a final check on the market this morning we have been in the green. s&p futures is up 2.5 and nasdaq up on 21 and the 10-yr note looks like it is yielding, 2.894% and bouncing back around 2.9% i believe -- >> we are about to go to "squawk on the street. before we do that, we have some breaking news to bring you right now. of the succession race of goldman sack, david solomon, being named of the president and ceo of the company one of the other successor is going to be stepping down from goldman sachs. the wall street journal reporting that on friday still unclear when a succession will ultimately happen a huge step in the battle for

who's going to run for goldman sachs, this news inside goldman sachs, a big move considering people thought that solomo solomosolomon solomon -- when that meeting about succession had taken place, guys. for now, i am going to send it over to the guys at "squawk on the street." some big news at goldman sachs, now, we know who'll take over when he decides to retire, guys. ♪ good monday morning, welcome to "squawk on the street," i am carl quintanilla with david

faber, futures is steady on that jobs number. we begin with the markets. coming up a huge rally this friday intel entering in the qualcomm and broadcom ring. some big name exits. goldman's blank fine could be out as soon as this year we'll look at the faith of the companies that they leave behind stocks are set to continue their upward momentum after rallying on friday. nasdaq jumped. we are going to have to revisit the news that andrew just brought us and the clarity that may bring to the timing of the announcement or the path of the executive's path >> there were a lot of let's just say confusion on friday

about how real this story was and whether something is going to happen sooner rather than later. i know we had mixed reporting on this it is a surprise that someone leaves when they do not get the job? not really there is always been a bank off. there could have been two ceos. when i worked at goldman sachs, they did have two ceos i did not participate as much as i would like to see on friday which was a powerful one >> the best day of the year for banks overall. a lot had been said this morning about the rally on friday. the volume, jim. comparatively, how important is that >> well, i think it was except for the market leaders you will see the leaders being a commodity place which is micron

moved up a lot of stocks that's going to be flashed and a lot of that is pc and data center we'll get to david across the board battle involving everybody is in this now, everybody in the broadcom challenge for qualcomm and the intel, let's say attempted to plan, i am not going with the intel story at all david, maybe talking about the idea it has been mused, i think to go out and say it is happening right now is gun jumping. david's on the phone no surprise, he's going to bring us some clarity on that story and huge development on that on friday your coverage this week is going to pivot around for this what do you have planned for this week? >> what i like about what we are up to is the biggest player right now are companies sending conductor equipment, those are the unwithones that's breaking t

it is hard drives. i think what we are going to see is intel trying to figure out where they fit in. intel has autonomous vehicles and pc business and it has cloud business the cloud is data center and it is companies that are involved trying to get online and digitaliz digitalized. >> we look forward to that it is great when you head out there and you bring us so much >> thank you, this is where the action is. it certainly not industrials, they are temper. >> let's get to this goldman's news again david solomon will be ceo of goldman sachs. the chief operating officer has

decided to retire effective april 20th command of complexity and client focus has defined his position at the firm. i want to thank harvey for all he's done for the firm david, some thoughts on schwartz's exit and i think solomon is right >> i think we know who the next potential ceo the company is going to be. we know these two are in competition. we talked about it on friday when the news broke from the journal that m solomon on the banking side of the firm schwartz's pedigree is a little different than his and he's been actively campaign the job for some time. age is an important factor here as well. as you know jim, david is 55 or

56-year-old, if you are going to take the job, you need some time in it. we are talking about him being 53 moving aside of the next generation which is something that blancfein is doing. >> there is no way that lloyd is going to let this generation people leave and listen, they got to be 40 years old i think this is do or die. lloyd had to do something and i do think that when we report, when the journal reported on friday, it was a well sour-sour story and i would believe that they both would leave in lloyd had retired right now. >> had to do it. these people are getting too old. >> when lloyd appeared to troll

the journal on friday saying that it was the journal's announcement and not mine. this is like -- >> i do think there is something that says to me is lloyd is ready to move on this year you will see one of these executives leaving both of them had plans going some where else. lloyd stays on pass an age where he he's musing to many people and maybe it is time to go >> is this the right choice? >> i think either person would have been the right choice maybe david has a different view but either person would have been fine. >> it is funny, i don't know schwartz and never got to know

him. have no sense, jim, i know he had a historic career there and moving up, it is a great story in terms of at least all the different jobs that he has held but i don't know the guy solomon, we know him a bit he's had a higher public profile certainly. >> certainly -- >> david, let me ask you gary cohn, in his later 50s clearly i think he's already on the wall and it was time to go there was a lot of bad speculations on friday that there is some chance that he'll come back. i mean -- this really does put the knife to that. >> yeah, i know, that was ridiculous that does not happen when was the last goldman's hires for the next ceo

>> jim, and carl, whether or not cohn will end up at some other banks in a senior position along the time line. i don't know where cohn will end up, he's still a young man but it is not going to be goldman sachs. >> if you look at the majors, no one is going anywhere. corbat is very young and he's not going anywhere i don't know -- i think the idea -- it is not a great time to figure out who's going to be the number one chairman of a job would not be outrageous or setting up his own firm why not wealthy guy can set up a family firm. it would be a terrific course for him. >> all right, guys, goldman is giving us a little more to talk about than we have lined up.

i guess we want to keep this going? >> i don't know. we have more news on intel and broadcom and intel -- excuse me, broadcom and qualcomm. we'll do that in the next block, guys of we want to bring sorkin back in here >> let's see if he's here. >> andrew brought us this news 11 minutes ago at the top of the hour andrew, you had a chance to make a couple calls and think more about this and tell us what you think it means for the firm for solomon and schwartz and blankfein. >> at the top here, that's clear as day i think it will also explain a bit of the news that we heard on friday, frankly i think the wall street journal did not get it right and did not understand what it actually taken place at that board meeting in february clearly they knew succession was on the table the real news is who the

successor is likely to be. i don't believe necessarily that blankfein will step down this year, it is possible i think it is unlikely that he's still there in 2020 from what my sources are suggesting i also think that the jets a little bit about the direction of the firm, the distinction between harvey schwartz and david solomon's history as an investment banker and where the firm is going to go. i don't think it will be a key change in terms of strategy. in many ways -- david solomon is to some degree is more align, perhaps, with lloyd's way thinking and the strategy that

the company has been pursuing the past couple of years i do think it is clearly an porpt mome important moment >> go ahead jim. >> i am uncomfortable of that view because i think in the history when ceo comes in from a setting means nothing. >> as a matter of fact, i think that trading is an incentive given the fact that they have been a terrific sense of volatility that's where i think things could go there is either solomon is a figure that has come up from a certain side a lot of people comes up from the other side and it has not meant anything at all on trading. >> right >> trading killed it it depends on who's doing fantastically. >> andrew, are you still there

>> no, i am. i think that's not an unfair assessment he spent his career on goldman sachs. i am not going to dispute jim's take on this at all. i do think by the way just in terms of the timing, the one thing to notice obviously, everyone is looking at this past weekend, and all the news on friday and the news today and everyone is thinking oh goodness, this is going to happen tomorrow and in a strange way it is possible now that this news is out and made public that it gives both of these men a little more r running room to spend some time together and running the company together for a little bit longer rather thanless time we'll see whether the next statement is you know about blankfein himself or if that'll happen >> andrew, thanks for that andrew sorkin, joining us.

taking a look at the premarket a lot more news is still to come this morning i got additional information on the drop box lirn aesident heads to cafoiand we'll visit a boeing plant more "squawk on the street" on nyc in just a minute directv gives you more for your thing. your top-rated thing. that five stars, two thumbs up, 12-out-of-10, would recommend thing. because if you only want the best thing,

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welcome back to "squawk on the street." a lot of news involving broadcom/qualcomm and perhaps intel. first, some breaking news this morning involving the government continuing investigation of the national security concerns it is identified related to broadcom's potential purchase of qualco qualcomm in a copy of a letter that i have been able to review that was sent by the department of the treasury to both qualcomm and broadcom yesterday it would appear that cfius is not happy with broadcom. in fact, in the letter they say that broadcom has violated that interim order that was issued on march the 5th, by cfius of the

national security concerns indicating it is taking full investigations of those potential concerns broadcom is set to take a series of action of the interim order specifically broadcom on at least three separate locations towards redomciliation anything done redomiciling in the u.s., they need to give cfius five days notice they did not do this potentially broadcom will be able to succeed and get six directors on qualcomm's board. since the interim order on march

5th, cfius conducted an investigation on the transaction and associated national security risk that investigation so far confirmed the national concerns that cfius identified and it goes onto say the investigation is expected to close soon. in light of those actions, broadcom is taking in violation of the interim order in fact, there is a meeting scheduled today between representatives of broadcom and cfius to go over these very things it would appear based on what i am reading in this letter that it is going to be broadcom's last opportunity to tell cfius why it should not refer this to the president for being blocked and in fact, cfius says our assessment of the national security risk posed by this transaction in the absence of

any other information, we'll take further action and including, and not limiting this to the president for final decision all of which means to say the pressure on broadcom from cfius seems to only growing. they violated of what cfius have told them to do. that did not make them happy they redomicile and broadcom is out of cfius' jurisdiction >> they don't have the jurisdiction to act. if they issue an order saying you cannot buy qualcomm national security concerns. it is not clear if broadcom becomes its company. it plans to redomicile to april 3rd. if an order is issued, whatever that order does not necessarily

gets staged once you become a u.s. corporation so this becomes the key i think issue for any interested parties here to be focused on and the fact that broadcom seems to invited their rapid cfius in their written words saying broadcom, you took a series of action and violate our interim order does not seem to help. we know that cfius is saying we expect to move against you unless we hear something in today's meeting that make us think otherwise. >> jim, what does hock tan do about this >> you know what, this is maybe apart of a larger issue. the u.s. government has pretty much decided, you know what, we are not going to play ball with the chinese. i think the next hearing is 301 which is a tariff they'll use on intellectual property. the signal is if you do business to a lot of china.

we may actually think, you know what you are willing to surrender of the property of china. that's the next big wave the tariffs on friday was much more serious than people realized and it is targeting japan and germany. i think that this may be a larger issue where they are deciding or punishing china. i come back to the fact also this is not one way. nxpi, the problem with that deal is the chinese is going to block it we decided to invoke 301 soon. if they do that, it is a great way to the chinese to retaliate by saying we are not checking on that xpi to be bought by qualcomm >> the fact that they are awaiting the approval from the antitrust regulators in china and have yet to get it and still don't seem to know exactly when it is coming so it could get embroiled in all of this

we are not going to a chance to discuss. go ahead, jim. >> you know we are going to talk about intel the broadcom i think we are glossing over entirely the fact that the president is starting tariffs. the tariffs on china a great way to signal it we are not happy with this deal. let's say the idea that the combination is going to cause a loss of -- you look at the cfius document it is much more of a wall street document i think it could be in trouble i think we can think of the idea that it is in trouble on i think the president is going to go off in china in a lot more way than just deals. >> right we did have the treasury of secretary joining us on friday and we asked about cfius and which treasury sits on ahead of that different parts of the government that tried to weigh

in here is what mnuchin had to say when he turns to unique situation involving broadcom/qualcomm. >> this was a unique situation, we did come out publicly where we don't normally do that. i am not going to comment the specifics on why we did that this was a unique situation and i as the rest of the committee are fully prepared to use our power to protect national security >> and what appears based on this letter that was received yet that in fact cfius is planning on doing that jim, then we got intel in the mix here potentially for broadcom, unclear that anything will occur, the wall street journal is reporting on friday that there was interest in intel potentially taking a look at broadcom and frankly i heard the same again, i don't think it is likely but it is for which intel

hire bankers to explore the possibility of >> if broadcom absolutely get kicked out, i don't think intel is interested as a broadcom/qualcomm. i know that brian krzanich is coming on this week. you can argue why is he coming on and he's subjected to questions to this. this is at speculation at this point after some phone calls were made, david, i got to tell you come back to the idea that broadcom wants nxpi and very much because of the autonomous cars they want qualcomm to have more apple. intel wants both, they have done mobilized. the competitibination of a setbf they have nxpi --

>> cars and motors would be important for intel of the component approach may be they would benefit as well if bod come ever succeeded with qualcomm. >> got a lot to talk about this. we'll get to cramer's "mad dash" and count down to the opening bell which is three minutes away don't go anywhere. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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micron is the new leader big, big call. >> let's get to the opening bell, guys s&p at the bottom of the screen at the big board today and 30 minutes in, some big news on goldman this tough cfius letter, jim, you talked about trade journal this morning both the eu and japan did not get clear answers on whether they too would be exempted the president tweets that wilbur ross is going to meet with the eu reps about eliminating large tariffs they use against usa not fair to our farmers and manufactures

>> yeah, look, i got to tell you, no one was talking specifically about japan no one was talking about germany, that's a mistake. those are the two places you got to watch besides china please, please focus on the two other countries and remember when it comes to china, it is going to be intellect property is next, which tells me they're going to leak that if that's the case, nxp would be down japan is cars and germany is closed >> you have not been exceptionally bullish on autos for a while. >> no, this is one more nail in the coffin bmw and mercedes has spent fortune developing plants. they're making the model three very cheap down there for bmw.

mercedes is ready to ship. i cannot believe these companies were tone deaf to the president. it is germany and japan, people have to focus on these two countries. the idea that it is tooth less, the tariffs, that's nuts they're not going to be toothless and china's 301 is going to be really important the president is going to be able to ride that theme and we are all ignoring i think it is a mistake. >> well, to be fair, we have been talking about 301 since the tariffs were unveiled, jim, again to reference people of the 1974 act, acting under 301 as the u.s. trade rep can and to your point, we should get a report it could be as far away late in the summer but it could be sooner that we hear the report from the trade rep, right? >> i think it is the next couple

of weeks i think people are oblivious to it i think that i felt that there is a lot of talks about how these other ones that were toothless that came out. germany and japan, very big targets and stop ignoring these. those are your countries besides china. >> it is interesting how this all gets reaped together when we talk about trade and china and 301 and we have been talking about cfius and broadcom this is all apart of the same theme and national concerns and foreign investment to the u.s. as it relates to relationships between broadcom which is not a chinese company by the way it is not but relationships that exists there and qualcomm's

importance in terms of 5-g and the development of 5-g development in this country and ke keeping the national champions that's supplying much of the rest of the world is all kind of the same theme >> it is like a quilt. >> perhaps, you should be surprised though interesting that broadcom chose to invite cfius by violating their interim order. that's not good behavior you don't want to do that when it comes to the committee for any government agencies but for these guys involve the intelligence services that we should point out >> yeah, i am glad you mention intelligence this is one of those, the united states, the first thing we got to do is we got to stop the steel and cfius did not work we are going to do something

bigger than that i don't think they have to it is really interesting that broadcom jumped 20 points after hours on intel i don't like these kinds of leaks. again, the ceo is on this. the defense, the idea of finding defense where it is now. david, there is an element of fake news of broadcom being a chinese stock. can we eliminate that they are china and say it over and over again. i think people are really doing some fake news here. >> it is not fair to them. 20 of their largest shareholders a are. it is an singapore based company. they hope to resume at april 3rd. less than a month here they are complying with cfius' order from the brocade deal to become a u.s. corporation. it is clear from this letter and

they say it. they simply say it straightforwardly in the letter that i was able to review that was received yesterday in the absence of any other information that would change your assessment of the national security concerns. we'll take further actions including but not limited to referring the transaction to the president. of course, the president could change this for them as he may have done a number of brocade. >> jim, the whole tone we are talking about this morning, i am curious why it does not make you b you -- if these trade talks get more ignacious >> i think there is a sense that anybody could be exempted to our allies germany and japan are not exempt but what that says is you got to

put your next plan in the united states what will happen here is they'll deem certain companies that are here doing defense work that they'll deem them chinese and that's going to be bad for tech. boy, we got a lot of companies that do tax in china i heard it over and over again of what happened last week being toothless. that's not the case, they're going to be tough. it is not just on china. that's a surprise to me. look out, they put those long plants in mexico, that's a very big issue. >> i mean i come back to what kyle told you last week and that's we spent 30 years be holding to the golden carat that china sort of dangles in front of us while they went ramping on free trade

>> and did his point on 20 years on a war that they have been fighting and we have not interesting japan in particular, just to make sure when the president comes around, they could be able to connect and play golf, shinzo abe. japan has got to be disappointing of what you are hearing and in terms of jim's belief that it is not going to be exempted from these tariffs and you wonder to the larger extent where it all goes again, it does not seem to be good to be moving down the road where you can have a lot of different actors and actions that would be bad for free trade. >> oh, i think it is bad for free trade i think that they're willing to risk companies doing business for china that's something -- it is very weird.

i think the worries of theft international properties, companies that are doing a lot of business and chinese companies that do business this year and any connection with defense, i think they're in trouble. i think there are a lot of chinese do have business with defense. watch germany and japan and not toothless. this is not good news and it is being glossed over i think people kind of felt like everybody didn't get the exemption except china not true look out japan and look out german >> for the time being, dow is up 70 let's get to bob pisani on the floor. >> good morning, nice start on the week 3-2 of advancing of declining stocks i want to highlight what's going on over seas and bring up what jim is talking about we have worries of what's going

to happen with south korea and japan. we have a second day of strong trading over in asia and germany as well. eu reportedly are going to hold more talks about tariff exemptions this week in the u.s., 3-2 we are up on all the major indexes here consumer discretion and energy and tech is leading and bank stocks belowing very much since friday's jobs report banks are not doing much at all. the bigger question is what's happening. we got an air gap in terms of news here. march 21st is the fed meeting. the next big event here but there is not a lot between here. the fed's ten days away, we'll have cpi and ppi this week, that'll move things.

we are susceptible to inflation news we saw that on friday. big help for the markets here. if this happens everyday, this kind of moves up, you will get 5 or 6 points at the s & p is only about 2.5% from historic highs, that was just back at the end of january. elsewhere we are finally getting a little more news for the ipo market we have not been talking much about because there is not much to talk about. it full-timely did set the price here, we'll keep an eye on that. that'sgoing to be $7.5 billion deal overall valuation here. they'll do reverse stock split too on that. we'll get that one more interesting is spotify or

march 15th this is a direct listing there is no under writing and there is nobody going out to sell shares to they're essentially going to do a live stream that's sort of like the road show that'll be interesting we'll get terms on when they'll start trading. there is been reports over night maybe the week of april 2nd. we'll find out meantime, we do have a big ipo this week. z sk zscaler. it should happen over on friday over the nasdaq here that values the company of $1.4 billion cloud security is a big issue right now should do very well. even though there is not big ipos this year, the etfs is closing at an historic highs on

friday we got the ipo and etf is about 6% this year david, dow is up 85 points back to you. >> thank you, bob. bob pawn si isani is on the flo us >> late on friday at&t is prepared to go to court to save their deal at this point, it has not been resisted by the government through actions such as this but more often prove behavior remedies that both parties have agreed to. in the deal of the original complaint, people may recall, one of the key issues was believered apart of the

government that this merge would withhold programming, from other distributors mainly virtual. turner's popular programming including hit shows it has leveraged with those virtual mvpds. what do you know the government has abandoned that in its brief at&t tells us to follow. among other things, they're an expert on this who they were relying on is no longer saying he believes that would be the case he's say saying among other things this expert will not withhold the turner network because of the licensing and advertising revenues it would lose now they say what remains of the government's case like a cat

when it is first shaved is alarmi alarming pale and thin back to the doj's complaint following this merger using a bargaining model the price increases to the firms. this means of course consumers would seek increase cost as a result of their monthly bills. what does at&t had to say about that in their brief? they say there is no fact base evidence that this merger will harm competition nothing will be withheld from competitors and consumer prices will not go up and they project a 45% increase and retail mvp prices, that's a month that amounts to .4% of your

cable bill it could not be plausible substantial as they say. they believe that the government does not have a large case it is interest to read this brief in part because at&t is attacking its own business which is interesting, talking about the extent of growing competition that at&t directly face from the likes of netflix and amazon at the end of the third quarter. at&t direct has about 24 million subscribers that's down to 26 million. they talk about the fact that they are losing more subscribers than ever. and in fact for its part, time warner also is losiing viewershp because of netflix and amazon and many others. trial begins march 19th. all right, let's head to the

bond report now, let's check in with rick santelli >> good morning. if you look at the yield curve today considering a couple of interesting tidbits. first of all, could be the twelfth sessions in a row that the 10-yr closes at 280. mostly the most interesting fact looking at february 1st start for 10-yr how much sideways but solid higher yield and lower price activities we are getting. although it did not seem to escalate much. i think we had four closes with 290. 295 yield close. if we are looking at what's going on over seas, we may learn a lot. bund hovering around 62 or 63 basis points these are closing yields since january. as you see on that january 22nd start if you go towards the

short ends covering minus 58 you can see we are hovering at the lowest levels there as well since january. this is accentuating the next chart that's 10 minus bund and you see this chart starts around thanksgiving of 2016 there is not many areas that are higher in that chart we are within striking distance opening the chart up 20 years if you see what i mean. let's go to the lagger hereafter the good data points and the markets performance the market is looking at that. maybe it is a negotiation. if you open the chart up to february, you can see it is still not doing badly well off the lows carpal, back to you. >> rick santelli in chicago,

thank you. we do have a record high for apple as well. at 181.10. and dow is 101 to start this busy week wechlt be back in a minute be back in a minutebeacit e . minute ' be back in a minute l be back in a minute l be back in a minute mvo: you're not doing work to help somebody, you're gaining something from meeting mr. adderley. it's a calling to not only everybody in this neighborhood in miami, but to the nation how great we are. and how great we can be. ♪ ♪ i'll stand by you. ♪ i'll stand by you. ♪ and i'll never desert you. ♪ i'll stand by you.

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dow dupont announcing andrew liveris is stepping down as executive chairman effective april 1. jim fitterling will become the top man. we have had liveris on for a long time. >> he has been at the helm for a long time. the key to the dow deal and the split into three taking over executive chairman is fine. fitterling will run the material spinoff, which is going to be a huge company, when these are

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if you missed the news this morning, goldman sachs announcing soloman will be coo harvey has been a mentor to many and his influence has made an impact on generations of professionals at goldman sachs solomon is in line that's the remaining unanswered question, the timing of this. >> but also, a board of directors here doing jim what it should be doing, which is namely anointing a potential successor, making sure there's a clean succession to the most important job at the corporation >> absolutely. this was a february board decision people were talking about, they had to have a successor.

this gives schwartz a time to grow the time frame is not clear. there's a sense that it was year end. i'm not getting that i am getting that this is a great chance for schwartz to grow but don't nail down the time frame they wanted a successor in place. >> you do mean david >> yeah, david solomon will get it schwartz had to go the problem is -- i want to be sure, no one is sure about when he will go the board knows who it will go to this was a february meeting. it kind of just ended. i just want to make it clear that people know it's not the year end that's not a great part of the story. i don't think the journal is right on that. i think it's at the discretion of the board lloyd is not leaving at this moment he has not given a time. >> right

you got so much to come this week i think it's thursday, right >> yeah. krzanich later i want to nail down this he has so many acquisitions that he says he wants to do let's, i think, put this idea that broadcom is on hold i also have -- i have pretty much everybody that's involved i have twitter so excited about that. i have splunk. people to recognize the cloud is big. i want to circle back. understand, germany and japan are going to feel the lash from these tariffs. china, it's interellect you'luil property there are companies that will be revealed as more chinese than people realize >> jim, we can't wait for that we rely on you when you are

ourize aour i eyes and ears out west thanks. >> thank you >> jim cramer joining us this morning. if you are just joining us, this is "squawk on the street." wilford can give us news on the goldman news >> it was announced monday morning when began at 8:00 a.m., just ended about 9:45 a.m. it was longer than normal. it's a weekly meeting that usually wraps up in an hour. clearly today, there was more to discuss. the level of people below those involved with the decision, harvey, lloyd and david, i don't think knew this decision was coming i think there was a huge level of surprise when it was announced to them this morning a few other points to make it high lights that lloyd is very much in control i agree with what andrew was saying and what jim was saying,

that the timing is not decided again, i go back to the point in liz hoffman's article, but her article on friday didn't say that it was definitively year end. it could be as soon as that. reiterated it information lloyd's hands. i think he has brought the decision -- changed the discussion from who could it be next, ended the potential in fighting it's clear david solomon will be the person that takes over the timing isn't decided clearly, that's come this debate that sparked friday afriday it has come as a cost. at 53 and conversations over the last couple months with analyst s, he is more employable to

solomon. solomon can grow through the goldman sachs ranks. it would have been harder for him to go elsewhere. i'm sure harvey schwartz will be in huge demand. >> an investment banker is potentially ascending the thrown >> i think as jim was saying, clearly, that doesn't mean they will shut down other parts of the business far from it. as mike was saying this morning, that's the part of the business that has seen revenues grow. the rest have fallen >> trading >> or trading and others have declined. >> it's a reflection to a certain extent as to those that are ascending as to those that are not. we have had traders running the firm for a bit of time there's significance in the fact a banker will take over. >> definitely. this is the area of the business that goldman sachs is number one in the rankings through the last couple of years. trading they used to be number one and has fallen significantly.

that's significant but i don't think it means they give up on training. this quarter is a great example of potentially whether their trading can come back. it's been a terrible environment for their macro-based trading business over the last couple of years. if they don't perform, you ask bigger questions >> even if they have a strong performance, which they may, it doesn't necessarily mean that that is a component of the overall business it's still going to get back to being what was the profit engine for the company for many years my understanding is -- the business is changing they are changing with it. not just in this area, but obviously with their new efforts and things like consumer banking. >> that's the bigger point i agree. we can argue whether trading is going to favor those that are macro geared the biggest strategic mistake you have to say that they made over the last two or three years, morgan stanley, that they didn't, having an asset base morgan stanley has done in their

wealth management business goldman sachs is pushing that as well we tend to focus on the consumer offering because it's slightly more sexy and headline grabbing. that push into it, they have done a bit later that served morgan stanley as opposed to whether trading has done well. >> speaking of sexy and headlines, it seems like every profile of solomon refers to dj diesel i think it's overshadowing >> likewise for harvey, he is a black belt in karate >> he is colorful. >> he is colorful. it's interesting that this -- he is a fun guy this is one of the bonuses that he has i'm sure it was a consideration. he is seen as fantastic with the clients. not to say harvey wasn't far from it. david in particular is a very charismatic guy. liked by the clients liked internally i'm sure that's a factor that helped him in this decision. i don't know about his music >> there's a huge cultural --

>> pretty good. >> there's a huge cultural difference at any firm on wall street between traders and investment bankers they are two different animals. >> absolutely. i think the other thing stepping back from this both when gary kohn departed, other significant departures over the '15 to '16 era, the vice chairman, the rank below president, seen as important, fewer today than there were most of the time in the last decade. wheth when people leave, there are people below that get nervous. you have your senior member in this partnership culture that can drag you up with them. today, that's a concern for some of the traders it's an investment banker. you could say it's time for the switch perhaps just on the pendulum nature of whether it should go the other side, it's a factor. i agree, headline that this is a big surprise this morning that

they went this far the timing isn't set yet >> speaking of switches, nice to have you on this desk starting today at 3:00. >> thank you very much i look forward to it immensely very exciting. >> don't miss. thanks stocks are up again this morning after friday saw the dow post its biggest single daily gain in over a month the tech sector hitting a record high led by amazon and netflix we did get an all time high on apple. nasdaq notched another record. we are joined by samir somano as well as larry glazer good morning >> samir, we are coming off the jobs number that people said was close to perfection. we got this trade talk this morning, which is a little bit -- has a little more toughness to it. how do you balance all of that in light of what markets are doing today? >> you know, we try as best we can to kind of fall back on the fundamentals and consider risks

separately if you look at payroll number, all of the macro data, all of it suggests is you have an economy that's starting to accelerate. labor market broadening up it should drive earnings for s&p companies. as long as multiples don't get impacted by higher interest rates, we have a good year for the markets. >> did you think the wage number friday was as tame as some wanted it to seem? others now looking back at private sector, non-supervisorn. i'm talking wages. manufacturing up you look at brainard turning hawkish. how much leads some to believe the fed is going to have to be more aggressive? >> it was in the sweet spot. anything supb three is okay. that being said, one of the big surprises for last month was how many retail jobs that were added. that tends to drag the number down a little bit.

i'm sure composition played a big role >> larry, in light of that, was friday's action deserved, even though it was on light volume, and the follow through today >> the market believes friday's action was deserved. we see this robust euphoria coming back into the market. friday's job's report was go goldilocks in some respects, that's the worst thing that could happen to the market investors want to believe it's 2017 all over again. they want to believe we have tax policy at our backs, not in front of us. they want to believe we have low inflation. which isn't the case going forward. they want to believe all these great things are happening for us and they happened in 2017. 2018 is a period not marked by low volatility but ncreased volatility those are the conditions that led us here. it's goldilocks meeting march madness.

we want to think differently irresponsible indexing drove us to that february volatility. money was piling into large cap growth it's a different paradigm. you have ipos coming out you have supply hitting the market that's what we're talking about right now. that supply is going to increase volatility the fed is on autopilot. they will raise rates. in a rising rate environment, you get rising volatility, which is great for investors it's great for active managers great for opportunities. it's not the 2017 goldilocks that everybody wants to believe it was >> on that note, one thing you haven't mentioned is trade seemingly, it seems to have been put to rest for now once we got past the tariffs the announcement of the tariffs. just today, "the wall street journal" editorial page says, if peter novara replaces gary kohn, cash in your stock market profits. is that too dire a warning is trade and tariffs still that

big an issue that could threaten the rally we have seen >> i'm so glad you brought that up tax cuts are an easy conversation the market loves tax cuts. trade, not so much trade deficits are harder. imagine when we get to budget deficit. how is the market going to like that conversation? trade is more contentious. they are navigating this issue if we trade, i think we will okay you never know where this plays out. i gotta tell you, there's not a consensus here there's a really mixed bag people think that trump is using the market as a score card trade deficits are not a fun topic. i think exempting canada was a step in the right direction. this is not a pro market policy. it might be good for the republican party it's not good for the market in the long run we have short memories we forgot about gary kohn. that was last week we forgot about trade issues last week. we will have some fun in front of us.

march madness, it came in like a lion it may go out for a bear. >> you had a lot of coffee this morning. >> sameer, quick, we got a comment from one of the eu vice-president's he is referring to the president. if he says the reason for the measures is security, talking steel tariffs, we say there's no reason to impose the tariffs on us how is european steel a threat to the u.s.? i know you said you go back to the fundamentals awh at what point do they alter fundamentals >> it's when you see retaliation and it starts to impact the economic -- the fundamentals there's a lot of posturing, there's a lot of threats being made the policies themselves, once the steel and aluminum tariffs are put in place, there was a carveout for canada, mexico, australia. there could be one for the eu. you have to wait and see what actually gets implemented.

you don't need to wait for it to filter into the economic data. you will know when things are starting to move in the wrong direction. right now it seems in the talk and posturing phase. >> guiys, thank you. larry, get some coffee we will see you later. >> investing in policy a look at stocks that could soar or suffer on the possibility of a trade war. shares of regeneron are on the move the ceo will join us dow up 40 points week ba we're back in a minute finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity...

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tariffs and nafta, taking center stage as canada and mexico pledge tariff exemptions will not make them budge at the nafta bargaining table >> good morning. certainly, prime minister trudeau knows those exemptions are far from a done deal president trump linking them to nafta, saying if canada plays ball, they could win exemptions permanently.

trudeau is here today. he is meeting with workers at this aluminum smelter behind me. tomorrow, he heads to hamilton where we were last week. that's the heart of canada's steel industry he is there to throw his support behind these two industries. what they want to know is -- what everyone wants to know in canada is what happens next. prime minister ptrudeau said he was willing to walk away from nafta if that's what it took now that president trump is linking it to the tariffs and the exemption, that's a major question will he still walk away? another question that the steel and aluminum industry here wants to know is, what is the prime minister going to do to make sure canada does not become a back door for cheap metal. the u.s. is shutting out a lot of other companies -- a lot of other countries, placing tariffs on them. that could make canada a target for dumping. this morning i spoke to the president of the canada aluminum association. he is touring with the prime

minister he told me that the exclusion is one step, but it's far from being a victory. he says we have to brace ourselves for coming weeks and months and make sure we come out of it with all of our parts. that's the sentiment you are hearing on the ground in canada. we are going to talk to the prime minister later today we will ask him not just about the tariffs but about the broader trade issues and nafta >> we are looking forward to that interview it's going to come up 2:10 p.m. east eern time stay with tariffs. certain stocks are seeing a boost under the gop agenda with a push for deregulation, tax cuts, event shares has created three policy related etfs for stocks impacted by the republican and democratic par parties' agenda. we are joined by ben phillips. you have gop and dems. how do you figure out what the gop policy position is i don't know on any given day. it used to be a free market

party. now it isn't anymore >> sure. there are still some consistent themes in the republican party we look to senior leadership sometimes outside of the white house. defense is a big one there deregulation is still -- has a lot of, i think, momentum behind it then we have some energy independence tax reform these are big buckets that we are seeing things materialize. >> here is what i was confused about. we did a lot of news about tariffs on steel and aluminum. when all was said and done, that five-day period from when president trump surprised everybody and all the stocks skyrockets to when they were finally announced with the big signature, those stocks were down they were all down for the week. the tariffs had been watered down so much because of the exclusion of canada and mexico, it didn't help. >> look at u.s. steel. we launched our portfolio mid october. u.s. steel is up 65% since then. there was buy in the rumor

these things were telegraphed. trumps has been talking about tariffs since he was elected solar has doubled but it has been down year to date after the tariffs are implemented, sometimes people reset and they sell the news >> u.s. steel is the biggest holding right now. it didn't start out that way it was equally weighted. >> that's right. in december, it was equally weighted given the price appreciation year to date, it's done well the best performer in the portfolio since launch >> i see cloud-based security companies, financial, huntington engels i don't get what these do together and how they are so connected to gop policy. >> sure. defense is a big one that's been a longstanding republican policy. we looked back to bush 2000 and 2008 we saw it a big driver we are expecting defense spending to increase over the next couple years.

>> but in the dems, i would argue defense is the biggest holding. >> sure. they have a lot of government contracting services outside of defense. just general government. that's a larger government spending, higher budget in government that's going to be driving those stocks >> to michelle's point about unpredictability of policy, would you expect churn within these to be more active than other etfs >> i think we planned on them being quarterly rebalancing and trying to stick to that. they are active. we have had to make a change once a month >> a good example of that? >> well, virtu is one that appreciated a lot. the story played out and we sold some >> that's on valuation that's not on -- >> we're still a fundamentally driven portfolio we look to policy as a leading indicator for changes to companies and industries it's a very good leading indicator. it's something that even harvard

has studied. we are the first to instituti institutionalize it. you can go spohort in these. you are short goldman sachs. >> it's a big bank that we think potentially could suffer from increased financialing a regula. that's a strategic short. >> do you see more -- we looked at volume on these there's not much volume in either one of them certainly, the gop one has more volume than the democratic one. >> that's right. >> that would make sense >> we launched the fax reform fund that's when tax reform wasbein talked about that saw the best asset gae gathering. gop has seen the strongest performance. it's up 14% versus benchmark up 7% this is since october. this is five months. that's a huge delta. it's policy driven in this case. >> as we get closer to mid terms, would you expect that volume to change, depending on polls? >> our research and looking at

past election cycles shows that they do have some correlation with the polls we saw it before the election. we saw the dems trending up. we saw gop selling off there was a big reversal on the election day >> all right ben, thanks so much. >> thanks for having me. >> good to have you on a countdown to the next big ipo. dr dropbox setting the terms of its offering how much it sees it being values and a check on where stocks stand at this hour for mom,

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the way up was january 17. that was more than halfway through the january sprint that got us to the all time highs ten days later after the s&p hit 2800 the first time, then it went up another 2.5% over ten days then you had the pullback. here is now versus then. essentially, the equal weighted s&p 500, i put that in there as an etf kind of a proxy for the typical stock. that's below the levels of that january 17th -- that indicates the market recovery as strong as it has been, it has been slightsligh slightly narrower. s&p 500 pe is down earnings have come through better than expected the ten-year treasury yield has been up. that's been a significant challenge that would stall out around these levels. aaii, the weekly retail investor

sentiment survey way down this correction, it's a question of what have we accomplished what we accomplished, moderating valuation excess and the sentiment excess going in. i pointed out the vix. it was under 12 back then. now we're above 15 the market still is a little bit agitated it's building in the fact we have had this jagged move since late january >> people pointed out, bond market not as cheered by the jobs number. >> the bond market figured it all out. it will look at a three-month average. the workweek was up and the rest of it. if anyone really cared in a precise way about the stock versus bond valuation ratio, it's exactly where it was back then in january. if you look at the earnings yield and s&p based on that and the ten-year treasury, it's right where it was arguably, it's at this level that's giving the market trouble. in terms of adding up side

we will see if it goes on from here or not. >> good stuff. thanks see you in a bit dropbox is kicking off its ipo road show today. marketing a price range that values the company between $7 billion and $7.9 billion sales force is purchasing $100 million through a private placement. it will be the biggest technology initial public offering since snap about a year ago. shares will be listed on the nasdaq, the symbol dbx seen a lot of chinese companies come public here at the nyc. it's been a while since we had a well-known name in u.s. technology >> unicorn >> biggest since snap. >> one of the biggest in recent years. >> to be followed by spotify, not a u.s. company they're over in stockholm. that will also be a very large deal being followed very

closely. >> what do you read into sales force doing private placement? >> nice to have a foothold, i guess. i don't read too much more than that into it good to have a relationship. >> okay. >> i got not very much for you on that one. >> that's all right. when we come back, shares of regeneron are on the move after two big announcements on its cholesterol drug the ceo joins us next. today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. 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.

good morning i'm sue herera a private charter helicopter hired for a photo shoot crashed into new york city's east river last night killing all five passengers on board. they were in tight harnesses upside down in the water before first responders recovered them. the pilot managed to free himself. he was rescued by a tugboat.

austin police are responding to reports of a package that exploded this morning. a boy in his teens died at the scene. a woman was taken to a hospital with life-threatening injuries this is the second such explosion in the city in just two weeks. a passenger plane carrying people from bangladesh crashed and burst into flames as it landed in nepal killing dozens the death toll is unclear amid the chaos and the rush of badly injured victims to hospitals the french fashion designer givenchy who created looks for hepburn and kennedy has died he was famous for creating the little black dress horn worn in opening scene of "breakfast at tiffany's. he was 91. you are up to date >> thank you very much welcome back

dow watching early gains slip away we have had highs on the nasdaq. the regional banks are watching sectors closely. >> we are continuing to follow breaking news this morning out of goldman asachs. david solomon will take over harvey schwartz will retire. this offers clues about who the next ceo will be >> i won't say a lot of clues. i think it's decided he is now the heir apparent. the question is on timing. let's go back over a little of the time line of the last couple of weeks of how we got to this point. there was a board meeting february 21. at that meeting, it was decided that the long-term successor would be david solomon and harvey would retire. the three people concerned --

two mostly concerned were told quickly after that it was decided internally this would distribute the news at this morning's management committee. that was done at 8:15 this morning internally the decision to release it this monday was made on february 21 the time line when to release the information wasn't altered by friday's wall street journal discussion when it was announced this morning, the management committee i'm told -- there was a lot of surprise by that level of people just below the president -- the various business heads one of them said, wow, just wow. another said they were very surprised. internally there was some interest at this decision this morning.

of course, we all wonder about the timing of when david will take over fully. that i don't think has been set. we can't say for sure whether it will be this year or next year what is true is he is heir apparent his power and respect has risen this particular news that he is going to take over one day we don't know when yet >> thank you for that. regeneron announcing findings for its cholesterol drug claiming it can help prevent heart attack and strokes. joining us this morning is regeneron's ceo ll len schliefer >> at the same time, when you have these really great looking data, you are saying, you are going to bring the price of the drug down. does that mean you priced it too

high to start with >> you know, it seems that in this business when i started out many years ago, if you had data like this, wall street and patients and, doctor, communities would be having a parade for you now, you have to stare down right into the face of the people who are paying the bills. it's the world we live in. our view is that, we wanted to get and independent organization, let them look at the data, let them come up with a value and see if we could overlap our price to what the value we deliver that's what we are prepared to do we have done that with a challenge. the challenge is, we are going to force the payers as best we can and hopefully get the doctors and patients on our side they can tweet rx tonight if they want. what we need to do is make sure that the payers in exchange for that value-based pricing, are going to make access straightforward for the patients who need it.

>> they have come out saying where your drug is priced $14,000 and you pay discounts on that, they say what it is worth is $4,500 to $8,000 a year per patient. do you agree with that >> i can say i think what they did is a great job in a short period of time they had access to the data. they did it in very good faith, trying to come up with a price range that has assumptions we can live in that range. and give patients value. so long as the access is there doctors are furious. they write a prescription and most of them are getting rejected patients should be able to get the drugs they want. i can tell you that i think that we're trying to change the paradigm we want a new system if a company can be unknow have a innovated, if they can bring it to the market with compelling data at a value-based price, the system should reward that.

have i have been in contact with several payers they have been busy looking at our data they want to meet quickly. i think people will want to do the right thing and get this drug to the high risk patients who can benefit at a fair price. >> are you going to make it up in volume? you lower the price. in theory, more people will be able to get it you are going to make more revenue theoretically. is it enough the stock market is acting like they are disappointed. are you going to make the money back that you invested >> it's a good question. what we don't want to lose -- what we don't want to do is lose a dollar on every sale and make it up in volume. we want a fair price where we can make money and get a reward for the innovation that's been broad to patients. do it at a price that everybody can feel good about. if the system doesn't respond -- it's the same old stuff, people say, thanks for the lower price, but we're not going to change access, we're going to deny

prescriptions, #rxdenied, we can't stand for that the american heart association yesterday put out a statement, they supported the efforts that they have done to try to bring an important medicine to patients at a fair price we need the public on our side if we have done our part. >> are you pushing that, #rxdenial? >> we have to monitor. we will trust them some will act in the right way some won't we have to verify. >> as you talk about express scripts, they come under pressure in the last couple of years in the drug pricing debate as you say, you will be lowering the price. are you actually lowering the list price of the drug, or are you giving a bigger discount to the middle men are they going to make more money because you give the discount >> there's a great deal of complexity about how the money flows in this system i have had lots of lectures from my team, show me where it goes and how much we wind up with

we will lower the price that people are paying for the drug, which is whether it's the insurance company and whether it's patient making a co-pay when you add it up, that's what it costs to get somebody our drug we want that price to be lower we want them to get the drug that's the bargain we're laying down the challenge. you guys want fair pricing we will give it to you you want compelling data we gave it to you. >> let's talk about the data your drug is considered to be head to head with amgen's drugs. their sales are higher you benefit on mortality, implying it may help reduce the death from cardiovascular events was your study run better? >> you know, the data are what the data are let amgen answer that. they are the company that tried to get an injunction and keep our drug from coming to the market it's hard for me to warm up to

their data just because they tried to take our drug with all this good data we would never have off the market and use scare tactics. >> through a patent battle. >> how much did you spend on this drug? how much investment? >> it's enormous it's a b in front. >> i figured smart like that. not an m and tr. >> exactly just on a trial -- 20,000 patient trial, following people for almost four years, and detailed follow-ups, safety committees, all sorts of information. that's extremely expensive. >> would it help if the rest of the world didn't control the price of drugs the way they do we are the only country in the world that pays for r and d. there are rich countries that doe ma demand their people get cheap drugs. >> i don't think it's fair

it's free riding on the -- you have the american system, which includes let's say the nih doing research, university-based research you have entrepreneurs you have capital markets the stock exchange where we are sitting today. the american consumer is paying the higher bill. >> you will sell this drug oversea s overseas >> we do. >> what are they paying in ge germa germany? >> ask sanofi. i don't know how to fix the system in terms of making it fair maybe others who can focus on that policy will >> quickly, this has been an issue trump is focused on. do you agree with how he addressed drug pricing >> it gets a short shift we need a system that's rewarded trust me if we don't come up with drugs to treat alzheimer's, par

conditi parkinson's, cancer, then the bills we -- putting folks like me -- somebody will have to take care of us when we're all sick or demented. we need drugs to stop that we need a system that continues to reward that we can't be tone deaf. we can't have 15% price increases. we have never increased the price of a regeneron drug. you can't have 15% or you can't say come out and make a pinky pledge that you are 10%. >> what about 5,000% what do you think about that >> horrible. not that he is going to prison horrible what he did >> thank you so much for being with us. >> thank you >> thank you as we go to break, look at the markets. dow has gone into the red by 35 points good action at the nasdaq. new highs on apple, amazon,

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experience amazing at your lexus dealer. broadcom is up intel has interest in potentially acquiring broadcom intel did release a statement not long after the story in which it did not deny it i can tell you that intel did

hire bankers to help it consider whether or not it would want to make some sort of a move on broadcom or engage in talks with the company, designed to potentially acquire it the journal story focused on the idea being that if broadcom were close to actually succeeding in its acquisition of qualcomm, it would present a competitive threat to intel and therefore intel might be motivated to act, perhaps in a hostile fashion i heard things differently was not prepared to report anything that, in fact, if that deal did not go through, as one would say, it appears more likely than not right now, that intel might have interest in potentially talking to broadcom. it seems unlikely at this point. intel in its statement says it's more focused right now on integrating its previous acquisitions the fact that they did hire bankers, which i have confirmed as well, certainly indicates

their willingness to consider doing things they have moved into qualcomm's area by providing some of the chips into the phone sets. they may want to combine modems with filters they may have wanted to be in a position to acquire some of the divested businesses from a combined broadcom/qualcomm if that were to have taken place or does take place. they would be potentially forced to divest certain businesses to u.s. companies, it might be very much specific and intel might have been or might still be in a position to benefit from that. >> real basics why would they be so threatened by them coming together? >> very large market the new and competitive market for, obviously, chip sets for phones which is a key and in some other areas as well. their businesses don't overlap enormously therefore, antitrust review of a potential deal, tough to say, but not seen necessarily as a

red flag. >> calendar and process not always so interesting. what i find interesting is the journal suggests this would be an offensive move to disrupt owe potential deal you are suggesting, no, maybe they wait and see what happens to broadcom first and then get in there. >> i was hearing it differently. didn't do -- always regret having not done more reporting but didn't feel like it was necessarily anything that needed to be thought about today because, in fact, that was the way it was explained to me they would sit back. i think again, most people at this point would say it's unlikely that anything will happen here involving intel and broadcom appears to be growing unlikely that anything is going to happen between broadc mom and qualcomm. >> bitcoin, it dropped 25% last week its volatile in early trading today. under $10,000.

we will talk to andy rohmberg about wh'sat going on. that's coming up on "squawk alley.

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one of the notable laggers in trading so far today has been the industrial sectors you can see there. we're down on that sector overall. the losses are being driven by weakness in defense related stocks which have been hotter industry group over the last couple of years. you got shares of general dynamics, also boeing, huntington and then lockheed martin, some of the big names in the red so far that's driving shares of the i shares usair yoe space and defense. that is lower. the fund up 8% year to date and 35% over the past 12 months. carl back to you. >> dom, thank you. legality's get to the cme group in chicago rick santelli and get the "santelli exchange". >> good morning, i'd like to welcome jim bianco let's get into it. i guess the first thing we need to talk about today is your graph. hopefully we're showing it cumulative balance of all central bank balance sheets. what should we learn from this

it it is highest level ever we hear so much about reduction. >> that's two things i think that it is the most important thing driving financial markets in the post crisis era all of this printed money is helping to produce, promote higher financial asset prices. and once that thing is to start down and people believe it's going to start down, i think we're going to run into headwinds. that's what happened a month ago. we were worried that balance sheets were going to start down and that's why markets hit turbulence and now that they're back up, geerting a respite. >> so you can say something until you're blue in the face and then say, it's priced in but it's not discounted in >> that's right. the awareness of an issue in the discounting of an issue are two separate things. there are plenty of examples in history when we say something's coming mario draghi has to leave in the middle of 19 and a german might take over. and then the actual vent happens and then the market reacts to it >> all right let's go to the biggest story of the day. i'm not a big fan of this story.

we're both free market guys. now having said that, i think blanket statements cover up the truth and they're very much ignorance driven so whether it's "the wall street journal" today talking about climate change and saying you can't say it, you have to talk about adaptability we didn't run out of food in the 60s. we didn't have no space with population growth in the 70s all the blanket statements are always false so what about the blanket statement? that under no conditions ever can you have any type of restriction on trade it's bad, bad, bad >> i agree except the eu who is criticized trump's steel tariffs has 1,266 tariffs. there is 169 import vats we have nothing but trade barriers left and right. we can't finish brecxit because they're arguing about trade barriers and we're worrying about one more after we have all the other trade barriers in the grand scheme of things,

it's like pouring a gallon of poison into the pacific ocean. it doesn't really matter. >> this notion that it could turn into something bad, i understand but that can't be ever directed to this macroguideline that you can never crack the nut on big bureaucratic agreements. >> i agree i would like to see less trade in theory. but we don't live in that. i would like to live in a capitalist system. we don't live in a capitalist system. >> we're almost out of time. >> if peter navarro gets a new job in the white house, that somehow that means we have to sell our stocks. he already has a job in the white house and we're already implementing the policies. but if he gets a different job in the white house that, somehow changes things >> blanket statements covers up people's intelligence. carl, back to you. >> all right rick, thank you very much. rick santelli. when we return, the tech sector his another record high led by amazon and netflix. a lot of big names on the all time high list we'll talk to rbc with a look at that and what the next high-tech

stock could be when "squawk alley" starts in a minute.

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