the dollar's down against the euro at 119.6. dollar yen is 111.42. >> national cheeseburger day. >> you have burgers again tonight? >> urge you to celebrate it in your own way, whatever that might be, but that gives me a pretty good excuse. got some pickles yesterday, spicy pickles, really, really good. i love food. make sure you join us tomorrow "squawk on the street" is next. good monday morning. welcome to "squawk on the street." futures are positive after the dow's best week of the year and the s&p crossing 2,500 on friday. got some defense sector m & a. the president starts four days at the u.n. europe is up and the ten years around 221.

wall street's rally set to continue at the open. futures pointing to some new records. >> plus at north korea continues to strength threatening missiles making it first major deal. it's going to buy missile and rocket maker orbital. >> the credit agency new of an online security flaw months before that massive data breach. first up, stocks are aiming to set some new record highs after the s&p hit 2500 for the first time ever. dow coming off a fourth straight record close capping its best record week of the year and the nasdaq posted a record high on friday. all of that jim as we're on the lowest volatility over four days in the s&p ever. >> i think a lot of what happened last week as the algorithms were just befuddled. we had this moment where there was peak transport, all these groups are really roaring.

we do not understand -- i spoke with insurance people this weekend. i don't think people realize how much money is coming with the rebuild. there's just an incredible number of -- every car part company. these were all bearish areas and at the same time we're getting an uplift in technology stocks led by the semi-conductors that is just not talked about enough because it's not being led by intel which might have been at one point the leader. it's not being led -- it's not a f.a.n.g. group. it's really just bread and butter and individualia, it's micron, lamb research. these moves are extraordinary, i don't know how much of it is hp or apple. they're breathtaking and not being talked about.

>> bit coins back up 4,000. >> your point you'd rather look at that or gm stock than that industrial number we got last week >> exactly. this caterpillar report, the ups caterpillar report those of us who follow caterpillar for years, i'm talking about for 30 years, we'd always been hoping for $10 per share. they're talking about $14. they streamlined the country which is short han for firing. the orders are coming through. caterpillar's a huge beneficiary of what happened in florida and what happened in texas. the cleanup is gigantic and the insurance money -- all the insurers were flush. they just all were ready for this so the checks are there. the rebuild is occurring. in the case of nvidia, it got caught up in cripto mining, it's still happening in china.

it's 10% of the business. it's about 3% china. you should focus on the fact that artificial intelligence is so big. it's just huge. >> yeah and we're in the early days. >> yes, we are. >> the infa fancy in many ways and the debates will continue to rage about whether it's good or bad or how it will be used. if i told you at the start of the year the nasdaq would be up 20% by mid-september, wouldn't you have said, okay, maybe time to take some -- >> if it were not so broad based -- there was a big move in biotech last week. bio gen had a big move and we're just -- ever since gilliad made that purchase defense has come along. orbital and they got out of the

some of the more lower tech, next thing you know, boom. if you go to their website, you realize this is north korea versus south korea. this is missile defense and rocket tri and you've got a lot of companies that are in that area. >> we'll go through the details of that. space has been somewhat weak, believe it or not, and this certainly would seem to indicate things may be turning. >> they haven't done a huge deal since trw september 2012. >> i think the consolidation there, there's not a lot of resistance to consolidation in this particular administration. oil and gas, by the way, i think that we're still -- that's the storms are playing havoc there. refiners going nuts. incredible. so i really think that -- we got news about cisco, i think there's a lot to talk about in interprets of just a really strong comeback from drugs, from

semi-conductors, from railroads, from housing. housing, auto parts, from home depot. it's hard so i agree with you. you want to take profits in cisco's, that stock is breaking it out. >> chambers is not standing for reelection. they will appoint robbins as chairman. >> as expected i believe. john chambers was a name certainly for 20 years or more throughout the dotcom boom he was the man associated with cisco and incredible growth that company had that period of time. robbins has been in the job at ceo for quite a bit. it's going to be all robin's show. >> last quarter was not that good but the stock was above where it was. obviously they were very quick with the -- with that patch, telling people when you get to equifax that there's something wrong and some people regarded

that as a call to change everything you were doing. we'll talk about one that seems complacent. industry breaking out here, how does it square with we're going into a fed meeting in which they are expected to announce some balance sheet maneuvers? fem believe is an essential -- >> nonresidential construction in the company is very, very strong. i don't think a tightening would mean that much, a tightening that's done by offloading bonds won't mean that much. i think what's incredible, we talk too much about the fed right now. the storms are much bigger than the fed and i'm not kidding. i think it's going to be tens of billions of dollars and if it were new york, we would be talking about it much more. i mean it is hundreds of thousands of cars. you don't see -- i had magda on not that long ago, and they were bemoaning how could they be

selling like seven times -- the stock is up ten straight points because you need them. you need them. they're rebuilding and building cars. we just haven't heard from the industry yet, because boy the demand is great. you don't see those -- ksu is the auto railroad. look at that stock. >> that all makes sense but used car prices have gone the other way. does that point to increased demand >> if you want to have a job you got to have a car. if you have a car you get that insurance money. i was hoping that brunswick would give me a better look because everybody has to have their boat insured. that's ten to 15 months because you don't like -- i got to go get my boat fixed. people are taking the boats out of the water. but cars, ready. ready. >> we'll talk more about it later on. there is some tech news today. facebook now under greater scrutiny regarding the role it played in russia's interference in the 2016 presidential election. it's shared new findings about ad sales with special counsel

mueller. house intelligence committee adam schiff calling for facebook to testify before congress. here's what he said on abc's this week. >> we are requesting a lot more information from facebook and we have received some information but there are a lot of unanswered questions. frankly, i'm distressed that it's taking us this long to be informed that the russians had paid for at least $100,000 of ads designed to try to influence our electoral process. >> we've been talking about this for a while now, it seems like members of congress are starting to put their wheels in motion. >>it does seem like that there's this vast mole in the internet where you can place ads and no one seems to know who you are. did i just catch a faux russian ad as it is on the web, there's so much. i keep going back to what proctor and gamble said to me, which is, there is a dispute by

nelson pelts whose trying to get on the board that their last hundred million wasn't spend on the web. they have amy chang there, she worked at google. there's a sense that there's a lot of content out there that's questionable, lot of ads. there's not a lot of accountability because there's just too much. it's a fire hose of ads and no one seems to know where they're coming from and no one seems to know what they're up against in terms of context. >> and the reason it's in the focus because it's the most powerful communication platform on the planet. >> and is loosely regulated for its size. >> loosely regulated and as we pointed out the beauty of its businesses it wrlz on everybody else to create its content changing a little bit but overall still the case and one will expect it will continue to make enormous sums of money at incredible margin just big picture while it also perhaps the subject of more scrutiny. >> can we say that putin was

involved the notion that he might be -- he wouldn't know what the most watched network is up to. he doesn't want to go up against ncis. but he knows facebook. everybody knows facebook. >> you think he's getting that granular isn't it the sense of trying to interfere as much as possible? you're my team. you go do what you think is best. >> they're not going on the weather channel. >> but his guys who made all these decisions about how to go about doing the best job of interfering made additions and clearly it took it to facebook, where else would you go? >> should they go to google? did they go to aol. >> i don't believe they did. >> they apparently may have used twitter a bit. they also used their own network r.t., "the new york times" magazine had a long article on it this weekend. >> did they use snap >> no. they don't vote. they don't vote.

snap demographic doesn't vote. >> facebook's so powerful. >> you don't see it as a risk for the stock, these mounting political ties >> no. i think it is a risk if they can't clean up the cripto nazi content. i'm not saying facebook, but i'm just saying that's a nonstarter. you don't want to advertise special k against kkk, you know. right? >> right. >> that's in the playbook right there. do not advertise our cereal special k, no four ks. there's just so much content. i mean -- whose going to regulate the content >> chinese have figured it out. >> really? >> you want to go down that road. >> with a hammer and not a scalpel. >> they figured it out really well. it's gone the other way. the web is going to open them up. they'll not be able to resist it. >> you post something and watch it disappear. it just disappears. >> what happens in north korea

>> where's chairman wu where did he go? where has he been taking. >> i'm watching about ho chi minh. >> it's fun to say chairman wu. >> i do. when we come back, the latest on the fallout from the equifax data breach including management departures. as you know s&p cracked 2,500 on friday and we look to build on it this morning. more "squawk on the street" back in a moment. (honking) (beeping) we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork, your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you too. at optum, we're partnering across the health system to tackle its biggest challenges.

at optum, we're partnering across the health system theextreme risk of burstd a pipes and water damage...y... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital.

did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's up to 16 times faster than slow internet from the phone company. say hello to faster downloads with internet speeds up to 250 megabits per second. get fast internet and add phone and tv now for only $34.90 more per month. call today. comcast business.

built for business. equifax continues to feel heat regarding its massive data breach. two executives stepping down late friday. the journal publishing a long time ryan of the company's miss steps and over the weekend some focus on the background of their chief security officer who is a music major without obvious education in information security according to the executives linkedin page. chief security officer did leave effective immediately. >> this is one where we're obviously getting a time line that looks real bad for the company.

timeline involves much longer greater knowledge. these are people who are not the highest level. i saw the music major, she faced the music, blah, blah, blah but the thing that is most disconcerting is everybody feels maybe they know something about us, the badded guys. you can't change your social security. that's your number. you can't -- it's your address. they have your driver's license. they have everything. someone i was with this weekend had a credit card opened up by someone else on her name and they had everything. they had everything. and she was like what do i do now? i can't change my social. there's nothing you can do. this thing's not going away. how much liability they really have. i was talking to the lawyer this weekend. liability not as great as you think. how much credibility do they have nil. >> you said in no uncertain terms the ceo should be

replaced. you're not alone in that. it's most likely majority of -- i don't know majority of shareholders, i haven't polled them but many people who watch crisis like this unfold expect that the ceo should lose his job and the board should act -- >> the board. >> the board. >> they're board. the journal did a very good julia boorstin today where it started and how it began, in this particular piece of software, but you're sure to see them now spending more money on security and the question is where were you when we needed you to be spending a lot more on it. >> i think chuck robbins was out there, i remember the day the breach happened. i don't think there was anyone in the world who wasn't notified and put on notice. i would think the company that has all of our data is the one company that i don't want

leaking but again there are a lot of people this weekend telling me, they got to go to zero. things don't work like that. i do think someone has to make a fall. target didn't go to zero. the liability is not as great as people think but the credibility that people who are -- to get rid of the chief information officer, it's like are you kidding me the buck stops with these people who are below me >> the ceo doesn't guess our social security number back. that horse is out of the barn. >> yeah. everybody i know is worried because of this thing. there's 100 million. i check my bank account this morning. is there any suspicious activity everybody in the america has to check if there's any suspicious activity because -- i don't think people realize, they're really isn't much to you other than your social security and driver's license. do they have your password did you change your password

>> i haven't changed them lately. >> we're forced to at work. >> workforces us. >> if they have my password, i mean -- >> i don't think they do. nobody can imitate you. everybody knows who you are. >> if your life's in danger, if your life's in danger, you're a victim of identity theft or you have a duplicate number or valid reason to change your social security, you can do that but it's not to be taken lightly but you will i think many of us will have to go and say we do have a valid reason to change. i think that that's something that is going to occur in this country because of equifax and if that's ceo is -- i tried to get through the social security to get them to change it, you know what? i feel like -- here's my problem. there's a guy named smith and he took my name and number and i want out. smith. whose that how about rick >> oh, right.

is he having a good time today i really don't want him to have a good time. i'm not going to have a good time because i'm going to try to change your social. >> you're not going to try to change your social. not now. you don't know anything. >> oh, okay. well, i feel so much better now knowing that you told me not to do it. i feel relaxed. i suddenly feel relaxed. >> he's on the page how do you get a new social security number. i don't really want them to have that information. i'm not as comfortable as you are. i like -- when i left it in the machine, i was able to stop it but this is a good opportunity for them to me, have a dynamite time being fine with that, so my buddy pal rick. >> maybe i'll get your tax refund. maybe i can be you. >> that guy in the middle is he mow, larry, or curly he thinks he can get to me. >> we'll countdown to the

opening bell. don't go away. being the incredibly busy man that i am, i've asked chase sapphire reserve cardmembers to scout the world to find my next vacation. elton, what are you up to? i'm having breakfast in uganda. uganda be kidding me, elton! it's a... it's a joke. james, we're going to look for gorillas! hang on, what? that's a real silverback gorilla. look at it! no, don't look at it. shhhhh stay. okay. i'm freaking out! sapphire reserve, from chase.

make more of what's yours. dad: molly, can you please take out the trash? (sigh) ( ♪ ) dad: molly! trash! ( ♪ ) whoo! ( ♪ ) mom: hey, molly? it's time to go! (bell ringing) class, let's turn to page 136, recessive traits skip generations. who would like to read? ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ )

we got six minutes before we get to thestart of trading for another week on wall street. let's get to a mad dash. >> there is a gem in this terrific caterpillar upgrade by ubs. and it's about pipeline construction approvals. year-to-date in 2017 for federal agency regulatory commission has approved over 1,000 miles of natural gas pipelines. this is only slightly less than it was approved in all of 2016. david, you could say i want to do a pipeline through your

apartment and they'll say yes. there have been some pipelines that have been approved that would have been denied for years and years under the prefs administration and that's a lot of business for cat. >> and that will continue you believe. >> yes because firk does not seem to have a problem approving pipeline. i had a pipeline -- i used to live in a house that had a pipeline. these are big jobs when you put a pipeline through and energy transfers have been building pipeline arn the clock and you need a lot of caterpillar earth moving but under the previous administration, firk stop firk stop, now firk go. they have a lot of states that don't really worry. this is not going through the colorado national monument yet. they haven't approved the grand canyon as a place to get it through. don't put anything past this firk. >> or the interior department.

we'll see. >> they got the interior what are they involved >> they're interior. >> they protect -- you should go in the coal business, we could clean up. >> the coal business i'm not going into the coal business. >> no, charcoal. have a charcoal. >> no. we got an opening bell coming up. we'll talk about that deal, of course. $7.8 billion auiti icqsionn missiles and missile defense.

their experience is coveted. their leadership is instinctive. they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call them the best of the best. some call them veterans. we call them our team. at ally, we offer low-cost trades and high-yield savings. but if that's not enough, we offer innovative investing tools to prepare you for the future. looks like you hooked it. and if that's not enough, we'll help your kid prepare for the future. don't hook it kid.

and if that's still not enough, we'll help your kid's kid prepare for the future. looks like he hooked it. we'll do anything... takes after his grandad. seriously anything, to help you invest for the future. ally. do it right. you're watching "squawk on the street" live from the financial capital of the world, the opening bell in less than a minute. busy week ahead. the fed of course with their meeting tuesday and wednesday. the president's going to be at the u.n. almost all week long, big speech tomorrow which some say could have some ramifications for at least gold. >> i think that people are not -- the president's been quiet as of late but this is a chance to demonstrate a level of -- let's just say -- if you

talk about north korea, be able to say here's what we're going to do. i do feel like they're actually trying to get a coalition together to shut down the other 10% of business. the president did tweet that he spoke to the president of south korea, asked how's rocket man doing, that's his nickname for kim now. there's the s&p at the bottom of the your screen. the prime minister of luxenberg doing the honors. a provider of enterprise software and services for manufacturing companies. >> is everyone from luxenberg here. >> only half. i see a will the of guys. all of lichtstein is here. >> really? >> we'll watch at the top here nvidia and cat which jim has mentioned has taken -- they go from 160 to 140. >> nvidia was stalled and

everyone was stalling because the cripto currency china. it's never been that. it's been artificial intelligence, it's been data center. they had weakness in the data center last quarter. everyone knew it was a product transition. even my dog knew it was a product transition. but finally everyone's getting behind it. >> i'm aware of the name, i'm aware of the stock, i'm aware of your dog. >> nvidia's bigger than a whole bunch of companies. >> it is. we had that on the bottom off our screens for a while. it's bigger than nike and goldman sachs. >> i told you this was going to be the next intel. you laughed. >> i don't recall you saying that and i don't recall laughing. >> okay. well 1993, '94 people used to laugh that intel could keep going higher. intel was directly against individual y and-i know intel has got inferior complex they're trying to get over because of

nvidia. >> he's positioned the company extraordinarily well for all the trends -- >> intel >> no nvidia. >> i had to call on computer scientists from stanford to understand that conference call. it was so difficult. that was the hardest conference call of all the conference calls i read because the guy is operating on another plane. he's like the people that work at the warble. >> where >> a company that got a big takeover bid. >> we're not going to do it as a favor report but we should mention it right now. how do you elevate it to a faber report. >> what does it take >> it takes a lot of reporting. >> tony romo wants your job. he can predict stocks like he can predict plays. >> you predict weeks in advance and he's not investable and you are. >> thank you. i appreciate all of that. should we talk about this deal >> yes. >> we can do better right now.

take a look at nor tlop stock. the large deal we had a couple of weeks ago, utx's stock did not do well. >> and now it's up four. someone pushed it hard. >> unlike that deal that did compromise two-thirds cash, one-third stock. this is all cash. you're getting $134.50 a share. they expect to close in the first half of next year pro forma, they're expecting to have sales in the range of 29.5 to $30 billion that's based on current guidance, 150 million of print tax cost savings by 2020 and a earnings per share and free cash flow per share in the first full year after the close. northrop the company being purchased here is up as you would expect. missiles and missile defense has not been a growth area but it may be changing. >> that's the same thing why --

i will tell you this company has been kept down because of a division. they split the company up. they had an accounting irregularity a couple years ago. wee screwed this up they say and now we're going. if the stock had been a cheaper stock than most defense companies because people were trying to get their arms around the merger that they made and also because as david says, this was not the part of the defense complex that people were excited about, missiles. now everything is missiles because it's about shooting down -- they even have something shooting down radiation missiles. >> missile defense typically involves missiles, shooting down missiles. >> you know -- you are a genius. i use that term very lightly. >> we could use a laser. >> oh, my. >> i don't know if they've got there yet. >> do you want me to talk?

do you want me to talk no mr. bond, i want you to die. >> okay. >> on the lighter note, guys, there's a lot of news in media today. >> anything good >> nbc news reports amazon is in talks of buying scores of smaller tv channels in an effort to build it's own small bundle, doubling down on the channels business as they say. the emmy was last night. hulu wins for best series drama, "the handmaid's tale" something that netflix has never done. >> remember the days when you watched the emmy's and were like the programs that you were broadcast and now -- >> you actually watched because there were only four networks. >> you have to cut your cord to follow the nbc networks. >> yes. >> hbo, soon to be owned by time warner let's not forget and soon

to be offered -- at&t, thank you. soon to be owned by at&t as is time warner itself. >> now he has bought some flot sam and jet som? >> i don't think he necessarily feels that he does and he dismissed to a certain extent the idea of competition coming from at&t when they do close the deal with time warner of offering hbo at a very discounted rate or even free is not being necessarily enough to move the competitive needle. he hasn't seen it and will still rely on the verizon network and the strength of that network to keep their customers and gain new ones. i think the prospect of free hbo can be pretty compelling if at&t will choose to go that way. not that they will. we'll see. we'll see what they do.

>> i think it's revolutionary. i also want to point out that the directv in south america, not only being worth 8 billion. i thought that number was low. i think there's more -- >> assets of directv. they're still waiting for some approvals in brazil. there's been a lot of back and forth about six -- over 60 days were expecting it could be as soon as 60 days. that deal's not going to close now, obviously. they are close. i'm not going to make any predictions but a lot of the advisers who have been working on this for quite some time believe that they're very close to a close. we'll see if it comes in october. >> i was with some radio people this weekend. i recommended intercom, i think that could go up 35, 40% and they're all talking about am tech and about how when igger fleshz out what he's going to do

with am tech that it may leap frog a lot of companies, that's going to be the online sports company. it's not easy and of course our president is not a fan -- >> you're referring to his tweet last week by espn. >> i think that bam tech, if iger can trace out how he's going to make money in a technological way with sports, they have a winner. maybe a winner. people think that technology is next gen when it comes to the way that younger people watch sports. >> i think part of it is the ability to stream millions and millions of streams at one time which you've got to be able to do if you have a direct consumer offering the way disney's planning. >> we should mention roku, the road show begins, 15 million shares at 12 to 14 would apply a billion dollars valuation. >> that would get the blue apron taste out of your mouth, right

blue apron being not so good there. >> blue apron is what you always bring up and yes we're aware that it's not good. >> we need a better deal than blue apron. >> despite what seems to be this great growth period for technology. >> one thing i want to point out is apple seems to have the stocks seems to have done going down, all these people got in betting the iphone 8 and they obviously lost money because they traded apple and didn't own it. i see that stock coming back. nvidia's the same. do i have to make this -- do i have to make another move like i made on friday i don't. >> i was wondering if you spoke to your dog this morning. >> i think it's important to point out that when you have one of these moves like nvidia, this is what you're going to get a lot of people who do not know what nvidia does buying this stock and i think that that's dangerous. it's had these big moves. it's going to report and probably not going to be the

quarter people expect and i like that. i'm talking against myself but please, if you're going to buy nvidia because you think it's going up, i make a joke about my dog. you probably know less than nvidia than you do about my dog whose a rescue dog, by the way. >> this was some sort of real positive. they really -- >> double your money. >> they didn't understand -- >> wouldn't that be great if nvidia split it would be fantastic? these are things that -- >> you're talking about like those kind of personal dynamics we saw in the dotcom boom. schiller had workouts today looking at tulips trying to figure out where we are in this craze. >> i saw juliette margolis, that fabulous actress, she remembered that i recommended nvidia.

that's more likely a bubble and nvidia just had a transition quarter that did freak people out but there's not a lot of movement away from nvidia. texas instruments, sky works was good. i do think that there's not a lot of bubbles in tech. i go back to what julian robertson told -- i don't know if you heard -- told kevin, these stocks will all be much higher in another generation. i think that's interesting. i think this russian facebook story's fascinating. that you can put money in facebook and -- there's so many ads. when my wife looks at facebook, it'll be like who -- whose putting up that oil of owe lay book, i don't know, oil of olay. the ads are so well -- >> based on everything you've ever told it. >> oh, my.

>> you know who should get into the web business >> who >> equifax. >> yes no one knows more about you than -- now equifax da.com, cano imagine what they do, everyone with a social security number ending in 3578 here you go. >> they already moved aggressively into the data. >> they could combine with say, like, we've got more information than anyone, sensitive information. >> good idea. dow's up 53 led by caterpillar up more than 1.5%. let's get to bob pisani. >> the s&p 500 new highs here. let's take a look at the sector. we had some mini breakouts in energy stocks and retail stocks

and semi-conductors last week and it just flat right now as oil struggled to stay over $50 now at 49 and change. materials up. tech moves sideways mostly this month although some of the semi-s have been a big leadership group here. just put the semi-conductors there. broadcom has been strong. we've been sideways this month in a lot of tech but other stocks and sectors have come to the floor. endless rotation. advance decline line. new highs. that's not happening. that's a very positive technical signal. the new highs, they're okay, they're not great. they're holding in their two or three hundred. that's modest. europe's reversing a three month

down trend as well. i was talking to katie stockton, she's the technical analyst over there about there was no summer selloff, really. normally you get something go down in august and september, and the down draft in august was very modest. it was only about 2% from the high to the lows and we still ended positive. we were up just fractionally for the month here of september, september is up 1.2%, september up 1.2%. modest positive in august. the s&p if we end positive and we're up 1.2% so far that's something. march was only modest to the downside. really quite impressive internals for the market right now. we should be trading roku by the ends of september, but we got a lot of positive comments last week about all the ipo activity and we'll have a very busy week this week. the busiest week in three or four months. we've got seven ipos that are

out there, we'll try to raise $1.6 billion. that's the busiest in three months. we'll have three chinese companies this week that's a little unusual led by best, inc. logistic and supply company. it'll be the largest ipo this quarter. 62 million shares. these guys are backed by alibaba. they move goods around. despegar is they're trying to raise north of $300 million and we finally even have an oil deal. there hasn't been any for a long time. the last real pipeline deal we got was in march. we'll have another one. oasis midstream. this is a spin-off.

nice yield 7.5%. a lot of people want that yield still. 7.5 million shares at 19-21. no one wanted anything to do with these oil ipos because oil has been unpredictable this year. but if oil can stay some where around $50 you'll see a lot more of these coming out. the number is still not fabulous but what has happened aftermarket is pretty good. this is a basket of the biggest 60 last etfs. goes into 2016 as well as partly 2017 and it's up 27%. the aftermarket performance of the ipos have been very strong because investors have been very stingy. they want lower prices right out of the gate and then you get a little bit of aftermarket trading, the market goes up a little bit. that's why it's been a very tough time for a lot of these tech ipos or tech unicorns that are sitting out there. the dow up 55 points. new high on the s&p 5002506 over

that 2,500 level. back to you. >> watching the energy complex as well, wti is off just a touch. >> good morning. crude prices are pausing after breaking 50 last week. up more than 4%, though over the course of the week, because hurricanes, global tensions, we're talking about north korea, optimism about demand and definitely this last leg on the lower dollar index. that's supportive and it's actually been reflected back in this trade. seasonally is when you'd expect a decline in crude oil prices even though they weren't strong on the seasonal factors. there's resistance. so we could see a fluctuations that go back over that psychological level of 50 but it would take something bigger to go higher from here and most traders are telling me they expect lower as we get more into the fall and the winter. so far session low 49/49, session high $50 and 33 cents.

big move in natural gas this morning as well. could be on jose approaching but some are suggesting that that's going to be a short-lived move with more moderate temperatures coming on the east coast in the next week or two. >> thank you. when we return, mark mahaney, you'll want to get his take on the stock as we take a break to take a look at the movement in treasuries. >> ten years almost back to 2-2-2. gold is near its lows for the month. back in a minute.

your muscles look good, but we should be seeing more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.

could amazon's new headquarters land on the east coast? new york city is the latest city to throw its hat in the ring. the local economic development corp plans to submit a plan in response to amazon's request for proposals on its website. new york is saying its soliciting ideas and information regarding space, programs and other assets that could be included in the city's proposal. we were just chatting off-camera

about an advertisement in the "the new york times" from the mayor of gary, indiana, open letter that gives his e-mail and phone number saying we can make this work too. >> given how little space he's -- i'm not sure they have the budget to go long for that one. >> long shot. >> every city you would think that fits at least the initial criteria given is going to want to bid because it's not just the jobs that will be actually hired directly by amazon but also the creation that goes on around the hiring of so many of those people and having amazon as a presence in your metropolitan area, although we haven't talked as much about why amazon needs two headquarters and what that's going to do to the culture of the company? >> you have two different businesses at amazon web services and retail but they go together. >> who else has two full headquarters what other company >> world dutch unilever. >> because they're anglo dutch.

>> yeah. this is what anglo-anglo? >> right. >> we'll talk to the cities deputy mayor about amazon later on in the morning. dow's up 63.

for years, at&t has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at&t. we do business where you do business. ♪ ♪

live picture of the president at the u.n. taking his seat at the general assembly, chatting with uk's boris johnson a few moments ago. his big speech is tomorrow but we'll be looking for arrivals and departures today. let's get to kramer and start trading. >> company called uambiguity, he's got a lot of met terrorism which basically indicate its inconceivable this money is making the money that it says it is. i know that andrew has worked very hard on this and it's not clear how this company -- this company should come on air and try to refute what he's going to say because it's going around all day if not all week and the numbers he's showing for

long-term operating margin are way out of sync with this industry and sales per employer are much higher than expected than the income marvin is just huge and i think he's saying, these are not numbers that are realistic and calling the question what they're doing. i looked at umbt and told people to stay away. cisco's better. this is one where it does seem like -- i don't want to use the term inflated because that's not fair. i have not done the work with them but it does seem like that there's -- the stock is highly valued. >> tonight on mad jim. >> but this is zagg. i use them and they have longer battery life. i used to be very critical of the company but they've done a lot of good stuff. i use the prk. >> see you tonight, jim.

"mad money" 6:00 p.m. eastern. dow's up 62. don't go away. dad: molly, can you please take out the trash? (sigh)

( ♪ ) dad: molly! trash! ( ♪ ) whoo! ( ♪ ) mom: hey, molly? it's time to go! (bell ringing) class, let's turn to page 136, recessive traits skip generations. who would like to read? ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ )

thank you. the greatest population shift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim, we help investors see the implications of long-term mega trends, like the prime-time of urban expansion, pin-pointing opportunities to capture alpha in real estate, infrastructure, and emerging markets. partner with pgim, the global investment management businesses of prudential.

♪ welcome back to "squawk on the street". sara eisen is off today. markets having a pretty good monday after cracking 2,500 on monday. >> our road map starts with the latest on the equifax saga. the leadership changes and attorneys general from around the country launching an investigation. we'll be joined by one of those ags straight ahead. >> we take you to the president now speaking at the u.n. >> so that it better sevens the people we represent. we support your effort to look across the entire system and to find ways the united nations can better and be better at

development, management, peace and security. the united nations was founded on truly noble goals. these include affirming the dignity and worth of the human person and striving for international peace. the united nations has helped advance toward these goals in so many ways, feeding the hungry, providing disaster relief and empowering women and girls in many societies all across the world. yet in recent years the united nations has not reached its full potential because of bureaucracy and mismanagement. while the united nations on a regular budget has increased by 140% and its staff has more than doubled since 2000, we are not seeing the results in line with this investment, but i know that under the secretary general

that's changing and it's changing fast and we've seen it. that's why we commend the secretary general and his call for the united nations to focus more on people and less on bureaucracy. we seek a united nations that regains the trust of the people around the world in order to achieve this, the united nations must hold every level of management accountable, protect whistle-blowers and focus on results rather than on process. to honor the people of our nations, we must ensure that no one and no member state shoulders a disproportionate share of the burden and that's militarily or financially. we also ask that every peace keeping mission have clearly defined goals and metrics for evaluating success. they deserve to see the value in the united nations and it is our

job to show it to them. we encourage the secretary general to fully use his authority to cut through the bureaucracy, reformat dated decisions and make decisions to advance the core mission. we encourage all member states to look at ways to take bold stands at the united nations with the eye towards changing business as usual and not being beholden to ways of the past, which were not working. mr. secretary general, the united states and the member states present today support this great reform vision. we pledge to be partners in your work and i am confident that if we work together and champion truly bold reform, the united nations we emerge as a stronger, more effective and greater force

for peace and harmony in the world. thank you, mr. secretary general and i look forward to advancing the shared goals in the years to come and it is a great honor to be with you today. thank you. [ applause ] that is the president who in the past has expressed some except six about the value of international organizations but they're saying that the u.n. was founded with noble goals. in recent years a bit of a scolding here, saying it's failed to reach its full potential because of bureaucracy and mismanagement and michelle you well know that today is largely about reforms that could come to the u.s. >> you saw sitting on him the new un security general on the right of him -- on the right of the screen to the left of him nikki haley. today's definitely about reform, about a very antique kwated

bureaucracy of which the u.s. foots the biggest bill, 22% of the core budget which is more than $5 billion. so it's about refining the bureaucracy but also about trying to avoid things like obvious violators of human rights sharing the human rights council, which has happened in the past things that end up hurting the u.n. credibility. >> we'll be hearing a lot more from the president tomorrow about north korea and potentially the iran deal. meanwhile, markets are having a good monday morning as we build on the gains from last week, the best week of the year. some all time highs, the dow coming off its best week in 2017. investors also await the feds meeting wednesday. for more on this let's bring in brian. good to see you both. are we breaking out to some degree here at least on some levels of industry >> i think we are.

thanks for having us. two weeks ago we upped our numbers in terms of our target for 2017 to 2,600. that was our base case. the reason are that number one, we were approaching 2,500 which was our previous best case and we published the peace in november of last year. number two, earnings and dividend growth are coming in faster than everybody thought and number three this is really important, sentiment is super negative on the institutional side. in no other time in my career have i encountered so much institutional verchz that are saying one thing and doing another. saying one thing, i'm waiting for a 5% correction. everybody's calling for a correction. a correction rarely happens when everyone's looking for one. number two, what you saw especially in august that correlations actually tightened up again so people are indexing. there's such an intense fear of missing the rally and that's defense investing in my view. they're investing around their career to try to keep their job

but keep pace in the market. the average hedge fund has under performed since 2009. back in the old days, it was the institutional money was the dumb money and the hedge funds were the smart money. it's flip flopped. you've seen a tremendous amount of actual investors actually start to outperform because we believe that's fundamental investing. we're very promised with respect to the wherewithal the bull market because of that. >> jeff, we did get that round trip from near 2% on the ten year. consider is seemingly going into this fed meeting and the expectation of hearing something about a balance sheet not effecting equities more? >> a lot of the fear that people have had around these balance sheet moves goes back to the taper tantrum and this time the fed has done a very good job in setting market expectations weren't to what we call the modalities, the specifics of how the balance sheet is going to change. they've laid all that out already. so there's very little surprise expected from wednesday, from the meeting, the focus will

shift towards the normal type meeting indications about what the likelihood in terms of december but you've taken out really the fear that the markets are going to misinterpret this change in balance sheet policy and that we'll be back to some kind of taper tantrum. that's really helped the sentiment environment for equities. >> you said the best case scenario would get you to 2,800, what's your worst case scenario and what would get us there? would it be the fed or misinterpreting the fed? >> it's a great question. what gets us there is just a potential surprise out of washington, maybe a positive surprise, if i go around and talk to 100 of my clients around the world, nobody is expecting anything to get done from d.c. and congress. nothing. so this whole notion that the trump trade is built into stocks. it is not. what gets us to 2,200, people have to stop talking about the correction and we start seeing even more froth in the market and that could get us a

pullback. a misstep from the fed -- >> you didn't mention the fed which i thought would be potentially culprit number one. >> jeff is right because he's a client and client's are always right, but the communication with respect to the fed has been exemplary, but what if it isn't? if everybody thinks that then what if there is a misword or misstep but that's not going to change the market. so some sort of a surprise misstep. >> jeff, your likelihood of a policy mistake here then and what is your view on december right now? >> our view is pretty positive that, you know, markets were pricing even a week ago close to 30% probabliability on december. we're back up just above 50%. we think december, the fed will proceed. they'll be a lot of focus this week on the dots plot and whether that changes. we think the meeldion will stay and continue to single a hike in december. the market still has some room to go to catch up to that and the inflation data that we saw

last week was very helpful. the inflation data going forward will look like a headwinds but the near term a month over month, three month annual cpi should be good enough to keep the fed on trajectory. we think a hike in december and the outlook for 2018 and 2019 is still priced way too low in terms of market expectations. there's room there for rates to go higher. >> we'll find out a lot more on wednesday, if not before, thanks, guys. good to see you both. >> the saga at equifax goes on and on. leadership changes begin to take hold at the company and attorney general's from around the country launching an investigation. d.c.'s ag is going to join us xtne. [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal.

isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. hey, i'm the internet! ♪ i know a bunch of people who would love that. the internet loves what you're doing... ...so build a better website in under an hour with... ...gocentral from godaddy. the internet is waiting. start for free today at godaddy. expestandard.e lexus rx with advance safety... lease the 2017 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer.

did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's up to 16 times faster

than slow internet from the phone company. say hello to faster downloads with internet speeds up to 250 megabits per second. get fast internet and add phone and tv now for only $34.90 more per month. call today. comcast business. built for business. . equifax facing increased scrutiny. some new reports that the credit agency new of an online security flaw months before that breach. the attorneys general from 33 states and the d.c. launching an investigation. joining us this morning is d.c.'s carl racine. good to have you. thanks for joining us today. >> good to be here, carl. >> you've been in contact with the company i believe. how are they responding to all of this? >> i think we've seen a lot of action recently with respect to the company. i can tell you they have been

responsive to the bipartisan attorney general letter that went out and indeed later this afternoon we'll be meeting with counsel for equifax in the d.c. >> what do you want to know beyond what's been reported already? >> what's important is that not withstanding the excellent reporting, we don't have a handle of all that happened. what appears to have happened is that equifax appears to have received a software security patch notice that essentially told it that it was very important for it to update its software. that appears to have occurred in march and it does not -- it's not at all clear whether equifax took action. it's important in these data breach cases that when companies are alerted to the need for additional security that they have a process and protocol in play to do just that. >> i assume you're going to pursue, quote, remedies, what would that look like

how would that work? >> i think importantly the first thing we've got to do is understand facts and we certainly hope that equifax is going to be completely transparent in that regard. with respect to remedies, sadly, the incidents of companies not being alert to the necessity to update patches is not new. what is new is the sheer size of this breach. where we've had other instances where companies have not been attentive to software patches we've essentially required them to put in protocol, people in place to make sure that they're paying attention to patches in the future, if the patch is the issue here, something like that in the future will be required. >> sir, are you having conversations with other attorneys general around the country and if so, is there a coordinated effort of any kind >> i think what you're looking at right now is really an unprecedented media bipartisan effort to try to understand the

facts and so, yes, david, i do expect that the attorneys general will continue to work together and really focus in on this important area where half of the country's core secure private information was revealed in the district of columbia, over half of the residents of the districts of columbia including the attorney general himself had their security breached. >> one of the struggles i guess is how does a consumer get anything fixed let's say you had your information hacked. eight months from now somehow money disappears from your account. nobody can be certain, right, that that's where -- those hackers got the information? how far is equifax beholden or do they have to cover what could be potential costs have you tried to think about that and how you remedy the situation for consumers? >> those are excellent questions and of course we've given that some thought and of course that's what we'll be focused with in the company.

it would seem as though we'd be looking at a period beyond a year of course for there to be some guarantees around making sure that consumers are not hurt. i would note that it's incredibly important for consumers now to do that which i did this weekend, which is check all of your accounts. now you got to do it on a regular basis and make sure that to the extent that you see an anomaly, something that doesn't feel right, alert your credit card company or your bank. now would be the time as well, if you're a credit card holder to use that credit card because the credit card gives you built in protection against unauthorized use. >> now we have consumers out there who might feel vulnerable, might feel their information has been compromised, might want to subvibe to a credit monitoring service which equifax apparently could profit from. is there a push against that >> we're very concerned about

that fact, carl. in fact, initially when equifax responded and disclosed the breach, they had a kpet krif product right next to their free offer for credit monitoring and it seemed as though the for profit credit product had a little bit more bells and whistles. the ags jumped on that and thankfully equifax dialed that effort to monetize, to benefit from this very -- we'll make sure they act responsibly on this. >> banks are the primary customers of these credit rating agencies. they're not actually consumers. they make revenue from consumers who want to protect their credit, in a normal marketplace, you would have customers declining to use this service, but some mortgages require credit ratings from all three of the credit rating agencies. it doesn't seem to me that there's a natural built-in market mechanism.

there's a massive decline in the stock price, no doubt but to actually hurt equifax where it would really matter? >> michelle, you make an excellent point. and what your question raises is what the standard of care that equifax owes consumers because it's clear that it's not treating consumers like clients, it's treating the data that it ag gras gates like a commodity that it can then repackage and sell in various ways and so i think a lot of what's going to come out of this investigation are discussions around the duties owed to consumers, whether or not one views them as a client or not. >> karl racine, attorney general of d.c., thank you for your time. >> thank you very much. coming up, president trump makes his debut at the united nations annual gathering. we heard from him earlier in the program. also take a look at northrop

grumman. stocks up after it announces it's buying ortabil. "squawk on the street" will be right back. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you.

the president making brief remarks at the u.n. earlier ahead of a big policy speech tomorrow. setting up an important foreign policy week for the white house. today he was speaking about reforms at the u.n., things that have been attempted for years now, even under the obama administration they were trying to do reforms at the u.n. let's see if they can achieve them this time around, the new secretary general. we're joined by terry haines and steven mirose. good to have you here, gentlemen. >> good to be here. thanks. today was about reform, tomorrow is the big speech. we assume president trump will address north korea directly and they're going to be right in the audience, not kim jong-un but his foreign minster.

what do you think he's going to say? what message is he going to try to send? >> i think michelle the interesting thing with president trump when he is on in these big spotlights for foreign policy is, if he stays on script, it's going to be basically everything that's being tell graphed already which is pushing reform, taking a hard line on north korea but doing it in a way that people expect. however, we all know that trump has a tendency to shoot from the hip, go off script. so the question is if he steps away from the tell prompter and says what's on his mind things could get really interesting. >> terry, do you expect any kind of make america great, america motor in this policy speech tomorrow or is it going to be more what we heard from president trump today on the campaign trail there's antiu.n. but today he struck a much softer tone? >> i think it's going to be more

like today is what we'll expect. >> that was terry or that was steven. i'm sorry i can't see either one of you at the moment. steven, how about you terry? >> well, michelle, i think that it is much likely that the president has trodden very lightly and done everything he can to stay to script and this is obviously a very delicate issue and i would point out that he's done exactly the same thing on trade. there were a bunch of very anti-wto statements on trade while we were hearing from candidate trump, but in office, what he's been doing has been very aggressive but between the lines, trying to reform the wto and push towards different interpretations of wto standards. i would expect the same thing here at the united nations. there's unlikely to be a break through this week but this will be an important step for diplomacy, yes.

>> i see carl. are you going to ask a question? >> a break-thru on u.s. reforms or north korea >> it's very unlikely you'll see a break through on north korea this week but i think it'll be another incremental step forward, absolutely. >> the other topic that hasn't gotten a lot of discussion in the national media but h.r. mcmaster who we saw earlier during that speech the president made today and has brought up repeatedly when he comes to the white house press briefings is venezuela and we're getting a lot of indications that the president plans to meet with leaders from the southern hemispheres and the western hemisphere to discuss what to do about venezuela. is it possible, terry, that we might see some kind of break-thru there >> i don't think there's going to be any quick break through there. i think that this administration has some work to do to convince allied nations in south america

that they want to come up with a common policy and that will be in the common interest, but there's no doubt that both the trump administration and most south american governments share the goal of wanting to get to the next step on venezuela and not incidentally destabilize cuban influence in the region. >> which is grown ever more especially as we hear rex tillerson talk of the possibility of shutting it down with the diplomats going deaf. steven, what do you think in terms of this reform movement that's going on and how important is it that steve bannon is gone from the white house as we approach this week with the u.n.? >> i think people are overstating the fact of bannon being out of the white house. i think in some ways he's almost liberated and can have more influence on the outside, but -- instead of thinking of it

strictly along the lines of the individual personalities, what we try to do is think through the power dynamics of the different groups and the three key groups that we're looking at that impact on trump right now are what we call the nationalists, the globalists and the conservatives. there's a risk of the globalists influence that the market likes waning here. one thing that you're not seeing -- going to see a lot of this week is tillerson, the secretary of state. i think he's being -- prone to be outshined by nikki haley, the u.n. ambassador and i think it's probably only a matter of time in the coming months before we could see nikki haley rotate and take over as the secretary of state. as you get these constant musical chairs moving inside the white house in the administration, that means we could end up losing gary cohn at some point and we could see maybe even dina powell, very

important player for the globalists faction inside the white house, moving up to replace haley at the u.n. so you look into early next year and you can see a scene where the globalists are waning and the nationalists, all of bannon friends like steve miller are still there and having an influence. >> the markets made the rounds on the cohen part of all that. haley has said before she was offered state prior to the job she has now. would -- is all that likely and as an add on, would that be market negative at least at least as the cohen departure could have been. >> terry >> i think the cohn, he'll be there for a while. i think there won't be as much perceived change should haley assume the middle. i don't disagree with anything steven said. i think it's pretty early to make those sorts of judgments.

>> why would tillerson be gone he's pushed out or he quits? >> i think that eventually it will be a combination of the two. what you're seeing right now is a lack of rapport between tillerson and not just trump but a lot of the other white house players. meanwhile, haley is developing that relationship. i think sometime -- it may not be the end of this year but end of q1 next year you'll see a rotation and it's very natural in any administration, not just this one, that people rotate over a year or so. >> okay. steven and terry, thanks so much for weighing in today. >> thank you. let's get over to sue herera. >> good morning, everyone. here's what's happening at this hour. the army chief of staff accusing north korea of clear threatening japan, south korea and the united states. general mark millie making his remarks at a meeting of military

personnel in seoul. >> they not only threaten japan, the united states and south korea, they threaten the world. and it's absolutely critical that we all, every one of our countries, does everything humanly possible in the months ahead to avert an armtd conflict. >> british police are still holding two suspects in custody over the london subway blast as commuters head to work. a local official and media reports in britain say the two suspects are an 18-year-old refugee from iraq and a 21-year-old believed to be from syria both of whom were fostered by a british cup. more than 150 people are blocking a busy st. louis street as a fourth day of protests begin over the acquittal of a white former police officer in the fatal shooting of a black man. thousands have gathered every day since the acquittal which occurred on friday.

and that's the news update this hour. i will send it back downtown to you, carl. >> when we come back, eu finance minister is backing a plan to tax giants like amazon and facebook. dow adding to its gains here up wh teilr t ld.75itcarplainheea

the cnbc global cfo council releasing its latest survey this morning. jackie joins us this morning with the exclusive results. >> the survey covered a range of topics but the answers on trump's performance could be a predictor on the markets next move. the cfo gave him some of the credit for the record runs we've seen in the stock market, about 60%. 40% gave him the same rating on job creation. the majority felt that deregulation would have the most positive impact on their businesses over the next year,

while withdraw from tpp would be negative. but how confident are they that campaign promises including tax reform will become law by the end of this year less. confidence level dropped steadily on obamacare reform, building the wall, infrastructure, personal and corporate tax reform as well as reparation. the dow would cross 23 k before it drops below 21,000. so market optimism is still there. on rate hikes the majority think the fed is done for the year but more than 34% still think one more hike could be possible. overall, while there are some except six on how quickly the trump administration can work, the overall sentiment is things are improving. >> thank you very much. when we come back the eus new plan to tax internet giants. we'll talk to the european n'gowaison dot ay.

not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.

sceptic where does master strategist see stocks going next? find out at trading nation. more "squawk on the street" coming up. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.

the european commission weighing new measures to tax internet giants and technology companies. deerd dra. >> efinance minsters met over the weekend and they're discussing how best to tax facebook, amazon. no shortage of challenges remain. more than a third of eu states backed a french led proposal to tax internet companies based on their revenue rather than profits. this comes as online giants have been accused of paying too little in taxes by bucking profits in low tax rates countries like ireland and lux emburg. they include germany, italy spain and the others you see

here. i'm told by someone close to the meeting that other ministers who didn't back the initiative expressed a note of caution. the reach to an agreement by all members with legislative proposals next spring and that is going to require some work. the french plan see more as a quick fix and could face pushback from the u.s. where the biggest companies are headquartered. face legal challenges and divisions even within the eu. smaller members like denmark and luxenburg. there's also the challenge of implementing such a tax on revenue but perhaps the bigger picture is how this underscores how uneasy regulators remain about tech giants and it comes as a mood here in the u.s. is shifting in politicians and becoming more sceptical as well. >> thank you. joining us now is pierre. he's the eu commissioner for economic financial affairs, taxation and customer.

commissioner, thank you for being with us. how far along are you? i know you were quoted as saying you're not yet at the stage of proposals so it's hard to say how the country's in question for example, would react when do you think you will get to proposals if you do >> well, there was this meeting of the finance ministers on friday and saturday and now clearly the issue is on the agenda. it's not against dingtal economy, we appreciate that we want to develop it. we don't want to stop innovation but we feel that those companies should pay their fair share of tax where they create value and profits. there was a discussion. we already have proposal like a corporate tax page. we are working in the framework of oecd and g20 and we want to work in that global forum. there is going to be a submit between the eu leaders next week

on the 29th. we are going to deliver communication presenting all options before that and there are several options, there can be discussion about the legal vehicle, about the tax base, should it be revenue, benefit, should it be what we call digital presence and about the ambition of the approach and then after the guidance of our leaders and the guidance of the finance ministers we will prepare a draft resolution for 2018. but again we want it to be fair, we want to be proinnovation, we want to create a level playing field. again, it's about fairness mostly. we must tax those companies as we do for the so-called classical economy. >> right. it's funny when you talk about fairness, they're also though in the united states who say many of these companies have moved their ip from where it was

created here to domicile overseas to enable them to enjoy much lower tax rates as a result particularly in places like ireland. do you run the risk of having an all-out conflict with countries all over the world who are trying to get at that pot of money? >> we don't want a conflict with the rest of the world. that's why, again, i think the more global the solution is the better it is. we're going to work in the framework of g20 but there are situations that people in europe cannot accept. if i would take companies i don't want to name too much but some companies like or digital site look booking.com, they don't have an establishment in europe, we don't know precisely where they act from but they make huge profits in europe with european contents. so it is quite logical in our

view that they should pay their fair share of tax, no more, no less. i'm quite confident that if we ever come envision what is digital presence, if we have a common approach and if also we have a new approach and we are trying to harmonize our tax base who are but i quote corporate tax base, then we can have a level playing field and then we could have a solution which is accepted by all. i'm confident that it won't -- >> harmonize the tax base is a phrase -- sir, thanks for swroing us. harmonize is a phrase that's often use when high tax countries want everybody else to raise their taxes to the same level so that way you don't face tax competition if you were to harmonize at a much lower rate, then you'd have a lot more agreement, right >> i'm not talking about harmonizing tax rates in the eu -- >> you just used that phrase. >> no, no. i talked about harmonizing tax

base, which is different. tax rates is something which belongs to the sovereignty of our member states. we don't have any kind of power on that but for the tax base, the idea is to create a common tax base so there is no loophole, so that groups can also consolidate their activity and there is a proposal on the table which is ambitious, which is also antitax evasion, which is probusiness, the business expects it and i think that is something that needs to be adopted swiftly and in the framework of that cctdb, we could also address this digital economy and taxation in a fair way. but we are not going certainly to impose tax rates. i know that some countries like ireland have their own tax rates. we're not criticizing that. put on the table the apple case

that was because the tax rate was much, much, much lower than anything conceivable. it was something like 0.005%. this is not possible. >> so some of those practices subsidiaries looking at where companies book profits, those are not defined by being a tech company. why frame this in a digital tech frame when a company in any other sector could operate by the same standards >> we are leading major move in the tax field in the framework of the g20, in the framework of ocd, and profit shifting. we have taken in europe a whole lot of measures and we believe now that the companies must pay

their fair share of tax, no more, no less where they create value and profit, basically is now progressing for the traditional economy but digital economy is somehow different because as i said, they have no stable establishment very often. i'm not talking only about -- they don't even have sometimes boutique. we can not truly identify what is the digital presence and we need to adapt that's the challenge. our tax systems to this modern economy, our tax system were conceived for the economy of the -- i don't know -- beginning of the 20th century, we are in the 21st century with an economy which is much more dematerialized ainternationalize and we must have modern tools. >> we will be paying close attention to the progress being made on all of those things that you raise.

we appreciate you joining us to the. thank you. >> thank you. let's hand it over to john fort. >> the emmy's last night a huge night for streaming but the wig winner that wasn't netflix, wasn't amazon, it was hulu. how does this shake-up the streaming world? we'll dig into that coming up on "squawk alley." dynamic performance, track tuned handling, and aggressive styling. the bold lexus is. lease the 2017 is turbo for $299 a month for 36 months.

experience amazing at your lexus dealer. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. becareally want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital.

it's a $200,000 watch that rafael nadal has broken over five times on the tennis court, and that's just the starting price point for a richard mill luxury watch most models sell out before they even go on sale. for more we're joined now by the ceo of richard mill watch company, richard mill. take it away, robert >> so, richard, apple announced that they are now the largest watch maker in the world, passing rolex. does that worry you? >> not really. >> why not >> it's under the segment. i don't work in their segment of price, and what is very funny, in fact, is that all studies show that if you ask the

motivation in a range between 18 and 30 years old, the watch that make people dream the most is me, which is funny for me it was a fantastic surprise >> you sell the most expensive watches on the planet. >> i'm afraid. >> you just watched a million dollar mclaren watch that you made 70 pieces and you sold out by the time you announced. in fact, you turn away more customers than you can take. how is that possible >> some -- no, we are not -- i don't make enemies by doing that, but i have no choice because the watch is complex it's a long development. you are speaking about that watch, it's true, broke five to six pieces in test, of course, we are speaking in test. but to reach this level of performance, i have to go to -- through top-tier tests >> you take seven years or more

to develop each watch, and the reason they are so expensive is you're using these complex nano technologies that are microns thin, like titanium that are basically space age materials to make a mechanical watch. >> yeah, yeah. it's a very complex process, because i'm crazy about performance, and every time i want to cover a niche -- not very much a niche brand. this brand today is a general brand, but each niche i go, we want to be the best. >> robert, can we get a close up while he's talking we have a camera right here and you're both wearing. >> this is one of the cheaper richard mill, it's about $120,000 watch we should say your sales this year are going to be around $700 million. lots of companies have tried to buy you, because you are one of the only watch companies right now that is growing.

why is that? >> i think the first matter, the first is innovation, creation, research, development, and also control of growth. i want to control the growth today the demand is very high, but i'm not interested to answer the demand >> can i see that one? >> yes, of course. >> that one, bright yellow so this one's the cheap one. this is also less expensive? at $125,000. >> that's a diving watch, right? >> how much is this one? >> about, say, this one is, yes, $100,000 something tax free >> the rafa watch is the nearly $800,000 watch, i think we said. >> watch makes an $800,000 watch so much better than the $125,000 watch? >> uniqueness. for example, this piece is produced, let's say, 200, 250

pieces every year. the rafa watch is 50 pieces, finished then i have to kill my babies and do other ones. >> is this plastic this is a plastic band >> no, it's rubber >> a lot of the vans are rubber or velcro. >> rubber. but, you know, ilike this contradiction. my clients want very light pieces, easy to wear, you can play golf, you can do anything i hate the idea of doing a watch that you put on the safe waiting for the next generation, for example. >> thank you, guys good to have you >> thank you to you. >> great stuff, robert, thank you for that take a quick look at stocks here this morning, dow is up 72, been in a thtig range, but adding to last week's gains. don't go away.

not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.

not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement

with day one target date funds from prudential. look forward to your 401k plan. welcome back to "squawk on the street." markets are higher with utilities and real estate as the only s&p 500 sector so far in the red in early trading financials are leading the way

higher as interest rates tick higher ahead of tuesday's fed meeting. citigroup, charles schwab, e-trade, as well certain a sector to watch. that does it for this hour of "squawk on the street. let's send it back downtown for the start of "squawk alley," guys back to you. >> thank you very much good morning it's 8:00 a.m. at hulu headquarters in santa monica, california, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ ♪ >> good monday morning, welcome to "squawk alley." i'