did not make that up look it up "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. live from the nasdaq market site in times square, i'm becky quick along with joe kernen on national joe day and andrew ross sorkin >> i have to look to see about the voracity of this situation >> fine. someone sent it to me from nbc >> look, another big day triple digit gains in the futures, the dow was up by 669 points yesterday s&p up by 2.7% nasdaq up by 3.25% big moves across the board that was one of the biggest

point gains we've seen 2.8%, still strong snap back from what we had seen at last week looking this morning, it looks like the s&p is indicated up by close to 20 points nasdaq up by 80 points the dow futures up by 160 points we'll talk more about this in a moment let's look at overnight in asia. big gains there. the nikkei up by 550 points. that was a gain of 2.6%. the hang seng up as well 0.8% the shanghai was up by 1%. all of these global gains coming as it looked like trade war talk was kind of tamped down a bit yesterday. a lot of things that were happening. it looks like we may be making progress with the chinese, trying to step away with those issues, and south korea coming up with a trade pact that clears them from some of those tariffs on steel and aluminum. look at europe and early trading there. green arrows across the board.

moves of 2% for the dax in germany and the ftse in london the cac in france is up by 1.6%. a similar gain in italy. spain up by 1.2% then look at the treasury market ten-year yesterday was yielding 2.843% at the end of the day right now yielding slightly higher, 2.854% >> i want you to knows there a national rebecca day for you. >> no national andrew day. >> that's on july 4th for reasons unclear. >> i get fourth of july. >> i would like a saint day. >> which i will take the way to honor national joe day, you can change your name to a name of your choice, or everyone can change their name for joe for the day.

women and girls may use josephine or jodie >> so we're all joe today? >> i don't know about that >> we'll throw it to joe >> which one >> i want to dedicate my day to joe biden. >> you do? >> i do. >> very bipartisan of you. >> we've complained about these national whatever days pizza day, doughnut day. >> i get a day doughnut day >> i looked up who the people are who put this together, there's 1500 national days aren't there only 365 days that's five a day. that's not going to keep me from ha celebrating my day >> you have a birthday, now a national day let's get you to some of the news on national joe day brookfield property buying the rest of ggp it doesn't already know price tag $15.3 in cash and

stock. it accounts for 61% of the offer. ggp opens more than 100 higher end mall properties mostly in the u.s. being in the mall business these days has been a challenge. glaxosmithkline buying novartis's 36% stake in their consumer health venture. price tag there is $13 billion. the brands include sensodyne toothpaste stocks are on the move higher. last week glaxo dropped out of the bidding for pfizer. and akzonobel is selling its specialty chemical division to carlyle group and gic for 12.5 billion. shares of the dutch company are higher

m&a activity also boosting things this morning after what was a remarkable rally we should give recredit where credit is due. we were at 350 points higher on the dow at the time, and you said they would end higherments. >> i had a 50/50 shot. >> that is also true >> i saw many articles that said the end is near. >> end of what >> on market watch, we may have rallied, but -- which is exactly what you need. otherwise people buy the pu pullbacks. we'll get to our guest now joe used to be popular it was number six. between 1893 and 1899. >> joe's world >> it was ranked number six. then starting in 1911 to 2005, it was always 12 or lower.

it has not been popular. because of all these new upy millennial names >> nobody wants to be the average joe. >> let's get back to the markets. joining us is ryan payne that's one of the top names. ryan replaced joe as a yuppy -- there are those two actors, i can't tell them apart. ryan gosling and ryan rep no re. >> i can tell them apart >> how old are you 40 >> i just turned 40. >> no way, you're lying. leading a clean life our guest host for the hour, noah blackstein. an outsider that can look at what's happening down here in this country many times with envy but maybe with a perspective that not all of us have >> from above.

>> i lost a bet with him to the olympics because the canadians won more medals. >> it is cold up there more than it is down here. >> i guarantee you there's more americans that live in cold parts of your country than live in the entire country. >> how come you're so good at that stuff >> good question >> is p bit better if you had a couple of molson's >> have you ever curled? >> we did. we beat you. >> but i think joe would be a good curler. >> we tried. i fell on my -- i think you need a certain coin of -- >> you reached the curling age >> 670 points yesterday. we tested the lows we were in correction territory again. does this go full bear to 20 it wouldn't be crazy to maybe pull back 50%, right is it over are we headed onwards and upwards here >> for the corporate fundamental

standpoint, even more recent earnings than last fight from redhat, talking about corporate spending and stuff like that the environment from the companies we talk to, whether it's tax reform, regulatory reform, things are good from a corporate standpoint there is optimism and capex. that will ultimately drive stocks all the other stuff that's taking over in the short-term, whether it's fears about inflation, fears about the fed or trade wars, it's hard to gain those things in a longer term basis. >> ryan, there's another thing when you're picking ofiguring oa stock's price, there's earnings and what you paid for those earnings that's the multiple. if there's trade wars, rising interest rates and inflation on the horizon, maybe the multiple comes down >> i think that's the biggest mess con s misconception. interest rates are still low if the treasury yield gets to 3%, it's 3%.

that's historically extremely low. >> while the stock market panicked last week, the bond market didn't. it wasn't like interest rates were spiking last week >> you saw interest rates under pressure as people ran out of stocks into treasuries >> so are we worried about inflation or aren't we worried about inflation? the narrative in the stock market seems to be disconnected to the bond market last week >> at the same time we looked at the bond market so often and thought the stock market was completely disconnected from the bond market. >> i've been in equities for a long time. bond people call us c students, the smart ones there's something in the price of longer term bonds that goes beyond the market. they're not signaling inflation issues now >> with your clients right now, you were at merrill lynch an then you started your own firm >> that's correct. >> that must have been difficult to step out. >> it was around the timer ril

we time merrill went out of business >> around 2008 >> july of 2008, i left. by september it was defunct. >> so in terms of the market what do you tell clients, buy now? >> absolutely. volatility is a friend here. we're in a synchronized global growth around the world. so you need a global portfolio evaluations overseas are attractive versus the u.s. >> why is it given the debt we are layering on and reading about every day, with 3%, that's more than double 1.5% by my calculation. the debt service will go up for the u.s. government and for others, right? >> i think that's the case you'll start to see the government maybe shift -- we're seeing the shift from the quantitative easing. it's not going to be -- so far

it's been a relatively unrocky road, i would argue. we have not seen that much volatility >> any day of reckoning with that coming, noah? >> not yet i don't see it i do worry more about the federal reserve. there's tremendous amount of regulatory reform going on i think there's a multiplier effect in that but you have the federal reserve tightening at the same time it's unwinding its balance sheet. how will it get a clear picture of what doing the effects of both those things at the same time are i worry there are no issues where they're not getting the full picture because you have this other stuff happening on the fiscal side. every correction in my career or market break has come from the federal reserve going too far. i worry about that today >> okay. all right. i'm just looking they're listing all the joes it's like the "time" man of the

year you don't have to be a good joe to be on this list joe stalin they got here >> not a good joe. >> no. they have shoeless joe jackson from the black sox >> did he take the money that's the question. >> is there a write-in opportunity for you? >> i'm not on here joe walsh. >> that's what i'm saying. >> eagles. >> joe walsh is great. also missing is joe scarborough, because it's name is not joe it's charles >> so bitter >> his name is chuck scarborough, but that was taken by the local nbc legend news anchor he's like what do i do he tiakes my name, the whole coffee thing i'm not bitter >> bitter. >> thank you, ryan that's a last name, isn't it >> it's an irish name. >> it's a last name in ireland you're staying with us >> i'm staying with the name

noah, too. >> kayla is hanging out with us in d.c >> let's get to some political news the white house is investigating two lons th s thloans that were jared kushner's real estate business kayla tausche has more on that story. >> reporter: that set of loans was made to the kushner companies, the kushner family business that jared kushner separated himself with but the interesting thing is they were made by banks whose executives met with jared kushner at the white house, those loans are under scrutiny that's what an of tells reuters. the office of government and ethics is investigating the loans which totaled more than 5$500 million we'll see where that investigation goes on the trade front which the markets are watching, u.s. tr could release the list of products comprising the 6$60 billion on chinese exports on which it plans to levee those 25% tariffs. that list is expected to represent the ten high deck -te

industries where china is seeking an edge. this comes as china and washington reengaged in trade talks. the president last night tweeting trade talks are going on with what he called numerous countries that for many years have not treated the united states fairly, saying in the end all will be happy. today trump and steven mnuchin will meet as retaliation from china for now appears to be on hold there is the threat of diplomatic retaliation from russia after the u.s. moved to expel diplomats, 60 diplomats who who senior administration officials say were really intelligence officers. the move is in response to the poisoning of a former russian spy on british soil earlier this month. so far more than 130 diplomats have been expelled by more than two dozen countries. the kremlin condemned the coordinated action by the u.s. and allies and said this

unfriendly step by this group of countries won't pass without impact and we will respond the kremlin previously said retaliation would be reciprocal, but unclear what it plans to do just yet >> i was looking, it was the cover of the "new york post" this morning bootin' putin. a big picture of trump kicking him him. kayla, thank you very much coming up, we'll talk facebook fallout we'll talk data privacy, regulations. states attorneys generals launching investigations all that and so much more as we head to a break. look at some of the staggering stats of the rally yesterday the dow having its third biggest point gain ever. the s&p's fourth big effort. financials and industrials had their best day since the election gold soaring to the highest level in five weeks. "squawk" returns in a moment

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all right. welcome back we're in chairs. this morning facebook says it

will send a top executive to answer questions from uk lawmakers. but not mark zuckerberg. facebook offering to send chief technology officers or the chief product officer. the uk lawmakers saying they would still like to hear from mr. zuckerberg either in person or via video link. and 37 attorneys generals are asking for more information on how facebook collects information. they are looking to gather more information on this. i personally should have known a lot of what we've been giving away i have to the paid enough attention to it. there are some people who have been paying attention. i want to give a shout out to jamie dimon who has been talking about privacy issues for quite awhile i want to give you an excerpt from his letter to share holders written back in 2015 he wrote one item that i think warns special attention is when

customers want to allow outside parties to have access to bank accounts and bank account information. our customers have done this with payment companies and others we want to be helpful but we're concerned. when we all readily click, i agree online or on our mobile devices allowing third party access to our bank accounts and financial information, it's fairly clear nomost of us have o idea what we're agreeing to or how that will be used. we have come to the following conclusions. far more information is taken than the third party needs than needed to do their job many third parties trade and sell information and third parties are quite often doing it for their own economic benefit, not the just mer customer's benefit so all these things that we should have been aware of is now in focus

and i think that's for the good. >> what he's specifically talking about, though, which is important. a lot of viewers participate in these things, is less facebook or google and specifically minted or mint to aggregate financial data if you do, you have to give over your password -- give over your banking password, it's aggreg e aggregating it that's a hole in the security issue. >> i think this is a broader issue. >> if you use venmo, owned by pay pal, you have to give these credentials. in some cases they still give away this information. so that -- the holes in the security layer are all of these apps that people want to use that plug into these other services that's what he's specifically arguing about. he's representing this larger pool of stuff going on with facebook >> i've done it myself

i want to use an app somebody was pointing out yesterday. we all want to see cute puppy videos so we give away anything to click on tho theo these sites. with snap, you can search where any of your friends in your network are at any point in time via gps. you can try to figure out who this is in a store it's creepy the amount of information we're giving away. >> only thing for me that's strange about this snap example, we specifically -- snap is actually better than some. people specifically -- they ask you, do you want to do this? we oftentimes, not just agree, we say we're happy to give over our contacts we want to fine our friends. jamie is right you don't look through the whole thing. >> and if you don't like it, there's nothing you can do. >> that's true on snap, by the way, you don't have to give away where you are.

>> our kids don't. they shut theirs off >> scary >> i'm amazed at how much information they're gathering. some we know about some we don't. there's a lot of questions to be answered about what is being gathered >> i love that some of these third parties may be doing it for themselves rather than for you. i never would have -- >> i think younger people have the expectation these companies will do good they say they're here to do good we trust them with information >> different chris cox >> yes, not that chris cox >> not the nra guy he does not work for facebook? >> no. >> i knew that yeti -- i saw some pictures of yeti again. >> the real yeti has been cited? >> yes >> maybe a guy in a costume. this is a cooler company it's putting its ipo plan on ice. huh? >> clever. >> that person has to get a

rise they cite market conditions. the company filed to go public in july of 2016 but reportedly began considering alternatives within months of that filing yeti group has its coolers and drinkware gain the popularity, but in recent years igloo and coleman coolers had similar features but not with the premium prices did you guys show the video last week? >> we did. >> arizona suspending the self-driving car test following that crash the governor sending a letter halting all tests on public roads. a crash last week killed a 49-year-old pedestrian the police investigation is ongoing. the video of the crash was disturbing said the governor and raises questions about uber's able to keep operating in the

state. uber says they will keep an open dialogue with the state. >> is it just uber >> those are the questions is it just uber. waymo has a huge "operatoin odyssey daw operation in arizona. the conundrum with the eeber situation in particular, don't know if you looked at the horrible video, it happens very fast, but it's unclear at the moment whether uber's computers recognized at any point even late that there was a person there. i think that's actually the tipping point on this whole thing. if the computer recognized it as a person, i don't think we would be in this situation we'll find out more about how

this all happened. >> the person driving was looking at the phone or something. >> looking down. >> it came -- if you watch it -- >> it came up so quickly >> that happens when you're driving. >> so the question is whether the computer saw her at the split last second. even if you could have gotten out of the way >> you see how many companies advertise the car that picks up things before the driver does. >> right >> with a car -- a driverless car, you might save ten people but there's always a video of one -- >> so real quickly, 33,000 people die of fatalities in america every year what is the number where it will be politically palatable that a computer will kill how many people if i told 5uyou 500 people will die every year, instead of 33,000, but a computer will do it and not a human

are you willing to take that trade? that's the political question in the country. >> but you're right. if it looks like none of the stuff functioned at all, that's the tipping point. when we come back, the saudi u.s. ceo forum kicks off today in new york city we'lltell you what to expect next. and later soundcloud was reduced by a last-minute round of funding last august we'll talk to the new ceo, kerry trainor.

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♪ welcome back you're watching "squawk box" live from the nasdaq market site

in times square. good morning u.s. equity futures are sharply higher this morning. continuing the becky rally from yesterday. you should have bought calls at 350. >> should have, could have, would have redhat, we have the guy on later today. redhat expecting better than expected fourth quarter profit on sales and higher subscription rates. noah thankfully already mentioned redhat which gives me something to talk to jim about earlier. >> 120 to 160 year-to-date is not bad. >> you own that? >> i don't >> you wish you did. >> i do. >> the softwaremaker also

raising its outlook for the year jim whitehurst will join us live at 8:40 a.m. eastern shares of overstock.com are down sharply in premarket trading. the retailer saying it will issue 4 million new shares the company under investigation over the selling of digital tokens by its cryptocurrency subsidiary. we need our own cryptocurrency -- >> we need our own tokens. >> like the chuck e. cheese sort of -- >> no. >> for you >> yeah. >> the saudi/u.s. ceo forum is kicking off today in new york city hadley gamble joins us now with more on the agenda >> i think it's going to be interesting that we'll see hundreds of members of the saudi delegation descending on the city this is a place they've become familiar with in the last several years. you not only have the ministers of trade an investment from

saudi arabia and the minister of finance and energy and mbs himself but you have the ceo of pepsico and dupont so this is a massive undertaking to woo investors we saw this tweet from the ceo of softbank showing them getting cozy the question becomes will they spend 25 billion inside saudi arabia an prop up this half a trillion dollar mega city they want to build on the red seand include multiple countries in this and sure up geopolitical support for this as well a lot of things happening today. we'll speak to a lot of women. they want to bring women into the work force more graduates from university that are women, they know they have to include them in the economy. this will be interesting to see what will happen in the next several days in terms of deals so fort only dole announeal anns this 6$670 million in weapons. that coming off the back of this

weekend when we saw a barrage of missiles coming out of yemen and landing in saudi arabia and the streets of rehaiyariyadh it's a real thing for saudi arabia in terms of defense and what they can get with the u.s. and defense contracts. stick around here to talk more about this, princeton professor bernard hinkel to me, maybe i'm wrong, this whole 2030 plan, all of this commotion that we had over the past 12 months is centered and funded by the ipo of saudi aramco $2 trillion. that was the math. that's how this was supposed to go if that's off the table, if it's significantly less, meaning it's 5$500 millions or a trillion, bt they only get a little bit, what

happens to all of these plans? >> i mean, the saudi aramco ipo looks like it won't be listed in new york, because they don't want the liability that comes with listing in the u.s. it becomes in effect an american company if listed here >> correct >> they probably will list it elsewhere. >> but if they do it domestically, there's a transparency issue it's unclear they'll do it in london and elsewhere at least in the initial stages >> it's an issue that has been put off for another year the saudi aramco ipo was supposed to generate 1$100 billion. that's out of a much bigger sovereign wealth fund that the crown prince wanted to create to invest domestically. you have to remember that the country is sitting on 47on 4$470 billion in reserves, and

depending on the price of oil, they're still sitting happy. this is not venezuela. he wants to bring american investors into the country he will invest in our country. he already is. obviously he will be buying weapons. the vision is aspirational you can't look at it and say, well, he has not fulfilled this particular section of the vision i think a lot of it is aspirational he'll have to see how it goes. >> factor in the geopolitical issue. when you have rockets headed towards riyadh and the airport, if you are an american investor or an investor from anywhere, how you're thinking you want to put money into this country. >> it is a question. the whole region is turbulent. still saudi is a huge economy. if you're going to make money in the middle east, that's where you would go today that's what they're banking on

the question of the missiles is a serious one. there's no easy answer to it >> the optics you mentioned is a big part of this at the end of the day it's the region's biggest economy they understand if they want to continue having stability in a country like egypt, saudi arabia is still paying for egypt to be secure and paying for it to exist, even though their economy is doing better. you have to look at this in terms of they've come so far so fast he has done so much so far, mbs, and in the region aspiration and the idea of achieving something is so often, as you say, much more important than the actual achieving of that object i think that's something you'll see with private sector investment in saudi arabia, certainly from other gulf countries. as long as they're still moving, things are okay. >> why is this conversation taking place in new york city? because nobody wants to go back to the ritz? >> in terms of investment in

saudi arabia >> are people nervous? the last time everybody gathered in saudi arabia, they were in the same hotel where a few weeks later was turned into a prison >> i think one of the messages the crown prince is trying to sechbd here shg sen he send here is that was for domestic reasons that had to happen and it won't happen again. property rights will be respected. those who didn't settle with him in the ritz will go to court there will be due process. >> that's my other question. we've all been looking for this on the transparency side obviously one of the guests we had on our show who is well known, prince al walid was in the ritz, now out of the ritz. doesn't call it a settlement, but calls it an arrangement. >> everybody had to make a deal. all is forgiven. >> but it's a secret,

confidential deal, nobody knows what the deal is as an investor would you do business with somebody who has a side deal but you are not privy to what the deal is? >> if i was looking at it -- i would be investing in an saudi aramco or something when they went public. these are different deals between individuals who are part -- >> if you were a private investor, or u.s. investor or western investor, and you're going to be making deals with other people, and it sounds like everybody has to have a deal with the government now, very much ala china, where there's some deal going back with the government, how do you know who is the third party if everything is secret? >> my feeling is what the crown prince is trying to do, is to say business as usual as it was before, which is that you have to have a prince al walid to do business in the kingdom is no longer the case. business will not go through

these intermediaries >> it will go directly to the government >> or companies. it will be much more like doing business here. >> this is tribal. this comes from the fact that it's tribal and frn shoueveryon have a piece of the cac. >> do you think it will all be made public? >> what the accusations were >> the 5:quuizatiaccusations, te settlements. >> the official line is we're protecting these people. if you come out and say al walid was corruption, here is the proof, nobody will do business again with him in that country it's to protect his reputation that these allegations have been resolved secretly. >> we'll leave the conversation there. hadley, thank you. good luck today at the event. coming up, late august streaming service soundcloud was rescued by a last-minute funding

deal we'll talk to the new ceo, kerry trainor next and then vero is an alternative to facebook, the ceo will join us for a rare interview. and shares of redhat are up more than 90% in the last year jim whitehurst will join us at 8:40 a.m stay tuned you're watching "squawk box" on cnbc big tthe finger lakes is pushing the new new york forward. we're the number one dairy and apple producers in the eastern united states supported by innovative packaging that extends the shelf life of foods and infrastructure upgrades that help us share our produce with the world. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov

welcome back to "squawk box. look at u.s. equity futures this morning. you'll see some big gains a day after we saw some massive point gains. yesterday the dow was up by 669 points the third biggest point gain the dow has posted in percentage terms, it was up by 2.8%. that doesn't break into the top 30 of the last ten years still a significant rebound after last week when the dow was down by 1400 points. s&p futures are indicated up by 15 it was up by 2.7% yesterday. the nasdaq indicated up by 64. it was up by 3.25% yesterday streaming has reshaped the

music industry and has been a major catalyst for growth. next week spotify is preparing to go public that brings music streaming platforms into investor focus now. for more on how stream hag changed the music ecosystem, let's bring in kerry trainor, ceo of soundcloud, billed as the world's largest open audio platform thanks for joining us. >> thank you very much for having me. >> let's talk about what soundcloud is. there are two sides for this for the music creators and listeners. how does that work >> soundcloud is the largest open audio platform because creators have the ability to upload content and share it with listeners anywhere in the world. so at core we are a toolset for creators, so they can reach the world with their work, build an audience and monetize. that makes us a different kind of streaming service because the content is coming

directly from the creators, we have a huge catalog, and arguably the only de facto exclusive catalog. a lot of that catalog is coming directly from the content. >> do you own that content >> no, the creators own the content and we provide the platform for them to share it. >> this is a situation where everybody is paying attention because of spotify last august the company had to go back out for additional financing. they valued you -- that valuation came in at 169$169.5 billion versus 700 million you decided not to sell the company. that was your plan why was that >> i came to the company with investors because i think soundcloud is a one of a kind asset. it's totally dif rent initiafer because of that aspect with creators the connection between creators

and listeners will only become more direct. we did recapitalize the company over the summer we are pleased with our progress. we ended with over 100 million in revenue we're ahead in all the dimensions we hoped in terms of usage growth, cash, revenue. so we feel good about the company. >> what is the model does this look like vimeo -- >> you used to be the ceo there. >> that's true. >> is that the concept in your mind >> there's a lot of similarities the tools we sell to creators -- we get paid on both sides of the ecosystem. the creators pay soundcloud to use the service. that's an incredible business. selling software tools to creators, has great margins, great long customer lives and is very investable. one of the key differences with soundcloud, they are the leader in the audio tool space. so we're focusing on scaling

that core creator tools business but also offering a differentiated service >> because you want to be the back end for all -- that's the question does this become the backend for all music and podcast creators this is the closest thing to an operating system for music creators, for music and podcast. >> the secondary goal is -- is the plan then to license the music off of soundcloud on to spotify, amazon, then do you collect any piece of that? >> we have not made decisions yet to offer music off of soundcloud to other services it is a possibility but not something we have done yet the path is to focus on those creator tools which are totally differentiated on the listener side, the key is we're focusing on a service that is on a differentiated content we're not trying to offer the same $35 million catalog that other streamers have >> how many listeners do you

have signed up >> we don't disclose the total listener base. we're the number three streaming app in the u.s., and top five in most markets it's spotify, pandora and then soundcloud >> do you see the commingling of video and music coming together? the reason i ask is there's a view that, for example apple which is investing all sorts of money in hollywood, do they create a separate video subscription business or do they try to merge it with itunes and apple music? does amazon take its prime music business and tv business -- or does spotify which is rumored to want to get into the video business, does that become a video/audio business and then where does that leave you? >> it's an interesting question. one core thing we continue to see, it gets confusing from a user experience perspective. most people in music mode want to be in music mode. we're focussed on that audio

cues caus case we are focused on being the world's largest audio platform we offer direct access to creators for listeners as we put it, soundcloud is the place where creators and listeners come first soundcloud is about discovers, being there, connecting with that creator music is so focused on discovery. for creators that opportunity to put their work into the world and do so directly with no gate keepers, that's what soundcloud offers >> sure, i don't know that i want to be part of the audience. >> when you're at that passionate music discovery phase of your life, 16 to 25, before your music tastes settle in, you are digging around always trying to discover what's new >> thank you for coming in

>> thank you coming up, stocks looking to build on yesterday's 669 point gain for the dow that becky quick called >> it was a total fluke. >> take it when you have it. the big winners forev your strategy next. a big check of european markets. green arrows across the bod.ar stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker.

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get back to our guest host, national joe day you know who we forgot joe taranova >> oh, yeah, yeah, yeah. >> sorkin, joe aranova. >> happy joe day >> and to joe scarborough. >> your name is not joe, it's chuck, it's charles. >> all in the same family. >> we're all joes today. >> all in the same family.

>> how do you lose sleep in the current milieu >> he's so relaxed look at him. >> look, i think at the end of the day while the fed worries me, this is the most business focused president you may have ever had there's a lot of rhetoric and hyperbole especially when he came out with the china news, but at the end of the day he's trying to get the best deal for american corporations he can get. i think the heat was the highest on the announcements 60 billion here, 3 billion from china. those aren't big numbers. >> will you do an even trade, trudeau for trump? >> i think andrew is trying to do that deal. >> oh, yeah. he would love that. >> you know that. >> oh, my god, yeah. your guy is so sensitive i know i know exactly. >> first and last invitation here at "squawk box. >> joe and joe will invite me back. >> see you over on morning joe. >> any time. >> you can stay until 8:00. >> morning up chuck. en wwhe come back venture

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stocks set to rise again following yesterday's big move what's driving the rally your market breakdown is straight ahead. as the fallout grows for facebook, we'll introduce you to the social media site that is taking the app store by storm. ceo of vero joins us along with our guest host ben lear. >> plus, king of the mall. >> i was telling tiessa we have to find jay and ball. >> brookfield buying ggp that deal and more of your corporate headlines coming up as the second hour of "squawk box"

comes up right now ♪ ♪ live from the beating heart of business, new york. this is "squawk box. good morning welcome back to "squawk box" right here on cnbc live at the nasdaq times square. joining us is ben lear we're hanging with some of the companies he has invested in we are up and we are up again after what was a very big day. i mentioned it before, becky had called it. she had a 50 perfection percent chance of being right but she should take what she has there you have it. dow's up 111 points. nasdaq looking to open higher. 64 points higher s&p 500 up 14 points we should note europe and asia also up in the green after

pushing higher mall operator ggp will be bought by brookfield property partners in a deal of 15.3 billion in cash and stock 23.50 per share. ggp had rejected an earlier bid worth $23 per share. brookfield was the largest shareholder in ggp glaxo buys out knnovartis novartis had held a 36.5% steak before glaxo following its decision to pull out of the bidding for pfizer's consumer health care unit. >> 9:00 eastern watch for this, the january case-shiller report expected to show 6.1% year over year increase. an hour later we're going to get the march consumer confidence figures from the conference board expected to show a slight increase over a month ago.

and a few stocks on the move this morning red hat reporting better than expected fourth quarter profit and sales on strong subscription revenue. software maker is also raising its outlook for the year red hat's ceo jim whitehurst will be joining us the u.s. federal trade commission saying it has opened an investigation into facebook's privacy practices. separately a coalition of 37 state attorneys general are demanding answers. shares of facebook fell by more than 6% after that news before recovering to close fractionally higher stock was up slightly. remember on a day that the market was up by 3%. let's get you caught up on the markets at this hour as the dow logged its third largest point gain in history. joining us is karen cavanaugh, she is senior market strategist at boya investment and david

bonson is joining us we had january, ladies and -- lady and gentleman, and then we have davos where everybody said this is going to last forever and these are the great he was times we've ever seen and there's nothing to worry about and since then we've seen 5 and 600 points either up and down routinely. the vix is suddenly back in play we've made very little head way. still down double digits. >> that means the grind higher isn't going to be as easy as it was last year. let's face it, the fundamentals are stronger than ever the economy is accelerating. we have corporate earnings that are going to be double digit growth i think right now especially between earnings season there's a little bit more volatility as investors take a look at the economic data, potential threats of trade wars a little bit more

heavily. i think before we get the earnings in the first quarter investors are going to say what am i so worried about. these companies are getting it done so i think they go higher. i think it's normal volatility is going to be the name of the game. >> steven, like larry somers every 100 points from the election he said was a sugar high and not going to last so did we deserve 25, 26,000 on the dow? was that a real number or is the market now just sort of validating what all of the skeptics said, it shouldn't be up here? or like karen says, is it still going to grind higher and we deserve those big gains? >> i think that if you look at what the market multiple was when we were at 26,000 plus change it wasn't that high, especially when you take out the kind of fang names that were really giving the huge premium it really depends, joe i'm a big believer in what we

did with corporate tax reform. i think that instant expenses and ultimately the repatriation as the capital goods orders keep going higher, as that business investment piece that was missing throughout all of the obama years continues to kind of resurface, i think you're going to justify the higher premium. then on the other side, the tariff issue is a legitimate one. if they continue to press this beyond just sort of the negotiation posturing of it, if we were to kind of go down a path of fundamental repricing around our global trading relationships, then i think that has to take the market multiple down absolutely 26,000 was justified based on to me how after tax earnings it's going to be. we need time to have that business investment play out i agree with what karen said the fundamentals are going to be strong >> it's great because the business press will always help build a wall of worry and

skeptici skepticism today all of the articles are there's significant damage done to the technical underpinnings of the market. in the last two or three weeks i mean, facebook as an example do you believe that, karen >> well, i think that it was a little bit of a dose of reality in that tech doesn't just always go up, up, up. if you take a look at tech's earnings, they're still very, very strong. and i agree that the tax cuts are extremely important, and i don't even think they've worked their way into the system yet. we keep pricing in all the bad things that could potentially happen what about the good things those things seem to be falling by the way side. i think that we're going to be pleasantly surprised on the growth that we see this year as we actually do see these business policies work through the system and i think that we're actually -- we're being a little bit too pessimistic sure there are things that can go wrong if we do have a global trade war that is concerning it's not going to happen

i think there's going to be a lot of good things i think we will go higher. like i said, volatility is what we need. tech is not immune from volatility still a great space to be. if you take a look at earnings, they're looking at more than 20% for the first quarter and the rest of the 2018 doing very, very well. >> david, the market has seemed to divorce itself from washington in a lot of ways. is there anything on the horizon? the 2018 election, is that going to be significant for continued advances i don't know, more chaos, whatever you want to call it between the white house and congress is all of that -- could that be a negative down the road >> i would flip it around. the market is going to have a lot more to do with the mid term election than the mid term elections are going to have to do with the market i would say the mueller stuff and almost everything that happens on a day-to-day basis out of washington the market has ignored for literally a year and

a half it will continue to do so. i will say the sociopolitical aspect with big tech, cool tech, new tech, i think it's legitimate i don't think they're going to be able to keep the outlandish market multiple they've had. while i would share karen's optimism about overall market levels, we feel good about being invested right now in risk assets i would see a rotation continue out of that market leadership of big tech into value, which has under performed for so long now, and into small cap which will prove to be one of the biggest bins beneficiaries of corporate tax reform so i still think you can have your risk positions on you're going to see some leadership change and the earnings are very strong out of those fang names the multiple that was put on them before was simply unsustainable. we'd rather go to where there is better pricing, better entry levels and value that we can extract for our clients. >> facebook there was 160.

it closed up a dollar or so. it was down. did you see it >> down 6%. >> yeah. up one point yesterday the only dow component yesterday, did you see it? the only one down in the 12s. the market cap on ge now -- >> very ad. >> 110 yesterday 110 billion. anyway, karen, and david, thank you both do you know anyone named joe, either one of you? if you do, wish them -- >> i know you. >> well, you know me >> happy joe day, joe. >> i mean, there was puppy day the other day. >> friday. >> yeah. friday was national puppy day. i don't know if there's a national ben day ben lear is here there's not a national andrew day. >> there is a saint andrew day. >> better. >> thank you. >> better. when we come back, facebook under fire over its

responsibility to protect users data we will speak to our guest host ben lear about the data harvesting scandal, the future of social media and much more after the break. and later, the ceo of what's being called the anti-facebook will join us in the last month social network vero had fewer than 150,000 downloads. now it has over 3 million being driven in part by frustration over facebook, instagram and others we'll find out more about the company in just a minute "squawk box" will be right back.

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uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. eye. oh, welcome back to "squawk box. global markets rallying this morning. the futures right now triple digit gains after 669 points yesterday. the biggest point gain in ten years. some days shouldn't we just say we're going to do percentages and not even mention -- >> i had a viewer who wrote in and stop saying triple digit gains since it's every day, all day across the entire network. >> it's now like 1/3 of a point.

>> for so long -- i wrote back for so long there was no movement, there was no action, there was nothing. >> really. all the way through january. up another 60. up nerve 0 points. suddenly -- >> down 20 >> we're going to be talking quadruple either up or down. >> i hope it's up, too >> all right all right. facebook says data practices remain under fire as the cambridge analytica fiasco continues to unfold. regulators and investigators are slamming the social media giant over the handling of social media previous sis you have the ftc all over it joining us, our expert on all things tech for the hour, ben lear, ceo of group 9, a portfolio of digital media brands that heavily distributes its content, yes, on facebook.

it includes gryllis, seeker, the dodo >> now this. >> now this. and casper, the bed. >> no, that's an investment of ours >> not part of the actual -- >> no. >> i sleep on a casper. >> you have axios. >> now you're looking at our portfolio. >> let's go straight to facebook talk to me let's be honest though, because you have content on facebook and your relationship with these people, you have to be honest about what you really think. >> i know the rules. >> okay. >> so what do you really think >> i really think that i know you won't want to hear this. i think that we're -- i think that the reality is that facebook is the fastest growing company in the history of human kind literally and i don't think that they understood or anyone understood quite what this platform would become and how quickly that would happen.

>> i don't think anyone here is going to disagree with you about that it clearly didn't. >> it clearly didn't i think that there are questions that now we say we would have, could have, should have asked but the reality is that you could never have known that facebook was going to become a platform from one another. at this point we're at a point where regulation does need to come i think they recognize that. >> do you think regulation should come? >> i think they think regulation should come. >> in what form? >> i don't know what that should look like. i think there are so many layers and so many nuances to how the platform works and the way information is spread. >> have you used data that myself, becky, joe or somebody else would not appreciate or have realized that you might have been using? >> well, so we don't -- like at our company you mean >> yeah. i mean, i assume you're getting

troves of data through the apps and everything tied into facebook. >> we don't have apps so we're publishing on facebook we're targeting to people. not individual people but groups of people based on behaviors and things of that nature. we're trying to communicate with -- we're trying to deliver information people would want to the right user so i don't think that the way that we're using information would be something that you would feel violated on. >> ben, i'll tell you what i agree with everything you've just said, however, i think there's a bigger problem and that bigger problem is that they may not have intentionally along the way realized some of the things that we were doing because they were moving so fast and doing so many big things, but ultimately their business model is about collecting as much information from me, andrew, joe, anybody else who uses the platform and then mining it and selling it to you. and there's a lot that got caught up in that that things like over the weekend where we found out if you were on the android platform they were sucking down in some cases every

call you ever made, every text you had ever sent. that is something that when we signed up for it, okay, yeah, agree to your privacy policies we didn't realize. >> yeah. >> that's a big, big turn around it's ultimately going to put the business model on its head are they prepared for that i think they're prepared to say we shouldn't be used by foreign governments. are they prepared to say this is creepy. >> i'm ticked off. i can't believe what they've been collecting. >> i don't blame you for being ticked off i think that there is definitely a wake-up call for everybody on just how much -- >> this is not just facebook. >> this is not just facebook this is amazon, apple. >> google. like -- >> i posited this yesterday and i think boeingy disagrees with me on this particular point. i'm of the view that oddly enough this new generation seems to care less about their privacy if they think that the data is being used to sell them the casper bed or a toaster or a pair of sneakers

i think when this all got confusing or complicated for people was the second it became political. >> absolutely. >> trying to influence people's views on society. >> it didn't get political with the last election cycle. >> it got the wrong political -- >> no. no no no. >> that's the college campus mode. >> no. no no no. >> you can come in if you are going to say things i want to hear >> you made the argument around the idea that obama used facebook. >> that's the college campus mode the snowflakes. >> no. first of all -- >> how are you -- you can't get rid of political ads, andrew you think tvs, you can't buy political ads on tv. >> facebook could say we're out of the political -- >> right now i think facebook should be out of the political -- >> not going to happen. >> not out of the political content -- >> full on >> doesn't fix the problem doesn't fix the problem. >> it doesn't fix it long term what it does is it just says we have to take a beat, we have to

take a second. >> it would be nice for them if that solved the problem. it's not going to. regulators are coming. >> your stolen election claims that the russian cyber attack. >> you should be -- >> you said hack the elections what's hack the elections? >> you should be more outraged at the fact that our democracy has been put in jeopardy because of these hacks -- hold on, because of the hacks and people that have manipulated it. >> facebook was a hack >> than the data process. >> i disagree. >> i'm bothered by the fact that they've been pulling this information that we don't know what they're going to do with it. >> i can make my own decisions. >> i would be more bothered that outside governments are taking our information and both are important issues to understand why regulators are looking at this on both sides is because of the politics of it, it's not because he's able to sell a casper mattress better than somebody else. >> when president obama went to

the u.k. and said if you vote for brexit you're going to the end of the cue when he went to israel and said to netanyahu, do not vote for this guy if you do -- >> right >> -- governments -- >> now you're defending putin? >> i'm not defending putin. >> you're saying everybody influences everything. >> grow up it happens it happens >> russia -- you know, if you -- >> you say hack the elections. have any votes changed by what happened on facebook you say hacked why do you say hacked? because they put -- >> they lied about the reasons they were using. >> okay. >> cambridge analytica lied. >> not a single vote -- you're not going to you be wind it. >> i'm not unwinding the election i'm saying the reason we're having this conversation is because the data piece is a huge part of it, but it's what the data piece allowed to happen it's not because you could sell sneakers faster and better to people. >> that's what bothers me. what bothers you is -- i'm not on facebook but if i knew that all of my 3er78 data was being used, i searched something on

google, i just searched that, here's an ad of it. >> there's a whole generation of people who have been living with that for years that's not how this conversation started. >> this is deeper. >> do elizabeth ads and bernie ads okay on facebook >> no. no >> like on college campuses they're fine but just don't invite any conservative guys. >> okay. >> my problem is that there's so much -- >> is this a personal problem? >> me as a -- >> i am incredibly bothered by this because we don't know what's happening with the information. cambridge analytica is one example of what might have happened they said cambridge analytica had information and there were other cases of it and they weren't sure -- how many other cases, 300, 500, 1,000. >> this is older datasets. facebook did make a very large exchange of privacy. >> facebook and google, based on everything i've been reading, the amounts of information they've been gathering on every

single person. i don't understand what they've been using that for. they can't explain to me why. >> at the end of the day they're using it to repackage advertising. >> more than just that. time now for today's aflac trivia question. what was the first startup elon sk founded the answer when cnbc "squawk box" continues break a leg! aflac?! not that kind of break. oooh! that had to hurt. aflac?! not that kind of hurt. yeah, aflac paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing! see how aflac helps cover everyday expenses at aflac.com.

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now the answer to today's aflac trivia question. what was the first startup elon musk founded the answer zip2, an online business directory compaq acquired the company for more than $300 million when we come back, the release of the latest cnbc all america survey steve liesman will join us to take a look at the surging onicroh and how the white house chaos is affecting economic growth. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances.

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♪ ♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. mopping the stories front and center this morning the commerce department says the 2020 census will include a question about

citizenship status saying that would help the government enforce the voting rights act. opponents say it will discourage immigrants from participating. california has already announced its intention to sue. shares of mccormick are higher earning $1 a share that beat the street's expectations by 10 cents the company raised its full year forecast from benefits of the tax law. that stock is up by 3.75%. two popular websites are up for sale iac has hired allen and company to explore a sale of dictionary.com and sister site thesaur thesaurus.com. two separate parties contacted iac for the purchase of those sites. checking the recent move in the u.s. equity futures, sharply higher this morning. wait a second. you moved it percentage points without letting us know. it's up by half a percentage point, both for the dow and the s&p 500.

nasdaq futures indicated by up 1% you have to do your math on this dow futures indicated up by just under 140 points s&p futures up by 15 points and nasdaq up by 60 points. results of the cnbc all america economic survey are officially in the books. steve liesman joins us with some of the highlights. professor. >> fascinating results a slight dip for the approval rating of the president amid extremely high economic optimism numbers here the story here as you look at this chart, folks, is not the movement, it is down 3 points, but that's within the margin of error. the story here is how flat it is amid incredible economics. we're going to show you this 39% on the overall of google rating slightly higher. maintaining pretty much the same margin on the approval rating of the economy. 800 americans, not just athletes, joe, 800 americans across the country in this

survey let's take a look at this a couple of different ways the president's approval rating relative to the economic numbers. we want to show youwhat's happened to jobs plus 2.4 million down plus nearly 5,000 points the president's approval rating is flat. now i want to show you the economic optimism numbers in our survey 50% of the public saying the economy is excellent or good we've been doing this for 11 years. we have never had two back-to-back months of half or more of the public that's an all-time record for the fourth quarter average the economy will get better. 38%. a post recession record. wages will increase 48%. home values will increase 49%. a post recession record. >> is this an indicator, leading indicator or counter indicator >> pretty good leading indicator. all of that combines and

people's sense of confidence we'll talk about sense of confidence as well i will say inside the poll when we ask people about specific policies of the president, they don't poll especially well, tariffs don't poll well. a lot of people don't know what to think about the tariffs the other really interesting factoid of the survey is only 32% of the public sees any increase in their paycheck from the tax cuts that includes, by the way, you would expect some -- only 48% of republicans. see that. >> does that matter geographically zpl we don't see that necessarily that there's more people in the south, for example. it's pretty flat. those that do see something, 38% don't seefully big part of it.

our posters don't think this will move. they think the president is stuck in terms of the push me/pull you. it will leave us in the 39/40% overall approval rating. >> ben, in terms of the business that you're in and the backup environment, is it good right now would you say? do you agree with the numbers? starting an entrepreneurial venture, whether it's media -- >> it's always a good time. >> 2008 -- >> no, in general the speed that disruption and change is happening in the world now there's always -- i'm just a believer in entrepreneurship in general and opportunity. something feels disconnected for me we spend time with large fortune 500 companies as advertisers and i spend time with startups i think the collective thought

is it's a scary time right now everyone feels they're under attack i feel like there's a disconnect between the stock market being at an all time high and the general discomfort that i see all business people feeling so i don't exactly know how to rationalize that part of it's probably the news cycle. i think it's the business you're in, which is the business of being disrupted by someone else. >> spend time with big companies and they -- >> they seem pretty optimistic >> no, i don't think that that's the case i think they're legitimately very fearful. >> is that in these numbers? >> these are not business numbers. no, most of the big business poll numbers show a lot of confidence out there right now and a good feeling -- >> if i competed with amazon, i'd be afraid. if i competed with, you know,

over the top, i would be afraid. it's disruptive. >> if you work anywhere in the entire retail sector you are competing with amazon. if you are anywhere in the entire media business you are competing with facebook. >> in a 3% gdp world, you felt better in a 1.75% gdp? >> i don't operate -- that's not how i think about the world. >> joe, you've got to admit it's weird, right >> what's weird? >> when i look at these numbers, i see a way for the president to have a much higher approval rating. >> oh, no, i don't think that's weird at all you know that's not going to happen. >> he could bring down the tenor and the chaos in his own administration and he could get a lot of independent -- there are independents, joe, who are ready to cross over to the president, who have, for example, our poll -- >> steve -- >> what republicans have better on the economy. >> in concrete what is trump's

negative number, in concrete. >> 45% >> maybe here's how you do it you bring your 1/3 of guys and women and they bring their 1/3 and then you fight over 1/2 of 1/3 plus 1. that's how you win political fights he is not winning that 1/2 of 1/3 plus 1. it seems to me he could do it. >> really? >> without the chaos. >> you think he's going to win over the network news guys. >> no. no >> newspaper guys, cable guys. >> the folks in the middle, joe. >> like the cable guys >> there's a lot of folks, i think, joe, when i look at the numbers who would be ready -- there are people, for example, who approve of what the president is doing on the economy but do not approve of what he's doing overall. >> tell me something i don't know we understand that. >> you saw the editorial that says i disagree with everything trump does except all his

policies you saw that piece it got a lot of play, right? >> yeah. >> these are -- what you just told me, of course, i see that i'm here every day i'm here every day. >> you do? you follow it. the tweets come out -- >> i look at the "huffington post." i look at the daily news i know what happens on cnn i understand >> right right. >> the stormy network. stormy has the-- oh, no, that' windy. windy has stormy eyes. >> song we can play. >> we can play that. when we come back, social network vero making waves in the app store topping the list of free downloads last month. we will meet the company's ceo and talk about what makes their site different from facebook that interview is right after this break you always pay

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has grown from barely 200,000 users to 4 million attracting new users on a platform free from ads ayman hariri joins us. thank you for being here today >> thank you for having me >> let's talk a little bit about the platform it's been called the anti-facebook platform is that a fair description of the site what exactly does it do? >> so we built vero, sorry, to be an alternative to all the existing platforms out there that taut to be free but are really taking your data and using that as the currency that they're using for their real customers, which are advertisers. what the platform does

essentially is allows you to be social with your friends online. we're trying to build something that is simple, takes us back to a simple time where we use social apps to connect with the people that we care about in our lives or follow the things that interest us. >> that makes sense to me, the idea that if the site is free, we should all understand that we're trading ourselves away for some of this your site is free, too you plan to start offering this under a subscription price >> absolutely. so from day one when we launched our app in the app store in 2015 we announced that we would be subscription based and we've always said that the first million users would be free for life and that we would start charging after that. we had such a huge amount of people come in all in one go and ran into some technical problems and so we decided rather than make people feel excluded from the experience, we wanted to be

have it be inclusive and we've extended the free for life until further notice we will be announcing when the subscription will start soon >> ayman, there's a big conversation around facebook, privacy, all of these things whether this next generation is willing to give away its privacy. i'm of the view, and i think ben is of the view, i could be wrong, even if there is regulation, whatever that looks like, i imagine it's going to be a big screen, a big opt-in screen much bigger than the current one. i happen to think people are going to push yes, yes, yes, yes, and yes, thank you. do you agree with that >> i'm in a different camp from that, and the reason is that as long as that screen is going to have on it that there is a psychological profile being

created of you based on your behavior, based on the choices that you make that allows for a more efficient targeting, then i would agree with you, but i don't think that that's what's going to happen. the challenge that companies who are using data as the basis of their business model, they need to always show growth so it needs to be much more efficient all the time, every quarter, showing better performance the only way to get better performance if you're not growing at a massive rate is to be able to have your algorithms be more efficient. for those to be more efficient they need to know more about you and have a better sense of who you are, probably better than you know who you are in order to target you for ads. >> ayman, everything you've just said makes sense to me, but you

still have this hurdle of trying to make people trust you, and that's a pretty high hurdle given where americans are right now. they don't trust mark zuckerberg, why would we trust someone who is a lebanese billionaire whose father was the former prime minister and whose half brother is the prime minister now how do you make people open up and say, we trust you and we're going to give you all of the understanding based on the understanding some day we're going to be paying a subscription >> so i'm very proud of my family and my heritage my father, as you said, was the prime minister of lebanon, but before that he was a successful businessman. but before that he -- when he was a young boy he was picking oranges. and he reached a success in his life, but rather than just go down the path of not doing anything for the world, he decided to go and become prime

minister in order to rebuild his country. he also put 30,000 students through college on his own dime. i'm proud of my brother for taking over the political role that was left after my father was brutally assassinated in 2005, and i think that, you know, where we come from and, you know, with the fact that our father left us an inheritance or whatever you want to call it shouldn't be judged on. >> trust but remember have i phi. how do you let people know is there some way you open up, some openness that people can verify and say we feel good about giving this to someone we don't know >> i'm willing to answer any question from anybody. i'm an open book i've made myself available to,

you know, anybody who has a question about where i come from, what the intention of vero is and really where we're going is we really want to create a better experience for the user but also that experience comes with different facets of the company. the subscription that we talk about is really there to keep us honest the relationship that we have with our users is that they are our customer, not advertisers. so when we ask somebody to pay a subscription, we are entering a contract with them we don't take their data we're not going to target them there is none of that going on it's a simple service and, you know, we're a small team of people who are dedicated to creating the best user experience from start to finish. >> okay. ayman, thank you appreciate it very, very much. coming up when we return,

the ceo of blade is going to discuss the latest round of funding and helicopter safety. why the sudden change in optimism we'll talk to two folks who know a thing about it we're back in monta me innovation in the finger lakes is helping build the new new york. once home to the world's image center, new york state is now a leader in optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov.

welcome back to "squawk box. private aviation company blade just raised another $38 million.

with our guest host co-leading the series tell us what else is going on in the business above the cloud, rob is here. great to see you, sir. >> great to see you. >> congratulations on the funding. i want to talk about two things, helicopter safety, a terrible incident, it wasn't one of yours, two weeks ago in new york and i want to understand for those of us who at least aspire to take helicopters, what the safety issues are and then i want to talk about the future of aviation, if you will. speak to the helicopter safety issue first. >> sure. >> people say, do i need to be an a helicopter with two pilots? do i need to have two engines? this situation i know that took place on the river on the east side, it was a terrible incident. >> very unique situation with respect to blade, as a matter of policy, we don't engage in what you would call

helicopter photo experience flights. the flight in question is one in which the helicopter's reconfigured without doors, without passenger's seats and passengers are both harnessed and tethered to enable them to sit on the outside of the aircraft with their feet on the skids to take photographs. obviously as you read, the inability for the passengers to get out was the tragic incident. >> speak to the other issue. people always want to know, single engines, two pilots. >> in general helicopters you're looking at a .003% accident rate for every 100,000 flight hours so with respect to overall safety, you have to look at flight hours, you can't look at individual incidents because obviously if you look at cars and other things, they're quite spectacular. get a lot of news coverage the incident rate between single engine and twin engine is

relatively insignificant in fact, there's certain single engine helicopters that have a rate that's lower than twin engine what most people don't realize is that helicopters glide. all pilots are top to do something called auto rotation which happened in the incident in new york city a couple of weeks ago where you can glide for up to 90 seconds or miles even sometimes at a time so the second engine sometimes provides some redundancy not all parts that are important are redundant. two pilots you raise many insurance companies require that. >> right >> another form of redundancy. so -- >> tell us about the future of aviation. >> sure. >> larry page, everybody in this business, you have to deal now with airbus. do you see a time -- some people seau tonneay autonomous helicops

going to be easier than what's happening with cars. there's nothing to hit in the sky. >> what's coming first >> i don't think we're at a point of talking about autonomous what we are talking about is quiet and affordable quiet is imperative. quiet is what enables blade and other companies to have missions that go into different parts of the city because right now noise is the number one factor in new york city all of the heliports are on the water. >> you think we're going to be landing on top of buildings? >> we will be landing on top of buildings. the reason con capital co-led, we have one in new york city where people are working on developments three, four, five years ago they're talking about electric vertical takeoff. >> the helicopter went over the top of metlife building and it never happened again the old pan a.m. building.

>> there was a strut that fell and a helicopter collapsed on its strut. the kind of aircraft we're talking about now. sometimes 36 fans,quiet, electric motors. much less expensive to run, much quieter helicopters have a tremendous amount of noise. >> how far are we in the future? when's that happen >> five, six years you'll be seeing them in europe, dubai probably as little as reyethe ars and that addressable market will be strong. >> thank you >> thank you >> we'll be right back

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♪ ♪ oh, it's me. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square on this national joe day. i'm joe kernen along with becky quick and andrew ross sorkin let's get a check on the markets. good feelings of the national daily. up 120 up 669 points on the dow yesterday. even on a percentage basis but sounds even bigger santoli is here. he wants to talk percentages and points >> points the biggest ever. >> basis points or -- >> yeah. yesterday was -- >> that was for real close to a 3% one day gain. >> i want to ask you about that, whether you look at market watch. look at that ridiculous site

anyway, i saw like six things that said oh, my god we're on the precipice. >> yes. >> technical damage that's been done just wait. it was perfect >> all set up. >> perfect for bulls that think that -- where corrections, you don't know whether to buy them because you have people like them writing articles and say we're going down. >> for months you had talk of well usually a low in a correction gets retested that's what the retest looks like. >> then they write the article on the retest that it's going much further. >> yesterday's rally, among many things that it did, it quieted the talk which was all over the weekend about 1987 you had the same kind of weird setup of two 2% down days and that's over. where i've been putting it, the floor held the long trading range. it bounced where it had to the 200 day average, that's great. maybe cute that it barely touched it and rallied what's interesting is the market was really over sold and stretched. it responded in the way that you would want to.

>> i want to get that out of the way. did you hear what santoli said >> i think richard is going to agree with me. >> now he is. >> no, but fundamentally what happened is the market got back into a zone where it looks like it's cheap the valuation excesses of january are gone sentiment -- >> technical damage, do you see it everywhere? >> no. look, i think more than 1/5 of the s&p 500 was down more than 20% coming into this week. obviously a lot of stocks got blasted. that doesn't necessarily to me mean that it was game over look at the chart we have here because there's still a lot of room up to the ceiling of this trading. >> aliens. >> by the way, this whole thing has been an equity event, right? credit markets haven't freaked out. currency is doing nothing. >> the credit market, it was unrelated. the moves in treasury were directly related to people flying stocks.

>> within such a narrow band the yields have not gone up. >> fair point. fair point in fact, there are the yields. you can see the 10-year, 2.84. let's get to some of the big headlines this morning three deals we're following. brookfield property buying the rest of ggp it doesn't already own. $15.3 billion. four months after ggp rejected a $14.8 billion deal cash is 61% of the new offer ggp owns more than 100 high end mall properties in the u.s they've done okay in what has been a challenging environment glaxosmithkline buying novartis stake. glaxo dropped out of the bidding for fooiz zerpfizer's bidding akzo is selling chemicals to

carlyle. it tried to avoid a takeover from rival gic. get you caught up on the earnings reports mccormick adjusted a quarterly profit of $1 per share 10 cents above estimates spice company raised its four year forecast and benefits on new tax law. then there's ihs market beating on the top and bottom line the financial analytics company said it was helped by improving end of market fundamentals factset beat the streets and added $300 million to the share repurchase program in the meantime washington lawmakers aren't the only ones who want answers from facebook want to go over to wilfred frost at cnbc's hq. >> mark zuckerberg will not appear in front of parliament in the u.k. after he declined the invitation from the chair of the digital cultural media and

sports committee damian collins. he will send chief technology officer mike schrockfer. collins has not backed down saying, quote, given the seriousness, we still believe zuckerberg is the right person to give the evidence the e.u. justice commissioner has given facebook two weeks to answer questions posed to the company. all of this comes as chris whilely appeared in front of parliament and said it was donald trump's election victory that made him come forward he also said, quote, categorically untrue that they never used facebook data this is something cambridge analytica has continually denied he also said that -- cambridge analytica said chris wiley was a part-time contractor who left in july 2014, has no direct knowledge of our work or practices since that date.

guys, back to you. >> wilf, thank you very much folks, let's get back to the broader markets right now. joining us is tom lee. imagining partner at funds track global advisers. richard bernstein, a cnbc contributor. mike santoli is still here as well rich, weigh in on this this week is looking very different from last week what's the real market story >> it is i think to some extent last week was a series of self-inflicted wounds where the fundamentals are quite positive news events and tariffs and everything you've heard about the fed, it becomes a self-inflicted wound if people look at fundamentals and stop thinking about these day-to-day self-inflicted wounds, i think they'll understand that we're still probably in a bull market. >> tom, last week it looked like we were undergoing smith holly it was just a skirmish, it's done, it's gone. >> well, i think over the past

few weeks liquidity has been coming out of the markets. part of that is because libor has been widening. headlines last week made any selling amplified to the down side that's why we didn't see the vix move as much, like you mentioned high yield barely budged but the stock market fell 8% i think people were nervous. fundamentals are intact. >> the people who were selling, institutions that were selling, are they the smart money or dumb money? >> they're cautious money, right? people have a lot of games and recorrections of 5%, people are nervous. >> you're getting to the end of the quarter. have to put on a show. >> yeah. it's cross the board hedge funds, a lot of our mutual fund clients they've all been a little cautious, right? when they see credit and line bore widening, they get nervous. >> if you wanted to try to dice this up, are there certain

indicators >> it turned it upside down. i think people got scared. it's looking at it as a trading range. i did have a chart where it's running for the s&p 500 where last week's lows up to 2800 a 10% range. we've been shuttling as the market tries to figure out the right valuation to put on what everyone agrees are good fundamentals. >> does this mean we have not reached any technical levels people thought it was a low cause. if you had a checklist, most of them got checked off yesterday to tom's point about the news items, think about how this whole thing started in late january. it was all about -- >> concerned about the fed

raising rates. >> right and then, you know, it was all about the potential for a trade war and then it becomes this facebook so i feel like all these excuses get served up for a market that's trying to find the right level and also to figure out if this is going to be peak earnings growth and also a little bit of a soft patch in europe. >> you made the point last week where is the leadership going to come from if it's not technology stocks or financials. >> you don't know. maybe nothing. maybe it means at the index level things are stuck. >> energy stocks. >> you have the materials an industrials. there could be a real shift coming. >> where would you guys tell people tostart putting the money? mike pointed out that 20% of the s&p 500 is down 20%. do you look at those names or do you look to names like the energy sector? >> not to sound like a broken record every time i'm on, you about i think what's going on is we are in a transition from a disinflation to deflation world

to some kind of inflation world whatever that turns out to be. that's why you're getting the volatility this is a sea change going on. if i'm right about that, it says you want stocks that benefit from nominal growth, not real growth, nominal growth that could be materials, that could be energy, that could be industrials, it could be cyclicals in general, but the notion of income, you know, inflation is death to income it's the kryptonite of income. >> tom, quick last word? >> i agree i think this is like the 1950s again. from 1950 to '65, households lost money owning bonds for almost 30 years. i think it's time to own capital gains which to richard's point it's inflationary trades. >> before we wrap this up, you can give us a little crypto. >> yeah. >> you're a crypto man bitcoin is now at, what, 8,000 >> yeah. this is -- >> you said 20,000 >> i still think we can see 20,000 by mid year bitcoin has really took a punch

in the gutt because of regulatory headlines and some fears about big sellers like mount gawks but it's trading at the cost of production today the last time bitcoin traded this cheap you never lost money in the next 12 months. >> you're still bullish? >> yes. >> you think this is a discount you should be buying >> i would be buying, yes. >> you think it will go up 100%? >> yes i think by mid summer it should be around 20,000 >> okay. >> tom, thank you for being here. >> hold you to that. >> mike, great to see you. >> he was right the first time. >> coming up next, what happens when china steals your company's intellectual property. the trump administration cracking down on the company for i.p. theft we'll talk to the american super conductor. the company's trade secrets were leaked to a china customer stay tuned you're watching "squawk box" here on cnbc you know what's awesome? gig-speed internet.

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box. futures right now are indicated up triple digits about 120 we're going to ask our resident truth sayer, over/under. where are you? >> come on you were over yesterday to 120. >> double or nothing. >> double to 250, end lower for the day? >> i'll rest on my laurels >> so you're not going to -- >> you guys make the call. >> mid 23,000s on the dow. now back to 24.2 been to 26.5 >> i just thought it was over the weekend a lot of people who were trying to buy the dip were going to jump in on monday i don't know what happens on tuesday. >> this is your strategy. >> i have no idea. >> steve liesman says 52% chance. >> that it will go up. >> the s&p 500 will go up. >> i like to play the lottery. >> i know you do i know you do. >> let's talk about a different

type of tax actually earlier this year a jury in wisconsin convicted chinese wind turbine manufacturer of stealing trade secrets from an american company known as amsc or american super conductor it may begin to close the book on a very ugly chapter on a firm that believes it was swindled from a chinese customer. it's the chance to see liefl consequences of intellectual property transfer. joining us is daniel mcbegagann he is the company's president and ceo. if you don't know, take us back to the story you struggled for a while. stocks up 50% this year. that's the good news take us back to what happened to you. >> sure. if we go back to 2007 or so we started a relationship with the chinese company which was part of a state-owned heavy industry company.

they're kind s oiinebel and the utilized our wind turbine technology, which is part of our business model and we would supply the control hardware and software and operating systems for those turbines over a few-year period they went from new market entrant to number one in china by 2008. number two in the world by 2009. they were bigger than general electric was in wind at that point. >> and they literally just took everything you had in terms of all of the items >> probably the good news is, they didn't take everything. we continue to have a wind business in india. we've helped to create a top tier player there. we're working in south korea with doussan they were able to get technology that related to their wind turbine, which was a specific size and specific class of turbine. what they did is they bribed one of our employees to the tune of nearly $2 million.

the way our controls and our operating system work within the wind turbine, they all communicate with each other on an encrypted protocol. they had 800 engineers that they admit trying to reverse engineer our technology they failed. they had to resort to outright crime to get one of our employees to recompile it without the encryption freeing them from our hardware. >> what is the risk for any u.s. business that's doing business in china today, whether it's a small entrant who's jumping in now and having to partner with a chinese-owned company there or the big guys, and i'm thinking rometty and tim cook just in china, they have a big business there. they have to do business and in line with other companies that are staking goal. >> i've talked to ceos from large multi-national companies to small companies and i give them basically the same advice realize that china is a planned

economy and in each plan they actually will write down the technologies that they're trying to either develop or acquire by any means and if your technology's on that list and you're in china, they're going to find ways to either attack you or somehow deal with vulnerabilities to your people or your systems to acquire that technology by any means. >> is it just a losing proposition? should you never try and do business with china if you've got something that might be lifted >> well, what i told a few ceos that were in the middle of deals, and they changed the structure of what they were working on, i said, if you're going to bring technology, realize that that technology is going to become a competitor to you in the future. realize in any deal that you sign, whatever you get up front that's paid in full is probably all the value that you can guarantee that you're going to see. so the allure of the market is very, very strong but the rules are set up so local brands win ultimately what china is doing

is developing their local brands and local market to eventually unleash them on the global market half a generation past or a generation past from now >> what's the answer the trump administration, obviously there is lots of commotion and questions about what tariffs could look like, how tariffs should be implemented and whether we'll create a trade war where do you land on that issue? >> there have to be consequences to bad actions and bad actors. you know, in our case this is a company that actually had some accounting irregularities, i'll say kindly the senior executives were fined and punished for that legally. as i tell my children, every society has good people and bad people it's really the rule of law and the ability to enforce that rule of law that helps protect people from bad actors. if our government or western governments can help facilitate

ways to help the chinese enforce their own laws, we have in excess of $1.2 billion of litigation still ongoing in china. we've had two convictions, one in europe, one in the united states on basically the same facts. if we're able to find ways to facilitate the chinese, utilizing their own laws and their own rule of law, then i think, you know, the potential for a fair and level playing ground presents itself >> did the u.s. government at any point try and help you in this dispute >> yeah. yeah criminal conviction because we have two of those. i think that's something that's very unique. i think something unique about ours is we're very outspoken about it because of the damages that have been created this administration we worked with i testified as part of the 301 action i gave a pretty lengthy public testimony on that. we support any action by the government to try to a squieb

consi againsts if we can help and facilitate the chinese understanding, with the previous administration we were very well connected up to six cabinet level officials, the former vice president, two former secretaries of state. we were -- we are basically have become the poster child for i.p. abuse in china. >> daniel, we appreciate your time it's a fascinating story we're happy to see that good things are happening talk to you soon. >> the great things happening with the company are resiliency. >> thank you appreciate it again. coming up, why the caans film fetstive val is banning selfies. and netflix at caans

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♪ ♪ it's national joe day.

march 27th national joe day good morning welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick and andrew ross sorkin andrew does not have a national andrew day. >> saint andrew's day. >> there's a national rebecca day. >> there is. there's a national saint andrew. >> you're not a saint. >> you know. >> all right >> monday. >> check out the future -- >> trust me, my mother thinks i'm a saint. >> i know that check out the futures at this hour triple digit gains among the stories front and center, home prices likely to be up 6.1% compared to a year that's the consensus the case schiller report out in 30 minutes home prices had posted 6.3%. apple will be announcing new products today aimed at helping

to regain the former dominance among the expected announcements, a lower priced ipad apple now has 17% of the pre-college educational market compared to 60% for google's chrome operating system and a 22% for microsoft, windows newell brands and office depot have settled a dispute over the sharpie pen. newell stopped shipping sharpie's over a dispute over how the products were being showcased and marketed that rulgted in a 10% decline for sales for the newell company. they say it's been settled office depot declined comment. andrew, you go through those sharpie's like water. >> i like the silver pens.

>> you're always like this shaking it it's constant. >> constant. >> constant. they're all on ebay now. >> november 30th. >> november 30th, that is saint andrew's day. >> november 30th we're going to mark it and have a great day. >> people say, andrew sorkin, aaron sorkin, right? >> sometimes the issue. >> yeah. all right. the cnbc all-american -- >> i love "west wing." >> producing some very interesting results when it comes to your confidence in changing jobs. figured out the song we're playing. steve liesman joins us with that story. >> becky, this is the best question we've added in a very long time and i'm kicking myself for not having asked it for the last 11 years. you have to start sometime before we show the results, i want to ask you at home the question because you can play the cnbc all-american survey game how can have debt are you if you were to leave your current job you could find a new job in the area you live with similar or better pay benefits within a couple of months

>> becky >> i can see the teleprompter. >> what would you say? >> what would i say? >> i don't know. i'd say -- >> no. >> sure? >> maybe not necessarily. i mean, there's a lot of outlets around here. >> call my agent and see. >> who would hire you? >> let me call -- oh, really >> i know two people who would hire him. >> i think that about myself. >> who >> breitbart and fox >> i was thinking a job in the administration frankly >> oh, here we go. i don't think anybody would hire me for any reason. i don't know why i have this job. let me show you the results here 61% of the public is confident or very confident that they could find another job at similar pay or benefits in the area where they live 37% not confident. i think that's a huge number. >> very strong number. >> it speaks to me of a very tight labor market let me show you a little bit of the breakdown in the demographics 64% of men. >> of course. >> 57% of women. less confident, we see that all the time

particular jobs that are out there. more education, folks, more confidence in finding other jobs 66% post grad, 49% with less than a high school education are confident. let's move on. we asked this another way. in your field are there more jobs than workers or more workers than jobs? >> that's a good question. >> these are great questions my producer helped out with this 37% say more jobs than workers, 21% say more workers than jobs 37% equal. that's a tight labor market. the fed will be interested over time how this data moves let's take a look at some of the demographics here. inside of that you have 41% of men confident, 33 -- now could be some over confidence there in men? >> right. >> under confident -- >> shocking. i'm interested in the blue collar/white collar split. blue collar is so can have debt, 44% are confident more jobs than

workers and 35% of white collar. women could be in the white collar. >> blue collar are feeling good with president trump right now too. >> plus, we know there are more added every month being added to the labor pool, two or three times that number. this is showing us an initial indication of a very tight labor market that matters for what's going on out there in the economy. >> i wish you had been asking these questions. >> you've got to start sometime. >> we'll come back again. >> thanks, steve. >> pleasure. saudi u.s.ceo forum opening up this morning. corporate leaders meeting to discuss future business ties mbs is there and mcc will be there as well. she joins us as well she'll be moderating a panel. >> part of the crown prince's very long visit to the united states. >> it is a long visit. been here a week. >> more than three weeks he's going to five different cities. >> right

>> does he want to go back so, the big saudi/u.s. summit. >> stay at the ritz. the ritz is nice. >> got a nice hotel for you. >> nice room. >> key leadership from saudi arabia is going to be there. also a lot of ceos from american corporations for this day-long series of panels that are going to be happening. the key message is, of course, saudi arabia is trying to diversify its economy away from oil and welcome in investments as andrew mentioned. you can see him on twitter and a bins bunch of other ceos there's been a lot of public relations, shall we say, from the saudi kingdom tweeting out in english and arabic different points of the crown prince's trip what is interesting about this one is they're still teasing out the possibility down bullet point number three that they may list aramco here in stock

exchange in new york. >> really? >> even though there's all these doubts as to if and when they can list outside of saudi arabia so big event lots of american ceos want to show up because they're saying they're open for business. >> right. >> all the ceos of the bank want to show up to a lot of events they're having in new york and they all want to help in that listing if it ever happens. >> the thing that i keep hearing privately is that with the expectation that the ipo has been much smaller, we talked about this with hadley, that actually they're worried -- everybody is happy to have their hand out. >> try to get part of the deal in. >> not just part of the deal but softbank needs the money if this ipo does not happen the way it's expected to, the question is can they fund all of the commitments a, they've already made and, b, that they expect to make in the future >> absolutely.

that is the key question one of the reasons why some have suggested with the rise in the price of oil recently, maybe the pressure's off a bit. >> that was my question, which was going to be if they don't have the ipo, at least it's not the size and zone that had been originally expected, is the cash flow from the current oil at the current oil price enough to continue to fund both the country the way they wanted to but also these remarkable expansion plans like the city and other things >> i would say the finances is adequate you still don't get as much detail as you would from other traditional members of the imf. >> right. >> for example the other thing i have been told speaking with people familiar with the kingdom over the last week or so is that they were very pleased with the amount of money that they brought in from the ritz. >> right. >> helping to offset some of the hoped for -- >> what? >> yes >> they got $100 billion.

>> they got $100 billion. >> wait, from the investors they brought in or from the people -- >> no, from the people that they put in prison in the ritz carlton. >> to the extent that some people described it as a shakedown, $100 billion later. >> wow >> with these missiles from yemen headed towards riyadh and the riyadh airport, what is that doing to investor appetite to invest in saudi? >> so we'll be there today and we'll ask that question. >> right. >> i haven't heard that come up at all. >> right. >> when talking to americans what i hear more about is rule of law, issues in terms of transparency, et cetera. >> given that you've studied so many different international situations, when there is tumult in certain countries or the possibility of missiles and other things happening, how has that changed the dynamic for example, in israel -- >> i was going to bring up israel. >> it never comes up.

>> it doesn't come up? >> no. it's a non-issue. >> they live their lives and people invest there and it's something they have come to -- >> but in terms of western and other global investors investing there, do you think there's a cloud or a hang over >> no. i mean, the complaints i hear more about the middle east are the issues with ollie gashiigar israel the bombs are gently falling on tel aviv. slightly different >> over and over again ease of capital movements. who's in control there to what degree do the families that live there control large parts of the economy and can you participate or not, right? >> questions we've asked about latin america, questions you can ask about the middle east and israel as well. >> thank you have fun today report back. >> it will be interesting. coming up next, one ret hod mover this morning red hat. shares of the software company

up more than 6% after reporting quarterly results. whoa down 6.6%. we will talk to ceo jim whitur aerhereehstft t bak rkets? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential.

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by 669 points, yesterday's gain in terms of points the third biggest gain ever for the dow, but if you look at it in terms of percentage points, it didn't even crack the top 30. right now it looks like the dow would open up by 112 points this morning. s&p futures up by close to 11. the nasdaq up by 55. red hat beating the street with its latest results. the software company earning 91 cents a share. 10 cents above estimates >> we talked to you almost every quarter. i remember your stock was $5 it wasn't that long ago. it was in 2009, 2008 it was $70 in february of 2017 and now it's almost a $30 billion market cap company it's pretty incredible we've seen you sort of grow into

this and with linux software, which i'm still trying to figure out who your customers are in this latest environment you have. you're flourishing who are they >> almost anyone who runs a big data center. this whole move to cloud computing is almost entirely driven by linux. from the big cloud providers to any large couple who's running a data center in a more modern way. they're our customers. literally i think 999 of the fortune 1,000 of our customers big companies. as they look to modernize their data centers and digital transformation and i.t. spending up, that's just good for red hat. >> who's gotten into the business i mean, obviously i feel like starting a competitor if your revenue were up 23% but don't worry, i won't i'm surprised there hasn't been an influx of, i don't know, salesforces or all of these

other companies that would like to come in and try to disrupt your business. >> well, our business is somewhat unique in that what defines red hat is this thing called open source software. so the source code of all of our products is literally free so what makes red hat kind of different than other companies is we figured out a way to take this free intellectual property and add value to our end customers. so virtually all of our competitors are software companies. they're used to building i.p., selling i.p. which is a fundamentally different model than red hat's model i think one of the reasons it's defensible is how we approach the whole business is radically different than any of our kind of product competitors. >> so when we used to talk to you years ago, you've had -- with the cloud and everything else that's happened you've had to innovate along ways to stay relevant it hasn't always been open source linux software.

>> matter of fact, all of our key growth areas are things that build on top of or around linux. the thing that's benefitted is as the googles, facebooks, twitters, linked-ins of the world have grown, they do it all in open source it's a by-product of what they're doing. virtually everything happening in cloud, in big data, in analytics, all of these new areas that you hear about are happening in open source not because of companies like red hat but because of companies gliekle. red hat takes that software and we make it consumable for enterprises. we don't have to know where cloud computing is going, we just have to know that google knows where it's going and we're taking software that we're jointly developing with them and making it consumable for the new york stock exchange or any kind of large bank or any other large enterprise >> jim, because you're working in services instead of

intellectual property, but we had a company with all of its intellectual going there >> we have a fairly substantial development in china. >> you don't have to worry about anything getting stolen there. >> no, all the ip is open. china especially with alibaba and 10 cent is becoming one of the largest producers of open source software that ultimately go into products that we make and so, yeah, we don't have the problems of intellectual property or piracy or theft that a lot of other i.p. companies have because, again, we give away all of our i.p. >> jim, the one question i was thinking about is what's your worry that somebody porks what you're doing and builds it into the stack? >> well, a lot of people have tried that you know, oracle entered the linux business 11 years ago and has made very little progress. what we do is we take this i.p.

and we make it consumable. so we become the reference standard and when you do that there's a bit of a network effect the reason people use red hat enterprise linux, 80% paid for are redhat if you are a professional that's going to work in linux, you've become a red hat certified professional you buy red hat linux because we have a network effect around not just linux, but containers and cooper nettis. we are trying to create an ecosystem that goes well beyond the i.p. if anyone can spin analytics or open stack or container platform but no one else has been able to build those ecosystems in the way we built them. once they're built those are very defensible layers in a

technology stack. >> i've asked you if his name is linus torval and we've never had a decent answer for me on that. >> no. you know, it really was his name in units. >> yeah, it's of open source. >> it is when i meditate, i don't do one hand clapping. i do if his name is linus -- you were a ceo at delta. i don't know what planes have to do with the stuff you're doing now. you can't write code, right? >> i have a degree in computer science. i can write code >> oh! once again, thanks great quarter. stock is surging you're probably happy, smiling today. thanks. >> thank you for having me on. >> you're welcome. when we come back jim cramer joins us live from the new york stock exchange check out the futures and hurry up and get out of bed, lazy bones. we are looking at green across

the board again. dow futures up almost triple digits the nasdaq up by 50. "squawk box" will be back. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. today, the new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones

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let's get down to the new york stock exchange where jim cramer joins us now. jim, i don't follow a lot of people, but i follow you can you define pajama trader is that like pajama guy on the obamacare ads? >> it's just people who trade off the futures. now yesterday the futures were up big at the opening. the market opened up 500 for the dow. then it was cut in half. that was your chance these guys always love to pay top ollar. let them pay top dollar. then let the real sellers come in because they don't understand why people are paying top dollar then you can buy i'm not saying that's the wrong direction. they are too exuberant or too negative, either way. >> what we have seen since february 1st with whatever you want to call it, technical damage or healthy rotation and correction to build --

>> i think technical damage. i think people are just tired. a lot of stocks can still come back there is technical damage. >> you said trump trade went to trump dump >> i think mnuchin set out to smooth things out, but this is the year where trump says, listen, we gave everything you wanted to the ceos, the ceos did great. now it's the workers' time we're not ready for the workers. >> all right, jim. >> thank you. >> funny how much mnuchin sounds like minutae when you say it we'll be right back. cnbc will host its first health care conference tomorrow investing in health care innovation we'll feature top government officials, ceos, innovators, investors including dr. scott gottlieb i will be speaking with dr. craig venter about

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the first trading day of q-2 is a week away the worst performing are materials, telecom and energy. >> i think it's can. but you would say cannes this year at the cannes film festival leave your selfie stick at home.

the festival director said selfies taken on the red carpet are blacklisted since last year it created a mess. also banned, netflix originals they will not be eligible to compete since the streaming service refuses to give its movies a cinema release instead choosing to day buy them on a streaming service. so the director of the festival says the business model of netflix clashes with the tone. i asked about amazon. >> amazon releases stuff in theaters. >> because this new joaquin phoenix thing is like taxi driver -- you a fan of joaquin phoenix? >> johnny cash. >> in that, "gladiator," "her," a lot of things. he's mercurial and scary and he did that weird interview. >> method actor. >> have you seen this? >> while you were talking i was looking. my favorite film, do you know "return to paradise"

>> i may have seen it. who's in it? >> vince vaughn is also in the film unbelievable makes you think, i promise. >> i don't want to think like you. >> not like me you won't. i promise. >> all right >> join us tomorrow. watch that movie in the meantime "squawk on the street" begins now good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer good to have the band back together looking for gains since march 9 after monday's huge bounce europe up nearly 2%. yield's up a bit dollar and oil, too. case schiiler is up 6.2 year on year in january. our road map begins with the rally revival. futures pointing to anothe