where we have a facility but you want a thought don't give up on america we're still a greatest country on earth and we always will be. >> all right. >> take it to the bank. >> preaching to the choir. at least for some of us. make sure you oin us tomorrow. "squawk on the street" is coming up next. ♪ good wednesday morning welcome to "squawk on the street." at the new york stock exchange final day of february. and markets look to get back some of yesterday's loss the dow and the s&p set to break a ten-month win streak, the longest since 1959 europe just shy of flat and the 10-year near 2.89. we begin with the last trading day of the month and only sector in the green, all the major averages are down. we have a look at the winners,

losers and what to expect from march. >> dick's sporting goods halting the sale of assault weapons and taking on the nra. we will have details on the new regulations and how big an impact this will actually make. amazon's making a billion dollar bet on ring we'll talk about what that means for the future of home security. first up, though, we are heading into the final trading session of the month what is a volatile february for stocks, dow and s&p on pace to break ten-month win streaks, post the worst monthly poirmts since january of 2016. and, of course, jim, yesterday back to the pattern we saw last week where we sell off some intraday highs. >> yeah. two-session paradigm i'm talking about not socked in. there will be a moment and then falls apart. that, by the way, yesterday led by the vix which spiked and then the s&p went down.

obviously we saw the big move in the bonds. any time closer to three we get a selloff. so it was kind of a -- we have seen many of these days and they remind you, you better have strong conviction if you do any buying because you end up looking silly at the end of the day. >> did you see - >> not at all. i think -- i think fed chairman was commonsensical and when you're commonsensical and just, look, things are strong, i think that people should be reacting positively there's a series of data points coming out atlanta fed said 2.6 yesterday seeing numbers in housing that weren't as strong. autos not that strong so i think people are saying wait a second, jay. you may be saying and we have inflation picking up a little bit and the economy down shifting i don't see the economy really down shifting but i think that that was the afternoon narrative that sent us down. >> certainly the city index off

the highs of january. >> yes. >> you mention home construction, transports yesterday. i mean -- i guess the question is, are we -- do we have fewer players on the field than january 26th >> boy, that's a great point and i think you are right. look i struggle when i go day-to-day. had a nice meeting with serious ceos last night. no one's seeing anything other than strength. no one particularly international so i think the idea that we're having some wage inflation courtesy of a tax code and meant to give some there's executive saying doesn't start by saying i gave a lot to my employees if that's wage inflation, let me tell you, the tax plan was a big failure. i'm not ready to or convinced. >> you are not ready to say the tax plan caused wage inflation >> yes i'm not willing to say that. >> we haven't seen it, have we we've seen one-time bonuses and

companies increase their contribution to 401(k) plans and of course already a focus on whether there's a significant increase in buy backs. they were talking about it on "squawk box. langone saying buy backs have been important and are staying at the same level. i don't know that's the case that may actually increasing, as well, in terms of proceeds still early days on tax reform, though in terms of companies making the capital allocation decisions. >> cash overseas, committed the growing the company. but he's got excess cash you know, there was a presentation, frankly, yesterday was a very odd day i felt the most important presentation was the jpmorgan presentation and didn't get any play at all. >> no. you had the huge -- you had it. >> the slide deck. >> the deck and everything to review it. i don't know -- i mean - >> only headline was that he called shareholder meetings a joke >> right. >> that was the big headline. >> of course, you get back into

the -- is bitcoin a joke square today and jack dorsey i read it as being things are good and the stock held up well and i think jpmorgan with a better handle on the economy than a lot of economists they're just really big enough to have a very good call - >> that's a fair statement. >> you agree with me >> they might have a sense as to the economy. >> yeah. i mean -- and own loans. >> not always great as predicting a financial crisis coming around the corner. >> they have a book of business. >> they have a very strong balance sheet or the other word they use that would be it, fortress. >> it's funny because i know that they're doing great work. how silly on bitcoin silly or not the narrative is that if they say that business is good it is like -- it's like charlie. charlie wilson good for gm, good for america. which is taken out of context. but i think that what's good for jpmorgan happens to be a good sign for the u.s. economy.

>> reuters has a piece this morning, u.s. regulators considering changes to the volcker rule that wall street sought for years including eliminating bank's responsibility to prove they don't trade on their own account. >> untold story since trump came in and i'm trying to do something empirical and the number of cases that the government brought against the banks climbed dramatically this is apropos of legislation that made it so you could call lloyd blankfine saying did you -- did you buy that stock for an account there's just the -- this is like the lawyers are having a hardest time making money right now. because the lawyers -- >> right. >> president obama was kind of a works progress administration. >> that doesn't mean for the likes of a goldman sachs that business is not changing and the client flows are different and they have to change with the times in terms of trading in particular >> yes. >> and fixed income currency and

commodities. >> true. when you have a built-in we're called in by the regulators environment -- >> right helpful. >> you take less risk. none of the banks willing to point-blank say it i'm talking about a material decline of cases brought by the government. >> right it is not as important of component of the earnings as it once was. >> it's not. >> goldman and others, too. >> i remember at goldman sachs, i mean, you had a component, we were very subtle about it. we called them dead wood >> how about this front page journal piece on marcus and their efforts to get into basically got a dollar you can work with us. >>al go rhythmic a scientist up from stanford and you really savvy and i have to tell you you want those loans? you go and read the square conference call. sarah friar late of goldman sachs, of course, jack dorsey, they're doing the kinds of loans i like they have a look at your register if you're a small

business and they're loaning against your receipts. algorithms are very good it's not misjudging. the loan loss ratio is really, really small and talking about a small percentage of the business. >> important for goldman trying to develop some new businesses for growth as again back to what we were talking about which is the decline to a certain extent of things relied on for ten years to generate significant earnings marcus is not an unimportant effort. >> volatility -- >> helps a little bit. >> a little bit? >> some quarters back to sort of what you expected and the long-term trend -- >> we were going to buy it today until we talked about it. >> on a more serious note, dick's sporting goods announcing it will not style assault style weapons and will not steal firearms to anyone under 21 years of age the decision comes in reaction to the high school shooting in

parkland, florida. this is what the ceo said on abc's "good morning america. >> based on what happened and looking at the kids and the parents it moved us all unimaginably and to think about the loss and the grief that the kids and the parents had, we said, we need to do something and we are taking did guns out of all of the stores permanently. >> no chance to reverse this >> never. >> they had made some suspensions of types of weapons after sandy hook and then revived them later on and he told "the times" we love the kids and the rallying cry. enough is enough it got to us. >> look. dick's, i remember when the company came public. they always were all things for every enthusiast like gander mountain, by the way, which is bought by marcus of camping world it's part of the group they're reporting this morning, yes, gun shows are where guns are bought but when you have someone like

ed stack who, by the way, i have little - >> you have a huge show tonight. >> i have kevin plank on and a lot of people feel the earnings determined by dick's i think that's shortsighted. dick's is the i think arbitor in this if you look at where you can buy guns, you're going to come back do walmart but dick's is where the enthusiasts buy them >> but there are other large national outlets, as well. >> it's people buy them from - >> cabela's. >> yes cabela's is a hunting -- >> camping world. >> these are hunting stores and you don't need -- having been who hunted, it is not actually if you eat the venison, it is not the way to explode their bodies. >> no. no, it's not. >> and that's actually just -- i'm not trying to -- >> cross bow. >> that's hard. >> and miss. >> up there in the tree. >> i live in pennsylvania where the opening of the deer hunting

season the day they closed the schools so it wasn't like you were outlier this is a bold move by a company that's not known for political action. >> right and then delta, of course, in the piece in "the times" today of lawmakers in georgia threatening to pull back on tax breaks for jet fuel because of their cutting the promotional discount for the nra other states saying come to new york come to virginia corporations have tough calls to make, man. >> they do i think that in the end people have been saying, look, it is the ballot box. >> let me just -- i misstated. camping world does not sell guns. >> they bought gander and they gander sold guns right. gander sold guns and a may story of them being -- marcus very anti-gun and said it was a bad bet on guns and going to the stories of what gander did, gander made a big bet on guns. >> i see. >> look. i got do just say.

these are not hunting -- these are hunting stores they're not stores that are about arming yourself. they're hunting stores some people in my family are hunters. we have been to cabela's and not to -- not for self protect but to hunt. by the way, if you eat it, you know, if you kill it and grill it, i don't think there's anything wrong with this. >> maybe that puts me in a different camp here but -- >> i think there are people who support the right of people to go hunting but not necessarily to walk out with a military assault weapon. >> if you hunt with a military assault weapon you're hunting people. >> when we come back, amazon's back on the acquisition trail buying ring. when it means for the push in home security. take a look at the pre-market. worst day since february 8th february's historically the third worst month of the year and march is third best

historically more "squawk on the street" in a minute at holiday inn express, we can't guarantee that you'll be able to contain yourself at our breakfast bar. morning, egg white omelet. sup lady bacon! fruit, there it is! but we can guarantee that you'll get the best price when you book with us. holiday inn express. be the readiest.

it's "you've never gamed with speeds like this" internet. it's "all your teenagers streaming at once" internet. it's "i can get up to one, two, three, four, five mobile lines included?" internet! it's internet from xfinity that makes your life simple, easy, awesome. see how you can save by adding xfinity mobile to your internet. plus, save even more when you sign up for internet, tv and voice together. click, call, or visit an xfinity store today. amazon's buying video doorbell maker ring in a deal reportedly valued at more than a billion dollars and compatible

with alexa acquisition ramps up the move to increase the presence in home security and the competition of alphabet nest labs operation might tie in with the ability to deliver to your home. >> that's what i thought let's see who it is. get the food in. i'm a big believer that they're just now beginning to integrate whole foods. that it is just starting to happen this is a very smart move. immediately, by the way, there was an offering that came, this an adt and it's now being known as one of -- it is not i'm not going to put it in the category. >> no. >> but it does seem to be ill timed. >> ad 2 down on this adt installs ring. >> right >> i know. i had them do it. >> why is that necessarily bad for adt? >> i don't believe that it is. >> okay. >> actually. based on my own experience and adt and ring together. >> why do you put it in? >> it's good it works when you have a row mote, lucky

enough for a second home, for example, and keep an eye on it or be able to answer the doorbell. >> right. >> via your smartphone not bad. and then know it's delivered and where it is and somebody grab it if you need to. >> that was really suboptimal unit to talk about how you get -- i can pose as the amazon guy. >> where >> at your house. >> oh! i know you. >> that's a good point we have a report today by more began stanley saying we think greater risk could result to adt if they add monitoring ring doesn't do this. >> i guess that's why they sell it - >> look. it's been a terrible deal. smart deal for the people -- they're still -- >> apollo? >> yeah. >> theirs. they figure out a way. for themselves. >> keith meister on the board. >> a listening time. that was a bad moment in general. pushed them and then left the

board. >> now recode's up with a piece saying amazon will sell ufc pay-per-view rights. recode's piece here opening the discussion of the door of amazon interest in sports, rights here and around the world. >> also, isn't your alexa would be a ring enable right? i'm sure there's a sort of connection there. >> you could i don't like alexa. >> you don't >> no. when i called and asked who i was it said a noted economist. i'm regarded it as an incredible insult. >> that's the web results and something they're taking in there. >> fine. she predicted the eagles and pressed it. >> she did. >> journal has a piece saying that bain study found that in categories in which amazon has a private brand 17% of the time alexa will recommend the private label product before even though other products are available the question is whether brands

have an answer to alexa. >> this is a thing to ask mark bantioff talking about is there truth in a lot of what some of these companies are doing. truth meaning is there really a belief that you're trying to get the best product to the consumer are you trying to get your product? is there a soul, is there a soul no >> does he have any thoughts on anti-trust at all? >> we'll talk about that area. again, i don't think -- you talk about this is not -- it's not u.s. steel it is not the at&t. >> standard oil. >> standard oil does come to mind. >> tonight benioff and kevin plank? >> yeah. it is time i spent -- kevin plank, saw him at the super bowl and i happened to like that quarter many analysts stayed negative. people are doubting kevin plank. i think that's an interesting thing to do. >> that's a great lineup.

>> thank you. >> i did have benioff said he would rather come on with me. >> watching last night, david blain did a trick and sewed his lips closed. i was thinking of you saying inspector general guess you decided not to be there to watch it >> by the way, s&p leaders for the month, when's number two underarmour up 21%. >> should be good quarter we'll talk about inventories with tjx i like it. >> cramer's mad dash in a moment take a look at the pre-market on this wednesday more "squawk on the street" from the nyse continues in a moment

at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect. oh, was this built on an ancient burial ground? okay... then we'll have her cleanse your house of evil spirits. we'll do anything, (spiritual chatter) seriously anything to help you get your home. ally. do it right. thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream)

thank you! goodbye! we help all types of businesses with money, tools and know-how to get business done. american express open. ♪

all right. we have something else before the opening bell on what we like to call a hump day, this being wednesdayy'. >> lowe's in the mad dash. >> activism chatter about lowe's thinking maybe it's not doing as well. >> it should got two members on the board without a fight. maybe we know why. >> maybe they need more members on the board. >> they didn't fight. >> this was an extremely disappointing quarter. immediately you would say, listen plus four. well, i would kill for plus four you know what? going through the read through with home depot, the last call, home depot was up 7.5. so is this a share take? we don't know. remember, the strong areas of home depot highlighted were paint, flooring, hardware, lumber, appliances, electrical,

tools, generators. ppg out and sherwin williams in. maybe the acquisition to hurt ppg. very good company. but i think that i have -- i have mark benioff on tonight and mark depot used a lot of great technology to figure out what you want people feel lowe's is behind this may be digitization story of who's most forward or maybe misfiring. lowe's is a very good company. if you decide to sell home depot you're believing a category going down in value. unbelievable cfo of home depot the cat girl's improving i say the fault is not in the star the fault is in them, lowe's. >> the argument of those now on the board and others who is that lowe's had matched home depot on many in-store metrics for many years and now is far less productive on the per store basis and can come back and do it that is indication something is not right. >> it is but i think they can come back and do it.

home depot in the level i have never seen papa john's versus, say, a pizza hut took the super bowl rights but versus domino's. only one that's not by fur kated is tjx good numbers. >> we'll look at the stocks getting the opening bell, a few minutes from now stay with us "squawk on the street. wereacafr is a bk teth hi i'm joan lunden.

today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice.

you're watching cnbc's "squawk on the street. the opening bell in just under two minutes. time day of the month as we put february to bed and react to powell's testimony yesterday and hear from him tomorrow in front of the senate. macro data revised q-4 in line prior it was 2.6 consumption looked pretty good hangs in there. >> look. i continue to think that the strength is the consumer go over the jeff ganett conference call at macy's.

excellent. there are many changes he's put in since he came in last march and he does say, look, in the end, the consumer is out-spending and i keep hearing that i think we hear that from kohl's okay tjx. the consumer is spending and that is something the consumer wasn't doing and that's why we're in a non-promotional environment. full price some companies are doing quite well look we keep defaulting back to gm. did anyone know that the shares was coming that stock was suspiciously down. >> yeah. i assume maybe somebody did. i didn't think. >> i think tjx is a good national retailer. they missed multiple quarters and they really nailed this one. very big gain. so it continues to be the retail's great i want to hear from investment trust and work on them the retailers are doing well but the real estate trust maybe rents go up if rents come down.

>> with that, the opening bell and the s&p bottom of the screen well tower, a health care reit with a ticker change at the nasdaq exact sciences corps focused on tamper detention and detection you mentioned reits and the nice dividend they pay. "the journal" today looks at how some of the hikes and high dividend stocks will compete in a narrower interest rates are rising. >> there was a man who came on warren buffett i know it's two news cycles ago. but he didn't talk about the idea that companies themselves are -- i mean, better valued because of their return on equity geez the dividend boosts have been nice the real estate investment trust have been challenged and trade as a group and the retail component is big but some of it is that people don't want a 6% yield if they

can get a 3% 10-year because they have -- don't have the faith they had in the distributions. i have more faith than that but i feel very lonely in that positive stance. >> you mentioned adt which reminded me it's a stock that's not come close to the ipo price of '17 snap is below the ipo price of '17 first time since february 6. >> look. they made a radical change in the way -- i mean, people talk about kardashian. no i mean, they made a radical change in their user interface and i think that it seems to have backfired i don't know what else to say. i didn't see it coming i'm not aware of how the revulsion was so clear now immediately you can say that instagram is the winner and there's an undercurrent of facebook david was talking about that you keep hearing. >> which is? >> which is that there's going to be regulation because of the news that they're just not spending

enough time and money. i happen to think they're doing a lot of things right but if you replace humans with algorithms, they're going back to humans but i think the companies have to be more careful. >> more careful? >> facebook and alphabet more careful because of news flow twitter, too this is just chatter do i think it's phony? it's phony people get the news from these sources. >> you have a more refined sense of real and not real than perhaps others but that means more money although it's not clear to impact the mar generals. do you think the company, though, we are talking about they grew revenues 44% last quarter? is that the number 44%! >> look. these are good businesses. social media is good. >> good business greatest business you have ever seen. >> no inventory. free content >> you're familiar with the profit margins. >> you pay them the right in a lot of cases. >> incredible.

>> juggernauts facebook is an inexpensive stock and puzzling over the price journey multiple some people feel facebook is -- you get misinformation listen i'm off facebook you should sell facebook i still hear that narrative which is as dumb as wood and i don't mean an insult to the lumber business of home depot. >> i know you touched on yum pizza hut replacing papa john's as chief nfl sponsor. >> geez. a few years ago when patty doyle became the head of domino's, i had breakfast with him he said the pizza tastes like card board geez you're the ceo then a national campaign and it worked and the stock's one of the greatest performer of all time the conference call last night for papa john's was a really -- it was devastating and it basically said, listen. we have to get better at

everything but there was also this undercurrent that's talked about becoming non-national nfl sponsor and went to 22 teams. >> right. >> those that donational nfl sponsorship are different than the individual teams and papa john's talking about poor execution and i believe you could say underspent on technology versus what incredible amount of technology -- when we order domino's it on facebook, twitter. and they fell behind this is the beginning. doyle said there's three of us the's pizza hut, papa john's and there's domino's now, there's just two. >> wow >> jim, i wanted the get your take on something that happened last week when you were out. we did cover it here at morgan brennan following the industry for us did some work on it, as well but we are coming back to and that's united technologies and a statement of greg hayes last week at a barclays conference that perhaps didn't get the attention it deserved.

now, it's about the potential of breaking up united technologies and, again, to put it in context, mr. hayes did not say that that is what is going to happen. >> right. >> here's what he did say. a question we have to ask is utc a more valuable property together or three separate businesses aerospace, otis strong in terms of consistent at 12 to 13 and climate controls those are the three large businesses and he said the question for the board and continue to study. he went on to say there's dis-synergies and one-time costs and multiple expansion by several companies than versus conglomerate there's an activist in the stock. this is not unknown. well-known name. doesn't have a deep position but you know, what i hear is once this rockwell deal is completed, jim, this is a very

serious consideration going on at utc what do you think? >> this is really important because greg has not indicated that that was necessarily the way to view it as i understand it that it was something, of course, if the board wants to do it that said, i want them to do it. >> you do? >> because the aerospace business is the gem you don't have at ge anymore and people want -- look at boeing how about another one? >> we have a ge. what do you mean you don't have a ge anymore. >> other things with ge. you get long-term care that you may not want >> yes no that's true. you can't get a pure play aerospace. of course not. >> but i do think that it would make sense once the deal is consummated but some people believe that that was too aggressive statement that greg was not really signaling this is about to occur. i think everything has to be on the table for these companies because it does work so well >> he did indicate as i said that they have to wait, of course, until the -- would have to wait at all until the

rockwell collins deal is completed. >> it will be good it will be good. by the way, just -- i know this is -- i didn't mean to jump around but a piece, domino's -- the papa john's is up. just wanted to point that out. maybe it is the last bottom. look hayes is a straight shooter. how do we know that? >> he's been straight with us right here. >> right >> ain't going to happen. >> ain't going to happen i think when you look at when the board looks at what the new mosaic is do you really want this do you want climate controls one thing we want is the next boeing because there's nothing like boeing >> there is nothing like boeing. >> if you give me another boeing i'll give you a stock that goes higher even just a piece of boeing. when i look at what united technologies -- remember they bought goodrich? >> yes. >> paid for beach front property for rockwell. >> a big number for rockwell >> it was, it was. >> i felt that ge was going to buy. a good opportunity for ge.

but it didn't come together. >> no. ge's obviously dealing with its own many issues. and of course, the potential break-up there is something we have talked about many times the board's looking carefully at that guys, did want to -- >> feisty. more feisty, the board chuck flannery is more feisty. >> langone lamenting the loss of talent and the degree of morale taking a hit. >> there is a perception in a lot of these companies that it's really kind of new ten-year in the making but maybe i don't want to work at a place that's not doing well opposed to a great storied company. but we don't have any numbers. mr. flannery can probably say that's counter to everything so -- but united technologies story, glad you brought that up. when i read about it, i said holy cow, up five. must be happening and then pulled back because every company has to think that we. >> interesting with comments

like that from somebody like greg hayes a faber report on yesterday's big news and the parent company stock comcast down again today another 1.1% trading at 36.25 that's a level it's not seen much down over 9.5% this year of course, yesterday comcast making that proposal, not official proposal under uk takeover law but going to a 2.7 to start the time clock but they will to buy what is at least 50%, 50.1% of sky there's 61% that trades publicly 39%, of course, as the viewers know, owned by fox that will transfer to disney fox has it own offer out there below that well below of comcast out there. so many moving parts here to discuss. but one i sort of was pressing on yesterday what are fox and disney going to do and it's early days. again, it's not even an official

offer we have yet sort to speak from comcast for this. there's time to go here. and certainly you would expect the fox/disney camps are going to consider all of their options and by the way already had something of a game plan in place because this possibility was not foreign to them. it was certainly always believed to be something and something we discussed as a possibility given comcast's strong desire for presence more in international markets and, of course, what was desire to buy the fox assets that were available for sale before they signed up the deal with disney. i can tell you that fox and disney are not seen backing down it doesn't appear at least at this point that there is going to be a willingness on their part to say, okay, we'll let you do it, brian roberts and comcast. or will even consider selling our 39% stake to you is there a negotiation in the future for these companies there are a lot of different moving parts here?

sure it's always a possibility but right now the read i have is that they're not going to stand back they're also going to potentially then move ahead with what would have to be a higher offer of fox to compete. again we'll see. it is early days disney shares were also down yesterday in part on the concern that they would have to enter into a bidding contest here. is it central to why disney wanted the fox assets? no but is it important, seen as an important asset for them yes. that being sky and not just the 39% but to potentially potential full control of some point, yes is there a desire to not be in partnership with the likes of a comcast or anybody else on both of these company's parts, i think that's fair to say we'll be watching this, following it closely in the weeks and months ahead fox is obviously had its difficulties in the regulatory side they may have something of a

timing advantage if they do -- if they regulators acede to the latest offerings. not seen as backing down at this point. >> wow this is a very protracted battle. >> it could be. >> comcast stock continues to go the wrong direction. >> all right let's get to bob pisani on the floor. >> we close down 300 points, carl, yesterday. it is a nice open. 3-1 and cyclicals are leading again and we like that that's been the case since the bottom around february 8th let's just take a look energy stocks, industrials, banks moving forward tech's moving forward. retail's having very, very good day with a number of companies that have earnings put up the retailers chico, tjx with earnings we're seeing other companies, they're getting into the tailwinds of the earnings. ross stores in the tailwinds of tjx doing well, l brands and gap

on the upside. this isn't what the market is obsessed with. what the market is obsessed with is understanding jerome powell and enormous debate yesterday afternoon and into the evening what was jerome powell talking about in the key line everybody used and glommed on to was his personal outlook for the economy is strengthened since december okay that's fine. what does that mean? everybody saying he means the payrolls and the wage inflation beating the estimates and cpi is up and consumer sentiment at new highs. i think second highest level in four years and levitated the way to believing that we were going do have four rate hikes and people say he's not saying that so here's an opportunity for powell to clarify exactly what he is talking about. that's what the market cares about. meantime, a very tough february. we're snapping a very big win streak as of the open this morning and see how we close here and down 2.8% just prior to the open. a worst month in two years for the s&p 500 and more importantly

this is a long-term win streak ten months, the last time we saw that february 1959 if you look at the dow, very similar situation an down 2.8% and this would be the first down february put up the dow here. in nine years. so we have a lot of potential records being broken right now here sector since the bottom, this is what matters a nice move off of the bottom in cyclicals. so february 8th, choosing that as the bottom. open february 9th, tech, financials, industrials, materials, leading and more defensive names like consumer staples lagging. more proof, finally, everyone, etfs are taking over the world bo boone pickens is starting an etf. everybody's get boog the business all equal weight include oil producers, service companies. here's an odd twist. oil users, it is going to have different components in it

take a look. halliburton and going to have oil users in it. companies likely i don't know del that use a lot of oil here we'll how that goes. opening scheduled for today. back to you. >> thank you, bob. we'll get chicago pmi here with rick santelli no chicago good morning, rick. >> good morning. your timing's is impeccable. a couple of seconds before the february read on chicago pmi and it is out. it's a disappointment. 61.9 we are looking for a number of slightly north of 64 we're following 65.7 for january. 61.9 is weakest level since august when we were under 60 at 59.5 the last read of the year was a huge one december's going to be a comp for a while. 67.8 that goes back to march of 2011 when it was 68.8 and 68.8 is the highest on my 20-year data base. all right. let's get to the market, shall

we yesterday some were calling the market response in fixed income, the powell pop well, that might have been true, especially if you're looking at mostly the short end overnight as you see on the following two-day charts trying to run them quick to get an idea. it's mostly a curve flattening trade. 2-year note yields held on to much of the gains an moving down the curve, you can see the right side dipping down. once you get to 30s we are below the powell pop and if you look at the dollar index, maybe the biggest beneficiary because it was already moving in the right direction. powell commentary and interest rate move subsequent really gave a tailwind to the dollar index when's interesting is looking at the year to date chart hovering at a really key point say the technicians. pretty much the closing midpoint of 2018. and if you look at that year to date chart certainly looks like a pretty interesting double bottom slightly above 88.5.

it is more interesting let's flip it over to the biggest part of the dollar index the euro look at the euro versus the dollar does that not look like a great double top at 125 and change traders paying close attention to that, of course almost more to the euro since it's a kind of a darling of investors for a little over a year at this point now we are going to go back to the game carl, jim and david. >> all right, rick we'll talk to you a bit. more developments in the bidding war for sky. we'll talk to michael white. dow up 79 points just off the highs here as we get that disappointing chicago number back in a moment

take a look at the s&p this morning. up about ten points. led by retail. tjx, macy's, ross, ulta and others ldi teanghe charge. we'll get stop trading with jim after a short break. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know?

well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

let's get to jim and stop trading. >> okay. so celgene, not that long ago, tried to diversify away and bought a company, one of the reasons was for this ozamamine

which had autoimmune, they really got shut down yesterday on this multiple sclerosis indication so people are starting to say, well, maybe this was a big overpay of $7.2 billion in july of 2015. it's sure looking like that. my neighbor thought this was a great drug, but some work. >> yeah. >> jim, a big night last night, as we're going to show people in a second and then a big night tonight on "mad money." >> well, this is marc benioff, this is some guy, you know, david blaine, chris rock, very funny, and mark of course opening to celebrate some of his new york office, but it is this quarter. i do believe it will be a good one because they have a lot of -- all the notes has very,

very strong self-. and then kevin plank we had some discussions about the need to be able to focus and i think kevin's focus and those who have sells on his stock, please watch the show tonight. >> that's a big show. >> david blain, by the way, is one of the great guys. i mean, he's done -- by the way, it's real with him houdini was a fraud. he's real. >> you're saying he's not an illusionist? >> no. >> what is it? >> he's supernatural. >> he's supernatural. >> when you sew your lips closed without bleeding and you have the thing and sutures tied by dr. oz, are you going to tell me he's human >> no. >> can he levitate >> he can do it all. he has put cards where they're not supposed to be

he had mikes, he spelled my wife's name out and he said the last card will be the queen of hearts, and, boom. how is that possible >> where was he in the back with the hat? where was he >> no -- >> oh, yeah, he's on the front row. >> yeah, that's david blaine really remarkably humble man. >> man, you hang with quite a crowd, don't you >> yeah, i hang with bug and everest, by the way, didn't respond in video last night. he said i'm everest, i'm staying in bed, you're too late. >> "mad money," you do not want to mitsss it tonight. 6:00 p.m. eastern time dow managing to climb to session highs, and s&p up almost 15 points don't go away.

hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass.

there you go. ronoh really?g's going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab.

schwab, a modern approach to wealth management. of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. ♪ as long as i got my suit and tie, i'm going to leave it on the floor tonight ♪ good morning welcome back to "squawk on the

street." i'm carl quintanilla with morgan brennan, david faber at post nine of the new york stock exchange sarah's off today. market trying to get back about half of what it lost yesterday dow up 154 as we react to palace testimony, of course final day of the month we do have economic data crossing the tape, and for that we'll get to diana olick for some numbers good morning, diana. >> good morning, carl. a big miss on pending home sales down 4.7% in january compared to december, down 3.8% from last january. remember, this number represents signed contracts, not closings so people out shopping in january when mortgage rates jumped higher. you may recall sales of newly built homes also fell in january. realtors blaming squarely on the critical shortage of homes for sale, inventory of homes for sale dropped nearly 10% annually to the lowest level on record. add that big jump in mortgage rates, the 30-year fix now more than half a percentage point higher than on january 1, still

gaining. realtors are still reporting strong buyer traffic but clearly fewer buyers are able to find what they can afford regionally sales were down across the nation, worst in the northeast, and you could blame that on frigid temperatures. but sales were down both monthly and annually in all other regions as well. all these numbers right now on cnbc.com back to you guys. >> all right diana, thank you for that. diana olick. our roadmap this morning begins with stocks pushing higher on the final trading day of february. a look at where you should be putting your money to work in the months ahead. >> and comcast taking on fox of course in that bid forsky. we're going to speak with two former media executives about that move ahead. >> and taking on the nra dick's sporting goods announcing it's halting the sale of assault rifles we've godt those details. stocks on pace for worst february since 2009. let's bring in head of u.s.

intrinsic -- guys, good to see you both >> thank you. >> quick question on powell yesterday. did you read his q and a as necessarily hawkish? and are we now in this sort of hypersensitive moment to not just fed testimony but in this case gdp revisions and chicago pmis >> i think the market's probably overreacted just a little bit. his q and a was interpreted as being a bit hawkish, but it really shouldn't have been terribly surprising to investors that basically what mr. powell said was that the economy is performing fairly strongly we knew that it just seems that the markets have reverted a little bit back into this good news is bad news, bad news is good news. but he did not necessarily state that we're going to have four rate increases this year, certainly opened the door for it and equities i believe yesterday began to price that in a little bit. but the fed fund futures rate

three hikes driven >> but what do you think do you think we stick with three? or do you think it goes up to four where do you stand on this personally >> you know, on a personal basis -- by the way that is one of the more interesting things about mr. powell's testimony is he did in fact make a lot of more personal statements than chairman yellen would have on a personal basis it looks like we have risk, it just seems the output gap is largely closed so it's really a grand experiment this year when you overlay really a heavy dose of fiscal stimulus on top of an economy for which you have unemployment near 60-year lows it just suggests that odds are we should have a greater pickup of inflation later on this year, which would suggest probably more pressure to the upside for interest rates, which again, would probably really bode well for, you know, cyclical value

stocks >> was it about a certain group of investors locked into some weird volatility instruments >> you know, i think we went through a really, really odd period preceding february. we went through a year with zero volatility, that was really unusual. i didn't look at february as that dramatic. there was the aspect but if you go six months, 12 months from now people won't remember this as a dramatic event. i think the market felt more pain in early 2016 people worried about a recession. >> so at these levels in terms of valuation, to what degree is it worth it to put fresh money into stocks at these prices? >> well, i think you have to be picky, as always we see really good opportunities in financials, within technologies, kind of semiconductor, anything tied to memory where you're seeing kind

of controlled supply and incredible demand. so i think there's real opportunities out there, but there's also value traps i think the disruption that technology brings does have a changing market. and you have to make sure you're buying a franchise that's going to be around five, ten years from now. >> what's an example of that >> well, what amazon has done to the retailers. if you want to play in retail space, you want to hit either the discounters or real specialty area i think the middle, which is pretty much been gutted the last couple years is still under attack >> burns, i'll let you react to that i mean, on a day where retail is performing fairly well based on what macy's told us this week, based on what consumption is telling us on the macro level. >> yeah. i have to concur that you do really have to take very seriously a lot of the construction we have seen from places like amazon you know, retailers have certainly been under fire and as

a result we're probably telling our clients to focus a little bit more away from that and really into certainly creates a stock picker's market and creates a market in which because of the volatility that some of these disruptions result in, it probably makes a really good case for dividend paying stocks that are really typically slightly less volatile than the broader markets as a whole >> thomas, i'm looking at some notes from you where you stress the importance of investors getting into this market, looking at environmental, social and governance criteria for the companies they're investing in in light of blackrock's recent shareholder activism, more recently this gun debate with companies cutting ties with the nra for example, this shift towards esg seems to be kind of a shifting paradigm in terms of how investors need to be looking at their investments. >> well, i think it's twofold.

one is people are focused on values we also have to look at how impacts value. when you're modeling or analyzing a company, you have to look at that franchise and are they going to be impacted by those esg type factors traditionally some people focus solely on the financial factors, and i think the non-financial from governance perspective is more important to investors. and it's definitely something you need to integrate within your process when you're doing valuation work >> guys, appreciate it very much thomas, burns, talk to you next time. when we return this morning, some more tales on comcast's move to buy sky and the possible bidding war that lies ahead with fox. we'll talk with usa network founder and former ceo kay kopolovtiz "squawk on the street" is back after this

at holiday inn express, we can't guarantee that you'll be able to contain yourself at our breakfast bar. morning, egg white omelet. sup lady bacon! fruit, there it is! but we can guarantee that you'll get the best price when you book with us. holiday inn express. be the readiest. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. well, we continue to track the fallout. joined now by usa networks founder and former chairman and ceo kay koplovitz, also as well, former directv ceo michael white. thanks to you both

mike, let me start with you. you ran a satellite distribution business albeit not with quite the same content assets that sky has, but does it make sense to you that comcast would be interested in this asset >> i know the asset very well, they have a terrific ceo, jeremy we used to meet regularly to compare our technologies, our approaches to customer service, but they're a very unique asset. i think if you look at their international footprint in europe with 20 million subscribers, they spend i think close to $4 billion a year on original content half of that's on sports and i think that's what makes it different. it's different than just directv in you've got integrated and significant investment in original content, you have terrific technology and i think a terrific brand as well it's almost like you got sky sports is the espn of europe, to be honest with you.

>> right. >> an entertainment asset. >> with you mentioning that, then it makes sense as to why disney would still be very interested in owning it as well, doesn't it >> absolutely. it's the sport and if you think about soccer, i know comcast has terrific assets in terms of its soccer rights, so my guess is there's a lot of interesting plays here it will be an interesting chess match to watch i guess let the hunger games begin. >> yeah. kay, you know, people still -- well, we know comcast had great interest in the fox asset, people are still trying to figure out and understand the landscape as it changes as a result of the fox disney deal itself what do you hear out there from other executives you speak to in the media world given how the landscape does seem to have changed with murdoch's decision to sell? >> well, landscape is changing very dramatically. there's going to be increasing interest in m&a work and companies getting bigger because they want to have a bigger

footprint in the market, in the case here with these bids comcast and disney extension into the european market, which is extremely important to them and another asset inside the sky product and that is the now tv is also really important for future of communications and the television, internet and cellular market in europe. and these companies all want those assets agree the programming is the big difference here. in sports network myself at usa, so i know national sports here and cable, i understand the importance of having those live sports and i think they're very important for both comcast and universal -- the disney group. but i do think that the original programming is really a bid against someone like a netflix that really does have a very

good international footprint as well so both of those are very important to this deal. >> michael, a question for you craig moffet basically said yesterday comcast will have to switch themselves and satellite distribution unit won't be just as obsolete in europe as it already is in the u.s. question number one, is it becoming obsolete in other parts of the world and if so, how much of that is a risk not just to comcast but to everybody in this emerging bidding war? >> i don't think it's becoming obsolete at all. it is quite a different situation in the uk. the strength of cable isn't what it is here you're not able to dig up the streets in london. it's quite a different situation there in terms of satellite. but i would equally say as kay pointed out, i mean, they've got an internet product, they've got this sky now, they've got incredible sports and original

content. they've got an alternative to netflix. it's quite a different asset than a directv to be honest with you, even though technology and the satellite aspects had a lot of similarities. >> kay, do you think comcast will be disadvantaged if it fails to either acquire sky or anything else that might be available to it? >> well, clearly they're making this bid to get an advantage of the marketplace. and i think that they would see it as a lost bid if they lost it, a lost opportunity but that doesn't mean they won't look for other opportunities and, you know, i think about the footprints of different global media companies and you've got to sit here and say to yourself, is there still another shoe to drop perhaps if any european companies taking a look at these assets now say we should jump in, i think it's plausible but

ask yourself if something like vodafone do something like that because they're a big international media company as well it's interesting it will play out over a period of time. it's really for companies that want greater assets on a global scale. and i think, you know, fox is in a bit of a defensive position right now, to tell you the truth. they have a deal with disney, this kind of mucks up the deal for them in a lot of ways. the pieces moving on the board are going to be intricate. i think there are going to be several moves left here. >> yeah, michael, people were asking whether this environment we're in at this moment is as interesting as anything we saw back in the days of marvin davis. how historic is this this chess board kay is laying out there? >> i think her analogy is perfect. it is a chess match. it's hard to know all the moving pieces here that may play out over the next six months you've also got the at&t time

warner trial, that will be interesting. it will have implications for the fox disney deal as well. i think we have to see all that plays. but i think the one thing you have to look at, and i've said this is netflix's strength is international. they added 6 million subscribers last year, in international, versus 2 million in the u.s. and in figuring out how media companies are going to play more effectively globally, i think it's a big strategic opportunity and challenge. netflix is already going well down that path, and i think that's where this is a very interesting asset for either disney or for comcast. >> right well, one of the key parts of the deal of course for disney was the international access, not just international sky but star india as well you have directv latin america very important component battle for all this is it imperative for to get international or larger

international mix whether successful here? >> i think all of the media companies need to look at what netflix is doing globally because it's going to change the content economics. if netflix gets 200 million subscribers from international, they'll be writing much bigger checks in hollywood. and i think figuring out how to stay competitive globally is going to be a critical strategic challenge for any company. but comcast is a terrific organization they've got great strategic strength and they have scale, so i don't think -- i think one way or another this would be nice for them to get. i think there's going to be some soccer connections and other sports things, but there's probably a lot more going on here, as kay pointed out, i think it's a bit of a chess match and this is only one piece of the puzzle. >> yeah, we have a lot more moves to come. right now we'll leave it there thanks to you both >> thank you. >> probably going to be discussing this in the months to come thank you. kay koplovitz and michael white.

and information about how compensating men and women, additionally, a deadline is approaching for companies with at least 250 uk-based employees to publish gender pay gap information. wilfred frost joins us from hq. >> yes by april 4th, with more than 250 employees in the uk must publish pay rate ahead of this u.s. banks jc penney, bank of america and wells fargo said across their entire firm women are paid on average 99% of what their male peers are paid however, in reaching this number the banks made adjustments, like job function, tenure, level of job and geography. for the pending uk disclosures, no such adjustments are allowed. the raw numbers must be reported this has led to some striking figures from the investment bank divisions of uk banks, barclays

and ubs. reported pay between 30% to 50% less to women hourly and up to 50% less when bonuses are included remove one key factor that the raw uk data does not and that is significantly more women in senior -- junior roles in finance, significantly less women in senior roles. it is a fact that applies to u.s. banks just as it does to the likes of barclays, or ubs. all banks say it's a problem they're already well aware of and addressing moving towards a final conclusion the dollar pay discrepancy between men and women banks leads to faster change going forward, on that note fed chair jake powell and his views on them and said it was an issue for congress, not for the fed. guys. >> wilfred, how are some of these banks addressing this issue specifically like did barclays actually lay

out its plan >> just said last week after they reported earnings that it was something that they had already been aware of. it was a broad issue in terms of that discrepancy between the number of employees from the male side and female side in senior positions they wouldn't set out specific targets, but he did say he was confident that men and women who are in similar roles are paid the same amount. i think if we look across corporate board rooms and all sectors in all countries that issue of the representation of women in senior roles is something they're all disappointed by and working towards. the question is whether they're working towards it quick enough. >> wilfred, thank you. wilfred frost back at hq still to come this morning, the ceo of viasat on the heels of unveiling internet network with the competing boeing and spacex and big announcements on the future of mobile payments out of mobile world congress in

barcelona. we'll take you there live when "squawk on the street" continues. dow's up 146 stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.

welcome back new fed chairman jerome powell fielding questions yesterday in his first testimony to congress. our steve liesman joins us now with more. >> yeah, morgan, etfs were in the spotlight yesterday when fed chairman jerome powell was asked about whether they played a role in the recent extreme market volatility the particular etfs in question were leveraged products that bet on the vix or the stock market volatility measure, aka the fear index. when volatility exploded earlier some of those funds lost more than 80% of their value. powell said the fed has studied the matter and for now hasn't found much when it came to overall market effect. >> it seems that the markets were generally orderly through almost all of that time. and etfs are a particular form of fund and i don't think they were particularly at the heart of what went on on those days.

but it's something we're talking to our fellow agencies, particularly the fcc would be best positioned to look at this. it's a question that we're looking into. >> the specific question came from a congressman citing a "the wall street journal" story that found unusual correlation between different stock sectors whichpromised more turbulence ahead. etf cited as a possible reason for the correlation. powell's comments were among the first actually to acknowledge publicly the records we've been looking at the matter. contacted by the cnbc has had no comment. journal reported only regulators looking at whether vix prices were manipulated etf steam rolled in the market moves, how silg e significant we can only await a more thorough examination by regulators including the fed finds anything morgan. >> steve, as somebody who's been watching the fed for quite some time, how would you grade powell's first performance >> i think he did a good job

i'm a little curious as to whether or not he meant to be or send somewhat of a hawkish signal he would answer a question, i think answer it quite honestly and matter of factually when asked about the idea of what would it take to go from three to more rate hikes and he said, hey, things have changed since december we have tax cuts and higher growth he also used that word overheating in his prepared testimony. so i have to think it was something that was deliberate, but i guess it could have been a mistake. i'm going to be watching very carefully on thursday. powell would not be the first fed chairman to say one thing in the initial testimony and then have the market maybe misinterpret a little bit and have him come back we'll see if three's the median, three is what we planned but look, the question is not really three or four the question is looking down the road and is the market right to price in maybe an extra quarter this year, an extra quarter next year such that the thing snowballs on top of it. >> steve, we are going to hear

the q and a tomorrow on the senate side. and also we'll talk to alan greenspan, of course former fed chairperson, at 10:00 a.m. eastern time i was curious, steve, what you thought of yellen's comments about not just the housing crisis but her story about how she thought the irrational exuberance speech was going to bore people to death. >> yeah, pretty funny stuff. have them go back and tell some of those stories and listen to the kind of much more rocky economics from the two fed chairman yesterday it was unusual to take the stage after leaving office, but we have to remember, carl, there were as many former fed governors at brookings as there are now at the actual federal reserve. so we might be looking over there quite a bit for what the best direction of monetary policy is. >> yeah. steve, we'll talk to you, i'm sure very soon steve liesman back at hq a busy week for central bank

policy when we come back, major gun retailer dick's sporting goods announcing it will stop selling assault style rifles you'll hear what the ceo has to say about that move when "squawk on the street" continues in a moment at the marine mammal center, the environment is everything.

we want to do our very best for each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most

sustainable organization we can be. any time you help a customer, it's a really good feeling. it's especially so when it's a customer that's doing such good and important work for the environment. together, we're building a better california. good morning everyone. i'm sue herera here's your cnbc news update at this hour. students at marjory stoneman douglas high school returning to class for the first time since a shooter killed 17 people the students walked to school alongside a very heavy police presence many emotional on their first day back, but others eager to get their lives back to normal >> i'm kind of excited to be back in school, a little bit nervous to see how different everything feels >> syrian tv broadcasting from a

military point manned by the military in eastern ghouta shows buses, vans and medical staff waiting for civilians for the second day so far no humanitarian aid has gone in and no civilians have left and daredevil nick wallenda bringing his high wire act to maryland he only used a balance bar it took him four minutes to complete and when he was done, the crowd erupted in cheers. gives me chills and sweaty palms just to watch that that is the news update. over to jackie d for the eia inventory report good morning, jackie. >> good morning to you, sue. look at crude prices, you can see they've turned negative after the eia reported a build in crude oil inventories of 3 million barrels, building gasoline of 2.5 million barrels. now, we do see builds at this time of year this was a little bit more than expectations, but a little bit under the five-year average as well not too drastic.

a couple things to keep in mind here this is the fourth build we've seen in the last five weeks. and the reason that we're seeing price over $60 a barrel is because total inventories and aggregate are down about 100 million barrels from where they were this time last year the analysts feel like the inventory is being worked through. u.s. production is up slightly 2.8 million barrels a day. right now we're trading at 5262, back over to you. thapnks, jackie. major gun retailer dick's sporting goods announces it will stop selling assault style rifles in the wake of the shooting in parkland, florida. our brian joins us with more. >> morgan, thank you the son and founder of dick's sporting goods coming out this morning with big reaction saying they are permanently done selling these types of weapons they're not done selling guns. be very clear about this, they are raising the age of gun sales to 21. they will still sell handguns and other types of hunting

rifles, but the so-called assault-style weapons dick's says it is finished selling. remember after the sandy hook shooting of 2012, the chain made a similar announcement suspending sales only a few months later to resume selling it through their field and stream chain but this time the ceo who went on "good morning america" this morning saying, no, this is permanent. they do not want to be part of the discussion, guys the emotional reaction and the outpouring of support after parkland has spurred them to make this decision so when we look at the retail landscape, what do we see? walmart stop selling these type of weapons a few years ago now you've got dick's going out. that leaves just a few major players including bass pro shops and their cabela subsidiary as well as gander mountain and a few others the ball is in their court a big move by dick's sporting goods. >> we're staunch supporters of the second amendment i'm a gun owner myself we've just decided that based on what's happened and with these guns, we don't want to be a part

of this story. and we've eliminated these guns permanently. >> and i think guys are going to see more of that type of stuff people come out and say, listen, i'm not anti-gun, the company is not anti-weapon. he's making a point to note he's a gun owner himself. he enjoys shooting trap and skeet, but yet this style weapon does not have a place in dick's sporting goods store any longer. so a major announcement by a major chain. and i guess, guys, we'll go through just the numbers think about this, the nra has about 5 million members, but there are about 180 million teen and adult consumers, maybe 200 million in the united states so at some level you're also just talking about perhaps a numbers game >> brian, some viewers wonder what happens to the existing inventory, if it gets destroyed or if it gets moved onto a third party seller that liquidates that existing inventory? >> that is a darn good question. i'm going to reach out to dick's and find out as you might imagine they've been inundated with calls today.

normally in a retail business though you just ship it back to the manufacturer don't know what's going to happen with these guns as well remember, there's a couple of million of these style weapons out there already currently in the market there are about 4 million weapons of all kinds, firearms sold in america in 2016 according to national shooting sports foundation. and, remember, the majority of gun sales are not coming for the major change they are coming from either mom and pop style gun stores or at some of these gun shows, carl. that's why there's also been a big call to end the so-called gun show loophole where background checks really aren't at these gun shows. >> we rely on you, brian, for your roeporting on the subject which is very deep and going on for a long time. thanks to brian sullivan at hq today. announcement from world congress on the future of mobile payments our jon fortt is there in barcelona and joins us with more good morning, jon. >> reporter: good morning, carl. it's not fantasy anymore it's not something that's coming

five to ten years from now it's really here i spent some time with these europe ceo going through some of this now that we're blanketed in wireless signals so many places, now that so many objects have chips in them, this is really become more of reality now, viasat working with automakers like bentley to build payment technology into those vehicles also working with alianz, garmin and fitbit, being built into jewelry as well. and it's being built into train stations, now the london underground has it, potentially coming to new york the technology where you won't need to have a ride card, you'll be able to use your phone or just a card with contact. take a look what charlotte hog kbr g had to say about the process. >> if you haven't paid, it will

stop you what's really funny about this for us is that we haven't had to change the terminal. which is a huge investment for any subway rider it's been put into the software. >> reporter: and it's secure as well you'll see i tried to go through after she did and she had paid with her card. i mean, fair jumping, even in the future not going to be easy, not clear how whether you'll get prosecuted for it or not in new york but wasn't going to fair jump. i went around. so many other objects in there available and visa emphasizing now it's becoming a little easier to imagine they're not a credit card company. they're a payment network company that technology in the card can be put into so many other things, guys, that's really how it looks from here at mobile world congress. it's not just in norway or in

asia that these payment technologies are emerging. it's coming to the united states too. >> jon, it's really fascinating. i know you've been reporting on this even before going to spain this idea that when you're talking about the internet of things that visa is becoming one of those other maybe not at the top of the list always mentioned but one of those other plays on internet of things this idea of going, i guess, tokenless or cardless in a metro station really seems very disruptive to me, especially here in a place like new york city where mta is making revenue every time you forget your metro card, they charge you for a metro card so this sounds like it's very disruptive. >> reporter: potentially but you also have to look at how many different ways there are going to be to pay you're right, i talked to visa's ceo just over a month ago about some of these same issues. visa has done some research and funded research that shows when you don't have to use cash, that

accelerates economies. and also when you don't have to swipe a card, when there's less friction in the payment process, more commerce gets done. that's really what they're banking on here, having a piece of these little transactions and with sensors, with 5g making the s sensors more available, potentially more revenue for visa. >> jon, great stuff. thank you so much. jon fortt from barcelona when we come back, grading the new fed chair, rick santelli's going to sit down with former fed governor mark olson talk to him about that by the way, quick programming note, tonight on "mad money" you don't want to miss this, jim sits down with under armour ceo kevin plank, first time we've h in a while. and salesforce ceo marc benioff. "squawk on the street" back right after this

let's get to chicago and cme and rick santelli with the "santelli exchange." hey, rick. >> good morning, carl. i like to welcome my guest former fed governor mark olson

mark, thanks for joining us this morning. >> rick, thanks for having me on >> you know,we've had many discussions in the past about interest on reserves and congressman and chairman hensarling found it interesting as well. here's what the chairman said. you'll be hard pressed to find any congressional record or any testimony from the federal reserve use the market this power. do you think that's right, mark? i mean, i understand where he's going. and i think there's a lot of things central banks have done all around the globe that probably stretch their charters very wide into the gray. but on this topic what do you say? >> remember he used the term the market power what they're looking for is market instrument that would give them idea of what rates should be. in my opinion market power is size of the balance sheet but

not only that the size of the cash surplus so as you're trying to adjust interest rates, that's the barometer that they're using and not some fixed rate. and i know that hensarling tends to like fixed rates, but that doesn't work here. >> gotcha. now, there's another issue, and i'm not sure details are right, but the chairman said this as well on the level of interest on reserves he said you're paying 150 basis points and our constituents are gaining 10 basis point now, 10 basis points might be an old style of checkbook account, but his point is ringing true with regard to 150 basis points and a lot of rates being paid in money markets that have lowered -- >> well, the valid instrument to compare it to is the short-term t bill as opposed to a savings because this savings account can be very low. but it is very fair to compare it to the short-term t bills.

and also if the bank starts, if they pay the banks more than the market rate, money will flow into it and have a very detrimental effect on the economy. it will be counterproductive so i think the fed is going to monitor that very, very carefully. >> and the biggest question of all, is this now a tool in the tool box needed considering the size of the balance sheet and how hard it is to control and cap rates because it's now a rate setting tool that's a permanent part of the fed's vocabulary. >> it's really very interesting, rick, because 50 years when i was at the first national bank of st. paul, the rate was prime rate, second rate we looked at was discount rate and we had a rate called fed funds rate 30 years later it's completely flipped. now we have a new instrument and it's the first instrument of which the fed can directly set that pays interest on. i think that the fed is going to

find increasingly valuable tool much better than supply plays out in the marketplace. >> excellent mark, it's always interesting to hear your opinion. there's two sides to every fed -- >> there is. >> carl, back to you. >> thank you when we come back, viasat launching a high speed internet service competing with the coming networks of boeing and spacex ceo's going to join us next. and later on the ceo of the highly secret start-up sitting down with us very exclusive interview talking ipo plans, job creation and more. >> maybe i'm just going back to my old philosophical days, but what's made this company special is not that we're secretive. it's not that we're an enterprise software. it's that we've been very focused on fighting terrorism with protection and recently focused on as well is innovation with jobs. now, why should we care? well, because if you don't have jobs, you're not going to have democracy. and i think, you know, i mean

obviously we were born in silicon alley and we're up silicon alley in some ways but this movement tonn iovation to jobs is really hurting our society. >> the key interview you can catch it at full coming up on "squawk alley. don't go away. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

a bit of curious divergence happening in the energy market find out what it is and how to trade it at tradingnation.cnbc.com more "squawk on the street" coming up. optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, hey, what are you guys doing here? we've been helping you prepare and invest for retirement since day one. why would we leave now?

because i'm retired now. so? we're voya. we stay with you to and through retirement... with solutions to help provide income throughout. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that, uh, tie. or the suit. or the shirt. voya. helping you to and through retirement. two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade.

it's "you've never gamed with speeds like this" internet. it's "all your teenagers streaming at once" internet. it's "i can get up to one, two, three, four, five mobile lines included?" internet! it's internet from xfinity that makes your life simple, easy, awesome. see how you can save by adding xfinity mobile to your internet. plus, save even more when you sign up for internet, tv and voice together. click, call, or visit an xfinity store today.

welcome back viasat launching a new internet service, competing for the fastest satellite based system in the u.s puts them ahead of competing negotiation developed by boeing, and on the fuels of last week's rocket launch by spacex. we are joined by mark dankberg thank you for joining us today >> thanks for having me. >> you've just launched this new satellite based broadband service, several days after spacex launched a rocket last week that had two of its own made in-house satellite prototypes to begin testing its own broadband service. does this put spacex in competition with you >> well, eventually, yeah. i think if they build a few

hundred or thousand more and get them in space, yes, that would be competition for us. >> and in terms of the broadband plan that you're going to be offering, what are some of the details around it, who are you targeting? >> there are lots of people that can't get fast broadband, whether at home because they can only get dsl, people on airplanes, good example of a market for us. so the purpose of what we're trying to do is provide faster speeds, higher speeds, and more availability to people what we talked about yesterday was our direct to home plans you would have a satellite dish there and with the new satellite, we can provide speeds 100 mega bits per second, never been done for that speed to direct at home dish. the other element we are providing is way more band width so people are doing video streaming or large down loads to get that speed for a longer period of time

>> when the trump administration comes out with an infrastructure proposal and want more broadband access to rural parts of america, do you raise your hand and say we have an option here >> yes, absolutely, we're doing that now already, yes. >> and in terms of your businesses, i believe government is still your biggest business we're talking broadband for consumers now, but we've got increased government spending, a pentagon that's very focused on securing space now where do you see the biggest opportunity for viasat >> so we have multiple markets we're bringing this to one of them is government because the type of satellites we're doing are far advanced relative to what the government has in terms of speeds they can deliver and amount of band width. that's a good growth market. consumer market has been a growth market for us we have customers, jetblue, american airlines, united airlines, big market for us, that will triple for us in the

next two to three years. and then we're doging emerging markets, towns and villages that never had the internet and provide high speed internet and very affordable prices those are four of the top markets that we're going after with broadband satellites. >> and a big key is launch prices you worked with spacex in the past, but as launch costs come down, who are you looking to partner with moving forward? >> well, for us and i know people made a really big deal about launch prices. for us, launch is a component of it but not nearly the most expensive part of it. >> what is the most expensive part >> so the most expensive part is really the satellite itself plus the ground network one of the things people don't realize is you think of the satellite, what we are doing is projecting fiber con activity to

say a million people flar flung anywhere to do that, we need an extensive network. ours is one of the most complex parts of building the systems. you have to pick them as a total system. >> mark, i wonder who is leading the charge in writing policy, i guess global policy, for security issues, property issues in orbit or in space, and do you worry about global law falling behind the pace of technology? >> okay, yes, that is a consideration. that is a factor to varying ex-tenex extents depending the orbit you use. the orbit where most are now, that's a fairly safe orbit the satellites don't move relative to the earth or to each

other, so that part is -- the protocol and safety and security around that are pretty well established. what's changing now are the notion of putting hundreds and thousands of satellites of lower earth orbit. those are constantly moving with respect to each other and with respect to the earth, so the notion that you could have damage or debris can take out hundreds or thousands of satellites, that's a big issue, and there's really no global agency that's dealing with that. >> mark, we have to leave it there. thank you for joining us mark dankberg, chairman and ceo of viasat. >> thanks a lot for having me. be having that conversation more often let's get to jackie deangeles. >> look at energy. worst performing sector for the month, down 12.5%. crude oil down 6% in the same time period, certainly a drag factor there

analysts expect a little rebound in prices as we head tosummer driving season we're waiting for that look at big oil in the same month. xom, some of those companies seeing double digit losses >> thank you very much for that. when we return, the ceo of the secret talent, what he told him. dow lost gains, crossing into the red. "squawk alley" starts in a couple of minutes.

your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. husband: "she's asleep?" wife: "yes." husband: "let's do this." you may be new parents. but you're determined to feel like your old selves again. [cell phone rings] [baby crying] with blue apron, any night is a chance to see what cooking can do. it wi called usaarst and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too.

we're the hayles and we're usaa members for life. ♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo.

good morning it is 8:00 a.m. at "mad monepal palo alto. 11:00 a.m. here. "squawk alley" is live ♪