♪ >> good morning. welcome back to "squawk box" on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen, and michelle caruso-cabrera is hanging out with us today. a look at u.s. equity futures at this hour. not in the most positive way things look like they would open off about 22 points. the nasdaq opening down about 10 points the s&p looking to open down about 4.5 points let's show you what's happening overnight in asia. hong kong was closed because of a powerful typhoon the tomorrstorm uprooted trees,d 400 flight cancellations european equities at this hour, we'll -- those are some powerful images, let's show you europe red arrows across the board. everything down.

and a quick look at crude now, wti 47.64. ecb president mario draghi just wrapping up a speech in germany. he says all kinds point to a strengthening and broadening recovery in the euro area. you can see 1.178 euro/dollar. not quite the haven't high we've seen lately but getting there. we'll hear more from mario draghi on friday when he speaks at jackson hole. fed chair janet yellen will also speak on friday. steve liesman will be there with full coverage and interviews walmart is teaming up with google to take on amazon the retailer is getting into the voice shopping market. google is offering hundreds of thousands of walmart items on its google assistant platform starting next month. court court wi lowe's is reporting. we've been waiting for it for a little while it's still early

looks like 1.68 versus estimates of $1.61 that would be up above where the street was by 6 cents, 7 cents $19 billion in sales, right in line total sales for the fiscal year are seen up 5% up 3.5% same-store sales are seeing for the year. operating margin up 80 basis points on face value that looks good. i don't know what estimates are. fiscal year number, 420 to 430 and i'm looking at 462 >> oh. >> that's guiding down >> that's what it looks like >> yeah. >> so they earned $1.68, seven

cents ahead for the fiscal second quarter left with fiscal third and fourth you're looking for 1.07 in the third quarter and 1.89 in the fourth -- so on an adjust the basis, it's not 1.68, it's 1.57. >> it's a miss >> it's a miss, that would help take away four cents from that 462 for this quarter the third and fourth quarter are still indicated below what wall street is looking for now. 420 to 430 versus 462, you're talking about a 30 cent miss we'll get details. we'll talk to an analyst about where the shortfall is the company adding 25 more stores in the fiscal year. >> four major mutual funds have now reportedly marked down their

uber investments the "wall street journal" says van guard principle funds and hartford funds slashed the price of uber shares by 15%. t. rowe price brought down it's estimate by 12%. this follows a federal probe into the use of technology to evade regulators and claims of sexism at the company. one of the question marks about all of these public mutual funds getting involved with private companies like uber was going to be this very issue, how do you mark these things? how are investors being treated. if t. rowe is taking it down 12%, others -- this is through private equity firms, so it becomes complicate the quickly >> when you go down 12, don't you think they're kind of like hoping it's only 12? isn't that --

>> that's the issue. >> what can it really be >> in some cases you have been able to find stock lower than 15%. like what? >> probably off by 20% or mo at certain moments. >> what was the high what was the number on the high. >> there's very little liquidity. >> what was the number when it -- at the highest round >> from a valuation perspective about $70 billion. >> you also have to remember a number of those high valuation came with ratchets different type of convertible pieces to them >> the capital structure had lots of variations frlts lots >> lots of components to how long you will hold the share lots of things going on thatdep round you got in >> there's additional news

benchmark capital is not giving up on meg whitman taking over the helm benchmark has had conversations with whitman and now she's the preferred candidate. benchmark is denying rumors it will re-introduce her name forever consideration. last month she took her name out of the running for the uber ceo. she tweeted we have a lot of work to do at hpe and i'm not going anywhere uber's ceo will not be meg whitman. earlier this week, re/code reported that jeff immelt was the front-runner in uber's ceo race he's a very young man with a lot of great years left. born a month after i was born. >> hence the positive commentary on his age >> he's a pup basically. has so many -- decades --

>> of woushgrk ahead of him. >> one point that jim cramer made is if you're jeff immelt and willing -- not just willing but seemingly want to take the uber job d y, did you really wao retire from ge >> at that point in life it might be fun, right, to try uber >> as a second encore performance? >> what if you felt like your legacy after being at ge wasn't that great you wanted a shot at reputational redemption. >> right >> maybe you see a lot of low-hanging fruit in a company that has not been run traditionally. >> talking about reputation, if you poll investors, the investment community and ask them about what they think of jeff immelt, he polls highly despite some score cards if,

will of ge stock price, he is well thought of by many. >> everybody knows the stock was trading at 50 times earnings, when it was at $60 following jack welch is not something you would wish on anyone >> there's been strategic issues overtime >> the benefit of those in hindsight look obvious, but at time, investing in oil seemed like a good idea who knew it was going back to 30 and 40. >> we want to talk about not what happened in washington last night but what happened in phoenix. president trump making some interesting comments at a rally last night in phoenix about nafta and a government shutdown. some of this may weigh on the markets today. eamon javers joins us from washington, d.c. with more >> reporter: the president spoke in front of a large and adoering

crowd in phoenix last year he was dvefensive on the way th media reported charlottesville he said he and everyone in the arena last night stood against bigotry, and he said the media are davm d are damn dishonest he admitted the part that attracted the most criticism, the idea that there were fine people on both sides, or perpetrators of violence on both sides. that sort of moral equivalency suggestion from the president that attracted so much criticism he omitted that entirely last night. he als threatened a government shutdown in terms of wall funding. >> build that wall the obstructionist democrats would like us not do it. believe me, if we have to close down the government we're building that wall.

>> he also said he's revisiting the issue of naftnafta he said those renegotiations are underway but wasn't hopeful for the outlook. >> you know one of the worst deals that anybody in history has entered into, we have begun formal renegotiation with mexico and canada on nafta. personally i don't think we can make a deal. because we have been so badly taken advantage of they have made such great deals. both of the countries, but in particular mexico. that i don't think we can make a deal so i think we'll end up probably terminating nafta at some point. >> the "new york times" out with new reporting last night on the rift between mitch mcconnell, the senate republican leader and the president of the united states here's what the times reported yesterday. they said that mcconnell says privately he is uncertain that trump will be able to salvage his presidency they also report on an august

9th phone call that they say devolved into a profane shouting match between the two men and that trump was angry about healthcare and mcconnell in trump's view not protecting him from the russia investigation wide reaction tot president's comments last night on cnn fo james clapper says he questions the president's fitness for office and is concerned about the president's access to nuclear codes given his peaks and bursts of anger that we've seen on the campaign trail and in private a lot going on here. we'll see how the president does sewed. he'll be in reno, coming back to washington tonight >> thanks. all right. markets driven by washington yesterday. big rally, b on the consensus of tax reform we are joined by jason traf trad

and chris retz eshgretzler. the president last night talking about a potential government shutdown and the talk of tax reform >> i think you're trying to separate signal from noise in my opinion, the signals of the president's economic agenda for the most part are starting to happen. the noise -- there's no question this is a high wire act with this guy every day financial deregulation is happening. energy deregulation is happening. september will be tough as far as debt ceiling is concerned i'll admit that. i think tax reform is very much, believe it or not, we felt strongly all along that tax reform or at least tax cuts are very much on the table i think, you know, our own intelligence, our own sources have told us that for months, there's a lot of work behind the

scenes on tax relief >> do you reduce risk in the face of a potential government shutdown >> for a long-term investor i wouldn't i would -- we're kind of saying this is the spinach part of the meal we have to kind of swallow hard and just deal with it. >> you don't like spinach. >> i don't like spinach. then we would buy it >> all right chris? >> no. i agree. if you're a trader, probably pear ba pare back the trading round. volumes have been low. but as a long-term investor, this is the time you get out talk to companies, visit with them do your due diligence. >> not get out of the market, get out and visit companies. get out and talk to the job creators in the economy and see what they're doing what we're hearing is they're investing they're moving ahead with long-term plans.

we see a lot of opportunity in small caps they underperformed this year. large caps have seen inflows in active et fshgs. . >> either one of you think ekties are rie equities being rich at this point. >> they're not rich when you look at them in the context of interest rates you are capitalizing future cash flows by current interest rates. you still have negative real interest rates on the short end. it's hard to get really exercised about valuation. >> i don't think they're stretched, but we have to watch the global central banks and how they'll react and what volatility will do we think that's been supporting multiples out there. so we could have more reaction as we hear more rhetoric and discussion about the policies that got us where we are >> f.a.n.g i don't think president trump said anything about amazon last

night. to what degree -- i see you're worried they could be regulated. >> yeah. we put out a piece late june on this it's interesting to me that in the last administration energy and financials were largely seen as the bad guys. and tech was largely left alone, seen as virtuous in this administration those roles are reversed energy and financials are seen as the solution. and there's questions about privacy, market power. >> so don't buy them i wouldn't buy them at these valuations >> f.a.n.g.? >> more a small cap i investor, so i'm looking for the technology between guys selling storage is continuing to be needed they continued to generate more and more product out there photos, videos that's driving a lot of the undercurrent for technology, which we think there is a great

up-cycle intel launched new chips this fall a big upcycle is coming. >> all right good to see you. coming up, lowe's, we'll dig through the numbers after the break. a programming note, one week from total, warren buffett will join becky quick live in new york at 11:00 a.m. on "squawk alley. set your dvr can you set it now >> that far in advance i bet you can. >> if you set it for wednesday at 11:00, it would be today's wednesday at 11:00, which would not be a mistake "squawk box" will be right back. these days families want to be connected 24/7.

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like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. stocks to watch, salesforce.com reporting second quarter revenue that beat forecasts, its maintaining its outlook in cash flow which disappointed some investors. last night marc benioff was bullish on the prospects in the cloud. >> we just pounded oracle in the quarter. you can see it in the market

share numbers. you can see it in that chart that you've gone to many times that sales force is considerably larger than oracle, and the spread continues to go and you can see it in the top line growth numbers. look at that growth. we are forecasting now 24% growth for the year. we raised our revenue guidance by $100 million for the second quarter in a row that's incredible. and i've got dreams of 25% >> still shares of salesforce in the premarket are lower by more than 1%, a decline of $1.21 per share. godaddy saying blake irving will retire at end of the year he oversaw the ipo in 2015 he will be replaced by coo blake wagner blue apron has imposed a partial hiring freeze for its salaried employees the meal kit delivery company is still hiring for corporate roles and hourly jobs at its fulfillment center but blue apron is cutting several members of the recruiting team.

that stock off 0.75% lowe's out with quarterly results. the home improvement retail had a gain in it that gave it a beat you fact their gain out, they missed 4 cent -- i don't know what that means. we got some new writers, i think. not a 4 cent loss. 4 cents below expectations joining us is brian neagle senior research analyst from oppenheimer. let me ask you, my friend, they want me to thank -- i will thank myself when we get out of here, brian. any way, same-store sales look good what is the -- what is the outlook, it's below expectations, why? >> good morning. it's mixed so what we saw in the quarter, like you said, same-store sales are good 4.5. the street was looking for 4.3

4.5 topped that another note in the press release, they talked about in the month of july same-store sales 7.9 so they ended the quarter strong but pro forma earnings missed. if we look at guidance for 2017, they're taking earnings expe expectations down about a dime or so. it's hard to say what it is now. we'll have to wait for the conference call. i looked at results. maybe gross margins were weaker here i'm guessing a bit here. maybe they had to pay for some of that sales again. >> so you're calling the adjusted net pro forma i thought that was the 1.68. are you mixing up your terms pro forma -- the gaap number is 1.68 if you factor out the investment gains or whatever it was, then you're below expectations. is 1.57 pro forma or 1.68 pro forma. >> i would say 1.57.

street estimate of 1.62. >> it's below. but i think the actual net number that they reported is 1.68, if you adjusted it, it's 1.57 what was the short fall? you think it's margins this quarter and you have no dwidea y they're guiding lower? there's not much in the press release. >> it does say that they're going to put pressure on operating margin it sounds like they're going to increase the number of employee hours. they want to amplify the consumer messaging and incremental customer facing hours in our stores. i assume that means more employees facing off with consumers? and so it sounds like that's where a big part of the pressure for operating margins is coming from. >> she will give you for giving the analysts for a reason for this happening >> so that means they're

bolstering or attempting to bolster service in the stores. that's probably a good thing but it's going to cost them something in the near-term >> why do they need to do that at this point? does home depot do it better somebody walks in the door, okay, you have the customer there, having an employee actually help them find stuff, i can imagine how that drives sales more why haven't they been doing that before >> well, look. let me answer it this way. what we talked about on the show is that this is one of the categories of retail where service really matters people come to the store and they need the employees to help them it's also one of the key differentiators as we think about the retail shift of sales online in-store service is one reason why this service defended itself against online competition so well lowe's is a well-run company but not as well-run as home depot.

we see evidence of this a lot, almost quarter in and quarter out. to a certain extent the comments lows are making is we need to get better with service to compete with home depot. >> service costs money they're going up against companies like amazon that don't have to worry about the level of profitability that they do it seems the business model that would help them gets more and more expensive against a customer that does nothing but drive costs lower. it sounds incredibly difficult >> i think there's some truth to that i would say more here in the case of lows is that they need to work harder to get the store level labor correct. if you look at home depot, to make this point, we go back to home depot's results a week ago, you're not seeing that home depot with a high service model has been good with leveraging expenses as sales have improved. this is more of a lowe's issue

than something bad in the environment. >> now it's down $5 almost well, down $4 and change home depot looked good that day it reported. then down that day what did people finally decide was wrong with home depot? do you remember? >> i think that was a tough day for retail stocks. you had home depot's results which were great then a couple other reports came out, like advanced auto parts, dick's sporting goods were weak. so i think you had a weak retail tape and home depot was taken down with that. >> brian, thank you. >> thank you coming up, it's back to school season for kids all over the country. some children returning to the most technologically advanced classrooms in history. mcgraw-hill will tell us about the new trends in teaching. as we head to break, a look at the s&p 500 winners and losers

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning let's look at u.s. equity futures which had a huge day yesterday. almost 200 points, just under.

giving back a little today down 24 on the dow jones down 5 on the s&p. the nasdaq indicated down 13 today. stocks to watch, shares of wpp trading at a 14-month low in london today the advertising company reported a slowdown in revenue growth in the first half of the year wpp is cutting its full-year sales outlook. earlier today on cnbc, sir martin sorrell pointed to weakness in the world's biggest ad market. >> it's been a tough first half. quarter two was weaker than quarter one. the weakest for us was the u.s., which was pretty much the case across the industry. that's where the pressure has been amongst the heaviest. checking wpp shares, you can see they're down almost 11%. and zto express reporting second quarter results that fell

shy of expectations. they also issued third quarter guidance below expectations. zto was the biggest ipo last year la-z-boy's first quarter results missing targets, they were hit by higher costs from the upholstery business. company says tha lower volume throughout plants made it harder to absorb those costs. >> we'll talk a little education this morning schools have already started for some kids in much of the country, millions more are getting ready go back to school. joining us for what to expect in the classrooms is the president and ceo of mcgraw-hill education. great to see you when we teased this segment before the commercial break, we talked about ai and technology and how this whole dizziness of yours, the textbook business is shifting when students come back this fall, especially in high school and in college, what kind of technologies now are really being built into the stuff for

the first time it's exciting. when you and i studies, or certificawhen i studied, we studied by reading books. imagine what happens when the book reads you the book starts to understand and spot where you're struggling >> right >> it can direct you to those areas. if you're going ahead fast t can keep up with you you don't need to be -- >> steve jobs was talking about this people have been talking about this are we timely here. >> it's real last year in our main math program we had over 3 million children in school and k12 and across the first couple years of college using this ai in math. it's powerful. about 3.5 million doing all the other subjects it's growing quickly and it's real it makes a difference. that's the exciting thing. it's helping >> can i ask a basic question? you're selling them what

a tablet with stuff in it? or they have a pre-existing infrastructure or architecture that you supply a software or something? what's the sper fainterface wit student? >> no tablets it can be used on any device it's up to the student -- >> so it's software you're selling. >> exactly >> are you becoming a technology company? >> progressively yes. so we're spending about 160 million, 1$170 million a year writing software as opposed to just authoring books that's all about helping people learn more faster, more efficiently. spotting and using data. for the first time we can create a layer of data in education which allows a professor or teacher to say i can see where the gaps are and gives feedback to the student of saying here's where you need to focus. >> at tthe educational book mar has been a high-margin industry. people have gone after it before, given that some of the money, a lot of the money comes

from public institutions if you're spending 1$160 million on the tech, is that 1$160 million you're not spending on the authors or the material? how -- >> the economic shift. the first thing is as we go digital, prices are dropping the price to a student of our digital offerings is kind of half of what it is of a traditional print textbook it's a much more efficient delivery costs are dropping we're trying to do our part on the affordability stakes as we get rid of the infrastructure of print. we used to have a huge infrastructure shipping millions of books out and back. >> the used book market? is that over you can't benefit -- you could have never benefited from it beforehand remember, you used to buy the new book if you were in college and then go off and try to sell it. >> it's a rich ecosystem out

there. people rent a lot of books people buy secondhand books. the new digital stuff is coming out new and hot. >> when you say you're spending 160 million on tech, so there's a very well-known economics textbook that the vast majority of american kids used when they went to college. do you rewrite that from scratch? do you take that raw piece and amplify it through games or programs or are you creating something from scratch what are you spending it on? you are spending on the writing of it, creating of it -- >> a bit of both the crucial thing is we're taking content, into that content studying probes or questions. as you work with the content, the probes and questions, you react to the probes and questions. the ai behind that spots what you're getting right and wrong and directs your path individually so it's a personalized pathway through content, basedon whatdi

longer reading i used to skip this part at end of the chapter -- >> there was a quiz. >> a quiz. >> and you didn't take them. >> pretty obvious. >> which may explain a lot, joseph now you can't get to the next chapter unless you have done this >> in fact, it might take you backwards it might say you don't know something >> i can understand math, you would certainly want to get -- if you mess that up, it's bad. i was looking at my daughter's history book a.p. u.s. history, it's different. a lot of things have what we're seeing played out in front of our eyes now it's all included now. columbus in this book was no longer the columbus that i read about when i was going to school who -- isn't it dangerous how things are characterized now or with science? >> we have a responsibility

to -- >> that scares me when you say that you have a responsibility to have our children think about things in a certain way? >> no, to make sure we're absolutely in the mainstream of academic, what is academically accepted >> that scares me, too >> so you got to say, we had a situation where the premiere of a country condemned us the other day for content that related to the war in china and they said that we had not been fair to them. we said actually there's a huge body of academic research about what's happened here if you want to change the content, we're happy to do so. hold an open, academic conference, get the content rewritten. >> but it would be all academics. >> experts, historians >> yeah. in the loosest sense i didn't want go here. andrew, you go ahead >> one final question, which just relates to the moat around

your business. i understand the top education app these days is a thing called kahootz. >> yeah. >> out of nowhere, right >> yeah. >> these guys coming out of nowhere. the question i have is sort of given -- you have this rich history, a library of remarkable content. in this new crazy world we live in, if michelle and joe and i want to sit around and create the next app to compete with it, can we >> of course people can create great apps if you want to do an m.i.t. -- >> i don't think i can create an app. >> if you wanted to do deep biology, there's a certain set of information that you need to know >> yes >> to progress to your masters, you have to get through that, to complete your degree you have to go through that. what the as is good at doing is helping people complete and make certain they get to the milestones they need to get. then it's up to the environment, the classroom, the interaction

with other students to allow you to branch, go in any direction you want you have to have those foundation blocks of knowledge that's what's exciting to pan it back, the real challenge we got in particularly in college is completion you know, only three out of ten people going into community college complete only five to six who go into four year schools complete we have to work to make certain we improve those graduation rates. if we do that, the contribution to the economy is huge the contribution to those people is huge. i think the ai is very good at getting that completion. >> thank you for coming in. >> thank you very much coming up, the dow rallied nearly 200 points in yesterday's session. we'll talk market strategy with blackrock's kate moore she'll be our guest host at 7:00 a.m. eastern time. then holman jenkins out with a new op-ed. he argues that president trump's opponents are winning the "spin war. later the trump

administration and comingal leaders reportedly make progress on a tax reform proposal we'll talk to tax crusader ov grero grov grover norquist at 8:00 a.m. stay tuned to cnbc (bell rings) ♪ (screeching tires) (bell rings)

welcome back to "squawk box. time for today's executive edge. walmart is teaming up with google to take on amazon's alexa. courtney reagan joins us with the detail i do that, because apparently at home they sit up and take notice. >> hopefully it didn't order something -- >> to screw people up what should we say? >> alexa, turn off all the lights alexa, turn off the lights >> honestly, i wouldn't do that. >> you wouldn't do a lot of things >> no, really. >> okay. >> alexa, turn the lights back on is that okay >> we do wloo we'hat we're supp do >> hi, courtney. >> good to be here watch out, amazon. walmart is launching at program to entice shoppers and buy and rebuy and partnering with google

to do it next month shoppers will be able to order hundreds of thousands of items from walmart to use voice commands on google's home assistant. the best use cases are for reordering since it will have the complete order history linking the walmart account with google makes that key. that way you can order coffee instead of foli ifolger's classc medium roast next year more items will be added, like picking up your voice item in a store for a discount i asked what the business opportunity is with artificial intelligence ordering. he said you won't see a massive volume flowing through right away, but one day as the experience improves and as artificial intelligence continues to get better, i see this as a primary way for consumers to shop under certain conditions and under certain use

cases. sh shoppers can already buy from some retailers using google home, but walmart is the first to link accounts for past purr charsing hi in pufr purchasing history. when i spoke to brian elliott about this last night, he said there is nothing exclusive about this right now, about linking accounts other retailers may do that, but walmart is the first >> and with the largest buying margin in the united states. this seems like the first time you have walmart and google, impressive competitors against amazon this will be an interesting fight to watch >> it will i think it would be interesting if amazon approached google and wanted to do their voice ordering through the platform. >> so order on amazon via my google device? >> let's say you had a google

home instead of alexa, you could say google order me batteries on amazon.com >> did that just happen. >> i'm sorry if i sent batteries to every home that has up with of these devices i thought that was an interesting development. it's neat because of the ordering history the example we gave about you specify a product and it knows what product you ordered in the past. >> >> cool >> if the lights, if they did get turned off, can't people that are there just say alexa turn the lights back on? they come back on? >> yeah. >> okay. so it would have to be something like bad what would -- >> would have also have had to talk to your alexa >> that's an issue you don't want to be in a position where something coming out of the tv could cause harm in your house that's weird we're at a weird point in time where that could -- >> technology is early >> it is early >> so what's going to happen is it will start recognizing voices google home, i have a google home as well as a --

>> you have both >> right >> you won't say alexa i prefer not to i know what you can do to somebody's alexa if i'm an older person at home walking down the stairs right now. there's lots of reasons i wouldn't want to do it i know -- >> i don't i bought one, didn't hook it up. >> my only point is the google home right now can actually already figure out your voice versus somebody eslse's voice. >> that's important, because you should not have a device in your house where all of a sudden something on the tv can turn off your lights. >> or what if you order candy all day long >> you can also hook it up so it doesn't do that. y . >> you thought of that. >> yeah. coming up, forbes out with the list of richest people in technology you can probably guess the top three. we will reveal the biggest gainers and some notable newcomers after e eathbrk.

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welcome back to "squawk box. "forbes" out this morning with its annual list of top 100 richest tech billionaires. at the top of the list, you can imagine who's there.

bill gates jeff bezos, mark zuckerberg, larry ellison and larry page and serg sergei bri in. n, and helping us break it down is the assistant editor. >> good morning. >> we know those guys. s tell us who we have never heard of or aren't thinking about. we know a lot of the interesting people like these snap guys, evan speegle, came back on the list he wasn't in it last year with snap's ipo the uber ceos garrett kemp and the founder travis they're still on the list, though they're two of the only 11 losers. the people in tech continue to climb. they're getting so rich the top

100 are worth over a trillion for the first time it's just crazy the amount of money being made in the tech industry right now. >> there's a new billionaire who hadn't been on the list before. >> yes there's seven of them. >> well, bobby murphy from snap is one of them nvidia's founder huang, that stock has been doing phenomenonally that basically is benefiting from the gaming markets. there is a new female from china who basically makes apple accessories, you know, casings and screens for that company >> i never of heard of this rishi shaw. >> he actually just raised a boatload of money and now worth $3.6 billion

he's 31, and bakley puts software and tab letts into doctors' offices he's one of those guys who really -- depending on how -- >> is it private or public >> it's a private company. >> historically with the "forbes" list, when you're trying to figure out how much everybody is worth, some people want to tell you and inflate their numbers. >> of course they do. >> we used to have a guy at 1600 pennsylvania avenue that used to have phone calls with but that, and then there were other people who adopt want to be on the list trying to prevent they have no money. >> very true. >> how does that play out in the tech world >> you have to say in the tech world it's not as much a factor baas so many fortunes are tied to public markets or what

private investors are paying having that said, the valuations of these unicorns are becoming more complicated, with the different preferred shares, and what are the terms behind the scene, that you have you have the investment groups writing down the investments, so it's getting more complicated >> we had already reflected uber by 20% we would always rather be low on they companies. >> and you can, by the way, buy uber stock on -- >> yes, that's one of the things we talk with different people about. we spend a ton of time talking with people in secondary markets to see exactly what these companies are trading at and just how low they can go. >> thank you for coming in. >> i areppciate you having me. >> this was fun. when a fire is going on, you're not thinking clearly,

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good morning, president trump threatening a government shutdown if he doesn't get funding for the border wall. the latest out of washington and what it means for your money is straight ahead. from washington back to wall street, a preview of today's trading session after the dow surges 196 points yesterday. guest host kate moore of blackrock joins us for the hour. plus the "wall street journal's" holman jenkins talks charlottesville, freedom of speech and his latest column this is your home work before he comes in in. it's in the journal today. the great nazi scare of 2017, as the second hour of "squawk box" beginning right now ♪ i just can't get enough

♪ i just can't get enough >> announcer: this is "squawk on the street." welcome back to "squawk box" right here on cnbc, we're live from the nasdaq market site. take a look at the futures at this hour. still are in the red it looks like things will be off a bit s&p 500 off about -- here's what's making the headlines. shares of lowe's taking a hit in the premarket second quarter results lowe's missed on both the top and bottom lines, increased slightly more than expensed said profit margins would be lower than expected. the government will be out with july home sales data in about 90 minutes looking for an

increase identical to the june increase. and walmart into the voice shopping market, in a joint venture with google, parent alphabet president trump making comments last night about nafta and a government shutdown during a rally in phoenix eamonafter joins us with more. >> reporter: it was a large and adore crowd. among his comments, his various comments, he attacked without naming disposal the two republican senators from the state of arizona who he's been in various political combat with he spent a good bit of time attacking the media the president read from his own comments essentially arguing

there's no room for bigotry, but omitted a couple key words, when he said there was violence on both sides of the rally. take a look at the presence of the initial charlottesville remarks and how he quoted himself. >> we're closely following the terrible events unfolding in charlottesville, virginia. we condemn in thes strongest possible term this display of hatred, bigotry, on many sides, on many sides. >> here's what i said on saturday we're closely following the terrible events unfolding in charlottesville, virginia -- this is me speaking. we condemn in the strongest possible terms this egregious display of hatred, bigotry and violence that's me speaking on saturday >> so the president editing out

"on many sides." that of course was the flash point for so much of the criticism of the president's comments he also talked about border wall funding and threatened a government shutdown if he doesn't get the money he wants for funding of the wall. >> now the obstructionist democrats would like us not to do it, but believe me, if we have to close down our government, we're building that walling. >> "new york times" with new reporting on the rift developing between mitch mcconnell and donald trump, a couple key points from "new york times'" story saying mcconnell privately says he's uncertainly that president trump will be able to salvage his presidency they also detail an august 9th phone call which devolved into a shouting match, and also about mcconnell's not protecting him from the russia investigation. so a real flash point over the past several weeks between the

republican leader of the senate and the president of the united states unclear how that will affect the president's legislative goals. in his speech last night, he did single out some of the ceos who resigned in protest. he said that some have called privately and said they continue to want to have a dialogue with the president. guys, back over to you. >> something we'll discuss later on in the show. shares of wpp trading at a 14-month low, the company reported a slowdown in revenue growth in the first half of the year wpp is cutting the full-yield sales outside and earlier sir mart martin sorrell pointed to a -- >> quarter two was weaker than quarter one, i think it was pretty much the case across the industry i think that's where the pressure has been amongst the

heaviest sir martin sorrell is how you pronounce it la-z-boy's first quarter results missed targets the company says lower volume throughout the plans made it harder that stock also getting punished by 16%. to get you cause up on the markets at this hour, joining us is christian -- why does this always happen to me -- chief investment officer at open himeser. and kate moore is also with us i just want to ask one question which results to politics, and then i promise no more politics. when you -- when you see the rally last night and some of the

comments he made there, and then read some of these articles this morning about sort of a relationship that the president is having with hess colleagues in the senate and house, does that matter to you anymore >> it matters. it matters in the sense that -- irrespective of your views on politics, you know, getting tax reform done, you know, moving the agenda forward is going to be positive for the markets. we were pricing a lot of that in, we have priced all of that hout. >> 100%? >> for the most part i think if we were relying on tax rem to drive the market higher, i think the market would have been much higher than where it is right now, but we are not expecting much in terms of anything getting done. >> service not for this calendar -- >> it was never for this year anyway it was supposed to be more for

2018 even the too probability of that is significantly lower. >> i was hope retroactive to day one. >> it's not in the price now, but i think many analysts were forecasting movement on the tax reform by the end of 2017 or at least hopeful they could start pricing things in. i think what we have to watch is how long will businesses shrug off what's going on. right now it's being as usual, we're seeing great earnings growth, even with fairly anemic gdp growth, but the question is, in 2018 can that continue? we'll have to see what kind of level of confidence businesses project. >> you don't believe the 26 we did and the atlanta feds at -- >> i still have in my head

pre-crisis growth levels we would like to get back to. >> that's what we need to know, though. >> that kind of trend is we think very different to recap. >> that's why the market has gone up. you don't believe those numbers then >> i'm not saying i don't believe them. >> you said it was anemic. >> that doesn't mean i don't believe it trend growtharound 2% is not knocking anyone's socks off. >> is that where we still are? >> i think that's about right. >> then up don't believe the 26 and 37. >> i think the earnings growth is -- >> i guess the answer is yes, but having said that, the global growth environment is significantly better than what it was in 2015, and 2016, even if the u.s. was growing at 2 and change i think that is extraordinarily helpful for the markets. what is also helpful is the fact that the fed is probably not going to be as aggressive, and therefore the dollar is not going to appreciate.

i think all of that helps. the outlook for the market is still quite good, even if we are growing at let's say 2 and something. on. >> so what's your price target for the end of the year? >> we don't have specific price targets, but i would say a single-digit levels for the rest of the year from here i think is not totally out of the question. >> kate, for you >> similar i think that overall private levels will move with earnings, the comps in the second half of the years more different -- but like a lot of people, each watching what happens in september, whether or not we end up having bigger flare-ups. >> you're talking about a shutdown. >> certainly on d.c., but on a global stage as well there's not a big monetary that could affect sentiment but in general we think we'll end the year up from here.

>> again, i think the key thing is global growth, not just in the u.s., in europe, in emerging markets is significantly better than the last few years. emerging market growth is actually deepening it's notant on china anymore it's taking over -- being taken over by all sorts of other emerging markets, so i think that changes the dynamic from a growth perspective >> we had a whole cadre that come on saying all these things were in place before the november ehex. the synchronous global growth and at the gains, and even though we're at 200 the last couple times, it actually slowed a little from the -- of 2016 >> right so if all these people said it was going to happen anyway, then i don't know why thee surprised it's continued to happen without tax reform and without these other things if it's already happening, why

are you surprised ritz hang without? >> no, we were expecting certain things to happen what we were also expecting is a lot of legislative initiatives that would add to that growth. >> people say that it had nothing to do with trump, nothing to do with the government, so why do you neat legislation? >> i think the current growth rate was going to happen irrespective of what happened in washington, d.c. to get away from the 2% growth rate, we needed help so far we haven't gotten anything. >> regulation. >> regulation, tax reform, infrastructure spending all those things if they were to go through, let's sew 2.5% or higher than that. >> we've had some regulation and we've had confidence increase with both business and consumers in animal spirit, so we do have a couple things that have happened. >> glad to believe one of two things. >> either everybody was wrong in

the fall of 2016 about what was really going on in the economy, right? >> i don't know the markets have done -- >> to be klee blackrock had a strong call for inflation starting in june of last year. >> that came from the robots or the humans at blackrock? >> we've all been melded into one at this point. >> the singularity has arrived. >> she has an avatar. >> absolutely. >> she's flesh and blood, but also a machine. >> the point is we have a constructive view in and out just on the u.s., we saw a turning point. we were constructive on rink assets i understand what you're saying that there have been people more constructive post-election, but positioning-wise, people were already there. >> last word. >> the outlook for the markets, even without anything significant coming out of washington, d.c. is quite good. >> you would still put your

money in emerging markets? >> absolutely. they'll do much more in the next 12 to 24 months. >> give me a couple. basically emerging markets away from china in asia, in latin america, all over the world >> okay. krishna, thank you you're sticking around. >> sticking around. we're going to go inside the mortgage numbers justreleased and also talk home builders after the break. later, president trump defending his remarks and slamming the media in last night's speech we'll a speak to holman jenkins in a bit. grover norquist joins us to talk about the prospects for a tax bill ahead of today's speech by house speaker paul ryan stay tuned you're watching "squawk box" on cnbc

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applications to refinancial are 38% lower than the same week a year ago when rates were even lower. application, 9% higher than one year ago this is the average rate for the 30-year fixed. it did not move. 4.1 4.12%. >> average rate on a judgment go loan over had 212,000. a the highly competitive jumbo market has led to increased availability and lower pricing, according to mba economist joel kahn. much of housing demand may be on the low end, but prices are so high that more actual sales are actually happening on the higher end, thus the more demand for jumbos. >> thank you

ken, good to have you here. >> thank you. first, have you done any work have you seen the story yesterday that drove the markets higher, there was consensus on tax reform one of substories is they're talking about getting rid of a lot of deductions. one of these is mortgage -- have you done any work on what that would mean for the housing sectors and stocks >> if you look at it, the interest deduction that goes up to a million i think it's a matter of where you cut it, but a you would point out that the alternative tax reduces their ability to use it. >> so you could parse it between maybe perhaps high-end home

builders versus middle-class home builders? >> i think the higher-end are less impacted by it, in fact, because those owners have faced alternative minimum taxes that erase it effectively. >> i understand that for example if this were to happen, do you think you -- you would start to parse the segment differently? >> no. no, i don't think it would very a material effect. obviously i think they would be against it as an industry, but i don't think it would have a material effect. >> mortgage applications and the trends that diana highlighted, what does that tell you about the hows sector right now? >> i think we're in a steady upward grind for single-family starts the drag we're seeing on total starts is more associated with multifamily. the work we do really points to, well, looking at permit growth, growth happening in lower-cost areas, so midwest, michigan, down to tennessee, places like

that where people are going to where homes are more artable and seeing slightly more activity, so i think the market is grinding forward slowly. >> toll brothers got hit pretty hard yesterday, aics somed report, but sales were up and by a lot. what's the explanation, and would you get into this name considering the move it made yesterday? >> we don't have a buy rating first of all i think the street misunderstood the -- actually the street expected seasonal trends indicate it, so i think that's an important macro now, toll has more concentrated earning streams. i think that's part of the issue that they struggle have versus someone like dhi. >> you're pretty neutral on the entire group except for dr horton that's the only overweight why? >> correct we do favor the building product

companies. why? home price gains, a major, major factor for consumer sentiment helps. prices have been reaccelerating despite modestly decelerating growth rates that is very good for equity it's a double-edged ward with ownership rates 62%, 63%, their income growth, that's exacerbated by the fact that 53% of homeowners are over the age of 5 a, so the concentration of wealth is more concentrated than in the past. that's -- that's a slight headwind i think for the broad economy. >> ken, thank you so much. ken zener. >> thank you. up nextings powerball fever is sweeping the nation we'll tell you what tonight as drawing could be worth i may have to go out and buy

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welcome back to "squawk box. the powerball soars to an estimated $700 the cash option, i would take it, a one-time cash option $700 million would make this the second largest lottery prize ever handed out in america only topped by $1.6 built onprize shared by three winners back in january of 2016. the odds of winning, folks, 1 in 292 million. so think about that before you buy the ticket i would still take it. would you wait in that line we showed earlier? >> i don't know about the line part. >> time is money. coming up, president trump addressing his supporters in phoenix. he opened with a message of unity after the violence in charlottesville, virginia. we're going to speak to holman jenkins from the editorial

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♪ good morning welcome back to "squawk box. we're live at the nasdaq marketsite in times square four mutual fund companies are lowering that are investments in uber. they have marked down those investments by 15% that's t. rowe price cut its estimates by 12% some have cut it -- ought on maker hyundai introducing new vehicles to help reverse a u.s. sales slump. the company told reuters -- and expand its -- >> hyundai. >> not honda. >> i'm not sure the people at

home -- this is hun-day. >> hyundai how do you pronounce is. >> hun-day. blue apron. >> blue-aprawn. is instituting a temporary hiring freeze and firing 14 members of the recruiting team following a bumpy ride for the company following the june 29th ipa. >> holman jenkins is here the president opened with a message of unity after charlottesville let's bring in holman jenkins from "wall street journal. i wanted to find a specific quote about -- it wasn't about charlottesville, but actually about boston you talk about the size of the nazis. they are like, i don't know, not a lot of a handful, and a very large group of those opposing the nazis, that you called --

>> a majorityian mob. >> and you want at this point they would like to think they're a modern-day version of the czech resistance or warsaw uprising, but it turns out they were shouting down a handful of losers which have been a part of the american pattern for a long time how much nasty mail do you get calling you a racist for even uttering these words >> surprisingly none i think it's because the people who hate me have just stopped carrying on a dialogue, because i've been at it for a while. >> if the echo chamber decides that someone has said it's a moral equivalent, it doesn't matter if you point to the actual copy and say, this happened again if everybody believes it, it

becomes fact. >> i'm not going to change the tide of events, but i can point out what is actually true. i think that's a function that i observe in this world. >> what is actually true you would say as far as charlottesville, not just the boston incident. when people say that trump did not condemn the white supremacists and the nazis is that a factual statement >> he clearly condemned them and he was right that there was violence on many sides. >> right there that's heresy what you just said. >> you real "new york times" news columns, they describe this violence and editorialists and columnists go ape on anybody who acknowledges what's in the newspaper. >> the moral equivalence is not the right issues these are small groups of white nationalists and a big diverse crowd of people to protest them, among which is a thug crowd, a group of people who have a philosophy and ideology where they are entitled to go and

attack people they disagree with and aisle aren't them. they have a very well worked-out ideology, not just in charlottesville, not aimed just at nazis, we see it at free trade conferences in seattle we're letting violence creep in, because we won't acknowledge this particular violence >> a fine point on the charlottesville situation, take boston out of it for a second. i appreciate what you're saying on the factual issue the question is whether the president approached this -- he absolutely factually accurate. he condemned on one side that's absolutely true, then he said there was violence on many sides, which is absolutely true. the question is sort of how you portrayed that and talk about it, right? to the degree as a president you have some semblance of moral leadership to describe was good and bad in this world. that's why i would argue so many

of the ceos of america and so much of the population are not where you are. >> see, i give you a reductionist version in politics we talk about staying on message you say the same thing over and over so no one can accuse -- and i think part of this is donald trump refuses or doesn' get the code and the media enforcing the code. >> no, no, the code is having -- >> nobody stays on message. >> the code is to have an honest and reasonable conversation about what's going on. you can have a nuanced discussion about all of this you could, but what he was doing was not that plus you have the pattern and practice of a man who has been slow to condemn. it's partially the timing, how it happened, what he's done historically, when it came to david duke and ears i accept what you're saying

you know you have a huge amount of respect, but at the same time i just feel to portray it that way is a bit unfair as well. i'm sure there are people who will suggest i'm portraying it in an unfairway, because they're coming at a different position. >> you you think he as nazi or racist sympathizer >> i don't know what's in his heart. to me, personal view, it may well be a political calculus in terms of how he approaches it. it's his calculus, so he owns it, whatever it is, maybe there's no calculus at all >> i think you're right -- >> there's a huge number of people that felt hurt by the way he approached it that, as somebody who ostensibly governing this whole country, that is the problem. he thinking -- you're right. he thinking his base is going to be tarred with the same brush as these nazis and white

supremacists, so he's afraid to be too blunt in how he talks about it, but they are perfectly happy to apply that tar brush to anybody who wants to raise questions about immigration policy. >> you know what i accept that. >> i get down to the people who were actually and i then genuinely hurt and worried and they've different life experiences than maybe i have. as far as the ceos, i take issue with that. you wrote a great piece off ceos hold on. hold on. feckless, that's courage for a co the canary in the coal mine. >> their jon is not courage. they're protecting -- >> another probably solid 45% or 50% just hate them so much and think he's an illegitimate president, they're going to immediately say anything he does is wrong >> we should also say, though, trump is playing the game

appallingly badly. he digs himself holes and he's not going to get anything done. >> today you saw the espn situation, there's a broadcasters named robert lee, an asian individual. he was going to be the broadcaster on the university of virginia on a game, on a sporting event so they pulled him from the event, or they talked to him -- i guess it wasn't mandatory. they didn't want to offend anyone, baas his name was robert lee. >> you're kidding. >> i know, it sounds like "the onion" piece we see where someone tried to plant a bomb at a confederate statue in houston. we're full headlong into columbus, ohio maybe changing its name at this point how does this eventually work itself out >> i came of age in the '60s and '70s where america is much more

violent place. that's what i fear we have people indulging at violence, justifying violent threats because their opponent is so unacceptable that's where i fear we're going. >> we listened to the ceos talk about how nazism isn't acceptable it took me a while to wrap my head around why this is strange. wow, way to take a stand wow, really brave of you guys, thank goodness for that that you guys are willing to stand up what struck me is why we're having this conversation, it feels like people are terrified if they stood within ten feet of the president, the outcry will be so strong, how did we get here that's part of the reason. >> they don't trust what he's going to say next. he's made himself until

acceptable he can't get anything done he's at war with mitch mcconnell, i think he hand paul ryan don't exactly have a relationship what can he do as a president? issue tweets and get himself into continues controversy part of his need is to keep himself at the center of the stage and that's killing him he needs to disappear for a while and do some work >> that's probably not going to happen any time soon i wonder what the answer is to a lot of these things and where are we going to be five years from now >> i hope the democrats will acknowledge the tendency of violence on their side, which is more directly connected to their party and their leadership than on the republican side and start talks about the anti-fa people and how it's not tolerated otherwise we'll get more of it. >> have you read the piece from redalio. he thinking it's 1937.

>> my touchpoint is the 1960s where there were riots and bombs and assassinations that thing could happen. >> when president obama didn't necessarily seem to condemn -- you saw some of the rallies on the left throughout those eight years. there was never any outrage that someone was advocating violence against the police, and the police in boston, the police did this, did that it just seems like on that side there wasn't any moral outrage there's a lot more -- >> it's almost like your own pr firm >> yeah. trump is right that the presses in a position to -- is not that effective. you also have to play the media sometimes, and he hasn't played them very well. >> holman, i'm surprised i don't get any bad twitter

stuff anymore, because they're all blocked. the same thing -- how did you block your address. >> i don't publish it. people can find it easily enough. >> i think you have an assistant. >> i have no assistant i never look at my twitter, so joe know -- >> yeah, yeah, that's bad. holman, a pleasure. >> andrew gets all agree e-mails. >> i get good, bad, i've gotten a lot of tweets from all sorts of viewers who think i -- >> very virtuous. >> no, no, i get a lot of people more unhappy with what i just said, and then some people say they love it it's all things to all people. coming up, the end game in afghanistan, president trump's new plan againsted war on terror, we're going to talk about it check out the futures at this hour red arrows, the dow looks to open up 45 points down we'll be back in a moment.

secretary of state tillerson warning pakistan they could face sanctions. joining us is dean valle nasser. good to have you here.

rex tillerson if pakistan doesn't come around and stop harbors terrorists, aid and military assistance to be off the table, drone strikes, nato membership could be in question in addition to sanctions on some senior people. is any of that going to work >> well, not in the short run, which actually will matter to the president a great deal we find it difficult to bully a country of 180 million with nuclear weapons on whose ports, roads facilities and military support we depend to fight the war. so we've always found we press them, build a say, but we also try to provide carrots and persuade them to cooperate president trump has not been engaged with pakistan at all over the past seven months without building a case, without

any reference to things that pakistan has been doing positively he came out swinging at pakistan, and provided a very positive carrot to pakistan's nemesis india. that's not a very good first accept in order to cele regional support for what he wants to do. >> but if we don't do something different than we've done under the last two administrations in getting pakistan to behave differently, then what do the same thing? >> no, it's going to be different. there's not a silver bullet to pakistan pakistan has deep interests in afghanistan. countries don't give up deep interest works in a country that's their neighbor because a super power halfway around the world has all of a sudden decided had has an ajenta.

president obama did try what president trump suggested, u.s. troops killed 24 pakistani soldiers at one point. it doesn't help the u.s. cause the pakistanis shut down our access to afghanistan, and the u.s. military found it even more difficult to wage a war in afghanistan yesterday, we need to put a lot of pressure on pakistan it has to happen privately rather than on a podium in a big speech, but we have to provide pakistan, provide carrots, it requires secretary tillerson first to have gone to pakistan and spoken to pakistani leaders before threat ming from afar >> should we be at all unhappy with pakistan in terms of how much they have tried to help with terrorists elements i know that it's probably difficult and not just -- it's

nuance, but we heard how -- did we really not know that osama bin laden was within a couple miles of their version of west point? is it absolutely true they're not ever complicit with terrorist organizations in spite of the amount of aid they get? you can see how it would cause -- if you look at it with maybe not as much nuance as possible, you can say this is not acceptable >> absolutely. first of all, osama bin laden case is the one that's actually the most circumspect as to what they know. there are organizations within pakistani borders carrying out massive terrorist attacks inside afghanistan, which is actually the primary worry. and yes, pakistan, they have used pakistani territory they do have a relationship with pakistani intelligence, but it's it's also true that pakistan

that is -- to the extent we're able to carry out a war in afghanistan is through pakistani territory. >> why do they support terrorism? >> they support -- they don't see it as supporting terrorism they're supporting a faction in the war in afghanistan that they believe will keep india out of southern afghanistan and would give them leverage in controlling a neighbor that is of vital strategic interest. this is not about us they're not supporting the taliban because of us, they're supporting taliban, because they have deep worries and interests in afghanistan that they think are -- they cannot serve through other means. this is unfortunate. the other thing that is very important is the leverage of aid we're giving to pakistan is actually declining pakistan is getting much more economic aid from china. we saw china was the country that came to their defense yesterday. i would say the president is correct in his view that pakistan needs to do a lot more.

i just think he went about it completely the wrong way and counterproductive way. >> dean nasr, thank you for joining us. >> thank you. stocks you need to watch ahead of the opening bell, plus final thoughts from our guest host at the top of the hour preview of today's remarks by paul ryan, push fog tax reform and jobs ov norquist will join us to talk about those issues and more squawk returns in just a moment. when a fire is going on, you're not thinking clearly, so they called the fire department for us. my first truck was on the scene within five minutes.

i am grateful we all made it out safely. to protect what you love, call 1-800-adt-cares

take a look at stocks to watch, intuit one cent above estimates, this is the maker of turbotax and other financial software the ceo will step down in january. some final thoughts from our guest host this hour we were talking about valuations, whether they're stretched. you've done some work lately on valuations >> yeah. the basic point is that valuations have been used as an excuse for people to not enter or own the market at this point. >> too expensive >> it's too expensive. think they it will predict on give inside in -- the trust of the matter is that math doesn't really work. time valuations have very little explanatory power. ner. stuff that could have high multiples, i'm thinking about

the high growth, hue earnings, and some of the stuff that has depressed multiples frankly deserves it. >> you were also saying that europe kwan stocks at this point look more attractive do i recall that correctly >> we're constructive on non-u.s. stockses, but the valuation argument is not definite -- actually when you remove tech, or at least the big phi flyers from the u.s. market, the premium completely disappears so with europe we're talking about significant changes that help improve profitable, liking at companies being a little more intelligence about the way they're investing. i think the real key to earnings in europe, but in 2018 log a

better store for the banks. >> we've been waiting for a long time for that. if we don't get that, you know, that would be a tougher wall for them to climb. >> thames, kate for joining us thanks. coming up speaker paw ryan speaking reforms, and meeting with employees at intel. we're going to hear from -- grover norquist will join us at the top of the next hour check out the futures right now. we are looking like we'll open in the red dow jones up, s&p off about seven points back in a moment the governor has declared a winter weather emergency... extreme risk of burst pipes and water damage... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages

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uber takes a major hit plus powerball fever the lottery prize jump toss $700 million, the second biggest in history. we'll hit the jackpot as the final hour of "squawk box" begins right now good morning, welcome back becky is off today the futures have been lower all morning after the 200-point or so gain yesterday. now almost down 50 down seven, just under 7 on the s&p, nasdaq indicated down

18 1/2 a couple big things going on four majormutual funds have reportedly marked down their uber investments they slashed the estimated price of their uber shares by 15% to 41.46 a share. trow price brought down its estimate by 12 cents this follows setbacks for uber, club a federal probe and claims of president -- this is a big issue when you have a company that's private and the shares are private, and you're dealing with public funds, how do you in fact mark all of this stuff to market. a board shake upat bhp as the mining company faces a lot of pressure from elliott

management also apple scaling back its ambitions to build a fully branded apple car, instead is working on underlying technology, according to a new report, that story saying apple's leadership couldn't great on what an apple car should do, and it's tests self-driving vehicles on the palo alto that similar -- just in the argument that they're not going to be building the car, manufacturing a car themselves, what they all want to do is build the underlying technology. >> the brains in the car, the software. >> the brains in the car you're already seeing, by the way, chrysler, fee at made a deal with google already interestingly ford, gm and some of the other automakers are trying to build their own brains. >> a completely different path from tesla that's doing it all from the ground up. >> and intel buying mobile eye, so they're trying to build their

own version, sort of a cloud-based version, because they have cameras already on people's cars, and they almost take all of that information and effectively put it in the cloud the way waze does. >> i want them to get it right, okay i do i would like to sit back and be totally -- but i just still have visions of seeing something remember that horrible wreck where they accelebrated into a semi it was a while ago, because you're powerless if you're being driven and an something goes haywire. >> a university has a professor of crimes of the future. one of them is you hack a car, and that car drives off the cliff with you in it, right? i mean, that's a possible crime of the future. >> as somebody who does pay attention to statistics, 35,000

fatalities in the united states every year if you could take that number down to 1,000 on -- >> dramatic improvement, even if those 1,000 were a function of the computer malfunctioning, would that be political palatable? >> is the trade-off good enough that people would accept it? >> that's the callus that someone will have to make. >> if you were one of those thousand and were strapped in, it would be a bad way to go. >> i know. >> the chances is a million times greater than that stupid lottery you're going to buy. >> that's true i'm buying my lottery ticket partially for the entertainment value. >> it's not entertainment. >> in the same way people go to las vegas and sit down at the table and i say i'm going to sitty table and this is three hours of entertainment for me. whether i make the money or lose. >> do black or red

it's almost 50/50 please don't do -- >> stock watch >> you don't want me to buy a ticket >> you know what kind of diseases you can get that are 1 nunez 292 million? how about stocks to watch? >> they better be good, okay >> they are. >> to get off this subject. lew's out with earnings this morning. missed he estimates by four cents. stlirsst home depot lowe's is offby more than 6% it is lower by a little more than is% check out salesforce -- shares of salesforce, reporting second quarter profits that beat forecast, also the full-year guidance it's maintaining outlook for -- that disappointed analysts that explains why the stock is off 2% apparel retailer american

eagle just out with earnings comparable same-store sales up 2% compared to an anticipated drop the company says it's pleased with its performance in, and investors are super pleased as well that stock is higher by almost 9% a story we have seen in retail if you're one of the fee that can manage to increase year-over-year sales in this environment, that's extraordinary and helps the stock rise, even though it certainly doesn't make up for the 35% decline that's happened over the last year. president trump holding a campaign-style rally in phoenix. among the comments he made, a warning to congress about his proposed border wall. >> now, the obstructionist democrats would like us not to do it, but believe me, one of to close down our government, we're building that wall. taking aim at nafta, saying that the u.s. will likely scrap

the whole deal. >> you know one of the worst deals that anybody in history has ever entered into, we have begun formal renegotiation with mexico and canada on nafta personally i don't think we ked make a deal. we have so badly taken advantage of, they have made such great deals, both of the countries, but particularly mexico, so i don't think we can make a deal we'll probably end up terminating nafta at some point. >> they just wrapped round 1 of nafta negotiations late last week we've had a numb better of discussions about what it would mean if nafta was scrapped in its entirety. >> a lot of tax reform delk about. what is the enjoyment you get out of buys the ticket >> the dream. >> you know you're not going to win. >> right. >> you don't know you're not going to we want

that's the thing. >> wait a minute -- >> the value of buying ticket is a boy can dream. a boy can think about what life would be like. >> i don't know how grover feels -- do you have to waste the dollar to think about what it would be like to have $300 million? >> it makes the dream slightly more real. >> no, it doesn't. >> slightly more real. >> 1 ounce a million you won't, i guarantee you -- >> versus spent the dollar gives me at least a shot at it. >> grover is here joining us now. the way we can relate this is it's a tax on the stupid. >> oh, wow >> wow >> hey, grover, do you have to be stupid to believe we can get to 15% you believe it somehow i mean, how is that -- honestly in your heart of hearts you think that's possible? i wish it were so, i do, but do you think we might be able to do

it >> it is possible. i know the white house very much prefers 15 to 20 or 25 we know the ingredients of tax reduction, tax reform, bringing rates down towards 15, corporate and subchapter s, full business expensing, no death tax, no amt, doubling the personal exemption, and reducing rates -- the seven rates down to three, some rate reduction on the personal side going to territorial tax system allowing the 3 1/2 oar so trillion overseas to be brought back to the united states. the question is how much of each ingredients can fit in the pot there's some limits on how much you can cut taxes for what per, some of these tax cuts would be temporary. you can have any tax cuts you want for ten years under the senate rules you can't have everything i just listed exactly the way i said it for ten years, but then in year 11, some or much of it would

disappear. the bush tax cuts, 2001, 2003 lasted ten years and completely went away, brought back when obama agreed to maintain 85% of them i'm in favor of getting as much as eat of those pieces of tax reform done. the once that could be made permanent other deductions that we can drop. also you can pay for them through growth if you're growing and the joint tax figure that the previous republican plan, you could raise about a trillion, $1 trillion over a decade by lowering the rates with growth. you can take that trillion and use it to make some of your tax cuts permanent so the question is, how much of each piece of this, and then what's permanent and what's

temporary. and how about when retroactive to 2017? >> i think some of it will be made retroactive certainly anything dealing with decisions, anything that matters on the margin will start to take effect put it to the house and the senate everything already dated at least until then, because you don't want to cut the capital gains tax and have people wait four months before they make decisions. you can't on the personal exemption, for instance, make it retroactive to january of 2017 you could take some of the corporate rate reductions and make them retroactive. you're looking to maximize growth and looking to maximize how much of this can be made permanent. >> i just want to -- looking at capping mortgage deductionsand not allowing state and local deductions, you would have to lower the tax rates on the -- you'd have to lower the high end, or else you're raisings

taxes significantly on a group of people. what would it -- how would you do the top raid? where would it go? >> they're looking at taking the top rate from the 39.5, point 6 down to 35%. >> so you break even then if you don't deduckett state and if you're unable to do mortgage -- so you're -- you basically pay -- i pay 50, don't you we all pay 50, all in, right >> a little more in new york city. >> add to that we're getting rid of the death tax, which is up to half of everything that you save indeed your life and getting rid of the alternative minimum tax, which also helps upper income folks and high tax blue states, and then if you have any sort of portfolio at all, we're dropping -- we're tryly increases the after-tax cash flow that every one of these companies and subchapter s firms

will see a lot of middle income, higher income get their income through subchapter s companies, pass-throughs, about 20 million of those, half of americans work for subchapter s corporations, half are c corporations. this is the first tax reform where we are reducing taxes on both corporations and subchapter s pass-through adoptions there will be a lot of political support both from silicon valley that wants to bring trillions of dollars back to washington, d.c. from overseas, but also from the guy down the street who runs the dry cleaner. this is a big deal for him or her. >> the big question i have is just trying to understand where the faultlines are, mostly within the gop, over what -- where their threshold -- where.

>> and then let it bop up a bit, that's tremendous sgrut. the other piece of this is if you have full expensing on business investment, full and immediate expensing, if you do that for three or four years, i would bet you a nickel, several lottery tickets that congress would make that permanent when they saw how pro-growth it was, just as even the obama administration had to make 85% of the bush tax cut permanent. >> that's right. that's a good point. do you think mitch mcconnell will work hard on the president's ajenta on this because of his own

self-preservation? that's really ugly what's happening between those two now at this point. >> it sounds that way, but it's also completely irrelevant you have three players around the table. they want 15%. they want a pro-growth deal. they want a republican landslide and pick up five, seven senators in 2018 so they don't have to return certain senators' phone calls. they want a dramatically pro-growth policy. the house and senate want the same thing they're all running for election, a third of them in the senate this is the centerpiece of here's what we did we did this. there are many good things that have been done, supreme court judge, deregulation, who runs the fkc, the fcc, ferc, nlrb none of those make headlines, none will be the explanation for

the election or economic growth. the tax policy will take the credit for what happens, and we need it as big and dramatic as possible. >> can i write off that dollar, $2 that i waste? do you know? can i write it off maybe that would be the reason -- >> only against gambling winnings can you write it off. >> okay. well, it certainly wouldn't be from any other lottery. >> the odds were better when this was privatized and the mob ran gambling and the lottery. >> much better >> much better government does everything worse even that are organized crime. [ laughter ] >> all right grover, thank you. keep that in mind. coming up, we will check in on the lottery craze sweeping america. you would think i would be against lotteries, because it's a regressive tax. plus uber takes a hit from investors one big tech name is still being considered those stories are next, in a moment at fidelity, trades are now just $4.95.

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brewer joins us with more. hey, contessa. >> reporter: michelle if you were expecting to see long lines waiting for powerball, don't you think that's cliche? people can buy lottery tickets right over there or right over there, but he's seen a stade,stream of activity for this $700 million jaappot. you know who is cashing in right now? -- the photographer forgot we were live. rupe for this? the states right now $10 billion over the last two years in revenue growth. it's pretty impressive the thing is that it doesn't increase your odds it used to be that you could have a 1 in 175 million chance of winning this jackpot lottery. they changed the rules somewhat. it's made the jackpots bigger and harder to win.

embobby patel is the retailer here you've a steady stream of customers, so what is the take for you by even having this men ready to go. >> i'm happy to sell the lottery tickets because of customer satisfaction and my business growing up and my family is stable i'm proud to sell more and more education for the new york state. >> reporter: you soujd like an advertisement. it can happen to you you actually get, what, five cents? >> five cents we are $1. >> you can't come away with a couple hundred bucks. >> if i sell more, i make $300 a day. >> reporter: that's a lot of packs of gum

what is your take if someone buys the winning lottery ticket right here >> if someone wins from here, i'm if he pays me a tip $10,000. i'm hoping, yeah. >> a kickback, so to business. >> i'm in business for more than 15 years. >> reporter: do you have in news you could use. if you're watching cnbc you're into ambling, hedging your bet >> invests. >> the most common powerball number -- oh, right, invests the most common number is 9, the most common white ball is 32 so when you're making your investments here at the lotto retailer, take that into consideration. >> i talk to my customer, same thing, too. >> reporter: tayic it from bobby patel. >> white ball 32, that's come up the most times or most selected by people. >> reporter: right no, no, no, it's come up the

most times you do with that what you will you know on roulette it shows you how often the 7 ball has hit. same thing power-day-old ball puts out -- >> but on the flip side, so i understand you're saying the 9 -- a lot of people are picking 9, which means i probably should or shouldn't be? >> reporter: wait, no, if you think that has the most likelihood, go ahead, buy your pickett. it he. >> i don't want to share. >> that's the other problem. >> reporter: quit being so stingy if there's a $700 million jackpot. >> you see where i'm going with this >> reporter: it's much better not to win at all. >> pigs do get slaughtered, andrew. >> they do 32 is not going to come up anymore? it's already come up a lot. >> of course, statistics >> why am i even participating

in this? coming up -- >> thank you, contessa. >> you sucked me in. >> let's buy some tickets, we'll do it as a group tng no way. uber is paying -- you don't like to share. uber paying for its turmoil, literally. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782

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coming up, it's not over

yet. dollar general, tiffany's still set to rorept. we have a top analyst joining us right after the break. don't moe. back to "squawk box" .

live from the nasdaq marketsite in times square. we have a couple stocks we're watching this morning. la-z-boy fell eight cents short. and they're supposed to only earn 21 cents. the stock as a result down 17 with respect the revenue was also short of estimates in a performance that the company calls disappoint in go daddy says blake irving will be retire at the end of the year, he'll be replaced by scott wagner i love him unassuming guy played 18 hopes. we didn't talk about what either

one of is did. we played golf, and i was like, that was the ceo of godaddy. >> nice guy. anyway, american eagle -- pretty good golfer. quarterly profit, three cents above estimates. revenue xeelted forecasts as well the apparels retailer also reported -- and check out the shares of fee at chrysler. this time on reports that the automaker is considering spinning off the maserati and alpha romeo brands a double dose of news out of uber mutual funds reportedly marking down investments in the ridesharing company. when it comes to the hundred dollars for a new ceo meg whitman may not be out of running yet. deidra joins us with more. >> good morning, andrew, you said a double dose of uber news. that first bit of news pap

shouldn't come as a huge surprise that mutual funds have been marking down their investments. what may be surprising is by how much 15% discount of company last valued at $70 billion, representing about a $10 billion discount "wall street journal" reporting that the funds that have marked down their investments are vanguard principal funds and hartford all in hair latest disclosure documents this is after months and months of turmoil, not least of which has left the company without a ceo of we're hearing from sources that hp ceo meg whitman is being reintroduced into the process. weeks ago she took herself out of the race, but our sources are telling you that benchmark still wants her to be a candidates and they have reintroduced her name to some people that they have talking to guys some questioning over what it many mean for jeff immelt,

and of course the question of whether meg even wants it. sources familiar say she hasn't changed her stance and still want to be at hp >> i don't understand this if she doesn't want the job, why -- >> why does it keep coming up? >> if someone has rejected me, it's hard to keep going back to them, right? >> they could be sweetening their offer. i think that's my understanding is that they're going back to her. maybe they haven't found the right candidate or, you know, there's a lot of discussion about her being a good person for the job. we don't know who the other two candidates are aside from jeff immelt, but we have heard they're white males. uber has an image problem. i think it's seen if they could get a woman in this role another big story today, it's why you are where you are, whole foods shareholders voting today on amazon's bid for the grocery chain. what can we expect

>> reporter: that's right, we're in austin, texas shareholders will be arriving over the next hour or so, and they're getting ready to vote on this deal. it's expected to go pretty smoothly without any glitches. there are some people who aren't so happy with it there are a few democratic lawmakers pushing congress to look at it more kleely, exercise some caution on antitrust concerns as well as potential impact on local businesses this is not the first time we have heard this about amazon also the united food and commercial workers international union has a vocal opponent they send an open her to the board asking to protect employees. there's also some suppliers that have raised some concerns about whether amazon is going to be able to give them the attention that whole foods has done a very good job in doing. on the other side as well, we have heard from suppliers who are excited about tapping into

amazon's logistic fold there's other lawmakers who say this will be a boone to consumers. amazon for its part has said it has no plans for layoffs or over things that people were concerned about using it's automated technology that it using in the amazon-go grocery store that's in trial version, but that eliminates the cashier. if -- that paves the way it brings amazon one stem closer to closing the deal later this year of course it has to go through the regulatory approvals as well. >> thank you, deidra >> clearly the optics have become so important in the process of uber and the board. imagine if you're meg whitman and you take this job, you are always subject to this, you got this job because you're a woman, right? it's really hard pick me because i'm the best person, not because i was a female, right? it's a lose/lose at this point,

because they have made that so important. >> we just sat here and heard -- deidra mentioned the other two are white males and they have an image problem. i was feeling bad about myself i think i have an image problem. is that really true? do you feel like you -- >> no, i think -- the company has an image problem -- >> there's two issues. the company has an image problem. >> and while males have -- >> and silicon valley has an image problem around the issue of sexism and harassment. >> not just silicon valley we're still in that position but, you know -- >> that's what this is about i don't put this -- >> this is another issue all together imagine the woman who that i can that job, is always stuck with this that you got the job because you're a female. >> very interesting. >> just other instances where you're trying to correct a proportion that's not right --

>> yeah. >> -- by definition that's going to be the case it's tough. >> i think it's exacerbated, because they have made it so clear -- >> you need to do it and do it, you know, without being shamed about doing it, or else it will never happen, right? i have a daughter. >> i think there's a long arc of history. when i started at this network, nearly every anchor was male >> right. >> not the kay anymore. let's talk retail. sever retailers out. jpmorgan senior retail analyst matt boss is here. >> thanks for having me. >> good morning. it's been a bit of a mixed picture. who do you look at and think is the winner and loser is there anybody who's not obvious to you >> the picture has mixed, but we've actually been pretty encouraged by the results we've been seeing. on average 200 to 300 basis points.

you've had beaten raises from the off-price retailers. i think we'll get more of that this weeks with burlington dollar stores i think will be very strong, and even the worst of the pack, which has been the department stores, results actually were in line and for the back half of the year people feel comfortable with their numbers. where is the value is there a value play? someone you think is sort of under-appreciated at the moment? >> i think for value it's the off-price retailers. they're delivering brand names at the best values i think amazon is convenience, but i think the consumer is telling you that they need more and want more. >> no, no, when i say value if you're a value investor, someone who is looking at this to say, i know what walmart is doing >> yes. >> i know how the market feels about them i'm wondering if there is anybody who says, you know what? people don't get it. a year from now this stock is going to rip, because there's something good going on. >> i think it's a dividend way

of looking at value. you have structural constraints, but when you think about value, to me it's multiyear consistent winners. so i actually think there's value plays because of this amazon overhang that's been created. so i think your off-pricers, your dollar stores, which traditionally have been thought of as growth retailers -- >> where do you stand on the lux yurt where players they used to be beloved. used to be one part of the market that was supposed to be untouched. >> what's happening is you have this correlation between the stock market and the luxury trends that in the u.s. is actually broken to some degree but over in europe, the trends are very strong. what luxury has that the mid tier doesn't is you have a better supply/demand equation where the goods are not in the off-price sector burlington, they don't have their hands on the ferragamos of the world, so there's more of ha

needs-based spend if you're not going to buy it on full price, you will not find this on discount so i think luxury is in a better place. >> some people might be tempted by nayy's, because the yield was nearly 8% yesterday. should anybody be tempted by that yield or is that under threat? >> no, i think the department stores, the redebate here is the multiyear ebitda just the uncertainly with the same-store sales still negative. i think you'll probably be dealing with negative same-story sales for the next couple years. >> years. >> but their earningsal go riism and their outlooks for this year i think are fairly safe. so on a macy's a high single-digit dividend on a piano he that doesn't likely misnumbers, plus this hire from ebay i think is a step in the right direction. there's a fighting back, a reloading of the arsenal in the ways these retailers are

thinking, or as jim calls it, the dark star. >> matt brought a handler. he was coaching you through the entire interview yeah, yeah >> did he do okay? average or good? thumbs up? >> thumbs up. >> average >> yay yes. yes. thumbs up. >> a she a couple times was rolling her eyes, matt anyway, no, it was fine, good. samsung will take the wraps off the new galaxy note, a big moment for the tech company after last year's exploding battery debacle. >> remember that, joe, the phones were overheating. >> like in your pocket -- >> i think it was mostly when the phone was being charged. still. that's why this is not a big

test because of the exploding batteries which prompted samsung to recall its note 7 dwight last year, it's -- so the challenge for samsung is to generate enough excite to convince users to buy the galaxy note 8 rather than wait for the new iphone it has to worry about competition from china both apple and samsung are losing market share to other players, but the sheer size of the galaxy note 8 expected around 6.4 inch says larger than the 7-plus and current sam suns 8. it's supposed -- better connectivity with the smart watch and vr headset, plus a dual camera. emphasizing quality control and safety after samsung note 7's disaster will likely be

addressed. the question is how does it weave it into the present out without taking away from today's product launch ahead of the announcement, which is expected around 11:00 a.m. eastern, we're looking at shares unchanged, but this has a big year up 30% following this big global tech rally we have seen in 12017. >> i need to talk to my tech adviser on this. >> who is your tech adviser? >> andrew. >> buy a samsung instead of an iphone you might. you know what? you would not. i'll tell you why. theres some people who live a google life, if you will, on an iphone. >> which halo do you live in >> right, you're an apple music guy, you're fully baked -- >> you're committed to the apple ecosystem. so you have to keep that in mind. >> what would really sort of liar me to a samsung, if there was one thing that you can put

your finger on. >> if you were living fully within the google -- >> you said it was a beautiful phone. >> the pixel is a beautiful phone. >> what does that mean >> the blank screen with a little border. >> the interface is -- apple has still nailed the interface in a way that nobody else really. >> but samsung has a sleek device, and the camera is pretty astounding. >> like snap stuff can i put dog ears on better how about that funny tongue that comes out. >> that's a good one. >> about a $5 million market cap tongue >> amazing. don't make fun of me when i say this the trucking industry may have met its disruptive match, but transcript titans -- >> excellent you hurt yourself. >> morgan brennan getting read can to go. >> it's 5:00 somewhere, right? all joking aside

in the next couple minutes we're going to quite literally a beer run. we'll be talking technology and how it's finally shaking up the $700 billion trucking industry you're not got to want to economies this so c'mon

kell come back, this might

be make you feel old the hashtag turn ten today a decade away google design es suggested that it be used to group conversations. twitter initially rejected the idea, but adopted it two years later. studies says 75% of all internet users use hashtags. >> they encouraged you to put a dollar sign in front of the symbol -- >> you still do that. >> that's not number i use that before like number. what is that >> hashtag. >> what is that for? >> to group things. >> not related to hash. >> an issue like the eclipse -- >> even if i didn't mean number? >> so that anybody who wanted to follow the eclipse and your tweet, click on it. >> it's anumber symbol for me. when we return, jim cramer will join us, to get his take on

today's top stories. here's the futures, like a number sign, down 49 pois. > 'lbeig bk.nt where's jack? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.

we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

get down to thenew york stock exchange trying to figure out two big losers i don't know if it's related lowe's and lay-z-boy. >> yeah. once again they can find ways to miss it. i thought lowe's was fine. it's up against home depot home depot reported it and lowes reports a less amazing number. i was listening earlier i think that that area that he thinks is terrific which is that value area is still going to hold up but whoever speex last in this market does color things. >> i also saw -- i never know with you jim and i like to -- you surprise me. you're unpredictable i saw somebody say well trump

was messing with china your tweet was well they have been messing with us for years and i never know what you might say. >> well, i mean, i really think china has given us a first class beat down. they're down there giving us the business even single day so the world just says wow we are starting something big with china. do you just want to get the stuffings knocked out of you every day or fight back? look i know the president was talking about the wall but the pes such that well, what an advantage. it's is tough. >> yeah. >> you have been on that thing. >> it has a great eco-system. >> i feel cool just knowing that all right.

see you. thanks. >> coming up next we'll check back in with morgan brennan. she has been on a real time beer run with the truck that's using some disruptive technology as we head to break, here's a quick programming note just one week until becky's live interview with warren buffet that's wednesday august 30th on squawk alley which is kind of part of squawk box i guess we'll be right back.

>> user friendly apps operating on the cloud and powered by algorith algorithms so take this big rig we're riding in right now. he's got 2,000 cases of budweiser beer in the back of truck. it was loaded up in newark we are on our way to a distribution center in the bronx. now this road was brokered by a seattle based start up that

raised $80 million from the likes of bill gates, jeff besos and they say using this technology is making its supply chain more efficient >> we can learn more about our business for example we can understand where we're delaying drivers at pick up or we can see the truck as it evolves and delivers along a map along it's route through delivery and we also get information about our business that helps us look at pricing in a differ way. >> so this move toward automation represents a big shift in how truckloads are brokered traditionally very people sen trick relies on relationships, telephones, even the fax machine. convoy is looking to change that

but isn't alone. uber itself launched freight earlier this year and other r start ups include low start and transfix which they also use in terms of what this means for drivers, our driver who is his oenoner operator says that using convoy increased business and decreased his wait times between moving the loads of freight. back to you. >> and saving money. >> you're not impressed. >> no, i'm impressed with all of that beer. those are the true heros the cowboys of the road. because you can't, you know, you can't really -- you could but a lot of what we get we take for granted is from the truckers but i'm worried about them. >> totally worried about them. >> he doesn't want to put them out of business. >> but it's inevitable.

>> yes. >> we're going to check. >> it's over. >> thank you for hanging out. >> we'll check the futures they have worsened a little bit in the halast couple of minutes big gain yesterday though. >> make sure you join us tomorrow we'll see you then squawk on the street begins right now. >> good wednesday morning welcome to squawk on the street. david faber is off today futures are set to give back some of yesterday's rally. the best day in four months as the market digests some of the president's comments last night. europe is lower. pound below 128. we're watching that. ten year yield fall backs to below 119me the president threatening to shutdown the government in order to get a border walllt