2018 and "squawk box" begins right now. >> announcer: live from new york where business never sleeps, this is "squawk box. ♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernin and andrew ross sorkin. welcome back >> thank you did you miss me? >> yeah. did you have a good vacation >> it was a great vacation >> you didn't miss us? >> no. i heard -- something happened last week. i was on the ski slopes looking occasionally at the phones but not that often >> if you were gone last week, we're paying attention this morning, we're going to see futures indicating sharply higher but it's not going to make up for all of the carnage we saw last week look at this, the dow indicated up by 370 points s&p up by 32

last week, the dow was down 5.7% because of facebook nasdaq faced more pressure down 6.5% just for the week again, sharp opening for the week but it's not going to make up for all of the carnage we saw last week. still a lot of questions that people have about what was happening in technology. what could potentially come in regulation and what is happening with banks we're going to talk those issues in just a moment also, take a look at what happened over night in asia. the nikkei closed up .30%. stocks up by equal amount, shanghai, stocks down there in china down by 0.6% then take a look at what's happening in europe with early trading taking place there for the most part, you're going to see green arrows. looks like the dax is up by 0.6 percentage point the dax and ftse up. and stocks up in spain

then check out treasury yields because this was another issue last week. up did see higher yields but as stocks went into free fall, you saw people ming to treasury and that put pressure on yields. and we'll talk about the fed and its issues when we hear from a couple of fed governors later today. right now the ten-year is yields 2.86%, after all of that, just up after a week ago. here's what's going on uber sell ig southeast arab business to singapore based rival grab. it's going to move the hide railing and food delivery into grab they will acquire a twrief% stake in grab and uber's ceo will join the board. it's marking uber's second exit from the highly competitive asian market you will remember that uber sold its china business to rival de this is a chip because

effectively they're saying we're going to get out of these businesses we're going to focus here in the u.s. and other markets in europe >> is it a strategic focus or is it we're running out of money? >> i don't think it's we're running out of money by the way, the deal with dd turned out to be quite a remark about one in terms of economics of it. these deals might actually be good they have a focus problem the whole idea under travis is we want to own the whole world, but now under dara, they want to see what can be done america's largest gunmaker remington filing and plans to wrap up its bankruptcy by may 3rd. and facebook shares continue to slide as the fallout growing into massive privacy scandal uk authorities now raiding cambridge analytica's offices over the weekend looking for evidence relating to their data collection investigation. meantime, i don't know if you guys saw this over the weekend,

facebook's ceo mark zuckerberg apologizing in a full-page ad in newspapers zuckerberg saying we have a responsibility to protect your information if we can't, we don't deserve it by the way, there's a sentence in there that is key saying there's more to come >> i'd like to know what information they're collecting and we found out in some cases android calls were being tapped to know what your calls were >> you're saying on the google end? >> no, on the facebook side of things on facebook, a guy figured out for years on android phones you were handing over every text times, who you were calling. >> i think the question is going to be what you find out. when mark says in the ad, we're going to hear more, but is it going to be about your privacy

at large or is it going to be about influencing campaigns? >> they haven't even answered what information they've been getting from us for all of these years. let's hear about that first, then you can tell us how you're going to make us all feel better about it >> a lot more to do there. >> facebook also -- >> i heard on friday again, that it had closed at 159, but the market is down 400 but, you know, you could have, andrew, bought the entire defense group, for the price of facebook >> yep >> so it lost about $60 billion of market. so, used to be you could buy lock he'd ratheon, and you now you got to give back ratheon, and worth pointing out it was worth as much as disney, comcast and throw in a netflix.

>> so what are -- what do you think it's worth >> i don't know. you tell me me if it really changes on how much of your personal information they can sell -- >> i don't know if you heard what i said to brian what i think they should do, a very easy solution in the short term because everyone thinks that they're affecting political campaigns by the way, not just in the united states, but everywhere >> i don't care about -- i care about whether -- when you sign up, you get free facebook stuff. >> yes >> but they get everything you've ever thought or done for free >> interestingly -- maybe i came at this the wrong way, i think that people are always willing to oddly give away their privacy for these things i just don't think they felt they were going to influence or impact elections >> i don't think anybody had any idea how much information it was. >> you're saying -- with obama in 2012 and then trump in 2016 you're making this a trump thing about facebook >> by the way, i think it's influencing our elections here

i think it's influencesing our elections all over the world >> lobbyists and political ads and everything else. i didn't even think about that and i'm safe because they haven't got -- they've got nothing on me. >> it bothers me to think, look, you open yourself up and you're giving away more information than you ever anticipated. it's basically the highest bidder who comes along gets it >> so, you don't care, you've never gotten upset about union members that have to pay dues no matter what always support democrats. that didn't bother you that all of the money that gets collected goes to one side of things and they have to pay that's why a lot of supreme court is deciding whether you can actually charge union members -- >> i'm missing the link between that -- >> people influencing politics taking money from people that may be on the opposite side of things >> actually, i don't think that public unions should be allowed

to lobby >> okay. >> you think it's a privacy issue? >> i think it's a huge privacy issue. if i was mark zuckerberg, rather than run these ads, i would say, look, given where we are, and what we know or don't know about our own bliss, we're going to stop accepting any political advertising around the world right now. so, at least, you take that off the table. >> but i'm still mad >> by the way, you should still be mad >> i'm not paying 50 bucks to get rid of political ads i don't care about political ads. by the way, they didn't know it was a political cad. >> and facebook, they don't monitor anything >> we're worried about the nsa, the nsa has nothing compared to what facebook has. >> right >> mark zuckerberg was actually on instagram thanking cheryl sandberg, she's been on for ten years. who do you hold responsible? >> i facebook overall is responsible for what's happening. >> and what you should get for it this is a very interesting lie

ability question >> should i get any money back from that? >> yeah, i'm asking. >> no, but i think the federal regulators -- by the way, elon musk, did you see his comments, he's furious about this. >> well, he's been with mark zuckerberg forever >> i went back and read a "rolling stone" piece from november where he laid out his concerns like do what you say you're going to. >> what would you do if i'm a regulator >> by the way, i agree i think there's a huge problem >> media companies are held to all kind of standards that facebook has never been held to. why do we have that difference why can they collect any data they want and do anything with it when media companies can't. >> you do think it should be worth as much as walmart and boeing combined? >> you've been on the valuation thing the whole time >> i'm just wondering if you own something, you can own mcdonald's coke and pepsi or facebook is that really -- >> well, it is a money machine,

right? >> i get the -- i agree you can pay for it not just political ads, you better get rid of all ads. >> no, brian was suggesting this idea, instead of accepting ads it should be a model i happen to think that the amount of money people are willing to spend on facebook around the world is much less than people think. >> and elon musk saying -- say what, it's 2.6 billion. >> 2.6 billion >> over time if it works >> no, it's 50 -- >> 2.6 would be the first model. >> and if you double the valuation. >> if that goes to him, do you think the huge government subsidies, that taxpayers are funding for tesla. shouldn't the government immediately stop or we just sort of paying, gosh, it's nice to

have met you does that make sense they have huge government subsidies and end up accruing to him >> first of all, the government subsidies that go to electric cars for the most part, tesla will get in passing. but i would make a different argument which is this country, and you disagree with it, but this country has made some decisions about certain technologies by green technologies, that they want to promote. >> so, it's better off the grid? >> so, you have to decide whether -- >> you are on the power on the grid any way how do you get the power for the grid, from coal? >> say this again. >> never mind. it's monday, it's tough. you got to power up the grid with something is it better with electric cars? how about the battery? >> do you think that -- okay so, we're in the broadcast

business you could argue that the -- that the airwaves are somewhat subsidized by other taxpayers. the whole thing is crazy >> we're owned by cable. >> cable >> all the point is, 55 billion, i don't know if that makes -- that make no, sis no sense >> first of all if he makes 55 billion -- >> whatever he makes >> i like it and shareholders like -- >> i knew my stock was going to be up based on taxpayers subsidizing the company, i'd be happy, too i think it's -- >> it's going to be a very busy week in washington and kayla is with us, kayla tachie, so wrap up what's taking place over the weekend a big week ahead >> good morning. everyone in walk around and the

country is talking about this interview where adult film actress stormy daniels told "60 minutes" she had a one-time affair with now president trump that resulted in a $130,000 payment to stay silent from trump's attorney michael cohen during the election. during talks daniels said she was threatened not to. >> i was in a parking lot. going to a fitness class with my infant daughter. taking, you know, seats facing backwards in the backseat. diaper bag getting all of the stuff out and a guy walked up on me. and said to me, leave trump alone. forget the story and then he leaned around and looked at my daughter and said that's a beautiful little girl it would be a shame if something happened to her mom. then he was gone >> daths said she signed the nondisclosure deal for her family's safety. and she signed three subsequent statements denying the affair, including two in january because she was scared of the consequences she now says those were false

cohen and the white house said they deny the relationship with daniels. and the attorney sent a letter calls for a cease and desist meanwhile the investigation in the russian investigation is shrinking. two attorneys hired last week will not begin due to conflicts representing other parties in the probe. that was confirmed by trump's remaining attorney jay sekulow over the weekend and those changes could come as soon as this week. >> he did say that he's expecting to make one or two major changes to his government very soon. and that's going to be it. now, other white house sources, not the president tell me that veterans affairs secretary david shulkin is likely to depart the cabinet very soon. >> march alone has seen the

departures of secretary of state and the director of economic council. congress is on reinvestigate normally that has meant to quiet a week for washington. but as we've seen with this white house, sometimes those are the busiest. back to you. >> kayla, question, because we've been having this facebook debate, do you actually hear in washington real talk about regulation of what that even looks like >> well, there's certainly bipartisan support for regulation the question is what it looks like you know, you have this bill that was put forward by senators warner and klobuchar with backing by senator mccain. it's basically very narrow it calls for facebook and all social media ads to be disclosed the way other ads are. but that doesn't get at the heart of the issue that facebook is dealing with right now. even though that legislation is on the table and stalled in the senate, people are saying, is that really the right tool to get at this problem, or is there perhaps something broader needed but there's no agreement on what

direction you go with that >> do you think regulators would be okay with no political ads on facebook i mean, they actually want to use the advertising platform >> well, i don't think that any regulator in a republican administration wants to limit full stop the type of business that any company can do. i mean, you would then get into a murky conversation of whether you should have political billboards whether you should have political radio ads. i don't think that's a conversation that any regulator wants to have. but there's also this question of whether social media companies are effective at self-policing and that is something to prove to washington >> kayla, thank you for that also, just one other piece, we didn't really talk about it which was the march on saturday. any implication, we saw the remington bankruptcy over the weekend. anything ahead as a result of that >> well, in this administration, you know, every day's news cycle feels like a year. once you get to monday saturday feels like it was ages

ago. there is still a lot happening in washington. whether it's on the national security front, on the foreign policy front on the trade front and there is a lot for the administration to talk about if they do not want to -- if they don't want to actually engage with the messages that were put forth by at least 500,000 people here in washington over the weekend. hard to dispute the images and the powerful messages that many isn't generation z were sharing. but it's not something that has at least become influential for the talking points for the administration this week >> thanks, kayla >> all right all right. it say busy week ahead for economic data on wall street, too. tomorrow, you can look for the s&p case schiller home price index and consumer confidence. on wednesday, we'll be getting the final read on gdp and home sales. thursday, personal sales and spending, consumer sentiment and the markets are closed on

good friday. yea. joining us right now is paul hick kick the co-founder of the spoke investment group and jim tierney, the chief investment officer for cons sole slated growth and allianz bernstein. gentlemen, welcome anybody looking back at last week may be shell-shocked taking a look at their 401(k) the dow down by 5.7% off correction for the cnn cnn down 9%. nasdaq off by 6.5% last week alone. what does this mean when you look at the green arrows this morning? jim, do you think we're done with what has happened here or is there more to come? >> well, i think this is what investors should expect. last year was the abnormal year. very low volatility. every month was positive we have volatility on average one out of three months negative. this year, one outside of two

negative >> you're talking about economic growth and earning growth? >> exactly valuation is not crazy 17 times earning >> so, this is a buying opportunity to you >> we think it is, yes >> what about you, there's information where there's undercurrents of things that might be happening here, fang stocks aren't leading the way. they were down last week you could have regulation coming bank stocks with problems by libor. there are new issues? >> there are policies potentially are a worry for the market but we don't think they're really going to spiral out of control but it creates headline risk. and when you look at the underlying economy, that's the first thing you want to look at. and the trends are good. leading indicators, and housing starts are slowly rising jobless claims, historical lows. so the underlying trends are good the yield curve which is the focus of a lot of people over

the last, you know, several weeks as it flattens has become a concern. and i think when you look at the powell press conference last week there was a question regarding the yield curve and would the fed halt rate hikes if the curve started to invert. i think a lot of investors have been of the view if the long end of the curve doesn't pond as the fed hike rates they would step back but he dismissed that and said the effectiveness of the yield curve isn't as reliable as it used to be i think that's a worry for investors. you don't want to fight the fed. if they're willing to invert rates into a yield curve by their own research is the best predictor of the economic cycle then that's of concern a reason to be weary >> the fed was a bit more hawkish. more than we anticipated if you looked at who was looking for economic factors or rate hikes i think there are six looking at more than three potential rate hikes

does that concern you? >> not at all. the fed is not going to put the fire out by any means. three hikes this year is exactly what the market was expecting. >> a fire makes it sound like the economy is overheated? >> no, no, i think the fire is burning pretty solidly when you look at employment trends and wages, but we're not seeing inflation take off here until that does, the fed has to get nor aggressive we didn't hear anything from powell that inflation is out of control and we're not seeing it in the numbers now >> paul, jim sounds resolute if you look at the underlying trends this is a good thing. i'm less clear on what you think. >> so, i think looking forward, you know, a year -- equity market is better than the alternatives here. in these kind of volatile environments rather than being a hero and trying to chase it, you put in bids below the market this kind of volatility, we dropped 300 points in the last hour on friday futures up 300 points right now. you're going to see the moves. >> the futures are up, but

you're still talking about the down correction territory? >> right so, i mean, the futures are up, but what i'm saying, where the market, based on the open now is where it would have been based at like 3:00 on friday so, it's a big move. so, this market, you tend to see the volatile swings. so, when you go and say don't chase the 300-point open -- >> i'm saying with the 300-point open you're talking about a 10% correction, that's not enough for you? >> the average is 15 >> you think there's more to come >> today, tomorrow, the next day is like pinning the tail on the donkey you just be conservative you don't have to be aggressive right here overall, what we would do, put in bids, 1%, 2% below where the market is trading and see if they get hit i'm sure they will at some point. >> gentlemen, good to see both of you coming up "black panther" ended its run as the top box office hit

but it just did set a new milestone. that story after the break u.s. equity futures at this hour are rebounding but who knows where it will be up more or heck -- who knows it could be anywhere be right back. 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, you get the #1 thing. directv is rated #1 in customer satisfaction over cable. switch now and get a $200 reward card. more for your thing. that's our thing. call 1.800.directv

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welcome back, everybody. german gypsum maker noff is seeking to buy ufc for $55 a share. that news just out from berkshire hathaway the proposal is nonbinding and the price compares to usg's close of 33-51 after five weeks, "black panther" has finally been dethroned as the top film at the box office universal pacific rim uprising supplanted it. the monsters versus robot sci-fi sequel "pacific rim up rising" opened this weekend. $28 million domestically the opening was soft since the film cost $150 million to make

did the best in china where it made $65 billion "black panther" slid to second place. this was the sixth week. did hit a huge milestone, becoming the highest grossing superhero film ever in north america. that means $631 million in domestic ticket sales. surpassin surpassin surpassings "the avengers. and beating out is "star wars. retail gas prices use the united states increased by an average of seven cents the current cost is $2.66. that's about 33 cents more than a year ago and this comes at oil prices have been up last week. >> going 20 miles an hour. >> there's only $2 and

something -- >> yeah, i was pumping my own gas. >> you rented a car? >> of course how do you -- >> i have no idea. i think you have a driver. russian skiers met with a colorful surprise. orange snow. a sandstorm in the northern sahara desserts covered the entire country of greece and all the way to sochi, turning the snow orange. >> wow, that's a long way. >> which, you know, could be helpful for contrast when there's a lot of cloud cover maybe it might help a little >> it's orange snow. >> it's the yellow snow that you want to stay away from >> that's a separate issue that's separate issue. >> i have five-foot banks in front of my house. >> ours is mostly melted off there's a little snow. >> if it's in the shade and it had be moved by a plow >> mostly gone >> this week, it will go >> it was 29 this morning. >> i know. we're ready for spring,

still waiting. >> that stupid groundhog send that guy impact to groundhog school >> he saw his shadow, six more weeks. >> punxsutawney -- i'm looking nor for a new punxsutawney phil because he missed this so badly. >> that was staten island. >> there are a lot of different ones when we come back today, we will talk tariffs and potential cabinet shake-ups with mike allen of axios joining us next. and equity futures, if jury just waking up, a lot of green arrows dow futures indicated up by 350 points but that will not clear up the carnage of last week. s&p up by 40 nasdaq, 130. as we head to break, take a look at last week's s&p 500 winners and losers energy is changing fast and we're changing with it.

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morning. dow looks like opening up 338 points heap s&p futures up by 38 nasdaq up by 126 china's foreign ministry said it is willing to hold talks with the united states to resolve trade differences. those comments were made early this morning at a beijing briefing and this comes after we're hearing there have been quiet talks taking place behind the scenes including treasury secretary mnuchin. in the meantime, blackstone's steve schwarzman said talks on tariffs dob delayed. schwarzman said it's not set in stone and implementation can be postponed. he said he anticipates that rational people from both countries would be able to come to a good solution with the goal of a more level playing field. stocks to watch today, payment and packing company smurfit, smurfit kappa has rejected a revised takeover over from international paper >> papa smurf. >> i like the smurfit.

the good value of smurfit at $11 billion earlier this month turned down an unsolicited offer from ip saying it failed to reflect the strong growth prospects and attractive outlook. i think the movies were bad, though, right? >> not if you have kids. >> they were abysmal, right? >> no, they were all right auto parts make dana raising its cash off for the drive line business $1.8 billion shareholders have until thursday to decide whether to bank the gkn plan or choose an offer from uk's melrose for the entire company. and british retailer j.k. sports struck a deal to buy u.s. chain finish line for $558 million. j.d. will pay a $13.50 a share premium, that's a 28% premium, before the friday closing price. coming up when we return, president trump's economic

adviser kevin hasek is going to join us. and former price chair allen blinder is going to be here. and right now, a ranking of the healthiest communities in america. ceo mart bertolini is going to be joining us telling us how the company is using that data you're watching "squawk box" here on cnbc i'm very proud of the fact

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welcome back to "squawk box" this morning take a look theess equity futures at this hour after what was a tough week last week things are looking up. dow looks like it's going to open up triple digits 331 points higher nasdaq 118 points high s&p 500 looking to anticipate 38 points higher. new this morning, china's foreign minister said it is willing to hold talks to resolve differences on trade eunice yoon joins us with more eunice, it sounds like back channelism quiet talks hines the scenes

>> yeah, absolutely. and the foreign ministry was responding to a question as to whether or not a country would host u.s. treasure social secretary steve mnuchin if he were to come here for talks. at a regular press briefing a spokeswoman said china is willing to negotiate with the idea of mutual respect and mutual benefit now, the "the wall street journ has been reporting that the u.s. led by steve mnuchin with what they want to see, more chinese purchases of american semiconductors and greater access toot financial sector now, i was speaking earlier to a source of mine familiar with those discussions. and that person said that the chinese have already been responding saying they would offer to buy more semiconductors from the united states they also said they're willing to accelerate the time line for greater ownership in securities. and the chinese have also told

the united states and its officials that they would -- they should expect to see more financial reforms in the run-up to an important forum here on april 8th to the 11th and that president xi jinping would be highlighting some more of those financial reforms at this time now the behind-the-scenes negotiations are probably going to be welcome not only for investors but for the top ceos who have been here for the past couple days. it's a state-run conference co-chaired by apple's tim cook this is what he had to say >> what i've seen over my lifetime, is that countries that embrace openness, that embrace trade, that embrace diversity, are the countries that do exceptional. and the countries that don't,

don't. >> and, guys, i've been speaking to a couple people here about the chinese response and so far, just for some perspective, they're saying it's great for the chinese responding to this. however, a lot of those issues on the wish list appear to be low-hanging fruit. so, one person told me that the chinese have already been thinking about sourcing and diversifying their sourcing for semiconductors away from the japanese and the koreans so this would just fit right in for what the chinese want to do also, the chinese have already been in the process of lifting the foreign ownership rules on -- for securities as well as the insurance industry so, this stuff was already in process. and the people i'm talking to say that the real challenge is going to be if the trump administration goes after something is that would be involved with the industrial policy of china, so, anything

that would conflict with china's own economic agenda. naturally that's where the big conflict is. >> eunice in terms of tim cook's comments how much of them do you think were directed at the trump administration and the president of the united states and how much do you think they were directed actually at china itself, given the rules there? >> well, it's difficult to say but he was directly asked about his response to the trump administration's latest moves and the tariffs. and he didn't name president trump, but his response was that he believed, as you heard in that comment of his, that a more open societies are the ones that will benefit the most, compared to any -- a country that remains closed >> all right eunice, thank you very much. eunice yoon. all right. coming up, definition stocks have been on the rise. we'll tell you what's working in the sector next.

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. welcome back to "squawk box. defense stocks seeing a bump an president trump signed the omnibus spending bill into law joining us is the equity analyst at jeffries. so, what's working, what's not, right now? >> i mean, across the board defense stocks seem to be working, without pulling back with the market downturn part of the reason you're seeing influx in defense spending calling for $665 billion of about 9.5% >> single biggest winner >> luke heed and general dynamic. luke he lu lockheed with the scope of their

portfol portfolio. >> the biggest loser >> it's hard to say. the top account for 55% of spending those are up 30%. there are only one or two programs down. if we were call out one that doesn't minute as much, i'd say ratheon, just given the spread across the programs they don't have the same that lockheed did with the f-35 program. >> but the expectation was, the stocks have obviously moved, but this has been somewhat built into the stock already when i'm talking winners or losers is there anybody who you think is a surprise on the upside >> we saw some pluses on the f-35 programs. lockhe lockheed one boeing, with the teams and general aircrafts and general dynamics, increase on the upside both in the tanks programs >> the trade war, how does that impact vy. >> that little trade war -- >> yeah, that's a different type

of war >> in general, with defense, we don't think it's a large impact, just given that defense products are society on the basis of technology and the installed base so, international -- countries will make the decision based on technology. >> what if he vetoed the bill last week, instead of signing it >>le he said he was forced to sign it. and this will be the last one he signs. >> that was a good number for defense. >> it was positive it brought down fiscal '19 a little more. what we've seen probably the same year over year, probably go into fiscal '19 with continuing resolution once again. and see plus-ups >> final question for you which is if you're playing this -- there's about a million different mutual funds that just just defense is there any one out there that you think is actually structured properly >> i don't know if we can -- >> are you allowed to say? i'm curious people saying should

we buy a defense etf is there one or two wrapped around the same way >> no, on this pullback, we favor boeing just given its commercial exposure the stock's pulled back significantly. we don't think china -- will go into a trade war with china. we think the administration, as it's done, it's favored boeing in the past, will come to its senses >> thank you appreciate it. >> axios and survey monkey out with a new poll about facebook and other tech stocks impairing the social media giant last week found that facebook's favorite rating has plunged joining us mike allen, executive director of axios. i thought it was funny, mike facebook plummeted 28 points but still doesn't get anywhere where mere twitter is stuck.

be more agressive. i was just on with the conservative radio host hugh hewitt he says these tech companies should be regulated like public utilities. >> if mark came out right now

and just said, look, we know we have a problem we are not going to accept political advertising here in the united states or around the world. we're out of that business we're going to be a town square but we're not going to be a political town square. >> i see no possibility they would do that for both business and philosophical reasons. but you're right to be thinking big and thinking radical -- >> that's not big enough, mike this is more than just a political argument, this is privacy at this point. we realize there is a lot of information they are collecting that we didn't even realize. >> i sfor democrats, that's whe the biggest plunge was they have a little bogeyman for why hillary lost it's facebook. >> you look at those numbers, and the reason andrea is right to be thinking that way is if these numbers were a political candidate, imagine if this was a campaign or person --

>> people are mad because we're mooches. i'm not, but people are mad because their personal data is being sold and it has nothing to do -- we didn't mention politics one time while you were out this week, not one time in reference to this story. >> that's because you missed the story. a huge part of the story -- a huge part of the story is a view which i don't think is that disagreeable that effectively the election was hacked and that effectively our democracy is coming under fire because facebook and others have a system that isn't working. >> that happened back in 2008. this is a little different than the guise of someone who was pretending he was doing something he wasn't. >> they didn't own facebook in 2005, right? you didn't get mad then.

>> i don't think we heard that the russians interfered with the election in 2008 or 2012 i am i wrong >> i don't think the issue -- >> the issue is, on a political basis, mike, you tell me i believe the issue is that the russians effectively advertised, effectively or maybe too effectively -- >> analytica was being used by steve bannon >> correct >> that's not the russians the trump campaign was using that information this information was stolen and that's the different part of it? >> mike, you speak i'm losing here at this table, but i don't think i should be. >> no chance that i'm going to break up the family squawk, but you mention privacy, and that's why this new front for facebook over this weekend is so dangerous. now we know that android phones in previous versions could suck in not only cell phone contacts but also a record, of specific

cell phone calls, and facebook goes up with a post saying people gave specific permission. that's the problem here, we've been clicking forever giving permission to things, and now we're starting to realize what it is, and that's why there is this huge tech lash. we're saying, we trusted you i don't care what i said, i trusted you. you abused that trust. >> we missed the story with andrea not here. >> the people that run the company own the company, so that makes it unlikely at the very top, but that radical course correction of some sort, hard to see that not happening people inside facebook say if there's one thing they respond to, it's the stock price they can't -- that's the ultimate wake-up call inside that building. >> thank you, mike it's good to see you >> have a great week when we come back, president trump's economic adviser kevin hassett will talk tariffs and a

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wall street pointing to a slightly higher open following last week's big sell-off >> trump, trade and tariffs. council of economic advisers kevin hassett will join us for an inside interview. >> facebook will provide more details on its data scandal. the company now apologizing. the latest on the facebook fallout straight ahead

the second hour of ""squawk box" starts right now >> announcer: live from new york, this is "squawk box. >> good morning. welcome back to "squawk box" on cnbc take a look at features this hour we are up triple digits after what was a very rough week the dow looking open about 326 points higher, the nasdaq, 126 points higher, and the s&p 500, 39 points higher the white house sent out specific requests to the chinese government, including lower tariffs on u.s. automobiles and

more china purchases of u.s. semiconductors also germany's knauf has made a non-rival bid to buy america's usg. the proposed price is $42 per share compared to usg's closing price of 33.51, and i think we're correcting where we were last hour on that. also separately, san francisco fed president john williams may be headed east. the general reporting that the new york feds board has recommended williams for its top job. he would replace retiring william dudley shares of finish line to be bought by u.k.'s jd sports and altria rated a buy at

deutsche bank. the price is $72 a share let's take a look at the broader markets this morning joining us is joe viso also brian levitt, who is senior adjuster at oppenheimer funds. you see this big surge it makes us wonder are we off the big selloff and were there reasons for a fundamental change underlying all of this is this a point to think, okay, we made it through, this is a buying opportunity, or do you think there is a reason for a decline in the banks >> we're bullish we think 6 to 12 months from now, equities will be higher than they are today. you have 15 to 20 billion being announced from china those are just proposals and the market response is we saw $1.28 trillion and $3 trillion coming off global equities and i think

that's a massive overreaction. >> so you think what happened last week really was all in all the concerns about a trade war kicking up >> absolutely. and i think the context here is this is a negotiation, not a trade war. we saw it in the bush administration in 2002-2003 with tariffs against steel from europe, and even before we saw it in the reagan administration in the 1980s against japan on both autos and tvs and neither one of those had any type of real lasting impact or lasting response this is not like the tariffs of the 1930s type environment where you see global trade collapse. i really think it's more of a negotiation. so the silver lining for investors is that the data out there, the underlying fundamental data is still pretty good i think that ends up being the bull case for stocks now the market will be really focused on the negotiations between the u.s. and china which is going to create more volatility, but i think there is a bottom out there, and once we

hit that bottom, the fundamental picture for both earnings and the macro, i think, is still pretty positive. this is not the end of the bull market here. >> brian, what do you think? do you think it's the trade issues that spark things that really was the problem >> it was. we had come off a period of such low volatility, we had gotten it from investors we had some uncertainty around fed policy, some uncertainty with regard to trade policy. i observe what's going on in the trade market right now generally comes from the steel-producing states of this country, so we should expect this he ran on this, as we talked about off camera, but i agree completely that the macro backdrop actually looks better now than it has in a long time if you look at the mmci countries, 73% of them are growing above potential right now, inflation is down in the

emerging markets, most central banks around the world with generally accommodateive >> you may be right that the economy looks great and earnings are going up from here, but you could look at a situation where market valuations are starting to get squeezed. you won't get the same valuations because what you're looking at from the fed perspective is they're tightening rates and we've gotten all the good news out of washington with tax cuts and all kinds of stimulus that now we'll be facing more of an uphill battle. >> i think you're right to hit on the rates side of the equation, because we know the fed is going to continue to hike when you look at the 10-year treasury, over the course of the past week, the 10-year treasury sold off, but i think on the other side of this, we have to think what the world will look like at a 10-year of 2 and a quarter, maybe 3%. stocks would have the ability to grow, companies could grow their earnings i think the other side of the

portfolio is the one that needs the attention. that's fixed income. what do you do with a fixed income portfolio when everything that's worked over the past 10 or so years is not working anymore. there are a fair number of investors that have been in the bear market for bonds and we'll see a repositioning. >> repositioning how >> a floating rate at the risk of higher rates. environments where interest rates are rising when you look at investor flows over the course of the last couple of years, investors have gone massively overweight with fixed income they've gone longer and longer maturities, right? so at a point when the government will have to issue more debt because of deficits, and the fed is saying they'll have to buy less because they're shrinking their balance sheet, the feds are going longer and longer duration with fixed

income >> particularly on the fixed income side, if you look into the emerging markets, some of the real yields you can generate in lower market currencies are quite attractive also when you think about valuations in the united states, they're not elevated but they don't look like anything they did in the late 1990s. >> you think we're even going to see -- like going up to 18, 19, 20 times >> sure, and we have a tax cut and in forward earnings we look better valuations look better outside the united states. europe continues to get cheaper. the emerging markets have had a nice rally but are still below average compared to the rest of the world. as a society, we have a very big home bias which causes us to have concerns about what the yields in our fixed income -- >> home bias is easy for a retail investor because you're not worried about currencies, you're not worried about other issues, a market that maybe doesn't have the same scrutiny that ours have >> the currencies tend to play

themselves out over the long term if you're a long-term investor, you probably don't have to worry about hedging the currency i manage an asset company, we manage the currencies where we think the opportunities are. >> president trump is up and tweeting this morning while you were speaking on this very issue. maybe he's watching you. he said, the economy is looking really good. it has been many years that we have seen these numbers. the underlying strength of companies has perhaps never been better maybe trying to assuage some of the anxiety that folks had either over tariffs or other things last week you're in agreement with the president here >> this is classic late cycle environment. we're seeing acceleration from corporate profits, macroeconomic, everything else this is an environment in which to be bullish. >> i would say this cycle will end like all others. rudy dornbush said none of them dies of old age, they die when the fed murders them with interest rate hikes. we're probably a bit away from

that it's a deep enough yield curve the dollars are behaving >> the fed is the one to watch >> i think the fed is the one to watch. >> thank you both. when we return, tech regulation the at&t trial and so much more. we're going to talk to ed lee this morning council advicer chair kevin hassett. plus alan blinder is going to be here he has a new book out outlining what politicians must learn to fix failing economies. u'ating "squawk box" here on cnbc this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe.

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. welcome back to "squawk box," everybody. we've been watching the futures this morning and they are indicated sharply higher in fact, the dow futures are up by 376 points right now, s&p feets up 42, the nasdaq up 136 we'll see how this shakes up as we get closer to the opening

bell the fallout. >> the fallout from the facebook scandal growing after that big data privacy breach. u.k. authorities raiding cambridge analytica's offices over the weekend looking for evidence related to their data collection organization. meanwhile, facebook ceo mark zuckerberg apologizing for the scandal. in a series of ads over the weekend, he says, we have the responsibility to protect your information if we can. we don't deserve it. speaking to tonight's "meet the press," the top democrat on intelligence, mark warner accused facebook of not being fully transparent with congress, and it appears americans are losing trust in facebook a new survey finds that just 41% of americans trust the social media company to obey laws that protect their personal information as compared to 66% who trust amazon, 62% for alphabet, and 60% who trust

microsoft. >> so much more going on this week managing editor, contributor to cnbc we've been talking about facebook all morning >> all morning, yeah >> you heard a little bit of the debate what do you think is going to happen as a result of all of this >> i know you asked earlier will poll advertising go away i think there's just no way. >> how big of a piece of the economics is political relative to selling you a toaster or a pair of sneakers >> it's much smaller most of facebook's advertising is what we call long tail advertising, so these mom and pop businesses that advertise download my app -- when i say mom and pop, i'm talking about new apps coming into the fray -- they don't get as many of those as tv does or other social media. that's what they're trying to

crack into, media like tv, they see political spikes for sure. >> am i wrong in saying it's the political and social -- when people thought that facebook was a better mousetrap to sell you a toaster, they weren't that upset about giving away their privacy to sell you a toaster that's more -- you know, that's more of an ed lee toaster than a joe whatever toaster no, no, that they can target these toasters once it became clear that they could target you around either social messaging or political messaging and influencing your thinking about things, that's where things got much more complicated. >> where it got more complicated also, i went back to my facebook profile and looked at my settings over the weekend to see how this was working exactly you can turn off ad targeting to your profile, but the way facebook couches it is really interesting. it means you'll see ads less relevant to you.

it doesn't mean you'll see fewer ads, you'll just see more random ads. they've always pressed the benefit of target advertising for things that mean more to you, so therefore it feels less like advertising i think that's always been the pitch. >> do you think the business model could work if there was a paid version of it, if there was a netflix premium -- >> you pay to not have advertising? i think that would really severely cut into their business, for one thing. i think whatever people want to pay for a certain higher level access to it won't make up for ultimately the ad dollars they're getting. because, again, as a free service, 2 billion people worldwide -- >> what's the ramifications, though what's the worst thing that could happen to facebook i'm thinking of it as a stock and the tech regulations that could affect the stock price >> it takes more of an eu style approach to regulation that could really cut in, right? they could choke the data and it wouldn't affect just political advertising but all kinds of

advertising. that's what the scandal showed us, even though they were harvesting the data for political ad purposes, the point is any third party could come in and grab it for any purpose. >> we still don't know what they've been collecting. over the weekend finding out that if you were on an android phone -- >> they log all your phone calls? >> your text logs, everything has been saved we worry about the nsa why aren't we worried about facebook by the way, not just facebook, google, apple or anyone else >> facebook has the most data because we give up the most data we put down our birthdays and where we live and went to college. >> you sign something, you agree to let an app come in and all of a sudden it's got access to anything you've been doing not related to facebook. that's crazy >> that's why you're seeing the polls you're seeing, because all of a sudden you realize, i didn't know you were using my data for that purpose. and they didn't realize they

were using them outside their guidelines they have a lot more work to do in terms of what are the consequences if there is much stricter regulations, it could really cut into their business. overall, in terms of who is at the top and what needs to happen there, mark zuckerberg, he -- >> he's not going anywhere >> he's not going anywhere you can't hire more cheryl sandburgs. >> she was praising him over the weekend. she's not going anywhere >> and the controlled structure that he's got, there is no one to put checks and balances against him because of that. >> time warner we have the case right here call it. for the arbiters watching this morning, what's happened >> i think a 50-50 probability is the way to read this right now. as in anti-trust cases, it comes down to a battle between experts. and that is who is better at explaining the tv business

it's been interesting. they're basically saying, well, if at&t is able to get time warner, it will raise prices on consumers, right the other side, the at&t side, is one thing you forget in that argument is if we pull back our feed to all the distribute tooro raise prices, we lose business >> and they've already signed -- they've already effectively signed the equivalent decree with every distributor that for seven years we're not going to increase >> they will determine what that fee increase is and will step out of it. >> you still think it's 50-50? >> i still think it's 50-50. you have to take into account generally, sort of a sentiment

around media businesses especially these days, and the long-running sentiment of cable companies. >> would you prefer this deal goes ahead with at&t, or do you prefer it goes back into the waters to be bought by somebody else and do you think there is a higher price to be had >> what if the higher price is facebook doesn't facebook kind of help at&t's case this week? >> at&t is saying it's facebook and google that are competitors, not necessarily the other cable and satellite distributors i agree with that take would i rather be with at&t or someone else they made a rich offer, so yes, i would rather be with at&t. >> you want to lock this down? >> nobody else is going to offer the same amount. i forget the price target they set with that deal, but it was such a rich deal, it's nice to be part of that. at the same time, structurally speaking, i don't think time

warner benefits being part of at&t they're kind of saying, well, you know what, the merger doesn't really help us, so don't cut the deal, please >> ed lee, thank you, sir. good to see you. coming up, president trump's top economic adviser kevin hassett will join us we'll find out if we're in a 3% world in terms of gdp right now. check out whether he still believes that. check out the futures at this hour up almost 400 points on the dow, good gain in the nasdaq as well. we'll be right back. can i get . watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you.

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welcome back to "squawk box. the average price of gas is up about 7 cents in the past two weeks to $2.66 a gallon. analysts say that's mostly due to higher crude prices gas prices are 32 cents higher than this time last year that's what i think i paid last week, $2.66. by the way, do you guys do 87? what's your -- >> regular >> are you regular >> my car? >> is premium. >> you go premium? >> 93. i pay cash i don't know why because it's cheaper >> you're that cheap

>> no, i just don't get the credit card out. i've been using a credit card lately at wendy's which is big for me, at the kiosk large fries, small fries, medium coke i'm not kidding. but a lot of -- you know, they do test the notion of whether it's fast food at wendy's. it's like an oxymoron. if there's a lot of people there, you sneak up in the kiosk and you see your name go up there quickly. >> and you sneak around there. >> i do. sneaky kevin hassett will be joining us later, federal reserve vice chairman alan blinder on fakesifakes i -- fixing america's failing policies at the top of the hour, is your city on the list of healthy communities? chairman and ceo mike cellini

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♪ >> good morning, everybody welcome back to "squawk box" here on cnbc we are live from the market site in times square, and one of the stories that are front and center this morning, "black panther" has finally been dethroned at the box office after five weeks on number one they pulled in $18 million over the weekend. that topped the box office rankings "pacific rim uprising" is the sequel to the movie "pacific rim" which made the most money worldwide. remington has reached a deal to seek protection it has been falling every year and uber has made a grab

deal uber will take a 27.5% stake in grab and rob shahi will be joining grab's board tariffs on china could be delayed. stephen shwarzman spoke to them over the weekend >> i think it's important to note that most of the types of things that are being discussed from the u.s. side can be delayed in terms of their implementation and hopefully will be. >> shwarzman says rational people from both countries will be able to come to a good solution with the goal of a more level playing field. we'll talk to kevin hassett. >> china sparking fears of a trade war rippled over the

globe. kevin hassett, you heard schwarzman there, and there is a piece in the "wall street journal," too, that there are behind-the-scenes negotiations happening. that would play into the notion that you take one position, you take the most extreme position and start talking about it and maybe get some action. is that happening behind the scenes, do you know? >> there is a heck of a lot of action going on behind the scenes and the people involved are really expert negotiators. from the beginning all the way back to last summer when i arrived in the white house, the president has been clear that he wants to set a marker down with some big acts. he doesn't want to dribble them out, then he wants his negotiators to try to fix the trade problems i think if you look particularly at the china problem, they really have been doing joint ventures, they've been doing a bunch of stuff inconsistent with the values of the wto, and they've been getting away with it because people are afraid to take them on hopefully it all works out in negotiation. >> 60 billion and then they come

back with 3. i didn't really understand that. i mean, how do you -- >> that's their story about the tariffs. >> but they were talking 3 now all of a sudden they're talking the old threat about not buying the 10-year, whatever whatever they're buying. i don't know what they're going to do with it if they don't buy those. is that a real threat, too, do you think? we've been hearing that for a while. we're still at 2.80. >> there is a question about black sales and if it's effective on the market. it will happen sometimes in the wealthy founder of a company passes away and his kids have to sell massive amounts of shares all at once. it seems like efficient markets can see through that the bottom line, though, if karen were selling their coffee in china, they would have to set

up a partner so instead of $50 in sales, it's $50 to us, $50 to the partner. so they're taking that money from us. they went through all the deals like that and the damage that happened in america. they said, gee, that's not fair. we're going to do the same things to you with these investment restrictions. >> kevin, you were at aei. were you pushing back? are you just a good soldier selling this stuff, or do you really believe there is a method to the madness that can work out? >> i've been really stunned since' been here about the leaking there is, and there is leaking in the oval that you could look up yourself i wouldn't say whether they're true or not. but you can imagine my job is to provide projective analysis and say, here's what happens if we do that and to draw on the literature

what feels really true to be watching the thing involve is there were a lot of different opinions on the steel and aluminum measures, but on the china measure, everyone is unified. if you just look at the evidence of what they've been doing to our firms, it's just not right and something has to be done about it so i think that part of leaking is something i would concur with if you start from a world where a bunch of your actual property is being stolen, of course it's going to risk premium in the short run when you try to do something about it, but in the end it should be a positive for us if we can get them to disregard the rules of international order. >> so when it's all said and done, do you expect these -- the trade side of things to take away at all from the positive benefits of the tax reform plan? i mean, that's gotten more popular. we're all looking at the midterms coming up here as well and whether, you know, there is a lot of stuff premiums are going to go up on health care and people are seeing more money in their paychecks, but then you've got

the possibility of higher prices from some of the trade stuff how do you think it's all going to play out? are we in a 3% world in terms of gdp? >> that's certainly what we forecast for this year, and i think that markets absolutely, if you look over the last few weeks, have been anxious about the developments in the trade sector, but it's all designed, really, to move us towards negotiations that make the world a better place the president says he wants reciprocal tariffs if we had reciprocal tariffs worldwide, think about it, there would be a mass reduction in tariffs in the world down to the u.s. level, and that reduction would increase global output, profits, investment, sentiment and everything else. the question is, will the other countries come to the table or will they continue to treat us a asymetrically and that that will happen relatively soon negotiators are out there dealing with this right now, and what i've been hearing is there

has been a lot of movement in the negotiations >> what do you think of the markets last week, which seem to be in large part a function of the tariffs. over the weekend i heard blame it on the fed, which usually treasury doesn't usually comment on the fed >> well, i never really know what happens one day or another when the market moves. i've got a couple academic papers where we tried to do it with science where you get a bunch of events and you see if the events can explain the movements of the margket. there were a lot of things that happened last week there were the trade markets, the fed moves and gosh knows what else. i do think moving forward, the funds of the economy are really sound, the economic data is coming in really sound and profit data are looking like they'll be really good, especially because of the statutory rates have gone down i think there is going to be a heck of a lot of good news that comes in, and i think the good news is going to be on the

economic data front as well as on the trade front as people watch a lot of the negotiations. >> the fed did raise rates i've read that larry kudlow is really good on tv and, therefore, he's really good when he gets to speak, and that, you know, you might be like gasping for breath do you see that happening? is your voice going to be softer, or is it going to be harder for you to be heard given kudlow being there >> no, not at all. as you guys know, i've been on cnbc with larry many, many times over the years and have grown to be very close with him, and i was really happy to see that he took that job. as you know, he's an angel he's really fun to work with, very smart and cares what other people think i think that the morale at the nec right now is very high i think a lot of the staff are sticking around because larry is such a great guy i hope he gets in here soon so

we can start working together. >> do you know anything about tax reform part 2? >> yeah. the president is very serious about it i've spoken with some members of the house that also have mentioned this is something they're looking deeply into, and i think that you could start with making the tax cuts permanent, the ones that expire as being part of that bill but i would expect that you're going to probably see some movement on that between now and november >> did you see the reaction to some of the president's supporters on the right about the bill he signed, the budget he signed? they're like, you know, ann coulter and others, they said this is like president schumer could you have gotten a better bill should parts of it have been negotiated differently, and was the final outcome, was that what you wanted to be signed? >> well, you know, if i watch my own negotiations with my teenagers, i don't think you want me negotiating with anybody. i just always lose but we're in a democracy, and

congress has to pass a bill, and we have to decide ultimately, are we going to shut down government or sign it. i think we all over here in the white house think it would have been a much better bill if the president had had a line item veto so we could go through and clean out some of the stuff that just doesn't make sense. >> people keep floating that idea that the supreme court has ruled that as unconstitutional >> then you have to have a bigger lift to get it to happen. but i think every president has asked for it, and i think the kind of log-rolling procedure that we saw in this bill is exactly the kind of thing that drives government spending um ov -- up over time conservatives are right to be worried about it, but we're in a government that's designed in a way the president doesn't get to just set the budget. we've been disappointed in how much government spending there's been, how much it's gone up, and they're influencing a lot the

outcome. >> we had an inflation rising. do you think it's a problem midterm? will tariffs make it worse >> i can remember when i worked at the fed a really long time ago with alan greenspan, the first sentence of the concluding paragraph was always, smoothing through the ups and downs, we think that -- and then something. and i think that there are blips. there was that really terrible increase in black teen unemployment that reversed itself in the next employment report so i think there are a lot of quick movements in the data that we have to smooth through. but yeah, it looks to me like inflation is inching up a little bit which is what we expect given how strong the data are. the ocd has now jacked its forecast for the u.s. economy to what we said they're all up to 2.9. the neb business forecasters basically added .4 or .5 to this year because of the tax reform

do you remember the flak i got from this show saying .4 or .5%? when that happens, there is an upward trend on inflation. i respect that and i respect their confidence i think they'll be able to manage that without causing undue trouble. >> greenspan used to always -- the gravitus gets ramped up a little when you wear that coat >> yeah, my trench coat. it's good to about 32. >> that's a winner >> i'll wear it all summer, then, joe. >> wear it it could rain, you never know. thank you, kevin >> thanks, guys. it's good to be here again alan blinder is going to join us to discuss his new book. talking about fixing failing

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so nice that you have that in your shot welcome back to "squawk box" on cnbc the futures right now, triple digits and then some about 350 points on the dow. we lost 1400 or something last week it was like 1400 points or something. the worst point in two years on a percentage end basis usually we get points, not necessarily percentage a big snapback today so far. does it add to 350 or does it not? >> at the end of the day >> is it 500 at the end of the day or is it down or up 20 >> i guess i would take the over if i was forced to you don't know what will happen in the course of a day anything could throw that off. a tweet could throw that off >> you took the under, then? >> i took the over >> so it's going to be higher

than where we are now. >> unless something interferes who knows. >> you sa >> you were out last week and missed that big selloff -- >> i was enjoying it >> you were rooting it on. >> i was not rooting it on because i'm an investing member of society >> you could get that in more, put that money to work >> yes could have been good >> one of the reasons for that selloff last week was what the feds said. the fed actually hiking interest rates again and signalling that more increases are ahead over the rest of 2018 that move highlighting a growing confidence in the economy. joining us right now to talk rates, growth and tax reform is alan blinder he's the former fed vice chair, also council of economic advisers during the clinton administration he's an economics professor at princeton and now the author of the new book "add vvice and

dissent. alan, thank you for being here >> good to be here >> you've seen this up front time and time again. >> certainly have, and we're seeing it now. you're hard pressed to find an economist that will say, let's have a trade war with china and europe that will be great for the economy. you're not going to find too many that say that >> we just had one kevin hassett was on to some degree >> i didn't see what he said >> i don't think he wants a trade war, but i think he's willing to press the issue in a way that perhaps you are not >> right i don't work for donald trump. >> let's talk about some of these issues and talk about where you see policy and some concerns that you have you did write about the potential for the beginning of a trade war. is that what this looks like to you? >> you used the word "potential" so i'll say yes. my guess, but it's everybody's guess here at this point, is that it won't quite come to that but there is a peril once people start throwing words

and throwing actions and getting angry, things can spiral out of control. i'm guessing it won't happen, but there is a danger. and the main thing is why? for what >> i think the why would be that americans, lots of americans, feel like they've gotten taken advantage of for a long time, particularly by the chinese, that they've come in and been a little sneaky with things. if their own way of dealings with things haven't helped, what do we do >> it's not the only issue it's largely around intellectual property the great irony is the tpp on which trump pulled us from on almost his first day of office was going to address that in a serious way. we had the whole pacific rim united on our side and china on the outs on many issues, but including intellectual property. so if that was your real beef, that was a way to make some progress >> i can completely understand that, but you can also understand that politics

wouldn't necessarily allow it, and it was not just donald trump who said he was going to take us out of tpp hillary clinton said the same thing. >> absolutely. and that's exactly one of the points of this book, that it's a combination of not understanding the basic economics, going for things that sound superficially right, going for things that are politically appealing even if the economics is not right that is at the root of this conflict between the economists who are not employed by the politicians and the politician -- the political class on the other side >> you might agree with some of what kevin hassett just said when we talk about the omnibus bill his concern was that it was too much spending all the way around he would like to see the president have a line item veto to be able to strip some of those things out while you might not agree with what he would strip out of those things, again, this is a case where everybody walks away happy and that's good politics, but not necessarily good economy >> exactly

what happened in that budget agreement -- you know, the real agreement was struck a while ago, then they just did the details. i want to spend on this, you want to spend on that, let's spend on both and that way we can compromise this is part and parcel. this is another example of what i'm talking about in this book given the state of the u.s. economy with 4% unemployment, we don't need a big fiscal stimulus it's not really the right time for a big fiscal stimulus. then we cut taxes and boosted spending in that kind of environment. you're not going to find many economists that think that was smart fiscal policy. >> what would you do otherwise obviously the world is not an ivory tower and just because something may make good economic sense, you're not going to get your choice on doing those things how would manage the world from a real perspective >> when you're in the arena, which i was once a long time ago, what you kind of do to the extent you can, and you don't have a lot of control, is damage control. things aren't that great, let's

try to make them a little bit better take the tax reform, for example, as it was called. there was a great case for doing tax reform the tax code is a mess, a disgrace, really, and both parties were saying that, though often they picked on different things but tax reform, if you think back, say, to 1986, generally means revenue neutral. you close some loopholes and that enables you to cut rates. that would have been a great thing to do. it's not what we did, in fact. >> alan, i want to thank you for your time today. again, the book is called "advice and dissent: why americans suffer when politics collide. mark bertolini will be us to discuss. take a look at futures we are up in the triple digits the dow opens up at 352, the nasdaq 130 and s&p, up about 40

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. spotify out with its latest forecast for the npi >> ahead of going public, a direct listing ahead of the new york stock exchange, spotify coming out with guidance numbers. that represents growth of 20 to

30% of 2018. keep in mind the music service has never actually turned a profit since it was started in 2008 the net loss numbers are narrowing pretty significantly they're expecting to lose 20 to 30 million euros this year that's equal to a loss of 200 billion euros. when you're looking at a company like spotify, total active users 198 to 208 million that would be a 26 to 32% jump in users versus last year. total premium subscribers, so these are the users paying for ad-free service, this is where spotify gets the lion's share of its revenue, 92 to 96 million. that is up 30 to 36% of course this comes ahead of the company going public next tuesday. because it's a direct listing, that's why we're getting these guidance numbers released directly to the public back over to you >> morgan, thank you very much when we come back on "squawk box," aetna is out with the

ranking of the healthiest cities in america mark bertolini will tell us how the company is using that data also check out the futures dow up by nearly 350 points. we'll be right back. hello. let's go for a ride on a peloton. let's go grab a couple

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triple digit opening with just nine minutes to go before that opening on wall street. >> how healthy is your hometown? a study right here on "squawk box. nathan bertolini will join us first on cnbc. a test of the ceo fla flamethrowers. now he's banking on bricks we'll explain as the final hour of "squawk box" starts now >> announcer: live from the most powerful city in the world, new york, this is "squawk box. >> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen and stocks are

strong 362 on the dow gets it back about -- what's 400 divided by 1400? we got a long way to go to make up for last week, but that's a pretty solid start nasdaq up 132. s&p up about 40. no, we're not at 3% yet on the 10-year. 2.85 on the 10-year. >> let's get you caught up on the big stories this morning steve shwarzman says the president's tariffs on china could be delayed here's what he said about asia and trade over the weekend >> if you're the u.s. shipping to china on average would be about three times as much -- >> as the other way around >> -- as the other way around.

this type of structural problem is something that i believe both countries believe needs to be addressed. >> okay. >> and i think you have to look at what's going on within the context of that very significant imbalance. >> schwarzman said there must be a negotiated agreement between the u.s. and china also this morning, sources telling cnbc that san francisco fed john williams is now being looked on as the new fed president. he supervises the big money of central banks in new york. he is an economist who has spent 25 years at the fed. he may be formally nominated by the board of governors

we'll talk about this in the next half hour the world report in collaboration with aetna looks at 3,000 communities nationwide across 10 categories to find out what area of the country tops the list joining us now is aetna's chairman and ceo mark bertolini, and u.s. news co-chairman. thank you for being here this morning. let's unveil this list i think the top is falls church, virginia came in first on this colorado, los alamos county in new mexico is the top five what happened? >> first of all, thank you for having us. we're very happy to have this partner with the aetna foundation as you know, u.s. news has been ranking institutions for

decades, best colleges, best hospitals. this is really an expansion of the type of quality data journalism that we're doing. aetna and the foundation has done work in their communities across the country for decades, and so with aetna approaching us, we had a terrific partnership to take what we do best in terms of ranking and simple journalism and work with the aetna foundation in terms of the work they do in their communities. >> what were some of these areas? >> in all of our rankings, we have categories -- in this case we had ten categories, everything from population health, economy, education, public safety, all of that, and then we used 80 data sources, 80 metrics with public data from the center for disease control, u.s. census data, all of that to make sure we had the type of quality data that we typically use to ensure that we had, you know, the quality rankings that we wanted. >> mark, does a zip code really

have an impact on how you're going to do? >> your zip code has a 60% impact on your life expectancy >> why do you think that is? >> it's because we have now reached a point where lifestyle and environment have a greater impact and actually, if you go way, way back, pre-1900, public health advances were the largest advances in proof of life expectancy now we've had life expectancy go down two years in a row. 50% of the american population has a chronic disease. they drive 80% of our costs. if you define health as healthy people are productive, productive people are viable socially, spiritually, economically, physically, and environmental communities are happy. >> meaning if people around you are exercising and eating healthy, you're likely to do it, too? >> this is the basic science of understanding where communities rank today we're very interested in lauding the people who are at the top, but also the people at the

bottom i'm from detroit wayne county is not even in the top 500 where i'm from but washington and oakland county are in the top 10% right next door. so the life expectancy can be dramatically different between adjoining counties >> what's the economic connection >> take a look at the opioid epidem epidemic if you were to overlay foreclosures, unemployment, opioid epidemic on top of the community map we now have, you would see very high alignment. >> one thing i noticed on the list of the top ten is i think 7 out of 10 of them come from either virginia or colorado. what's going on? what's the combination of these two states >> again, as mark points out, it's the social determinants that really determine the health but, you know, massachusetts is on the list, new mexico. it's really spread out throughout the country but what we really are trying to do is to create a platform that local leaders, business leaders can start to look at and assess how their communities are doing

in terms of their health needs >> just like with the universities list, the hospital list, it kind of spurs those at the top to say this is how we're doing better with the rankings >> correct when we look at the rankings, we say if you can measure it, you can improve it if you can't measure it, you have to keep people accountable. we're looking to keep local communities accountable, and especially with the ongoing journalism that we do to continue to make sure they're communicating their needs. >> we've been talking about data collection when it comes to facebook this is a data collection effort i can get behind how do you guys collect information? how does it come up? >> we have to make it relevant so if we're talking to individuals about what matters in their communities and personal lives, how does health get in the way of the life they want to lead if we have programs like urban

farms and education, we're trying to impact we're looking at our efforts in applied science, but the whole thing is what can we do to turn it into a fruitful economy >> if we could take broomfield county -- i'm sure it's great, it's right next to boulder the lifestyle is different so if we could take that and make it just that lifestyle across the board in this country, what would that do to health care inflation, and what would it do to the way that health care in the united states is ranked globally because we're ranked 36th or whatever it is >> we're 34 out of 34 in the nocd >> because of opioids and alcoholism and obesity and almost the things that come from an embarrassment of riches here. >> so $3.2 trillion, 86% of that is, what, 2.6 trillion, $2.7

trillion that's 3% of the population. >> we do better in the global rankings and the cost of inflation would go way down and our health situation would be healthier. >> the health situation is the tapeworm on the u.s. economy it's true. >> but if it was broomfield, colorado, it wouldn't be >> not to make it political, but to me it is a political question because it's an economic question if you literally overlay the economics of these cities on this, what's going on in the economy there, what's going on in terms of how much spending is going on locally by the governments, is there a red, is it a blue state? how does that factor in? i would be fascinated to see sort of the full picture of what's going on, because we're talking about health as sort of this one issue, but it ultimately, i assume, i think, connects to all these other issues >> it is everything. i think we don't get that yet in

this country health impacts everything. the only way we're going to impact it is get to the community. >> as you've looked at this map, how does this map out? >> i think first of all, when we looked at the data, we had outside experts help us. the university of missouri, the research nstitute, we looked a the data, we had all the categories i know this is not what you want to hear, but we looked at it devoid of politics we wanted to make sure the categories were weighted properly as mark points out, the zip code today is as important as your genetic code we wanted to make sure to provide, in each of those areas and as you go through the platform on u.s. news, how communities themselves at a local level can improve their communities and compare themselves to other communities around the country >> i guess what i'm asking is the economic spending in those communities relative to health care, relative to these other issues and how their own health systems would compare. not just how healthy they are but how the health systems and the amount of spending in each

place compares >> and i would say that the spending is higher in areas with poorer health. >> that's very interesting >> it's always higher with poorer health. so the idea would be, let's take this data now and learn. let's congratulate those who have done well let's share best practices with those who aren't, let's earn those investments. and this is the whole idea behind aetna and cvs coming together, if we can come into the community and make investments there, it's cheaper because the price with the medical system right now is so high that we can win by keeping people away from just an emergency room visit >> mark, you are so good at this in terms of looking at the data and trying to find ways to convince people that it's in their interest to go ahead and get healthier and do these things i just wonder, what are your plans? what happens, because you've done a great job of this at aetna. what happens next?

>> we just launched this month something called the next best action we take the individual's data, including the surrounding data the kind of devices they use, where they live, the economy they're in, and we give them an analysis of here is the next best thing you could do based on what you see as a barrier to improving your health. so we tell type i diabeticdiabe you do 10,000 more steps, you can improve your enc from 6 to 7.9. >> it affects your behavior. >> so this idea that i can help you, but we need a conversation first about what about your health gets in the way of the life you lead. >> are you staying, are you going? >> i'm not going to be part of the management team going forward. i've got a company to deliver by the time the deal closes that's better than the one they thought

they bought, so i will do that but i think the next step will be i've got the phones ringing, i've got a lot of opportunity, i've got a motorcycle ride to do across the country first, and a bicycle ride or two, and within a year or so, i'll be back in the game >> and you will be here telling us about all of it >> if you should so have me. >> yes, we will. eric, thank you. we'll be watching these numbers closely. it seems like something that could really make an impact. >> a setback this weekend, the girl scout cookie delivery >> we got some at church, too, that we forgot we bought >> too many thin mints >> did you read the -- >>i didn't read them, i ate them >> we had no girl scout cookies. >> if the girl scouts are successful in your neighborhood, that might actually be -- >> that's another indicator. the big data stuff now is so pervasive, you can take this kind of information and actually

analyze it >> even bike lanes will have an effect, too. >> in iran, it shows you how many calories you burn it's much easier to not eat. >> joe, it's calories in, calories out calories out and you can take calories in. >> it was like a cookie and a half when i ran. >> they give you those things by the sleeve when you open them it's really hard to stop don't open the sleeve to begin with >> a setback to my lifestyle a programming note for everybody. cnbc will be hosting its first ever health conferencethis week it's called healthy returns. on wednesday we'll be featuring investors, including scott gottlieb when we return, tax day quickly approaching. if you bought some bitcoin or

any other currency, you might need this. >> if you thought crypto currencies were hard to understand, try paying taxes on them we'll break down what you owe if you bought or sold bitcoin or any other coin when sidewa"squa" returns. i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. somethin with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success.g this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital.

looking at futures right now, we have some green, triple digit green. the dow looks like it will open up 432 nasdaq up 151 points, s&p 500 looking to open higher as well, 47 points higher we will have a conversation tomorrow morning to see where things land. in the meantime, americans who made big money on bitcoins rise in 2017. they're trying to figure out what they're going to owe in taxes. seema moody has some answers, but it's complicated >> if you think you can dodge paying takz x oz youes on your n holdings, you may want to think again. >> 2017 was a big year in the

value of crypto currency, and the irs recently has actually gotten a lot of information from prior years, from 2013 to 2015, and they are actively looking for taxpayers that are trying to avoid paying tax in connection with crypto currency transactions >> your tax obligations really depend how you use krip crypto currency if you simply bought bitcoin in 2017, it comes down to whether you hold stocks. the data includes when you bought bitcoin, the stock price, the date you sold that will then determine whether it's a short or long-term capital gain. once that's taken care of, you fill out an 89-49 form, schedule d. that's based on the crypto currency the day that you mine it lastly, if you were paid in bitcoin or any other crypto

currency, your earnings would be taxed as ordinary income it just depends how you assess value or attach value to the crypto currency. >> it's going to be april soon >> april 17. tax day is coming up >> you haven't done yours? >> oh, my goodness, it was yesterday's project when i got home >> you guys are ahead of me. i'm done, though i have everything in i'm very happy about that. >> a lot of people are grappling with the idea that crypto currencies, because it's private, because it's anonymous, they wouldn't have to pay taxes on their bitcoin holdings, but the irs is paying very close attention to crypto currencies if you own any bitcoins, and you do -- >> not on facebook, i don't, no. >> i'm just letting you know for the future now you know >> i'm on twitter, but those days are numbered, i think do you like twitter? >> i do like twitter >> you like to look at the news

feed of twitter. >> it's another platform we can use, especially mill yen yennia express our views. coming up, elon musk selling a new product. it's not cars and it's not a flame thrower. i'm going to tell you what it is 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.

we're drowning in information.

where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. the markets are up again but the movement is coming from a few different sectors. >> this does not predict a major terrorist event or something like that, but we can gauge whether it will be a lasting change in trend. >> there are too many amateurs in the game that have never seen what happens when the interest rates go up. >> i think that you have to pause on equities here adding more exposure, and i think you

have to stay away from some of the traditional market leaders welcome back futures have moved up above 400 now, up 404. we were up 430 a little while ago. they've been anywhere from plus-300 to plus-430 pretty solid this morning. the nasdaq and s&p indicated to open about 44 points higher. >> like a rocket ship as we segue to elon musk first flamethrowers, which elon knows i wasn't happy about, now bricks elon tweeting about new advice for the boring company new boring company march coming soon lifesize lego-like interlocking bricks made from tunnelling rock that you can use to create

sculptures and buildings rated for california seismic loads, so super strong, but bored in the middle, like an aircraft wing spar, so not heavy. i didn't like these because i know enough kids who have seen this video and want one. no word on the price of the bricks yet, which i think might be cooler, but the testing ceo says they will be flamethrower-proof so maybe if you get a flamethrower and the bricks, you can have a little too much fun we'll see. a group of economists upping the gdp forecast for 2018. later we'll talk market strategy turiarnd 399 we'll be right back. i'm not a bigwig.

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welcome back to "squawk box" right here on cnbc we're live at the markets in times square alongside becky quick and tom kernen we'll show you what's going on

we have green arrows across the board. the dow now over 400 points, looking to open about 408 points higher, the nasdaq about 143 points higher and the s&p looking to open about 43 points higher also this hour, music streaming service spotify says its revenue should increase 20 to 30% this year that's a prediction coming ahead of the new york stock exchange expected to begin trading on april 3rd. take a look at gasoline prices they're up 7 cents in the past two weeks. that brings the average price to $2.66 per gallon, 32 cents higher than it was a year ago. mr. weissman is making fun of any -- 7 cents not enough? what can you do with 7 cents waymo weo says uber could

have prevented the killing of a pedestrian it has led them to a temporary halt about self-driving tests and questions about the safety of autonomous energy >> their forecast for 2018 steve e liesman >> forecasters on average adding a large 0.45% to their 2018 gdt forecast they are now at 2.9 aka just a shade under 3. here's what they're looking at here's some of the bullet points from their new forecast. 2.9 in 2018 slowing to 2.5 unemployment 3.9 this year, 3.8

next year. they're actually higher than the federal reserve. you do get a little extra on the 10-year yield. 3.16 for this year, 3.6 for 2019 they're also below the fed when it comes to 2019 at 2.75%. separately over the weekend, both goldman sachs and jp morgan suggesting threat have risen they say, the effect could turn out to be bigger than expected however, threats have risen of a trade war. john williams is the frontrunner to replace william dudley. he is about to be on board the federal reserve of governors we've got two exceedingly smart gentlemen on the set here, so we'll talk about williams -- >> would anyone say no

i would rather live in san francisco, wouldn't you? >> it's interesting. it's a good point. whenever i go out there in the middle of whatever month it is, the weather is always better >> have you been to carmel >> i've been to carmel i've had a good time in mill valley i have some friends there. >> although the city of san francisco -- i don't know. >> it's a tough place to do business i do know some small business people there, and there are some interesting, shall we say -- it's a big job, joe. you get to vote all the time, you're at the center of that bunch of folks who run the fed >> we need close encounters. >> there it is do we need to remind people of the background on this, joe? >> what do you think of when you hear john williams >> i think of that, but do you know how old that movie is, joe?

>> he's got a dozen of the most well-known -- >> but the sequels are probably 20 years old >> thanks, steve now, what was it the other day i was looking at, something like 1985 it seems like yesterday. >> it felt like yesterday. >> joining us now, mike faroli, chief economist at jp morgan, and strategist at city central banking. any of you guys at 3% for the year yet >> it's close to 3 you didn't go there immediately. you were dragged kicking and screaming into the -- huh? >> we're getting the 1 q effect again, and for some reason 1 q is weak. >> we did firm things up after the budget deal in february. >> not after the tax reform? >> we revised up after the tax reform and the budget deal i think that's probably what

you're seeing in the revised forecasts we talked about earlier. two and a quarter for next year. >> at what >> two and a half this year, two and a quarter next year. still, that's above trend. >> two and a quarter is above trend. >> you need to take a victory when it's given to you >> did you read the "wall street journal" about the u.k. over the weekend? michelle sent me one line. it said "all economists agree. that it was going to be a big negative for the u.k once again, all economists were the perfect indicator of -- >> you know what i like to say, economics is not rocket science, it's harder. >> it's not rocket surgery >> it's harder and the reason it's harder is because you're trying to put all this stuff in. but look at these guys they have one estimate, they look at the numbers again, and they went to another estimate. let me ask mike a question here. mike, is this a change in the underlying potential of the economy, or is this a sugar high

that you have to pay for later on down the road >> we think this is more a boost to demand than supply. we do think there is maybe a little supply side effect as the cost of tax cuts do probably help productivity in long-range growth but we will see a boost in consumer spending and government spending as well, so we think it's more the demand side. >> i think this is not a wild boost to underlying demand the corporate tax cuts increase the incentive to produce in the united states. we've seen a very big pickup in corporate business confidence, and so i think we're going to close the gap a little bit more with a larger rise in investment we were also seeing other things since 2016, the labor force suddenly awoke to see so many years -- >> people coming back in -- steve, regale us, then, with this brighter future that must be part of the outlook which means higher productivity,

higher growth. >> it certainly looks better than it did in 2014-2015 very, very slow growth, and we were dropping the unemployment rate a percentage point a year at very, very slow growth rates. it looks better than that. >> does this mean that you like to buy the capital investment companies? does it make a caterpillar kind of company or the people who make the machine tools and the things that are the things that companies will buy to make things >> look, it's been a long, successful business cycle in the united states and it has further to go. we are paying more in the united states for the same investments. why not buy european industrials, asian industrials where you had -- or look at a country like brazil. that's one year out of an economic decline so the u.s. is still worth allocating to, and there are great companies, and they're doing extremely well around the world. you just have to remember, again, we're extending this is a second win for the u.s. economy and this is not the beginning of sort of an upturn

where we're seeing that in some places around the rest of the world. >> do you think two and a half, two and a quarter is a good forecast >> that's a mealy-mouthed, wimpy -- >> you are smarter than to be concerned about a whole number >> there's the reason it's called a dismalscience >> if my potential is 18 -- if i have an $18 trillion economy and my potential is 1.8, i'm really excited. >> please, are we producing now? >> no, i'm not producing >> we spoke to chair kevin hassett. maybe you missed that. >> i did miss that >> in the last hour about markets. he said this >> markets, if you look over the last few weeks, have been anxious about the developments in the trade sector, but it's all designed, really, to move us towards negotiations that make the world a better place

you know, the president says he wants reciprocal tariffs if we had reciprocal tariffs worldwide, think about it. there would be a mass reduction on tariffs around the world to the u.s. level and that would increase global output and profits and sentiment and everything else. >> does a potential trade war shave even a basis point off one of your forecasts? >> no. not for us >> not yet >> anticipate. it's got to happen before you do it >> that's a big negative effect potentially around the world if it's going to be this large. but $15 million in potential tariffs raised in the united states and china, and that's gross trade around the world you're not going to interrupt that, are you? >> that didn't go in your ear? >> i didn't hear that. >> something like a nuclear war just started in my ear it's only me, i guess. that's interesting, though so at this point we hear tax reform was going to add this

much, and then all of a sudden all this trade stuff is actually an offset to some of the benefits >> we don't have a trade war yet. >> supposedly we do, that's why we're doing this there's been a trade war for 20 years on us. >> what we've seen so far is pretty small, and if it's anything like the steel and aluminum tariffs, it will get rocked back. if it does morph into something else, we would shape our forecast >> do you view the relationship with china as purely symbolic, that they need us as much as we need them and it's almost equal? i just wonder how you view that. because it seems like now we're talking. it seems like they're at the table now, and it would take a lot to bring them kicking and screaming into talking about stealing trade secrets and copyrights and all that. here they are at the table it's amazing, isn't it >> trade is mutually advantageous >> who gets more out of the

whole relationship, do you think? >> i would think it's pretty even, isn't it it's about 50-50 >> yeah. that's the way trade works, i think. >> i guess >> can i just ask michael about whether, if you were williams, would you be moving to new york because of the great weather in san francisco? >> i'm a new york guy, so i'd stay here. >> what does it mean to have john williams in the front fed >> given you have diversity and you've got john williams his views have been pretty similar to bill dudley's he's moved a little more hawkish as the economy has gotten to full employment, so i think we know what we're getting, at least. >> can i ask a question. who gets to pick >> the new york fed board takes a vote and that's who they recommend to the federal board of governors which must approve. >> is it powell? >> it's powell, yeah as far as i know, the new york fed board hasn't voted yet there is something of a back and

forth going. >> could powell pop somebody in there without -- >> no. it would have to have the new york board of governors approval >> it's also a vice chair. >> it's not a small job. he gets to vote all the time he's the first among equals when it comes to federal bank presidents there's 12 bank plresidents, but only one gets to vote all the time the chair, the vice chair and the fed president are the ones who have the say >> it kind of tells you about how powerful that is thousands across the globe taking to the streets to protest gun violence something else is going on california's largest gun show. our jane wells was there and she will join us next. that'll crack this case wide open! turns out the prints at the crime scene- awwwww...did mcgruffy wuffy get a tippy wippy? i'm serious! we gotta move fast before- who's a good boy?

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shares of home improvement retailer lowe's jumping in pre-market trading they announced the chairman and ceo is planning to retire. he'll step down once a successor is found he's been with lowe's for 25 years. he's been ceo for 13 years i don't know what to attribute a 5% gain to he's stepping down what does that mean? is that a change in control or something? i don't know he's been there the entire time. >> i don't know the answer in the meantime, tens of thousands of people marched over

the weekend for stricter gun control laws but another big event was underway this weekend as well. jane wells went to what was the biggest gun show in california she joins us with more gifrven h juxtaposition. jane >> reporter: yeah, just in l.a. there was tens of thousands of people marching, yet not one went to this, the largest gun show in california if you take a look at it, it's the crossroads of the west show at the orange county fair groun fairgrounds. inside where the tv cameras couldn't go but we went in with our phones, it ran the gamut with a lot of collectibles, a lot of ars in one corner, nazi memorabilia from 1802, but what about traffic? >> when we drove up today, i thought, where is everybody? i actually thought it was canceled >> attendance has been dropping off at the gun show, but i think we're seeing more hard-core

second amendment gun people. >> it was a slow start this morning, but it's picked up considerably since this morning. i don't know whether it was the weather or the anticipation of weather or what, but it was a little bit slow starting we only had a 15-minute ticket line, but it's very busy inside. >> bob templeton runs the gun show in the western state. he says it's been slower since trump became president as some have fear of losing their guns he said there is solid ground if both sides are willing to come together, and he's not the only one who thinks that. >> it's time to review the regulations. i think just to dig your heels in the ground and say no to everything is not necessarily the way to go. >> one of the most popular new things at the gun show, there is a new law in california that you cannot change out the magazine in your ar-15 quickly from the outside. it's much more complicated, slows you down so one of the big things, there were these kits that allow you to convert your ars to be

state-compliant. although california's gun laws are very restrictive, some people at the show thinks it could be a model for the rest of the world if they're willing to change we'll get some thoughts on gun laws six months after the shooting in nevada >> any big background checks in california >> yes, they are stricter than most states. all sales have to be done through a licensed gun dealer. when we come back, jim cramer will join us live from the new york stock exchange. we'll get his take on the top moves this morning you'll see right now dow futures indicated at about 390 points, the nasdaq up about 136, the dow up 41. "squawk box" will be right back.

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>> friday, i think, was somewhat artificial in that things were up and down and up and down. the 1:00 press conference i thought was pretty benign by the president. after that we just had sell orders i got to tell you, joe, there really aren't a lot of players anymore. if you catch the sell orders at the close, it is going to impact the market aggressively. i think there was also a belief that "60 minutes" had some sort of knockout blow as we saw, it really didn't and the futures started climbing i think the "60 minutes" story was, let's just say, not as imperative on the stock market as people might have felt between 3 and 4. >> i saw your tweet and was going to ask specifically about that i sort of had the same feeling it was kind of underwhelm ing after all was said and done.

i think that does play into sentiment, jim not everybody is ready to say that >> there is this fear of something -- every day there is fear of something. you come in and there's less fear -- less to fear i just do think that obviously if minutia is saying on fox that today isn't as bad on trade, we have to hope it's based on fact. if it's based on fact, it's going to be a win for the president, not a loss. >> number one, i was -- you see that -- i mean, grace and alan, i was shocked. i remember when they were down by three, i turned to my wife and i said, ah, darn it. nova's got to face duke. i don't know i'm much more at ease with kansas

that's probably wrong. >> kansas did look better than duke i thought and kansas i didn't know they were -- seemed to be scoring easier i walked away from the interview, the "60 minutes" thing and i don't foe, for some reason viscerally the lawyer rubbed me the wrong way. i guess if you're in a position like that you need a lawyer like that you know what i mean but, i don't know. >> i thought that pressed hard cooper was very fair after, many, many times cooper pressed you, whether you were a believer i don't know maybe cooper wasn't a believer. >> yeah. i thought he -- wasn't bad agree, jim all right. market's up 400. see whether it holds becky has the overall. >> thank you. >> i don't know. still got the observer at 400 or 350? >> it was 350. >> okay. so it's 350. above 350. >> also did it with a big addendum lord knows what happens through the course of the day. >> thanks. see you at the -- >> not making it bad

stick my neck out. >> are you nuts? >> a little more than 30 minutes ago until the opening bell check out futures. up 384 implied open up less than 300, if you are not smart enough to know the implied open, like other networks. ♪ mvo: with everything that is going on around us and in the nation, we need to work together. we need to do it more often to help people that need help. ♪ ♪ i'll stand by you. fvo: he's encouraged other people to look around and notice one another and take the time for each other. that's his gift. ♪ i'll stand by you.

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sector etfs, health care, utilities and staples. a news alert update to a story we talked about earlier this morning usg weighing in on that offer that it received from nof. the board rejecting the unsolicited bid requires all shares of usg $42 a share in cash usg argues the offer substantially undervalues the company. not in the interest of shareholders stock trading just about $40 go back and look long term over this, this stock peaked back in 2006 right before the housing crash that's when it was trading well above $80. in fact, look at that. quite a bit higher this is the stuff in wallboard you use in construction of homes. suffered since that time really never recovered from that even on this news, stock up by

almost 20% to below offering price at $42. >> and flatsham and gypsum, gentlemen, is in wallboard. >> jepsham, sounds like gypsum. meantime, strengthening underlying business conditions these shares up a little over 2.5% right now. apple ceo tim cook and ibm ceo called for more oversight how personal data is use after facebook's data scandal. speaking in beijing, cook saying the situation is dire. fermeti said if you're using the technologies tell people you're doing it and they should never be surprised i agree. >> just crossing the wires right now, pep boys is a spending all advertising activities with

facebook concerned about issues surrounding the social media giant. not the first to do this esau elon musk delete facebook accounts of tesla and of -- the company -- spacex on friday. >> that point, complaining about facebook and someone said, well, you're being a hypocrite because you have pages i did not know will correct immediately. >> but he's still on instagram. >> yeah, yeah. which is owned by facebook. >> a final check on the markets as we've shown futures up sharply this morning after the big losses of last week dow futures indicated up by 380 points looks like the s&p would open up by about 40 points here and the nasdaq up by 131 that gets you back some of the ground you lost last week, but, joe what did you say 1,400 points on the dow last week gentleman. >> yeah. >> sti>> a ways to go. >> how's your 401(k) now >> i don't know.

i remember going through we were really high. now, i don't know if people are ready to call this -- if you bought at the top, you're down. >> if you were late to this entire situation, sure a quick look at treasury bills around 2.8.5% where we see things happening that does it for us today. join us tomorrow right now time for "squawk on the street." ♪ this beautiful day don't let it get away ♪ it's a beautiful day ♪ ooh-ooh ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jp im cramer at the new york stock exchange friday's loss could be a race to the open as some trade worries recede europe largely green, and coming off a six-week low and beginning with easing