good morning, 8:00 a.m. at wamo headquarters in mountain view, california it's 11:00 a.m. on wall street "squawk alley" is live ♪ and i am telling you ♪ you're the best man i'll ever know ♪ ♪ there's no way i could ever, ever go ♪ ♪ no, no, no way on living without you ♪ >> good tuesday morning. welcome to "squawk alley." we're here at post nine of the new york stock exchange. ma mike santoli is here. the dow and s&p 500 trying to post the first back to back gains in a few weeks we're going to talk more about this later on this morning, mike successful retest, any doubt

>> i think it checked off most of the boxes there is doubt whether we carry much higher from here. i think that it bounced where it had to reinforced the idea that we're in this wide trading range environment. stop the down side momentum. if we're down .75%, the conversation is do we need to go down 15 or 20 because it may be a bear market. it changed the conversation back to where it was before >> you make the point that still on the hunt for a good valuation of peaky earnings. creeping inflation, right? q-1 negative seasonal bias on gdp. >> i think the market is struggling with all that for two months what has been helped out is valuation. if you thought it was way excessive two months ago, is less so now for sure across the board. and sentment is way too bullish then and arguably at friday's low was as washed out as we've seen in a couple of years. so all of those things are to the good >> is faang broken i mean facebook is having its own issues you can't lump it in with the

rest of tech's high flyers >> it's true it's not broken. it definitely slowed down especially if the g is going to also have headwinds with facebook, if alphabet has issues i think the general theme of mega cap tech, this deflationary boom, i don't think that's going to die so easily it may not be the four stocks. i think in general you're going to see this kind of continued reach for the organic growers until further notice >> so we've seen small caps. they're underperforming to day we will art on earlier he talked about the fact that maybe they had run up on these trade fears and now those are easing off, folks are easing off this small caps. i don't understand why transports are underperforming the way they are today they're so exposed >> they didn't recover as much of the losses as you might have expected i don't know if there's a great explanation for why that is. it just seems as if the market is being very picky about what it decides to do here. yesterday's move was very

indexy it was very just mega cap, let me just buy the indices because we got to chase it here on the upside you know, carl, i know you cited this too two days of 2% losses last week and to end the week and then more than 2% gain yesterday. its very rare. and what is interesting is the prior instances are almost all in or around bear markets. >> it's very rare that it's just like routine correction. and we recover this way. the market is spring loaded in both directions right now, just the way it operates on a daily basis. >> mike, thank you for joining us >> all right >> wamo is advancing the rollout of the self driving ride share program. this morning the company announcing a new partnership with jaguar. our phil lebeau is in new york with the ceo phil >> thank you very much i'm joined by john crabcheck on a big day when you announce a new partnership with jaguar involving the car behind us here why jaguar, why this deal? >> you know, phil, we're self driving technology company

waymo isn't a car company. our plan is to bring forward to the world driverless transportation service and really if you think about the long term goal about what we want to do, we want to provide just the right sort of car vehicle for each person in each trip so we started with these chrysler pacifica minivans which are fantastic. power sliding doors. a plug in hybrid we thought it made sense for our next vehicle to go all electric. we like the idea of something a little bit more compact. as you do a tour of the world, there are very few full electric vehicles with batteries the size of this incredible jaguar. it is the perfect fit for us >> you could do it with a number of automakers. some have their own programs already or partnerships. what is it about jaguar and this vehicle that truly appeals to you? >> brand new vehicle so it's got an all new modern high speed electrical architecture that 90 kill owe watt hour battery pack is enormous it means we can get through a full day with maybe just a quick recharge and the batteries also have a quick recharge capability which

is great for our service we care deeply about safety at waymo as well, phil. the fact this car was designed with the latest safety regulations globally many mind means it will be a very, very safe car >> you had comments overthe weekend regarding the uber accident in arizona where a woman was struck by an uber vehicle, a test vehicle. she was killed and has people saying, wait a second, i'm not sure about self driving vehicles first of all, i'm not sure they should be tested on puck lick roads and i'm not sure we're ready for a self riding hailing program. what do you say? >> first off, we're very saddened by what happened, of course, in arizona our hearts go out to the family and those impacted by the crash at waymo our focus has always been safety. and we consider ourselves and what we've been doing really as building the world's most experienced driver we back that up with five million miles of autonomous driving in 25 cities across the u.s. five billion miles, billion with ab, phil, in simulation,

ensuring our software and sensors are as good as they can be we developed 25,000 test scenario that's are private test track to put that car and that technology through the paces to make sure it's very, very safe from the regulator side, it's our job, i think, to make sure that they understand our technology so we spend a the love time with them making sure they understand what we're up to we published something called a safety report which was a request from nitsa to detail how we see the world and how it ensures it keeps people safe >> you have heard from regulators in following that accident, even though it wasn't your vehicle, you have heard from regulators in california or arizona saying hey, let's take another look at what we're planning on doing here >> nothing specific from them. i have to say that we're continuous continuously chatting with them. that's part of our responsibility is make sure the world and cities in which we perform and the regulators who regulate those cities understand our technology >> speaking of safety and your ride hailing program you start in phoenix later this

year the question becomes how quickly does it ramp up and how quickly it expand to other suties arocin the country? >> a lot is dependent on the cars we have a long terming relationship with chrysler we have thousands of the minivans coming. the session reason with jaguar can give us as many as 20,000 vehicles in the first two years of production. we've got a the love cars and those cars are going to help pace as we launch our service through cities across the u.s. >> do you see this vehicle whether it's in the program wherever it may be located picking somebody up, dropping them off and within a matter of minutes picking somebody else up and taking them on a ride. how much down time will they have or do you look at it as not much they're going to be constantly moving around? >> the goal is, of course, to use the cars as much as possible right? and that's why we talk about this 20,000 car set. it can drive a million trips in a single day it's a pretty interesting statistic. >> a million

there you have it. well, john krafcik on a big day. i have a feeling we're going to hear about you about more another makers and more models in the future. >> look at that, more news possible in the future back to you. >> all right phil lebeau, we'll count on you to bring it to us. thank you for bringing us that great interview. when we come back, can apple reconquer the classroom? apple's unveiling new education related products we'll take you to that event live and a check on the dow at this hour up about 47, 48 points s&p 500 just about flat. and the nasdaq down .25% "squawk alley" will rht ckbeig le muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum-

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markets are volatile this morning after dipping into negative territory briefly let's bring in our asset allocation strategist from j.p. morgan who is with us at post nine good morning >> good morning. >> we talked about the retest yesterday. now we're in this period where even if you set aside some of your trade worries, what kind of bet do you make in advance of confirmation that key one earnings are good? >> so this is a little different than where we came into the year i think in the beginning of this year everybody is pretty much on the same side of the boat. reflags, global growth everywhere what we're saying now, carl, what we're telling clients about this volatility is reflags with two-way risk that means maybe you could see some inflation like we did in february however, that served to be short

lived. the next cpi and payroll number debufrpged that. last year -- last week you mentioned trade fears. trade fears are a bigger risk to global growth. >> than inflation? >> than inflation, yeah. because what that does is that makes us rethink the u.s. equity of weight and the em overweight that have been good to us so far this year. now, that rhetoric calmed down this week. you see markets bouncing back. but ultimately, we believe in the near term, the u.s. equity market, earnings story of 20% earnings growth this year versus 12 last year pretax cut it will ultimately serve as a nice tail wind the other thing is what did the fed tell us? they told us growth in 2018 and 2019 will be better without the inflationary consequence which is a great story for em and u.s. as well. >> are you overweight those remain intact? >> those remain intact we have taken down the overweights in other places around the world we're really nuancing the overweight through u.s. and

emerging markets >> is 2018 peak earnings we heard that from some other folks this morning >> yes that doesn't mean 2019 you're going into recession so ultimately what we believe is the runway for this market is pretty long. and the biggest risk to late cycle. that sounds scary. the next part of the cycle is recession. the ultimate risk is either being too complaisant around risk like we saw in january and february but also taking risk off the table too soon and that's not the story for us. >> do you have to reconsider the way you value big tech if you're going to play artificial intelligence, you're going to play cloud, you were looking at who had the most data center resources and certainly who had the most data to work with now with this facebook issue, we're seeing how data can actually be a liability if it's not handled in the right way if you're an investor looking to play ai and the trends, do you have to rethink how you do it? >> i think you do, jon at the end of the day, tech was being considered a flight to quality trade for a lot of investors. it was like a teflon trade that

couldn't be broken there are risks to tech. i think that you saw that specifically with facebook but at the end of the day, jon, tech is still an overweight for us it's not the flight to quality trade that took valuation so much higher earlier this year. >> so sector favorites why do financials fit? >> financials for us are a really nice place to be. if jay powell is right and they're going to go two or three more times this year, that fed funds rate is going to help financials we're not, however, saying that the ten year treasury is going to jump to respond to inflation. so it's really more of a play on the policy rate moving higher that helps financials than ultimate lit ten year treasury or a steep yield curve that's okay. and the ten year treasury could not get through 3% earlier this year >> you are saying it won't >>, no i'm saying that ten year treasury, we're not saying it's going to jump higher to really bite financial conditions to take a bite out of irngs right. big, big difference. more of a reflagsary response than inflationary response

>> deregulation, tail wind >> sure. for the financials, yes. >> relatively small exposure to any tariff disruption a tail wind >> yeah. so those two financials certainly and the consumer is really pretty strong last payroll report couldn't have been more perfect for us. job creation without the inflationary impulse anything that has to do with the u.s. consumer should do well as well as the financial storey based more on the federal funds rate than a rapidly end rising curve. >> so in light of everything you're saying, does it make sense the dollar index is coming off again and that we're on track for the fifth straight down quarter >> yeah. >> so, morgan, the dollar and the euro like 2015 and into '16 had a immediate orric rise 25%. last year it sold off by 10% it's all about kind of if the rest of the world is growing, right, that should serve as a way to kind of bouie currencies like the euro and em currencies, part of the reason yes like em is because of the currency appreciation so i think it does make sense

because there is -- there isn't -- the fed is the only one moving anymore and the u.s. is the only one growing so it does make sense for if the dollar should stay well behaved in that ep leading us to em. >> time to be vigilant over the next few months and year >> thank you >> thank you when we come back, apple holding that event in chicago. you'll see a live shot in a moment our tim cook who was recently on stage revealing the new education initiative, getting headlines on an ipad we'll get you there. as we go to break, a look at the major averages at this hour. dow up 52. s&p 500 slightly in the red. i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment.

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nasdaq. rewrite tomorrow. the facebook fallout continues. lawmakers are saying he'll send a couple other executives in his place. we have a managing partner with

structure capital with us and we have a managing director with general catalyst and both join us here at post nine good morning to both of you. >> good morning. >> good morning. >> your take on facebook and perhaps how we have to revalue it maybe other big data players in light of this new risk of unprotected data out there >> yes, i think there is a little conversation around facebook one interesting point that i heard is that perhaps they should not be a social media company but a media company. and with a media company comes a whole new line of regulations. so i think it is really up to us to take a look and revisit and redefine potentially in lieu of what is happening. >> more than five years ago, mark zuckerberg did do that personally apparently he's not going to testify personally about it. there were so many companies they got their hands on huge troe troves of data at the time

it is going to be virtually impossible to track that down. how are investors looking at that risk and is there kind of a secret gray market in old data going on right now, people trying to get their hands on it? >> yeah. so i -- so i have this view that facebook is not trying to be evil in what is happening here i thinks is the new new. they're learning how to figure out how data ought to be used. clearly, it works. all the applications that have been created on the platform have -- we like them we use them. the idea of how data travels and how we measure it, this has to get solved is it enormous risk? i think that's going to be a hard problem going forward this has to get done in terms of transparency >> i want to do a little challenge. so seldom are companies trying to be evil but there is this attitude we saw it with uber. the innovation that we have to bring to the world is so important that regulation and people's concerns need to be pushed aside eventually that comes home to roost. >> i actually feel that facebook

did not take this seriously. i really think they're playing catchup. i think that's very dangerous. i think they did damage to their brand and they're going to have to earn back trust. >> we're trying to play catchup as a society this idea of how data should be used responsibly is something we don't -- this is not just in media. >> you are saying they were blind to the problem or they set it aside in the interest of growth >> i think they set it aside i really do. i think -- i talked to a couple of people around this. and they feel that internally it kept getting pushed to the side. there was a conversation a lot of people tried to approach this. and they really just never did it now they're terrible at crisis management the fact is that people have been harvesting data forever it's not a new thing but the transparency issue is the big problem. i think that all consumers really want are three things they want transparency they want choice and they want to know what the benefits of their data are

and with that, i think that we have something that we can build a foundation of trust upon but right now, i agree with you. i don't think this is an evil act. i think that this is an ignore anlt act >> this idea of transparency is really important i think all the developers building on top of the data sources need canaries. they need to show if the data is used in wrong ways if we don't, you're not going to be able to correct for bias and discrimination and all the things that got taken advantage of >> do you think it was a misstep from mark zuckerberg to say won't show up and testify in front of parliament? >> i think they're getting pulled a the love different directions i don't know what the reason for doing that is. i do know they're taking it seriously. i think it's a very complicated problem. this is not going to get solved immediately. this requires for them and others to think structurally about how to use data going forward. >> absolutely. absolutely when you hear -- i heard a poll out of germany that 50% of the

population literally yesterday was thinking of dropping facebook now that's not a big market share. and we understand that but that should be really worrysome. i think that there is going to be a lot of catchup as you said across the entire space in terms of privacy and trust >> i'm always struck by how many options they give you to adjust your privacy settings that users ignore >> i agree. >> part of this is going to involve responsibility on the part of users. >> okay. >> to read the terms of service. >> users have to be more sophisticated and facebook has to become more sophisticated >> i want to talk about spotify before we go it's coming public in a different way. there are a couple ways this could go it could go in the netflix direction where they become this really powerful neutral arbitor of things people want to do online or it could go more on the pandora direction where they get absolutely overwlhelmed

>> i think spotify is unbullish on what they're doing. if you think about the amount of revenue they represent for the labels, it's increasing significantly. i think when the power shifts of distribution in content, they are going to be able to dictate what the business models look like here. i'm bullish that their margin structure is improving in a structural way as opposed to not. >> okay. i have another sort of little bit of take on that i think direct listing is a rare situation and i also really am trying to figure out given the fact that drop box had this really, really incredible showing and they were led by the banks in a very, very confident way, the market was down 400 points that day and yet they ended on an upround. i think that there is a value to the banks. i can't help thinking and maybe i'm wrong, that drop box is almost bucking the system if you will this is like we have seen across

every space right now. i'm just wondering they need liquidity. that i understand. they don't really need to raise. so -- >> they are a cnbc disruptor >> i think it's a rare situation. thank you for joining us >> thanks for having us. we're watching the headlines out of chicago fly on apple and new products let's get to josh lipton at that event. josh >> well, carl, we're here at lane tech high school in chicago. apple ceo tim cook was just on stage. cook saying listen, he considers chicago one of the most -- one of the biggest, most diverse and forward thinking school systems in the country he says tech has an important role to play in the classroom. and with that, carl, he then allowed other apple executives to take the stage who says apple

will be introducing a new ipad we're still waiting though for a price on that. we know now this new ipad is going to support the apple pencil why is the ipad and more affordable ipad? because, carl, we know google right now absolutely dominates the u.s. classroom you look at its operating systems, chrome books and android tablets. right now they hold a combined 60% of the u.s. education market when you talk to analysts, a big part of that success is because google offers relatively more affordable hardware. so apple today clearly trying to answer that. we're going to bring you a lot more headlines as they come including some more directly from apple ceo tim cook on the stage. that is am coming up later on "squawk alley. back to you. >> josh, quick question for you. i mean, when i hear about ipads and sort of this big tech push to move into the classroom, i have a number of teachers in my familiarly some come home and say they can't find funding for the schoolbooks or the school supplies that are needed for

some of their students how is apple going to, i guess, get these expensive devices and i realize they're not as expensive but how are they going to get them into the classroom >> one is affordability is a key issue. and that's why google made a the lo of head way here. the market share is based on three things if you talk to tech analysts one is affordability we haven't gotten the price of the new ipad tim cook will try to bring that down so we can secure the contracts with school systems. also, a couple other points. it's not just the hardware it's the software. one reason google has been successful in the classroom is because of g suite tlachlt is also important that allows kids to collaborate on projects and assignments in the classroom. one other reason that google is successful is they made it easy for administrators and teachers to use and manage all those devices both in the broader school system and the classroom. tim cook knows he's going to

have to hit all of those criteria today if he wants to gain share in this $18 billion market guys, back to you. >> josh, thanks. yeah apple gave this market up. they used to own education they used to battle back and forth. >> yeah. >> absolutely. they focused on the ipod, on the iphone they gave this niche market up google came in it's going to be harder than ever i think for april toll regain ground here because of what google has done tying devices to the cloud with google cloud. my kids already have google e-mail addresses through their school system because they standardize on google. why are they going buy ipads >> specs, eight mega pix he will camera, 1040 hd video, 10 hours of life and pencil support so we'll be hearing a lot more about. that haven't seen pricing yet cross. >> that's important. >> all of that as tim cook right here takes the stage as can you see on your television set when we come back, more from apple and its in you product

announcement in chicago and you'll hear more from the ceo tim cook stay with us ckle wl rhtilbeig ba directv now gives you more for your thing. your letting go thing. your sorry not sorry thing. your out with the old in with the new, onto bigger and better thing. get the live tv you love. no bulky hardware. no satellite. no annual contract. try directv now for $10/mo for 3 months. more for your thing. that's our thing. visit directvnow dot com

with pg&e in the sierras. and i'm an arborist since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees

can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. good morning once again, everybody, i'm sue herrera here is your news update at this hour nbc news reporting that one person has been arrested in connection with more than a dozen packages sent to government addresses on the eastern seaboard law enforcement officials say the suspect was arrested in the pacific northwest and is likely

to face charges later today. former supreme court justice john paul stevens calling for the repeal of the second amendment. the constitutional right used to defend gun ownership in a nshg times op-ed, he said the march for our lives demonstrators demand our respect. italian police arresting an egyptian citizen suspected of links with the islamic state and of teaching children violent interpretations of islam the arrest came after italian intelligence monitored the suspect's sermons and also his bank accounts. and at a new study is raising questions about the age limit for cervical cancer screenings it is currently recommended to stop at age 65 researchers say at the university of alabama that they found that 20% of cervical cancer cases were diagnosed in women 65 or older. so perhaps some new guidelines coming that's the news update this hour carl, i'll send it back downtown to you

>> thank you so much let's get to seema mody at post nine and get the european close. >> carl, this idea that a trade war has been averted is sending global stock higher. european stocks which did not participate in the rally yesterday are higher today led by the industrials and autos. that is helping germany outper there you go, up more than 1.5% in today's trade amazon also making headlines in europe today the french supermarket player casino, its grocery chain says they'll start selling products through the prime now service. it is seen as wayne for amazon which has been trying to strengthen the footing in the european grocery market since it purchased whole foods last year. you're looking at casino up over 4% in france retail though lagging in today's trade. sweetish fashi swedish retailer h & m saying that shares are down 5% to tachlt check out the six month performance. chairs are down nearly 50%

that's a struggling retail maker in sweden. lastly, deal news to take note of today. axo noble shares are higher after the paint maker announced it is selling its specialty chemicals business to private equity firm carlyle group and sovereign wealth fund. it's a $12.6 billion deal. this, of course, helps them avert that takeover interest from ppg shares up over 3%. back to you. >> all right thank you very much. getting some headlines on this apple event in chicago not just pricing on this ipad but in and out free i cloud storage. >> carl, we were talking about this new ipad that is being unveiled here at lane tech high school we have pricing now, carl. the new ipad is going to be offered for schools for $299 apple saying it's going to be available to order today it's going to start shipping and arriving in stores this week also a little bit more, you know, we talked about how the new ipad is going to support apple pencil

clearly, a big push here today is the focus on augumented reality. tim cook is excited about a the love technologies, none more so than ar. executives are on talking about new ar apps calling boulevard ar this is going to allow students to walk through museums and chuck out art work want to keep listening to the headlines and bring you more as they come. carl, back to you. >> josh, thank you definitely interesting announcements. i wonder if analysts are saying anything to you about the likely impact on apple's ipad business. it has been down for several quarters now and apple pretty much gave up the education market as it focused on mobile. is this likely to have any impact >> well, yeah. the ipad business is interesting, jon certainly, listen, that overall tablet market we know is under pressure it s hhrank 7%

if you look at the holiday quarter, jon that, ipad franchise. units your up 1% this can help that ipad business not even directly right now, jon. but also, listen, a big part of this today is cook wants as many kids as possible getting more comfortable with ipads, services, with apps. hopefully they stay apple loyalists long after they leave the classroom, jon >> yeah. i wonder if they're living in an alternate reality on this one in that they put out this commercial where a kid doesn't know what a computer is because they're on an ipad but they're using chrome books which look like computers. apple doing the right thing, raising the cloud game with. this we'll see how it goes pricing for consumers on this, $329, josh >> $299, jon

>> right for schools? >> yes >> and free i cloud scourge goes from five gigs to 200 gigs of free cloud. >> yeah. >> for students. that's the key as bob just said a moment ago, i'm going back to school >> a full service ipad for $299? i'm signing up for that. >> all right yes. so, josh, i hear you also have some sound for us for tim cook right now. >> yeah. we want to play you sound right now. cook talking about this initiative, the big push in education on stage right behind me here. take a listen. >> at apple, we care deeply about education. because we love kids and we love teachers we love creativity and curiosity. and we know that our products can help bring out the creative genius in every kid. that's why education is such a

big part of who we are as a company and has been for 40 years. starting back in 1978, apple saw the incredible opportunity to bring powerful computer technology to everyone including kids and teachers. we had a unique insight into how technology could inspire kids. >> so cook there talking -- so cook there talking about not just the initiative to have day but apple's history in this market as jon pointed out though, certainly has a fight on its hands. google right now with that 60% share simply dwarfs the competition. microsoft actually comes in second at 18%, guys.

and apple coming in third here as ios devices rementipresentin% of shipments last year. >> thank you, josh taking a look at shares of apple, they're up about .8% right now. speaking of the dow, we're up about 148, 149 points. looks like we're close to session highs. the dow looked to hang on to two straight days of gains bob pisani is here to talk about the moves in the market. >> tough figuring out where we are right now. very choppy market you heard from seema, the global rally is really not translating into any follow on conviction here in the united states. divive nam defensive names were up. banks are not showing volume and conviction i'm worried about energy oil hit a four year high today. oil is up 8% this year energy stocks are down 6%. that's a very unusual spread there. this is a sign investors have no

confidence in the oil rally. and they don't want to participate in it. there is plenty of comments recently that all this market volatility has been technical in nature rather than fundamental it's true that the fundmental underpinnings is not under assault. i don't know what they're talking about. we have the trade issues, social media crisis around facebook, rising yields, hawkish fed, contracting financial market liquidity and inflation concerns, rising deficits. this looks very fund aal to me. the bulls are arguing these issues are not a significant as many think and they may be right. so a good example is this whole firestorm about the potential for trade wars take a look at big industrial stocks they've been hit very hard this month on those trade war concerns because they have become proxies for the trade war issues so boeing and 3m and caterpillar underperforming. if you look at what the analyst community thinks, no one is convinced the wars will materially impact earnings athe least not yet.

so boeing, for example, there is the poster child the earnings have gone up this year not down if a major analyst came out and said i'm taking down boeing's earnings by 10% this year because of trade wars, that would be a big story but it hasn't happened yet and, yet, all of the knowledge if we actually had a trade war with china, oh, yes, that would be an issue for boeing to a certain extent but nobody's actually doing it and it's a sign that community who actually makes the numbers is not convinced this is going to materialize yet that's you get the ups and downs. boeing, 129 on thursday. it's $132 today. >> i'm glad you brought up boeing and deere and caterpillar. they ripped higher last year it seems like an excuse to take profit off right now >> yes and boeing and all the aerospace is an enormous big earnings generator and earnings monster on the global expansion, the aerospace industry the street is reacting to the

headline assuming there is going to be some material impact and the people who are actually paid to figure that out are not doing anything because they're not convinced there is a material impact. and that's why you get this -- we don't know where the market is moves all the time. >> all right thanks, bob. as we head to break, a check on bitcoin at this hour. continues to fall. now twitter are banning all ads relating to icos and other crypto related topics. but before we go to break, rick santelli, what are you watching today? >> i continue to watch the fact that treasuries are still on a run of moving side ways. equity markets have righted themselves but what issues have really gone away or changed? we'll talk about that after the break. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

coming up, it is the question of the day thus far, who is buying shares of ge the stock is on the move we are on the case plus, the facebook fallout and whether mark zuckerberg will take the hot seat. we have the latest details and our call of the day could be a big gamble for investors. we'll explain top of the hour. carl, we'll see new 15 >> scott, thanks so much dow up 187 let's get to rick santelli and get the "santelli exchange." you know, trade obviously has had a huge effect on the marketplace. maybe it's mitigating as we speak. maybe it will come back and haunt us as various news ahead

seems to move markets because of the uncertainty or the threat of miscalculation as i discussed with my former vp at the dallas fed, jerry driskol. if you try to compare distortions and the notion of miscalculations, not all of them are treated fairly the trade was a hot one. when you think about europe, when you think about the european commission new, many of the articles written talked about how germans and industrial state had to be meshed and melted with the french agricultural state and that those forces would cross feed each other with kbancombinationf various subsidies. most of the entire union has lots of things like. that but we were pro active in making change that gets put under the microscope but i stress, once again in my interview today, when i ask jerry driskol about the fed, he said they should concentrate on mormon takery policy than credit allocation policy and blamed

dodd-frank he is exactly correct. dodd-frank and the fed tried to agree and enforce much of the issues browse up in issues and legislated via dodd-frank, but it change who had gets credit, how they get credit and how much credit costs so when you treally think about it, the way we tinker with things, the most complicated ones that will have the long term infeeffect on the markets too complicated for easy snap headlines and we concentrate on the smaller big mistake. think about currency intervention, how does that square with regard to fairness and finally, very quickly, i want to throw this out there domestic versus global forces. recent piece and project sinld indicate whi syndicate who was written by mr. rhine heart talked about things like we build our models for policy here by the fed for domestic inputs. but we live in a global world. these things are all going to come back to haunt us because

their monetary policy our monetary poll sich monetary policy. morgan, back to you. >> rick, thank you when we come back, we'll take you to new york where a top saudi and u.s. business leaders are gathered to talk trade meantime, as we head to break, a check on the s&p 500 up 14, almost 15 points, about .5%. the dow and nasdaq also higher all three indices looking to inng on two back to back days of more "squawk alley" right after this feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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ceos from the u.s. and saudi arab arabia, really quick, dow's up 201 as we are seeing session highs. ge up almost, well, better than 4% not going to move the index much because of the price weight. nike, boeing close on its heels, one reason we managed to hit new highs for the session. >> notable that ge is trading back above $13 a share after it broke below that level yesterday. also, looks like all 11 of the s&p sectors are now positive on the day. as we move toward session highs for the markets. >> i'm sure ceos from u.s. and saudi arabia aren't upset by the do you but they are gathered in new york michelle caruso-cabrera is there with more. >> the message is that saudi arabia is open for investment, foreign investment, and the

message all day long that a lot of key leaders from the country are telling american ceos that there have been changes in the country, that they want to implement in order to bring more foreign investment onstage, executive chairman of dow-dupont and wilbur ross, commerce secretary of the united states there has been some news about saudi arabia today, as we have seen the ceo of aramco was here. we have heard from the crown prince of saudi arabia saying a listing may happen late 2018, perhaps 2019 depending on market conditions the timing isn't new but the fact the crown prince is saying it out loud cements the fact it's not going to be as soon as they originally wanted the crown prince saying he wants a long-term, multi-decade relationship with russia, and another non-opec producers to try to constrain supply. we haven't seen oil move all that much, possibly because a lot of russian suppliers aren't interested in extending the current agreement they have. they kind of bristle at the

constraints and would like to do more volume. we will be doing live interviews later on "power lunch. we will have the ceo of the nasdaq and ceo of the saudi stock exchange, both of them women. that's going to be interesting also, member of the family that's in charge of the entertainment authority, what they are trying to do to increase the amount of entertainment dollars being spent in the kingdom we will talk to him about that guys, back to you. see you on "power lunch. >> can't wait for that good stuff michelle caruso-cabrera. we are awaiting more headlines from this apple education event in chicago as that event starts to wind up. don't go away.

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synchrony. what are you working forward to? let's check in with josh lipton at the apple event in chicago. what's new out there >> reporter: well, this keynote here is just wrapping up of course, some of the big news here, the new hardware apple unveiling the new ipad $329 but for schools, cheaper at $299 does have apple pencil support, apple arguing that will help those kids be more creative and productive in the classroom. not just hardware, though. apple also introducing today a new app called school work which

they say is a free cloud-based app that will make it easy to assign handouts, get visibility into each student's progress the reason that's so important, i was talking to iec's lynn wong about that and lynn's point was part of the reason google has had so much success, they made it relatively easy for administrators and teachers to use and manage all those devices in the classroom with today's announcement, apple trying to close that gap back to you. >> josh, thanks. google classroom, really effective platform for what google is trying to build out. apple had a classroom app in the past but really hasn't been talking about it much. google's built up through software and the cloud this ecosystem similar to what apple has done at retail for consumers. now we will see how much apple is willing to invest if trying to bustthrough that. >> $299 for students plus another $89 for the pencil, apple pencil this still seems really expensive versus google or other options out there. >> you can get a chromebook for around $150.

that's the competition if you are a high end student doing art and graphics -- >> in a private school >> well, you know. maybe a little more to do. we will see who gains shares going forward. >> we will watch unit sales and it's all about services as well. interestingly, we always talk about price action on apple on wwdc days and product unveils. we will see if today's any different. stocks hanging in there. up almost a full percent >> the iphone tends to be the tail wagging this dog. the ipad, people used to talk about it tim cook said it's the future of the pc, going to sell more ipads than pcs he hasn't repeated that much lately i don't think the market believes it. ge, we mentioned earlier, the dow's biggest performer right now as we are up 220 biggest intra-day gain in a couple years, almost october 2015 wapner will cover more of that in the half, talk about who might be driving this bidding.

there's been long speculation about someone who might be interested at the right price. >> yes that would be according to rumor and speculation, kicking around the street right now, berkshire hathaway we don't have that confirmation. that seems to be driving the stock. >> we are looking for the first back-to-back gains for dow, s&p in a few weeks let's get to the judge welcome to the halftime report i'm scott wapner our top trade is the great market mystery who is buying shares of ge the stock surging this hour. it is the dow's tomorrow performer. has the one-time bellwether finally bottomed with us, joe terranova, kevin o'leary along in just a moment general electric shares up sharply today with all sorts of speculation about who might be loading up on the stock. we decided to have fun with that