don't think they're competitive threats to the faang stocks the onlyish sue what do you think of the market? and given how much of return has come from pe expansion this year, i think it's completely reasonable to ask the question how long can this last

and, you know, as long as the trend is in place, you're right. but one of these days we'll wake up and it's not going to be in place anymore and you're going to wish you sold some stock. >> and on that day, i wonder if you have to distinguish between the faang stocks if we do a little more deeper stock picking dive into faang, should you be looking, for instance, at a netflix and tesla as vulnerable. they're the two that are burning cash of all the high growth cash generating fast growing machines >> you know, that's probably right in the sense that they will react more. so you'll get hurt worse in those stocks they're also the smallest -- they're the least well entrenched in the economy. but i look at netflix and i go, i -- again, splitting hairs among the faang stocks is a useful exercise today. i look at netflix. i can see the arguments against it but the arguments in favor of it are really compelling.

relative to other people in video. netflix's strategy is the one that is forcing everyone else to react. and they keep coming up with new angles that are tremendously inventive. you know, i don't own the stock. i never been clever enough to figure out a good entry point. but i will tell you, i have no end of admiration for what they've done i would encourage everyone to read the interview the way he describes what's going on in that business is really thoughtful and you have to admire what they're doing you know, whether the stock works from here, again, i think is a function of the market. if the market keeps going up, the faang stocks will continue to lead it >> roger, let me just ask -- by the way, i know your firm interviewed variety. we showed a cover image of that but there are high profile symbols of the ipo thaz people are scratching heads and saying why is silicon valley asigning a high valuation to snap and blue apron and the public markets

aren't seeing it >> the public market is really smart. i it this public market has this figured out. the problem in silicon valley is that the next generation that was supposed to slide in on the heels of the faang stocks has not actually crystallized in terms of economic power. that there was a lot of promotion of the unicorn phenomenon but the substance of that generation of companies has not been there and, you know, the one that's got the furthest from the revenue point of view, companies like like uber are plagued. i don't think they stand up to tight scrutiny you know, i was there at post 9 with you guys the day snap went public all of us around the table that day were scratching our heads because it was like we were -- we've been tell eported to 1999. silicon valley is a very spoeshl community. there say good reason for that

a lot of wonderful stuff has come out of here a lot of garbage has come out of here too there is nothing to replace the faang stocks in the portfolio. there is nothing equivalently large scale that has that kind of strength. and, you know, tesla is, you know, doesn't have a letter in the faang. but i can understand why people would include it in that same group. but once you look at this more recent group, it just doesn't stand up to scrutiny and i think, you know, i still look at snap and i don't think it's as low as it's going to go. >> how about t-pang? >> there are a few of the acronyms roger, two more ceos resigning from the president's manufacturing council. under armour and they decided to exit the council yesterday morning. there is what intel's chief said in june when he defended his decision to stay on the council at the time. >> here's my belief.

just like exiting the paris accord and just walking away is not a good thing, walking away from the administration, it is the administration of our country. we need to engage. and what i'll do is spend time in there talking about what are we going to do how do we get back in? >> roger, ceos in an interesting spot to make political decisions. what do you think they should do >> well, wim brian on this one i think that whatever hope you had at the beginning of the year of a constructive relationship between the business community and the administration, you know, there was a legitimate reason for optimism at the beginning if you were a ceo of a major company. i think if you look at it to day, the one thing can you be absolutely certain of is that reviving america is manufacturing economy is not going to be something that this administration has the bandwidth to do over coming years. they're going to be completely consumed with, you know, one legal defenses and then

secondly, this agenda of social and essentially -- the way i describe it is this administration has one gear and it's reverse you know, they're just trying to take us backward they're undoing regulations. they're undoing safety they're undoing the, you know, the safety net that people depend on. and in that environment, even if you had the notion of something constructive that they could do around manufacturing, it just doesn't seem to be high enough priority and i think that candid lit other things are so destructive of both consumer demand and the basic economy itself that hang around there is just an inherently bad thing for ceos to be doing i think they can do more value by protest today than they can by positive interaction. >> you may say it's going in reverse. but it's rolling back some of the regs that people believe will actually tlelead to more j. >> i know people -- >> there is infrastructure and environmental review

>> i believe that people -- i accept that people believe that deregulation will help i would like to offer an alt ea - alternative hypothesis since 1991 we will two tools of economic policy that we allowed in this country, tax cuts and deregulation we've done essentially the same thing for more than 30 years 36 years and i would like to suggest that there's real evidenceit was enormously helpful for the first ten years. it was helpful but with definishing return for the second ten years and for the 16 years since then, i would challenge anybody to show how the country benefited from it. i can see how the top 1%, how people like myself benefit from it but realistically, you have not seen it in the economic numbers. i just think that this is become a religious thing for a lot of people and it's been so long since we've done anything else that people have forgotten that there are other economic strategies can you employ to boost the

economy. i think anything you can do today that increases jobs and increases family income, those are the things i would focus on and i don't think deregulation helps that at all. >> well that's a whole separate conversation i mean so many of the -- >> it is >> sox t many of the ceos have a duty to the shareholders so maybe more infrastructure spending to he spending to help the businesses grow >> i hear that point let me push back on that point i think they would benefit a lot more from consumers having more stability in their lives and more money in their pockets that i think increasing demand right now would be a lot more valuable than cutting taxes again, if you look at a corporations have huge amounts of cash on their balance sheet i just don't think that corporate tax thing is at the margin the right thing to do either for the companies or the country. >> that's a classic supply-side economics argument which we'll leave to economists.

>> we go to the councils with that without even trying >> that's why i'm here, right? >> yes roger, stay with us. we want to touch briefly on uber the in fighting continues with the genbenchmark today. they're xblang the lawsuit against kalanick we're watching that story. we have the latest good morning, carl more news this morning the ftc announcing that uber settled allegations over deceptive privacy and data security claims, something that happened during uber 1.0 which is when the company was led by travis kalanick. and uber spokesperson telling us the complaint involved practice that's date as far back as 2014. we significantly strengthened our privacy and data security practices since then benchmark believing that the best way for uber to move forward is to push out kalanick completely n that letter that vc firm send yesterday, the lawsuit was motivated by a deep desire to do what is best for uber.

but maybe more complicated sources tell me that behind the scenes benchmark may not actually be acting in the company's best interests they say the vc firm threatened to block any potential investment deal unless the board is tapped at eight people which would eliminate the three board seats that kalanick controls and that move could come at the expense of the duty. the average holding duration for vc invest ment is seven years. now as "the new york times" reported, uber's board has been approached by three potential inve investment proposals and two will let them maintain the valuation. the valuation in the secondary market has fallen by billions. it all begs the question who in the world is going to come in and take over as the next ceo? it is not that hard to see how all of this infighting and now benchmark's lawsuit could drive away existing or future candidates >> what an amazing story

thank you for. that roger, just trying to put this in historical context do you see this along the lines of hp and yahoo in terms of board dysfunction? >> i am not sure i would characterize this as board dysfunctio dysfunction in that sense at all. the problem you have here is different than -- hp is what i'm particularly familiar with because there there was a massive conflict over decision to acquire compact and the fight there was, you know, about a basic question of the company's strategy in this particular case, you're dealing with a company that was an extension of travis kalanick's personality i mean, he was uber in so many ways and pulling him out of the company creates at least some question as to what does the company do afterwards? because if you look at it, the problem is isn't just that he would say and do bad things when he was out in public it's that the company did

mislead regulators and had software that played games and that deceived drivers. there were a lot of -- it's been accused of a million different things all of which look just like kalanick so it made them one level very successful bear with me for a second. it made them appear to be incredibly successful. now it appears that wait a minute, all of that was at least not acceptable and some of it may have actually been really, really bad and when you're in that position, you have to ask the question of, wait a minute, i've got this things that going from nothing to $70 billion my responsibility is to try to protect that investment, protect the employees and all of that. i look at this battle. i don't know what's going on inside what i know is that i understand the benchmark position

and i think that they know kalanick better than a lot of the other board members do if they feel he ought to be completely gone from the company, i can understand why. what i would tell you is the notion they're going to finance this thing at $70 billion i find laughable. somebody may give them a proposal that looks like a $70 billion valuation built i will bet you anything that when the dust settles, you know, when you unwrap all the layers, it's worth way, way, way less than that this company is not worth anything like that price you know, it is worth $10 billion? $20 billion? $30 billion? i have no idea the market will make that decision but not $70. >> okay. $10 billion for uber >> no. i'm saying there is something -- the market will pick a price time will tell but this dcompany is in deep trouble. unlike hp and yahoo, there is threat that this company goes away because they, you know, they built this whole thing up on a philosophy that turns out to be unacceptable and so they have to change the

philosophy and whether thn they do that, ie emperor going to be wearing any clothes or not >> we'll digest that later on. good stuff today thank you for your time as always roger mcnamee. when we return, silicon valley versus a neonazi website following the tragic events in charlottesville over the weekend. we're back in a moment

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daily stormer has 24 hours to most domain to another provider they vie latd our terms of service. joining us to discussion that decision and more is blake irving, the ceo of godaddy who has seen the stock jump 20% so far this year. we want to talk about both stories. welcome back to the show >> thanks, sarah >> so take us through this decision we've been talking a lot about the risk calculations for ceos around these kinds of issues today. and yesterday. what happened saturday behind the scenes at godaddy that led you to pull this site and make this announcement sunday evening? >> yeah. that's a good question so, look, we always have to ride the fence on top of making sure that we are protecting a free and open internet and regardless of whether, you know, speech is

hateful, bigoted, racist, ignore anlt, tasteless, in many cases we'll still keep that content up we don't want to be a censor and certainly first amendment rights matter not just in speech but on the internet as well but when the line gets crossed and that speech starts to insight violence, then we have a responsibility to take that down and clearly with the events that happened in charlottesville, we felt the daily stormer went too far, crossed the line and we had conversations amongst our self and executive team about what we should do. we decided we're going to take this down. we don't think it has any business being on the internet so we gave 24 hours notice to the daily stormer to move their site somewhere else. >> i mean with all due respect, that's when you decided that it could promote violent behavior why host a site to begin with that promotes anti-semitism, neonaziism and white nationalism? >> you know, i understand

that -- i understand that position still first amendment rights protect people's ability to represent their beliefs. as ignore anlt and tasteless as those beliefs are, they have the right to do those things and i think when they step over the line and become, you know, i think targeting individuals with violence which clearly i think on the heels again of charlottesville was there, we thought we had a responsibility to do it frankly, we have looked at daily stormer because folks have reported it to us. we have a teechl people that continue to monitor sites when they're reported to us and over the last decade we have had folks that take content, content reports, review the sights sites and decide what what we're going to do with them. it's a fine line being making sure we're not a censor and making sure we're acting in a responsible manner and think a group of people or individual is being targeted with violence and that's what we did

>> blake, just to help viewers understand, how big a deal is this how often do you do something like this? where you actually pull something off? >> carl, well, pretty often. so there is actually, we have a number -- we have a pretty large team focused on content. and in in case, we hosted the website. we didn't even host the -- we didn't host the website. we hosted the domain so website was actually hosted some where else. we hosted the domain and we thought that frankly when you manage the dns of the maiden name space of the address of somebody can you take them off line so when cases when we doest host then with site and we host the name and we have 71 million dough mains, 17 million customers, that will take it down and it's not a super unusual thing for us to respond to a request and have to do that kind of thing >> blake, we've seen a number of other companies, for example, twitter having to grapple with the issue of getting terrorists off of its website

kara swisher yesterday told us she thought companies providing any kind of services, even a company like paypal should think carefully whether they want to continue to do so. what is your internal decision making about which sites were okay and which were not? going back to your point about free speech earlier. do you have an internal way of deciding or is there an external sort of guide can you go upon when it comes to making the tough calls? >> no, our terms of service is very clear as soon as the line is crossed and insighting violence against a group or individual, we take the site down. short of that, if somebody is, you know, espousing beliefs which we believe are ignore anlt, tasteless, bigoted, we can't do a lot without becoming a censor we don't that i is our business to be a censor as soon as that line is crossed, we act that's the conversation we had clearly this was breaking our terms of service and we took them down. >> of course, charlottesville eventually led to the story

we're following regarding the manufacturing council. the president now tweeting for every ceo that drops out of the manufacturing council i have many to take their place grand standers should not have gone on and then says jobs posted a couple minutes ago. >> not quite as biting as the attacks specifically on ken frasier, the double tweet against ken frasier of merck if you were on one of the councils, would you have dropped out? >> man, try toy stay away from political -- the political fury that shapg right now i wasn't asked to be on that council. i don't believe i will be asked to be on that council. i won't have to make that decision >> all right let's talk about your company and your stock i noi you want to get. to you're coming off a good quarter. 22% revenue growth domain hosting up 15%. what is driving it is it new products that you're offering and bringing to the marketplace or are you just expanding around the world >> yeah. it's a combination thing we added 2.6 million customers

over the course of the year. we increased our average revenue per user which helped a lochlt we introduced new products we've introduced our new go central website builder which is going great on publish rates and on conversion. teen day we're actually announcing a new product called smart line it's been in data for quite some time it adds a second phone tlin a smart phone for only $3.99 a month. and it allows a small business person and there are 23 million sole proprietors in the united states, 55 million small businesses, phone lines are a $20 billion business in the u.s. 435 million phone lines in the u.s., 300 million of them are mobile we're allowing small businesses to say i'm never going to publish my personal phone number on a website i am going to be able to see when a phone call comes into me and is directed at my business and not at me as an individual and i can answer that call professionally and we know that sole

proprietors want to be able to morph between their personal life and business life and determine who is calling them and should i answer professionally or like i'm a friend or the parent of a kid whose teacher is calling them? very different scenarios many on the same device many times. >> since this is your bread and butter serving small business and offering the new types of services, what you are seeing in terms of their appetite and willingness to spend we saw this big jump in small business confidence after the election that continued. a lot of it having to do with the republican and trump policies that he laid out. are they actually putting their money where their mouths are >> yeah. you know, it's interesting we don't run a counter cyclical business we do run a very resill yenient business whether folks believe the economy is great they're going to try something on their own and go strike out and, you know, take an id and try to run a business it with. if the economy is doing poorly and they believe their job might be at risk, they're still going to take that leap.

the reasoning will be different. it might be defensive saying, look, i might have to work for myself, therefore, i'm going to go get things started onside, get a side hustle going instead of, you know, thinking about it as their breakaway and their offensive move and getting into their own business so we actually have some resiliency because of that psychological determination that somebody says i'm going to go for it or protect myself and that's a very helpful thing for a business here in the u.s >> blake irving, thank you for joining us thank you for bearing us with on the breaking news to talk all things politics and the business the ceo of godaddy >> thank you when we come back, the ceo of car sharing service maven is going to join us and talk about the expansion. watching the dow it's in a tight range today. quk le ctiess. "sawaly"onnu after this

let's go over to sue herrera. >> good morning everyone

here's what's happening for you at this hour rescue operations are continuing in the wake of deadly mudslides that hit sierra leone's capital on monday. the death toll rising to 270 people with the red cross now estimating at 600 are still missing. 3,000 people have been displaced from their homes south korea's president says the north korean nuclear prop must be addressed in a peaceful manner he also said his position was shared by the united states. addressing a rally in seoul. he said that south korea had to take the initiative to solve the problem. members of the third division u.s. marines taking part in a 10,000 parra chuachut in japan it is largest bilateral move to be held between u.s. and japan >> and amazon is rolling out pickup points where shoppers can retrieve items immediately after ordering them shortening

delivering times from hours to minutes. that's the news update this hour i'll send it back downtown to you, sarah college campuses, the perfect place for immediate delivery, i think. >> i was going to say, i'll stick to having it delivered to mechlt me i can wait an hour >> we k they can't >> that's right. when we return, plenty of retailers returning this morning. home debow dragging on the dow now. tjx. dicks is getting slammed coach is down 14%. we'll talk about manufacture the moves. and later yshgs the cleave content officer at netflix says amazon streaming strategy is flawed more "squawk alley" after the break.

europe closed about five minutes ago. let's get to michelle over at hq. >> stocks building on monday rally over in europe which is the best for the broader markets kroots pond in more than a month. the italian markets you see gray because that market is closed in observance of assumption day euro weaker today. came in slightly below consensus at 0.6%. you can see the euro solidly below $1.18 for the second day in a row the brit ush pound at a three week low versus the dollar right now $1.28 and change core inflation fell in july. flat in june this makes the bank of england less worried and heads further reduces the possibility of rate

hikes, the reason why we see the fall in sterling individual stock movers. tsonga off shores that, is after tran transocean agreed to bite company. this marks further consolidation in drilling rig operators. uk retailer next was down about 4% finished off the lows down 3% in london cut to sell because the analyst believes that company has too many stores and that it needs to improve its online strategy. sound familiar yogurt maker dannon up 1.5% in paris. the activist hedge fundin the u.s. built a small stake if dannon because they believe it is undervalued back to you. >> interesting and let's talk more about retail, michelle thank you. take a look at a couple of the stocks home depot beat this week and the second guidance this year but the stock is still sinking retails have been struggling to boost sales. home depot is down 3%.

it is weighing on the dow. joining us is rob plaza, analyst with key private bank. welcome to you both. cici, you know, there is home depot on the -- i guess as good as their results were, the stock selling off may be emblematic of the fact that we have major declines in dick's and advanced auto parts why do you think home depot is weaker >> you know what even the players that were less bad, that's no longer good enough here. you saw that with macy's, with their stock. with home depot, you can hardly pick on any of the metrics here got it up the deal is it's a high multiple and their gross margin, one could argue, is plateaued here and, of course, the big elephant in the room is amazon. you know, you look at this sector and everybody said was safe auto parts you look at advanced auto today. down double digits and you have to raise the

question with home depot particularly as kenmore is now selling appliances online that are smart appliances is this sector safe as well? >> and, rob, that's why it was good to get the retail sales report this morning for the whole consumer it has some interesting nuggets. you think for building materials, those are up 7% on the year you have, you know, moitor vehicles and parts dealers up s this just an amazon scare or are they really taking share >> well, there's the amazon scare throughout retail as stacy eluded to, just the prospect of am done entering the business is, you know at worst they start to take share and, you know, maybe a best case scenario is they come in and put pricing pressure on it so margins are going to come down to keep the sales needed to maintain market share. so i'd say amazon, the amazon specter is everywhere in retail.

>> yeah. stacy, i guess the point is, you know, even while those numbers are growing, if the companies are not making as much money as you mentioned, that's still a problem. on dick's for a moment this was a quad on weakness. they missed on the top and bottom line. they lowered the guidance. i don't remember the fourth one. >> promotional activity. >> they're trying to do something. they're coming out with their own private label initiative right now. they should benefit from some of the competitors composing. i mean that's a big drop for them this morning. why do you that i is >> they should be benefiting again, you know, what dick's said on the sexual they're going to now promote and match amazon pricing. so, yes, private label helps and, you know, all of the retails have said the private labels are outperforming a bit it's all about having the exclusive product. but when you look at sporting goods, it's all of really about branded product. that's what the consumer wants and by the way, all of the brands are now selling on

amazon nike was the latest to wave the white flag and join in if amazon is becoming the new specialty retailer or the department store and pushing out especially ti guys like dib specialty guys like dick's, sporting goods stores were down 5% on the year department stores, those were down 4% on the year, guys. nonstore retailers up 11%. so, rob, are there any retailers who you think are favorably positioned >> well, it's a field of land mines. one name that many institutional investors have been hiding in has been home depot. and without, you know, without any really good stories, basically the only things that streaming well now are the retailers that are beaten up so badly that stocks are incredibly cheap. so if they can just maintain,

stabilize, can you see those stocks pop but that's really more of a trade, not really a long term invest ment thesis >> rob plaza and stacy widlits, thank you on another tough day for the retail sector. whether we come back, looking at the dow up about 11 points trying to stay in positive territory. the ceo of gm's car sharing subsidiary will join us. but first, mr. rick, what are you watching this morning? >> something interesting is happened in may, previous to that in april and just happened a couple days ago in august. it thooz do with treasury yields and the behavior of the vix. eae l talk about that after th brk.

here's what's coming up on the halftime report. top of the hour, famed investor david temper talking about the markets and his call on where stocks may go if here. and then the one beaten up name, kevin o'leary is buying. we're going to debate his trade and whether it's worth your money as well. and the latest on the retail wreckage, coach, dick's sporting goods getting hammered today is the bottom anywhere in site all that at noon eastern we'll see you in about 15 minutes. >> all right scott, thank you very much as we're waiting for your show, we're getting into another resignation from the manufacturing jobs initiative at the white house. this is coming from scott paul of at license of american manufacturing. i'm resigning from manufacturing jobs initiative because it is the right thing for me to do

nothing beyond that. but, of course, that comes just a few minutes after the president himself said there are a number of other ceos waiting to join and that those who left the councils are grand standers in the president's words >> i think one question is how many people are left between the number of people that are stepping down and then the number of ceos that actually lost the ceo job or gone through ceo transition since joining the council for other reasons, i'm thinking mario longy, mark fields of ford, a lot of them -- >> klinefeld >> yeah, i don't know what that says about manufacturing in america. but if that is the point, the ceos are really trying to reconcile standing next to the president and everything that that means that goes along with working with him on the policy initiatives. >> the will president appoint new people now to back up his tweet or make a point about here are new people i'm bringing n maybe he doesn't do it today does he try to do it at all? if you get that phone call as a

ceo, how do you respond? >> what do do you? >> yeah. that's a tough one. >> we'll keep our eye on all that the market remains if a fairly tight range. even tighter as the morning has gone on. the dow up is six points heavily buffeted by home depot's results and price action let's get to rick santelli and "the santelli exchange." actually, carl, you hit on it you said today seems like we have pretty tight ranges this whole piece about volatility and trade ranges, as i'm talking, look at year to date chart of ten year note yields in the beginning of the year, we virtually had a 230 to 250 trading range with some extraneous activity between 250 and 263. didn't last long back half of the year has been 220 to 240 with a bit of range under 220 periodically and that is the subject of today's talk whether you look at mid april, the end of may, parts of june or just last week in august, it

seems as though every time ten year note yields start to dip into the low 220s or give that area up, the vix pops. look at a chart of the vix on top of tens for 2017 thus far. it's pretty hard to argue with now i could spend many spots talking about why. the etns, securitization of the vix, all the different liquidity and i will liquidity issues. we don't need to this actually sums it up better than all of those things if you're looking to continue for the same mold that we in 2017 virtually low vol equalling pretty much out sized equity returns, i think all you need to do is monitor every time we get into the low 220s and yields it creates a certain form of investor nervousness that seems to translate into reversing short volatility trades and much of that, of course, plays into what equities do

you know, i can't tell you the magic point but there is a magic point where the psychology of weak equities plays right into the hands of reversing short volatility trades. we kind of know what it looks like because we saw it last week we've seen it all the times i've dictated now i don't know exactly what is going to ultimately change the low 220 trade. but i can tell you this. we don't have a lot of experience with how all of this is going to happen to the upside one thing i can say, i think we finally come to the point in the landscape of how all central banks relate to each other both in on going policy and potential reversing on going policy, that should yields start to move higher most likely the first place to look will be central banks. the second place to look will be the equity indices because if stocks can actually hold up with higher interest rates, we won't have to have this discussion anymore. and most likely, vix will settle

back and become a continued short but not nearly the nervous short that it seems to be right now. sarah and the gang, carl, back to you >> all right rick, thank you very much. rick santelli. maven, the car sharing subsid air yif gm announcing ano l.a., allowing drivers for lift, uber, grub hub, and skoip, hop, jump to rent a car by the week let's bring in maven's ceo and vice president of urban mobility, julie stein. we had you here on post nine on the first chapter of this expansion and now l.a. i guess chapter one went pretty well >> exactly excited to be back this is very exciting time for maven, because i think the expansion of maven showcases that we're building a holistic mobility platform. maven gig provides cars to

freelances to earn money however they want. and for the first time, we're also deploying thousands of electric bolts, because the drivers, they drive for over 800 miles a week so we want to do it in a very environmentally friendly way >> can you walk us through what pricing looks likes. what's the price structure here? >> so thepricing for maven gig starts at 189. the electric volts are priced at $229 a week plus insurance is included and we're including all the costs of the charging of the vehicle. so everything that the driver earns on multiple platforms, that income is all theirs. and we have exciting partners that work with us on this. so it's not just about the taxi and raid-hailing applications. as you mentioned, though i'm very excited to be partnering with hop, skip, drive. this is the surface that takes the kids to their activities and the elderly adults to their

doctor's appointments. so this is exciting to be able to really, holistically look at all the mobility needs and all the mobility demand pools the that maven can address through gig. >> on this topic, julia, i wanted to get your thoughts on the labor force, basically and what you're seeing in the gig economy. "the wall street journal" did this big piece about how with falling unemployment rates and a record number of job openings in this country, there may be less demand for this temporary, lower paid sort of gig, freelance-type jobs are you sieeing that >> we want to enable different choices that people are free to make, especially with most of the maven customers are average age, 30 years old. there's a lot of transitions happening in their lives that's why maven gig is so unique, because you don't have a commitment to the asset, like a car, for three years you have access to the vehicle for as short as seven days

this enables a different way of how you approach it. in the morning, you can be a student, and in the evening, you might want to earn a couple of bucks, and there's nothing wrong with doing it in the gig economy. you can work in the cafeteria or jump into the maisch gig car and work for either delivery or frankly, get your fellow consumers to get out of the bars, if you want. >> no comment. julia, is maven profitable >> every dollar that gm invests in the maven initiative is returning on the roi over 100% >> so this is being looked at from gm's point of view as, we need to be at the forefront of this technology, and if it's costing us money right now, we're willing to make that investment >> well, it's earning money on its investment and what is unique, what we're doing at gm with maven, we're really, truly looking holistically at what mobility

comes next so maven is not just addressing one demand pool. we're building a comprehensive holistic platform as transportation as a service. i hate when people think that urban mobility is just an app in the car. it's everything in between it's the service so maven allows you to have access to the access on the personal use as well as the commercial use and we're doing it at scale. so there's more to come from us. and on the holistic base, it brings multiple benefits to the core again, exposing the maven products and gm products to a very new consumer base and also tapping the demand pools that we couldn't do with the traditional business >> i've started to see the maven stickers, guys, popping up on cars >> a huge part of our economy changing literally before our eyes julia, it's good to see you again. hope to talk again soon. jul julia steyn joining us from

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the list of executives that are resigning from the president's manufacturing council has gotten longer.

let's get to eamon jarvis in front of trump tower this morning. eamon. >> the new name is scott paul, he's the president for the alliance for american manufacturing. he's also stepping down from the president's manufacturing council, putting out a statement saying, i'm resigning because it's the right thing for me to do meanwhile, the president here at trump tower in midtown manhattan lashing out, really, at some of the executives that have already left that council, putting out a statement on twitter, for every ceo who drops out of the manufacturing council, i have many to take their place grandstanders should not have gone on jobs, exclamation points the president arguing that those people who are stepping down from his council are simply grandstanders, carl? >> eamon, thank you very much. we still look forward to some events this afternoon, right, eamon? what happens at 3:00 and later at 3:45? >> well, we're expecting a series of announcements from the president later on today, including on manufacturing and infrastructure and other things. but one of the things that we're waiting for is the fate of some

of the people in the white house. it's not clear exactly whether we're going to get a statement on the here of steve bannon, who has been reported to be on thin ice with the president of the united states. we'll see whether there are some changes coming in terms of the house staff over the coming days, but you started to hear foot ste steps here of a sense t there might be some changes coming, so we'll wait for that, as well. >> eamon jarvis outside of trump tower. as a reminder, the president earlier, a few minutes ago, actually around midday, said, for every ceo that drops out of the council, i have many to take their place. grandstanders should not have gone on. interesting, if you leave, you're a grandstander. if you sat with him at a pool spray or at an event, that's not gr grandstanding. >> i was going to quickly say, what eamon said about the white house changes we thought might have more impact on the markets. if you're talking about a white house where steve bannon is pushed aside, what does that mean for the market moves? >> that brings us to the point

about the ceos resigning does it ultimately really matter it's not like republicans who are stopping support for the president. he needs them to get the legislative calendar fulfilled the question about what the impact is going to be on ceos, i think, it's interesting to debate and interesting a sort of corporate culture. clearly, they're not concerned about the bully pulpit of twitter anymore. >> merkel made that clear. let's get over to the judge. big show on the half and welcome to the "halftime report." i'm scott wapner our top trade this hour, a halftime exclusive what apple's david tepper just told me about the stock market and where he sees the best opportunities today. with us for the hour today, joe terranova, steve weis, john and pete najarian. also with us from lake joseph, ontario, kevin o'leary let's begin with the story that is new at noon my exclusive conversation moments ago with famed investor,