"squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. our guest host for the hour is steve grasso, director of institutional sales at stuart frankel. good to see you. >> thanks for having me. >> you're here on the last trading day of the quarter >> and the month and the week. afrnlg >> a lot to talk about u.s. equity futures, green arrows this morning. that's not enough to erase the carnage we've seen this week, this month and this quarter. the dow futures indicated up by 114 points s&p is up by 14. the nasdaq is up by 58 this all comes as both the dow and the s&p 500 are on track to see a nine-quarter winning

streak come to an end, posting back-to-back monthly losses for the first time since september and october of 2016. dow is in correction territory as are the dow transports. s&p and nasdaq down more than 9% from the most recent records that were also set during this quarter. we'll talk more about this last trading day of the quarter today. and no green arrows to clean up the mess we've seen over this quarter. let's look at what happened overnight in asia. the nikkei was up 0.6% the hang seng up by a quarter percent. and then in china, the shanghai up 1.25% then in europe, with some of the early trading that's taken place on the continent green air rrows there as well. the dax up by almost 1%. the biggest gainer among the group. check out treasury yields. yesterday treasury yields sliding below 2.8% to 2.777. this morning even lower for the ten-year yield at 2.773%

couple pieces of news to tell you about the big one, facebook under fire again this morning apple's ceo tim cook slamming the company over data privacy scandal. here's what cook said in an interview with recode. >> we're looking at every app in detail what is it doing is it doing what it's saying it's doing is it meeting the privacy policy they're stating, right so we're always looking at that. should we raise the bar even more we're always looking at improving and raising the bar. but we do carefully review each app and police now we don't subscribe to the view that you have to let everybody in that wants to -- or if you don't, you don't believe in free speech >> mark zuckerberg, what would you do >> what would i do i wouldn't be in the situation >> facebook is now cutting ties with third party data providers

like experian and axom we will talk more about this and facebook with michael furdich coming up at 6:30 eastern time and geopolitical news to tell you about north korea and south korea will hold their first summit in more than a decade. that's scheduled for april 27th at a village that borders the two countries. stocks to watch, cme group striking a deal to buy next group for 5$5.5 billion nex runs the biggest electronic trading platform for u.s. treasuries it's the biggest deal for cme since it bought the nymex in 2008 shares of swiss re are on track for the best day in about five months after reports that

softbank may buy 25% stake in the company worth more than $9 billion. swiss re said in february they were in minority talks to sell to softbank. and deutsche bank's ceo, john cryan, says he is committed to serving the company this was in a memo posted to the lender's website this after reports that deutsche bank's chairman reached out to potential candidates to replace cryan as ceo a shake up in the president's cabinet that we had been expecting for a while now but an unexpected pick to fill that open seat kayla tausche joins us with more on that. good morning good morning we thought this might happen this week, but president trump tapped the white house physician, rear admiral ronnie jackson to run the department of veterans affairs ousting dr. david shulkin who had been in hot water since reporting surfaced about a july trip to europe that revealed its lavish nature and high cost the president was said to pick

jackson because of good personal chemistry. jackson served three administrations as a physician and is an emergency doctor in iraq the pentagon just nominated him friday for a promotion that would have earned him a second star some veterans organizations were critical of the move the executive director of amvet said he was deeply concerned about the nominee. veterans lives depend on this decision and the trump administration needs to substantiate this active duty navy officer is qualified to run a 2$200 billion bureaucracy, th second largest agency in the government he's the third cabinet member to be fired or resign, shulkin, that is, following rex tillerson and tom price. the total turn joefover in the administration is north of two dozen, with officials now worried about a senate confirmation logjam which they hope to clear by memorial day. the trade front has quieted as

developments on chinese tariffs go quiet an editorial in china daily overnight warns the country could still retaliate. and warned of the u.s. potentially opening pandora's box. back to you. >> sounds like yet another busy week news never stops in washington thank you. >> take a look at the broader markets at this hour joining us is david leibovitz and our guest host for the hour, steve grasso what will we do? what will we do on this thursday, almost like a friday really >> when you look at the pre-market moving, stocks moving, you have tesla moving higher, facebook moving higher, amazon moving higher >> that's relative term. >> i'm not supposed to have this heavy heart? >> you can have the heavy heart. we're all dependent on these

large cap tech stocks. the truth is we're going through -- are they overvalued or undervalued, where are they on the growth scheme are they too much of a weighting in the s&p there's a bunch of things that are going through the minds of investors. we'll see where we wine up i would think they have to give more back and this would be too easy to have them rally from here >> you think they are overvalued or not >> it is the lowest pe based analysis, it's on the lowest valuation in its history so there's other things. there's cheap for a reason but there's other things going on more than just the pe valuation on facebook. i would say the market pushed in one spot a little bit too aggressively but where will it go will it go to energy energy is 6% of the s&p. everybody has been waiting rotation, not rotation everybody has been waiting for this to happen it has not happened yet. when you look for growth you look for large cap tech.

unfortunately that's not in the calculus in the last month >> i think that's the key point. we're seeing a nice sugar high with respect to economic growth. our view is that things will decelerate to around trend of 2% by the end of 2018 and 2019 in that environment we go back to 2% gdp by the end of this year that brings us into an environment where people go into tech as a defensive name >> why >> the defensive spending, fiscal stimulus will run its course this year and into next year, but this is a 2% economy structurally we can't handle 3% growth unless we see productivity increase. i think large cap tech will recatch its bid. >> this whole thing is an illusi illusion >> it's not an illusion, just temporary. structurally economic growth is a function of growth in the

labor force, growth in productivity neither of those variables have changed. >> you're suggesting if we go back to 2%, this is good for tech stocks? >> i think it is we saw the beta on tech drop below one. we saw it more of a defensive play in 2015 when economic growth is tepid, investors go there for earnings and revenue growth i think there's more uncertainty in the market. >> so andrew, you said you were worried about what was going on with the market. i think the tailwind with a 21% corporate tax rate, you have to thread that needle if you want to catch the selloff you have weeks, not months to buy on this dip. that tailwind will be tremendous for stocks >> i think you're right. at the end of the day investors are searching for growth and yield. >> what were they searching for at the beginning of the day? as opposed to the end of the

day. >> the beginning of the trading day? >> he doesn't like end of the day used >> apple is not facebook tesla is not apple they all trade together. >> yep >> why >> people -- >> it'smultiples >> it's multiples, but when people have to box things in a category, it's easier for them we live in the etf world >> it's momentum people like you, directors of institutional sales who don't care what they do. they pile in, pile out un-american. >> you stumbled upon something that is passive investing. >> how do you know i wasn't deliberately -- >> because i know you. >> that's the key. it's so easy to move in and out. >> i would say for all of these stocks, one thing they have in common is that regulation could be coming. >> but they're not all dependent on privacy >> they're not but when sarah sanders has to

answer questions like is the president coming after amazon -- >> that's not about privacy. that's about not paying taxes. >> you're talking about regulation at arnlg. >> yes to your point of uncertainty, markets were priced for perfe perfection at end of 2017, 2018. we have seen political unte uncertainty increase and multiples have moved lower we think the u.s. economy looks healthy, we think stocks are still more attractive than fixed income so there's still reason to be long stocks, i just think the investor calculus has changed a bit given new information wove received over the past couple months >> you said you only have two or three weeks to buy the dip >> yes what are we looking out two, three weeks from now >> you have to look back towards the growth area. >> are we popping 5% >> new highs >> new highs >> new highs on the s&p.

it's impossible for the analyst community to calculate where eps is going when we look at a corporate tax rate we have not seen since 1941. >> how come yields have come under so much pressure in the bond market? what is that signaling a flattening yield curve libor going up every day for 35 days >> risk-off trade. what's kind of ironic -- >> that looks scary when you look at all these things >> it does, but you have tony dwyer who has been on this saying that you have 18 months after the yield curve inverts for the actual recession to take hold >> does that mean the countdown is on? we're in that 18-month countdown clock? >> you know how they always say it's different this time and it's never different i think people are look at the inverted yield curve different we all know what it indicates. we all know what is coming on the horizon. so i do think the countdown will be on when it happens.

>> wow >> we'll leave the conversation there. thank you. coming up, ana gupte will join us. she will give us her takeaways from the healthy returns conference including why amazon should either go big or go home. we'll be right back. still to come, facebook is in hot water for failing to protect users privacy. we'll talk to michael fertech, founder of reputation.com. he'll tell us what the social network has to do to regain the trust of its user, here on cnbc. ♪

whether it's a big thing, small thing, or something unexpected, pnc will be right there when you need us. because when it comes to your finances, if you focus on today, tomorrow has a way of working itself out.

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events, but the reason we all look remarkably similar and our genomes in the entire human population are only about 3% different, but those 6.4 billion letters of genetic code, code for our structures, our personalities, how our brains work, anybody that has had more than one child knows they can come up with a unique personality from day one that's built in programming. >> that was dr.craig venter from the healthy returns conference yesterday on the sidelines of the conference united health group ceo david whitman spoke to jim cramer on tech's role in cutting expenses.

>> if you look forward to the future, seven, eight, nine, ten years out, i think you'll see the real strong implications of technology on helping to curtail healthcare costs i think the systems of the benefits and the health systems broadly going to more value-based mechanisms will drive greater efficiency and effectiveness. >> joining us is ana gupte, and she joined us at healthy returns. i think about the conference call, healthy returns, and the number of things you could try to cover in a single day insurance, reimbursement, drug prices, innovation, biotechnology. it's a daunting task was it effective >> i think it was excellent. it was about miracles to me, the larger miracles about human longevity, improving quality of life and all that. at the same time you have to make that innovation accessible,

affordable to all americans. and so i thought the conference did a good job of covering new payment models, collaboration between payers, providers, it was a really nice mix. of course it was the who's who of healthcare. it was an excellent lineup great job. we were just talking to craig venter, he is trying to have clinic clinics that do a much better job of diagnosing a wide swath of illnesses than we do now. and changing things so you don't get into a chronic care condition. there's lots of parts of the healthcare industry that like the chronic care model for themselves even hospitals care about whether there's chronic illnesses. drug companies care about it

if you cure something with one treatment of a drug, that's different than where you have to take something every day for years and years. craig venter said there are entrenched elements of healthcare that don't want him to succeed it's complicated on how to bring down costs and outcomes. >> that's sad. i saw that session i thought that was the highlight of the day the notion that maybe all of us could live to 100 years at least and the average life span is going up rapidly, and for under $5,000, you could get a scan across genomic capabilities and see if there's alzheimer's or cancer >> the machine learning, putting

that into the program, you can see things that were invisible on mris before it's the same mri, but you can see things that just started craig venter tested for all signs of prostate cancer said you're healthy. there's no problem they used this system and they found it it had already metastasizmetastu had not gotten to the lymph nodes. so instead of having a 25% chance of living for 5 years, he is cancer-free >> is his view -- i don't know if he spoke to it, is this something that could be available for $1,000 a true years from now >> he's talking ipos, talking a billion dollars in revenue within three, four years >> yes >> as i said at the conference, this could very well be the biggest thing since theranos

craig goes, ugh, why why did -- what is his answer to that that's what i was thinking >> his answer was politically incorrect. you've seen him. he said i'm not nearly as attractive but my data is real and verified he actually knew her well. elizabeth holmes he asked to go into the back room and was told no. all real scientists knew the amount of blood you were taking would not support that many different types of tests people were asking questions, but they had george shultz -- >> he gets accused of the same thing by entrenched -- >> that's true >> how do you know -- >> that's why i ask you, to be somebody covering this industry now, how do you keep up with the disruption, change and it seems like it must be an incredibly difficult time to stay on top. >> is very, very busy. this convergence among payers

and providers, we already had that and flou pharmacy benefits managers feels like all of it is turning into one big systemic entity we have to keep on top of it all. >> what was it, if you're a male in the united states and you live past the age of 50, you only have a 35% chance of living past 75 or some horrible number. >> if you make it past 50 then the chances are less >> if you don't make it past 50, the chances are zero >> but only 10% live to be only 90 i'm assuming we'll all -- >> once you get above 70 or 75, your odds are really good. >> but the average life span does not seem as if it's increasing this is almost like going electric it never happens >> it's opioids, drugs, life

tile >> we think we're healthier, but just not -- when you say a lot of it is lifestyle, we're looking for the healthcare industry to lead us. we're like a bunch of sheep. the average age should be 90 now. >> yeah. i asked him. i said it seems like we hit a wall at 110. the oldest people in the world, it's 110, 112. he says he doesn't see an upper limit to the possibility where some scientists do think there's something innate that doesn't allow that sorkin, one more thing emi doesn't mean diddley what matters is organ fat. you can only measure organ fat through this mri your muscles -- you can't deal with organ fat through exercise. only diet. i'm thinking about going out

there, i'm worried that people will find out everything about me >> i'll make a deal. >> you're not coming >> we'll all do it >> you're not coming i'm getting it for free. you are not. >> i'm happy to pay. >> i can hold a flashlight up behind andrew and tell you there's nothing to worry about. >> you'll live forever >> what he said yesterday is you need the baseline. should i bring andrew along? >> 4900 bucks. >> will we release all the data? this is worse than facebook right now. >> it's not a colonoscopy. >> more revealing. >> more revealing, but not as gross. >> that's what it feels like every morning. >> exactly you have one of those every morning here. coming up, tim cook slamming facebook we'll ask michael fertik what

facebook needs to do to win back the trust of the public. first up, yesterday's winners and losers what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

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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 at this hour rebounding it was only down 9 points

yesterday. but the session has been volatile recently, especially in that nasdaq. wow, is that bruised remember, it had been on a relative basis -- it held up better than the other averages since february 1st we'll see what happens today it's weird tesla seems like an outlier to me i don't think it has nick to do with facebook, apple, google, amazon or anything reading about the debt -- >> those articles have been published every day for the last -- what did chenos say it was worth? >> very little for very long >> you're afraid to be zero. >> you know, you sit there and you keep betting black at the roulette table, eventually you're right you have a better success ratio.

>> this is harder to pin down. >> there's that thing that's not black or red that -- >> the green zero and double zeros. how the house always wins. >> casinos are big nice buildings, all of them. >> always cold >> the first clue you get, if they give you a free room, just so you'll come there and gamble, that doesn't work. >> it's not free >> let's talk more about apple apple's ceo time cook slamming facebook over data privacy in an exclusive interview with msnbc >> we're looking at every app in detail what is it doing is it doing what it's saying it's doing is it meeting the privacy policy they're stating, right so we're always looking at that. should we raise the bar even more we're always looking at improving and raising the bar.

but we do carefully review each app and police now we don't subscribe to the view that you have to let everybody in that wants to -- or if you don't, you don't believe in free speech >> mark zuckerberg, what would you do >> i wouldn't be in the situation. joining us now to truck talk more about facebook's privacy problem is mike firdich. people were surprised by what facebook was selecting and what they were doing with the data. >> not me. >> you have been warning about this for a long time let's talk about your concerns and what you said along the way. >> it's a coming moment finally, a come to jesus moment i think for facebook i can't believe anybody over at facebook when she say they'll

protect your privacy over the years when facebook has been caught red-handed doing something like this, they skate by the media attention when the russia stuff went down in the elections, they put up a little page to see if you were presented with data from a fake news feed. you only know it -- you only know they mean it when they put the feed of what's going on with your data, when they put that stuff in your face, the same way they put a photo of your friend's vacation in your face the opt in and opt out model is the key. when they opt you into something -- >> for people who don't understand, when you sign up for facebook, you are automatically signed up to give away all your information. if you want to put privacy constraints back on, you have go in and make different actions. >> all of that. >> i don't think you ever have the option of saying i don't

want to share my data with any third parties. >> they have been saying for years they don't sell data this morning they're finally acknowledging they've been sharing data with companies like axiom. when you go back on facebook and all this photo stuff is coming in, news from your friends is coming in to your feed, that's the stuff they want you to see when they make it hard by putting the privacy controls in 20 places, that's hard to find >> what about the moves they made yesterday where they said they would make it easier and one place to do that >> even now it means they don't mean it what they said yesterday -- the news yesterday is they'll put these 20 different controls of privacy into one easier to find place. they only mean it when they put it right in your face when you

log in or they opt you in. hey, we're putting everyone at maximum privacy setting, you have to take the time to undo the privacy setting. >> mike, i don't know if i'm concerned, but i question this, maybe it's generational, but there's part of me that wonders we're all talking about this and our hair is on fire about it, but i wonder whether a younger generation will look at those control settings, even if they were to specifically read all 20 items, i think a lot of them may take the trade they may say, sure, keel going >> good question, but all the data available show conclusively that younger users actually pay attention to privacy controls more than older viewers do and use those more

that's why snapchat became so popular. snapchat became popular because the promise was your photo disappears i don't think facebook means it yet. they have been getting the attention that other media companies have been getting. the ftc, for your economic and investor viewers, the ftc's agreement from 2011 does offer -- set a 40,000 -- $40,000. 40,000 bucks per violation possible penalty there's $2 trillion. the hammer of the ftc is large should it find they violated the settlement >> in the intro we had tim cook say he would not be caught in the situation.

when you say you were not shocked by what went on at facebook, what other companies do you think will come to the forefront as far as privacy concerns they all trade as one large group. what companies have the exposure >> that's a brilliant question i'm not a public securities analyst. i'll answer the question from my privacy sort of vantage point. the companies that trade in data are the companies that have to trade in data because they're media companies. the reason apple is in the better place here, they don't make most of their money from monetizing you as the product. >> they get me in their ecosystem. >> they sell you stuff, and you pay for stuff. you know what you're paying for the stuff. the companies that make money from advertising are very obvious. facebook, google, twitter, probably -- whatever pipeline of

data feeds you can use there's an interesting idea going around here. how would the regulators, how would congress find a form of redress here for facebook that they would pay attention to? i'm worried now that the regulators will close the barn door on facebook after the horses have gotten out and by creating more regulation make it harder for startups to become the next facebook and compete with facebook. that's the risk. the better solution would be to ask whether facebook should be required to divest of other data feeds which get siloed and concentrated in one place which makes it so dangerous for consumers to have all their data in one place the younger generation you were asking about earlier, andrew, they don't use facebook nearly as much as they use instagram or whatsapp >> one thing that i posited, you

have the data, so i may be wrong about this, what would happen if facebook announced, look, we're not going to accept any kind of political advertising here in the united states or around the world. we'll take that off the table. i know we want to be a town square, politics will not be part of our town >> you're a brilliant guy a brilliant question >> we'll have cool other things, maybe people will be more accepting of that. >> it's a brilliant question, but a lot of the cambridge analytica data came from personality quizzes. innocuous sounding things. take this personality test, understand yourself better that kind of content rather than the russian election should be decided in a certain way, rather than hillary clinton this, or donald trump that. there are just various ways to collect your data. i don't think banning one -- i

don't think there's a silver bullet that bans one type of advertising that solves the problem. i think what you're pointing out here is an interesting concept or observation, and that is that congress finally cares about facebook because their jobs are on the line. >> andrew's point i think is right in what way, if facebook could do that and get away with it maybe they would do that and not mean it with everything else that would tamp down the fire. >> very good point in this sort of hey, they're good at pr, skating by, what's the minimum viable exit from this dilemma maybe banadvertising and congress would relax good point >> my view has always been that people are -- that people are less concerned -- maybe i'm wrong on this, with people using the data to sell me allbirds, harry's raisers, and kasper beds, and that was okay.

you. >> there's a major problem. the data flows through the ecosystem. there are few controls on where the data begins and ends if you share the data with a broker and you don't know wlat broker does with it, on their end the broker should be sharing it to some other person for the purpose you don't know someone creates an app to collect your data without knowledge or permission to sell it to someone you can't identify and a purpose you'll never know. at the top of that list is a company like facebook. i hope they did a right thing. i hope they changed their way and i hope they mean it this time we'll see. >> mike, thanks. gloo co coming up, the u.s. ambassador too china speaking to

eunice yoon. and then we'll talk tech with alan patricof andnewsmaker of the morning, john zimmer will be with us, he's the co-founder of lyft he will talk about competing with uber and all of the negative news around uber lately we'll bbeack in a bit you might take something for your heart... or joints. but do you take something for your brain. with an ingredient originally found in jellyfish, prevagen is the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember.

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time for the executive edge. the trump administration has been taking a tougher trade position with china. eunice yoon spoke to the u.s. ambassador to china terry branstad, iowan, who we know well eunice joins us from beijing good morning >> good morning, joe the u.s. ambassador did not stray far from the trump administration's tough line. earlier today ambassador branstad outlined to me the areas which he believes china should address and that have been part of the ongoing negotiations with the chinese. this is what he had to say >> lng is another one.

they need to reduce pollutio here, replace coal with liquid natural gas. we have an abundance of that that's an area insurance and financial services, cloud computing. there's many areas where i think there's opportunity to correct some of the unfairness in the trade situation and open up new opportunities. semiconductors is another one where i think there's great opportunity and where america has a technology that could be very beneficial. >> he also commented on reports that the u.s. treasury was considering using national security laws to prevent chinese companies from investing in u.s. high-tech. he suggesteded that would be an option he said the u.s. wanted to build a good relationship with china, not only on trade but on other issues like north korea. he said that he found it encouraging that north korea's leader, kim jong-un came here to

beijing. >> i think the conversations and the communications between the president, president xi and president trump have been good i think the fact that kim jong-un is now interested and willing to meet with these other leaders, that's an encouraging sign let's hope it leads to a safer and more peaceful world. he said china and the united states are both committed to denuclearization on the korean that nins peninsula and today we learned that kim jong-un will meet with moon jae-in on april 27th for that summit. >> owl oall our twitter followe want us to say something again that will get us blacked out over there we probably shouldn't do that. >> don't mention the name.

>> no squarete or -- thanks. >> oh, no. >> when we come back, if we come back, gritty adventure races are going mainstream the co-founder of the spartan race will join us next with a ayg announcement st tuned stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.

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welcome back to "squawk box" this morning more than 5 million people with call themselves spartan race competitors the brand is expanding. for more we want to bring the co-founder and ceo in kraft sports we're good morning to both of you guys >> good morning. >> you are wearing new gear. i saw you. what's going on here >> this is olympic level gear. we spoke this morning, they would have been the ancient spartans who wore tloin cloths. if they were around, they would be wearing this. >> you want this to be the brand of the olympics? >> it's such a massive participation that sport that mits i fits their need >> what does it seem like?

>> there is one person in the way. i told him i'm going to outlive him. >> what's the issue? >> no issue. it just takes time you do a little travel 18 years ago it takes time. >> what's the one thing they like about it? >> it's not that they don't like it it takes time was the answer >> in terms of are there certain times of athletes just doing spartan races relative to other things or athletes already participateing in other sports that would then start participate something. >> there's lots of triathletes moving-on-over, there are runners moving over, some biathletes, which is a sport that kraft has been sport supporting for 25-plus years they come from all over. you have to crawl, jump, have endurance, be able run so it's a unique individual that performs well at this. >> how'd you decide to get -- how many burnees can you do?

-- burpees can you do? >> i have been wornd, i was prepared a mutual colleague of ours introduced us and it just, from there it was a natural fit kraft has been more specialized in sort of high end, high endurance performance, can you call them mitch sports when the more i learned about the ocr athlete and all of the extreme temperatures, conditions, things like that, they have to go through. that's what we do. that's what we specialize at kraft. the other piece of it too for us, we're a global brand a swedish brand. so we have the ability to deliver that now on a global level. >> is your customer base a higher end customer base in terms of -- what you are wearing right now is not a cute product. >> not an expensive product. our customer base has about $125,000 household income. they want well to perform well at the event they want gear that will perform at that level.

>> so if you sign up for a spartan race, these days the entry ticket will cost you what? >> about $100. >> now you have to get the merch. or the gear. >> you don't have to. >> what if you are only in cost to participate effectively few want to do well. >> let's look at ironman, you have to spend $750 to to participate. then you have to buy a bike. this is a relative inexpensive sport relative to ironman. >> what sport? >> this is a human sport you don't need to bike you need to do the things humans should be able to do we should be able crawl, crime, we shouldn't sit at a deck, i aapologize >> have you done the race? >> i have not done that. that's a part of the contract. for sure i'm excited about this

my introduction is so many of my friends have done it and me friends who are so passionate about it, it's ridiculous how passionate >> when will you do a baby spartan? >> known e i don't know if we will do a baby spartan >> it's so competitive the mud guys are a little less competitive. >> they're a little less competitive. i'm a competitive guy. i said if we were going to do this, we will do it the way i will do it it will be an olympic level sport. we will time you 100,000 kids 12 and under, children, participate this year. >> what does that do for national go day. >> burpees how many do you think you can do >> 4,000 god, i hate 'em. i hate doing any of them >> they're the wor. they are. >> i brp a burp oul all nighall.

small thing, or something unexpected, pnc will be right there when you need us. because when it comes to your finances, if you focus on today, tomorrow has a way of working itself out.

the market's next move future pointing to a higher open this morning after another tech fell off yesterday is now the time to catch what some are calling a falling knife. we'll find out where you should be putting your money to work. slamming facebook, what apple ceo tim kook said about the social media company getting buzz today, reaction from grey croft. >> junk in space >> it's a wonderful idea what an incredible smell you've discovered >> the chinese space station will be falling out of the sky this weekend, highlighting a galactic problem miles above the earth. should you be worried about a

space junk disaster? well, we will find out as the second hour of "squawk box" begins right now >> announcer: live from the beating heart of business, new york this is "squawk box. >> good morning, welcome back to "squawk box," right here on cnbc we are live from nasdaq time's square we are here with becky quick and joe kernon look at the last day, trading day of the week. the dow jones looks like it will open higher. nasdaq up about 45 points, s&p 500 up about 12 points i don't know if that's called comfort, given where we are. let's tell you what is making headlines at this hour apple ceo tim cook, on msnbc cook said that apple would never be in the same situation as facebook

because he says he doesn't consider the customer its product. >> the truth is, we could make a ton of money if we monetized our customer, if our customer was our product. we could make a ton of money we've elected not to do that [ applause ] our product, sir, iphones, ipads. macs, if we can convince you to buy one we will make money are you not our product. are you our customer are you a jewel and we care. we care about the user experience and we're not going to traffic in your personal life i think it's an invasion of

privacy. i think privacy to us is a human right. it's a civil liberty and in something that is unique to america, now, this is like freedom of speech and freedom of the press and privacy is right up there for us and so we've always done this this is not something we just started last week when we saw something happening. we have been doing this for years. >> tech investor and founder of gr greycroft, we will have his reaction to tim cook's comments. these broke, help advertisers target specific facebook users we will see whether that improves the situation joseph >> stocks on move, game stop reporting better than expected revolt and same store sales rose

more than 10%. videogame retailer kr continues to see strong sales of the nintendo switch console. that's not looking too good on a one-year cart the cme group striking a deal to buy the uk's income group for 5.5 become. formerly icap. it runs the biggest electronic platform for treasury. oh, the pressure we've seen on stocks recently, has some people wonder physical we have hit peak happiness. we think we've seen the best days >> i want to be specific about what i'm saying. in january you had factors that drive the market that seem to drive the important peak in terms of valuation, the loose financial conditions so all those things, if i show you charts here that show this, there seems to be an important

peak in january. i'm not saying the mark, itself, peaked >> that looks like a big ramp up and then a break often you see the peak pe ratio before a bull mark peak. essentially earnings will continue to grow >> if the pe ratio compresses, we're not willing to evaluate. >> it whether drive more likely than the enumerator. also momentum that scaling up the steep hill in january, s&p 500 was the peak in terms of the rate of change and how fast the mark was rising. this is a sub set of stocks that are featuring the moment momentum it's an etf. that imstraights you did see this moment. where you look leak you had a top for momentum as a style of investing. this is basically everything from how low interest rates are to how easy it is to get loans and all the other stuff. this is a goldman sachs condition.

when it goes down, it means it is getting looser. in january, that's the investigation. finally sentiment. the investors intelligence bull bear ratio ramped up in january. all these things say maybe we had two mr. things come together all at once, at a peak moment in january. >> one thing we didn't feel like we got was that exuberance you would normally see where everybody is talking about stocks all the time. it feels like they were retail investors. >> if you look at how people were positioned, if you looked at the td ameritrade, account volumes, the number of account option at schwab people were involved they didn't say stocks will go to the poon from here. >> it was maybe emotional complacency. we have people, what are you worried about? nothing. did you see this the thing on europe, you know how europe was going to do

better than us, stocks were cheaper. europe in the last 12 months, flat, zero 14%. >> then in terms of economic data, it's like falling off, this would explain we will talk to some they will come up. we have been talking about the ten year, but, thank you >> by the way the reason europe always looks cheap, it's because tons of banks, oil companies, there is no tactic it's a sector thing. >> the sin chronnist global growth is what people put their hat on, one of the complacency the legs of the -- >> it was trooper backed. >> joins us, the chief executive officer, you always liked european stocks, always. >> not always. >> every time you have been on recently. >> i said international stock, that would include european, emerging marks is what i kind of pointed out. are you right. i said international >> let's see our president of

global strategies, your ears were burning the other day you know when the ten year, we had the big 700, 600 point sell-off the ten year went below 280 again, i'm like i thought you had a few screws loose, you said we're going back to like 2%. i still don't think we're going to 2%. but i'm give you 2, 7, which no one thought was going to half-you make the case we're going down to 2. does it have something to do with global growth not being as cracked up to be >> it's 295. that is when you and i met on the ket. i give you one more time below the 2.7% we are going a lot below it. there is no inflation in the horizon. there is no economic growth

significant pickup that is sustainable. you have what i think we are leading towards a global trade war unless the united states changes its attitude towards global trade negotiation all of them are immensely treasury bullish and negative for equity and i'm, as i said to you last time, if any of these conditions change, we become much more congenial in terms of market expansion globally for u.s. exports rather than resisting imports. if we have a situation, inflation surges, let's say because oil production is affected and oil prices surge, our economic growth increases because we change our immigration policy, allow more younger, skilled workers to come in all of those would lead to higher bond yields i don't see any of them happening. rather, we seem to be moving towards an early '90s defense

phenomenon the country is getting older, restricting immigration, there is very little obstruction under reform >> that is where my forecast comes from >> yeah, well, you are a guy looking for a reason for a while. you had mentioned a lot of good. then the trade the latest. the trade stuff is only a couple months old you have been saying this for two years at least >> that does fit into your narrative pretty well. do you agree >> i would split it into a short term risk-off trade because of the trade war concerns >> that would be bullish for treasuries if you are thinking five, ten years out, you have to have a framework, for me, nominal gdp is a good proxy. how do you get to two, verse three or four the last two years, the gdp was around 3.2. it was a rough decade, it included the biggest depression

since the recession. to put it closer to 2, you would have to see inflation well below the half, real gdp lower than the half for me, closure makes sense, you can potential higher that's looking five, ten years out. i have no idea what will happen the next week because of the trade war concerns that's how i would try to frame them >> joe, the difference i would have with an dre-- andres him we have the trade war with the geopolitical tensions continuing to exist i don't see any prospect of them going to way it continues to stay so we again have several more years left of the trump presidency and unless you tell me that the policies are going to change radically, you have a medium-term influence towards pushing down bond yields, so you

do not have just the case of inflation and growth you also have the safe haven phenomenon, which is also helping u.s. treasuries and will continue to help with u.s. treasuries >> so you realize, we all assume we were going to bet 3 in 2018 on the ten year. that's not going to happen if you had to bet, you'd say, it's where it is or lower. the yield on the ten year. >> if i had to bet on one versus the other, i would bet on 2% rather than 3% how is hat >> what do you say, 2% >> 2% rather than 3. i don't know you might be right. it's definitely not consensus. it's not obvious >> joe, you have had for the last several years people looking for 350 and 4% for the tern year. where are they now >> they're still looking for 350 and 4% it's also a mantra >> there is a silver lining to that, because when we talk about 3 and 3.5%, we worry about all

the funding for all the government that's got all these bonds. the debt service on 3.5% is a lot of money so if we do stay below 3, i can make it partly bullish because at least it doesn't cost us more to service the debt or private company as well. >> anyway, thank you we will see what we will see. >> when we come back, we will talk with greycroft's founder alan patrikoff up next the space tech is expected to fall to earth on easter sunday. morgan brennan has a preview on what you expect when you look up into the sky. >> experts call this a once in a lifetime xeerns when it falls back -- experience when it falls back to life

it is spotlightingnoer ath growing threat we will talk about that when we will talk about that when "squawk box" returns banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs.. they all lead here. cme group - how the world advances. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.

>> companies well position for apple. >> what happens if that sector remains out of favor >> they are largely intact >> the tech sell-off has reached europe all 27 constituents trade figure

welcome back to "squawk

box. a tiny space station poised to hurl past earth today is expected to land somewhere on the planet, yes, that's true morgan brennan joins us with the threat of what's called space juvg >> yes experts are calling this a once in a lifetime experience when china's tiangong falls, it's the size of a school bus the heir aerospace core, as you mention, 40% will shower pieces over a wide swath of earth it will be a kind of a meteor shower it spotlights a mounting threat. >> that is space junk. nasa says half a million pieces a size of a marable of bigger, zoom around the earth, threatening functioning spacecraft it's only going get worse as boeing, one web race to launch thousands of satellites over the

coming years the airport says the congestion is a key strategy to secure the u.s. from space. a number of companies are trying to develop solution there is, orbital, raytheon and airbus a few. they call remove debris from europe will be launched to the international space station to conduct experiments. meantime, as china's space station comes down, if you are worried about getting hit. >> it's a once of a lifetime, it should be a once in a lifetime in your lifetime. >> they say it's less than one and one trillion and fun facts for you, over the six decades humans have been sending stuff into space only one reported incident in oklahoma >> that woman that got hit. >> yes, by a piece of a delta 2 rocket in the late 90s >> she wasn't injured. >> they don't have any control

over it. any idea where it's going. >> exactly it's been likened to the skylab which in 1979 was that u.s. space station that came down >> a lot of unpopulated parts of the earth. i feel pretty good if i were you, i wouldn't go outside. didn't you buy lottery tickets >> a better liability. >> a better chance of getting hit. >> a better liability issue for these companies. meaning. >> for china, with the space station coming down? >> it hits somebody, kills them. >> why are you posing this question >> because it could happen, if it does, i want to know in advance. >> i haven't seen research on that >> how about oklahoma, did she go after anybody >> not that i'm aware of she has a piece of space for her collection, i think. >> coming up, another white

house shakeup. va secretary is out. >> you need some ideas to some of the lawyers out there >> yes >> it isn't like they need ideas. >> good luck >> for sure. >> and president trump's proposed replacement already has everyone buzzing this morning. details next "squawk box" is right back >> you're gonna do great! thanks, dad! 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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and see it through-with digital. . another shakeup at the white house, a veteran affairs hit is out. kayla joins us with more details. >> good morning, joe, president trump tapped his white house doctor to run the department of veterans affairs, this comes after he ousted dr. david

shulkin after the va inspector general revealed a tally for a ten-day business trip and doctored e-mails to cover shulkin's wife's travel. shulkin is the third cabinet member to be fired with record turnover in a "new york times" op ed today, shulkin says i was falsely accused of things by people who wanted me out of the way, but despite these politically-based attacks on me and my family, i am proud of my record and i know that i acted with integrity him none of that matters. he served as an emergency doctor in iraq the pentagon nominated him for a two-star pro position him veterans organizations were critical

>> the senate has three cabinets to clear they hope to clear it by memorial day we'll see how long it takes. when we come back, famed investor we will talk uber, apple and much, much more. take a look at u.s. equity futures. we are in the green of this final trading day of the month we'll be back in a moment. that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state,

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final trading day of march personal consumer spending we have the latest read on consumer sentiment boeing says it has detected a limited malware intrugs that happened on wednesday. it says it affected a small number of situations and it has been corrected and jet deliveries would not be impacted the reports were overstated and inaccurate so >> there was something about somebody sent out an all hand on deck sort of e-mail. >> freaked out a lot of people separately, auto makers renault and nissan set to be in merger talks. the two have an alliance to share a key executive in common. a key man, carlos scone and chairman of nissan, a vote he gave up the nissan ceo post last year becky. so just how much of your data are apps checking about you and your habits?

nbc's jeff rossen filed this report. >> reporter: from games to streaming services, even coffee. we are downloading apps, granting them per mission to snoop on us without realizing it but what personal information are they really collecting the rossen reports team digging into the fine print. >> i downloaded the net flecks app. i love net flicks, here, inside the privacy statement is this. this is the information we provide to them. name, e-mail address, address, payment method, telephone number here's the information they collect automatically. according to netflix information rargd yoegarding yo computer the time and reason you contact them transcripts of chat conversations. your ip address, which defensive them locations. >> next up, my producer downloading the app candy crush. >> we have to go through 34 pages of consumer terms. 34. >> what do they get?

>> they are getting the time of device you are using how you play the game, other games and apps on your phone. >> not just candy crush. >> fthen if i keep going, they then know attributes about myself my interests. >> reporter: but this next app surprised us the most. starbucks, my producer jamie downloading it >> according to their terms, they act says information directly from your device such as information in your contacts. >> inside your phone, have you contacts >> they can get my contacts lest, the other thing is web pages i'm looking at my gps information. >> that's not all. if you send a starbucks gift card to a friend, it can collect info about your friends, too, starbucks telling nbc news they reg rarly evaluate all policies and strive to be transpart experts say the best device. go into your settings for all your apps and manually limit the info they can collect.

let's get right to our special guest this morning venture specialist alan pat patryricotff all these -- patrikoff, after the facebook news we have been sifting there, what do you think? is this overblown, a long-time coming >> i think it's long-time coming data is the most important thing today. i'd rather invest in a data company. i spends time in other areas having data that continually gets built, bigger, broader, gives you more information, allows to you to do other things is very valuable to every company. facebook happens to be front and center facebook in my opinion as well as google and increasingly

amazon have become monopolies. they have more power than anybody else, therefore, they will have more data. it's the question of how they use that data and also what we allow them to do but the whole internet is based on the ability to collect a lot of information that you could never do in the days when it was just manual. >> until you just said that, i don't know why this hadn't occurred to me before. big data was the phrase we were throwing around a few years ago saying oh, everything is about big data >> this piece just before we went on actually is very interesting. i will talk to you about starbucks, everyone is picking up data, ebay, it's a question of how they use it what we are seeing is facebook particularly used it in a way, whether intentionally or unintentionally. i think cheryl came out the other day, cheryl sandberg with the fact that she accepted the fact that we need regulation. >> what does it look leak in.

>> i don't know. i'm not the one that will do it. >> did you take that sincerely >> oh, absolutely. >> to me it was them saying, yes, we need it as a way of sir couple venting some of the onerous legislation. what do you think needs to be done >> i think we have to find a way. what you are allowed to sell to other people what you are allowed to use what people have given knowingly or unknowingly, oh, i think, listen, maybe i'm wrong, maybe i know her or think she's sincere, even if she wasn't sincere, it's happening congress is looking at it as they should. i think from these hearings something will come out construct -- there will be in my opinion regulation. >> but i'm trying to understand what the regulation looks like, i want to understand what the consumer experience looks like the reason i ask is you could see a situation where the government says, okay, we will

force everybody to identify on a screen exactly the kind of data that's being transmitted will you have to opt it will not be an opt out. it will be an opt in whatever it is then my question is, do you think behaviorally society is going to opt out of all of these things and, if that's true >> and change it to opt in >> you know, that itself the question where you can take some services with advertising or without. lots of people take them with the advertising, because they like the advertising and certainly they don't want to pay, also. but i think that people will accept the fact that their data is being used because they want to be exposed to other things. we ran into something particularly here relating to our presidential election and perhaps lots of other things that have been happening i think that's brought up a whole new level of conversation that is going to go on for a while here. >> here's the thing him we may agree to some of the advertising things, but with facebook, i don't understand what's happened to my data, who has found it,

who is using it, i'm not convinced facebook knows >> i i don't disagree. we know it's collected >> you think the same issue stands for google as amazon? do you think they have as much if not more. i would assume with google, by the way, given the search history it's at a level that is a different pace even. >> put them in the same category, facebook, google there are lots of other companies in amazon. amazon is another whole issue of it's monopoly. it's more than data, it's taking over the whole retail world, what it's doing to the rest of the small businesses and i think, i don't agree with many things about our president, but that's one thing i think he actually brought up the other day that i think is a big concern, what's happening to these small businesses as a result of. that but it's another issue. >> at the beginning of this conversation, you said that you are very interested if data companies as an investor, they're the most valuable places

you can be if you think regulation is coming and should come, does that change your decision in do you think maybe it's not the best place to be, it's not going to be the same business mod snell. >> there is data, i'm referring to the fact that you build a database, it has standard & poors, you can go back and look at historical trading information. it's something that builds up that gets bigger and bicker and you get stronger because of the years passing, it's hard for someone to produce that. i'm looking at something now in the health care area, where they're creating whole new database that they were doing for two or three years is going to got bigger each year. >> that's the very piece of this, when you get into health care, then you get into a whole privacy conversation all over again. >> it's not people's patience. >> it's given where this is going, the healthy conference we had and everything else, in the future the idea is you will be able carry around all of your health records, you will be sharing the health records, if have you three or four doctors,

different specialists, all will be able have access. >> that will be voluntary. >> i understand that will be voluntary, then there will be new questions of who gets access to that it's not invariably the doctor and >> listen, we're in an information age anders this lots of stuff we now know that we never used to know listen, you go into an emergency room, they ask you, what pills are you taking, you can't remember and what procedures you had, it's not so terrible to be able to access that information and make it available for your own health but that's another whole issue >> you think people advertise against that they know have you diabetes, then they're going to advertise certain products, different food products some people may want that, some people may not. >> it exists today when i had gestational diabetes, all of a sudden i was getting calls from people selling me diabetes things. the pharmacy called. >> if you go on a site and click

in an information base for diabetes, believe me, along the right panel, it will be diabetes drug >> let me ask you this, though, tim cook, we have been playing sound of things he said yesterday saying he would never be in this position facebook is in, apple has been much more careful with people's privacy. you are obviously somebody who helped found apple, the company out. do you think that apple is in a unique position? i noticed you didn't put them in that category. >> no, they're making their money actually i think selling products is a big part of their business, necessarily i don't know how much they're getting, i don't see them selling information. they collect information but and particularly you know through itunes, you are getting an awful lot of information that way. so i think they're in a strong position i'll take them at face value if not he will be asked the same questions. >> alan obviously with us for

the rest of this hour. we have a lot more to talk about. >> when we return the audio on demands network is getting a new guest alan patricof. they are joining us with a story about podcast power. patricof like the change in his pocket he could invest and own half of a new company. then in the next hour another "squawk" news maker john zimmer, co-founder and president of lyft will join us to talk about the lkg oucolan. tainabt uch cushions, anyway the future of autonomous vehicles on the road, kwaux will be "squawk box" will be right back will be "squawk box" will be right back. e "squawk box" will be right back. "squawk box" will be right back. "squawk box" will be right back. "squawk box" will be right back. k box" will be right back. e "squa box" will be right back. "squawk box" will be right back. "squawk box" will be right back. hi, i'm calling about kohler's walk-in bath.

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we'll be with you every step of the way. let's start today. welcome back to "squawk box," renowned investor and our guest this morning alan patricof, podcast network raised $5 million in a unding led by greycroft alan's firm joining us more with the rapidly growing industry the founder and ceo of wondry, which is one of the new podcasting companies

it's a little different. i want you to explain. i think people have a thought that a lot of podcasting is just different interviews, almost like radio but these are much more sophisticated longer almost narrative series >> exactly and thank you, we create immersive story telling. the stories that make listeners feel they're in the middle of the action as the story is happening. for instance we have a series business wars, we recreate a conversation between rich hastings right at the moment where they were both about to or integrate or buy each other out. through nar racing we gettomy e people -- get people to understand what was going on in the board rooms. >> it's almost like a scripted series, we think of video but

autoio level >> it is immersive you really feel are you there. you understand, you empathize with the characters better and the fascinating thing about all this, it doesn't really compete with other media time the date, i'm sure you seen the job, i have 31 hours. audio is the only type of media. >> in 31 hours him i want the da that i thought it had 24. >> because of multitasking, multiple things. >> doing other things. >> while they're driving, while in the car, while they're shopping, while they're commuting. >> a stupid question, this completely non-fictional or based on assumptions, what was happening? how do you recreate that conversation >> it is based on research the people hear it, public companies for a long time, she wrote a book she understand and she spoke to the subject. >> so all this obviously driven by advertising right now >> mostly. >> mostly. how far -- where are we in the podcasting game? because it sounds like there is

so many podcasts right. you go on to itunes, it's like an emporium of podcasts, you don't know what to do with yourself in the same way that people talk about there is too much scripted content between netflix, huh will you, amazon, are you worried there is too many pad costs? >> lots of podcasts, they're not quality of the kind of very heavily, they're very heavy produced that we make in companies. >> can you get a premium i thought of the economics of podcasts a lot can you get a premium on the advertising dollar for a highly produced expensive podcast that's reaching perhaps the same number of people and the same quality of people for a very cheaply produced q & a-style podcast? >> you can get better economics, because the podcasts that we create are designed to be evergreen, are designed to be able to listen to a year from now, five years from now

we're also creating ip for instance, business wars is being packaged to turn into a television show for scripted >> another question, how targeted at this point in the ball game can audio ads really be meaning, there is the advertising you are recording, oftentimes the voice is the same person doing the voiceover of the podcast and on digital right now when are you on a website, if i know it's you, i can pop you exactly the right ad, this is the problem with facebook, if it's a problem at all. on itunes, they're not inserting new ads depending on who you are downloading that recording >> that is correct the only targeting is geographic targeting or our series's base targeted most of the targeting happening happens because we know who the owners of each show is, owners for business and -- but the ads work very well, because they are

integrated with the content, right by the host, often include endorsem >> is this still all an apple product? you can get podcasts on spotify and amazon prime but in terms of the distribution, what percentage is am podcast product versus everything else? >> two-thirds of audience comes from apple podcasts. >> you see that change something. >> i believe they will be the leader for many years to come. they're the native app they're the ones that have done the most in order to build awareness of what podcasts are there is awareness >> it's actually fascinating, one of the few parts of the apple ecosystem they're not trying to cap cure revenue yet. >> they're not that interested in the advertising side of the business as you know, most of the revenue model comes from selling devices. >> okay. great to see you >> fascinating business there thank you. >> and growing, very fast. >> though it's just audio.

>> voice is the media today want >> got it. >> i mean, what do you know? what do you think? you don't have a podcast yet >> i don't have a podcast yet. >> we will get a "squawk" one. >> you may have one after this show >> coming up, we wrap up our special hour with alan patricof at the top of the hour ron krusdewski stifel president almost like coach k, lots of consonants in there. he will join us. as we head to break, here's a look at european markets we are one year away now from brexit "squawk box" will be right back. obvious.

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you should just join our conversation, time for final thoughts of the -- although he looks great, final shots for the show i hate saying that alan patricof, greycroft founder and managing director. i will listen to this dirty john thing. there is really a person >> yeah. that's what his style is i mean, he brings in the real person and their children and they, you know -- >> so you are in the car like i'm listening to.

>> music >> everhart, jazz or something you will turn me into i will listen to an ongoing chronology of, this is a 50-year-old woman looking for -- >> i was walking down the street, i ran into david carrie, who runs herselft public the other day with ear plucks, he takes his ear plugs, he's listening to my podcast, it's big. >> check around how many of your friends, maybe not your friends. >>, no, no, my friends are not my friends >> any of you listen to podcasts >> i listen to a couple. >> andrew, tell me, give me some what should i listen to? >> the daily >> oh the daily news times is very, very good. >> is it bernie or something >> no, he does a spectacular job. i listen to re-visiting history, that's pretty cool we had him on the show a year ago. he launched that

t tim berris has one you can cross reference, if you insert interstitially you can promote any new when, when hernan brings on a new narrative or factual story or other types verbatim, it's not just narratives they do can you promote it f. nar rater can promote. >> that itself where you build up listenership. >> my philosophical question you brought it up, you love the idea of checking data and what it's worth then you acknowledge that apple has an iphone that they can sell they're the data they collect is not what they're monetizing all the time is it always a -- are you sure the mark cap for selling people targeted ads isn't like over --

is it really that valuable in. >> you are carrying data into another area >> it seems leak the day of reckoning is here, where we got totally the pendulum swung way too far. really all you are selling stuff other people make. all their company are five times anying earnings. >> we have app annie that has the absolute complete information about the app business how many people listen to your app. also listen to another app how your competitor is doing that's basic information they're not selling ads against it they're monetizing it selling to the people that need that kind of thing that's the kind of data i'm talking about, giving information to the cable television industry. what do they need to know. and those people that create those is there that's not going away >> never >> this is the most exciting stuff you look at. >> if you find it, they're not that many around the ones that get bigger every year by having,

accumulating that year's data, it's hard to throw them out. >> so social media, i'm always looking for next thing i had no idea this is coming it's not going away the next thing will be some extension of social media. >> social media, let's not conflori conflagrate the two. social media didn't exist until we had the internet. >> before we were talking about audio, where are you on spotify? >> i think it will be interesting. i think drop box proved the market will absorb companies with large losses. they are in a very strong position from what they have been able monitor. they are, you know, that tier head of apple. they're the head of amazon and i think it's going to be interesting. the last valuation was what 19, 20 billion, privately. and we're going to see it. they're doing an approach with a new concept of bringing the

product public we haven't seen this they've got some advisers on the this site. i'm sure there will be some kind of support provided. >> alan, thank you for being here great to see you >> thank you, thanks for having me when we come back. stifel ceo kruszewski and after uber's last week's accident and what is next for the ride sharing company. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital.

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>> throwing the book gets the dow on track to snap a nine-quarter winning streak the longest in 20 years. >> consumer beware, why it's not just facebook that knows what you are doing, scary tracking habits from starbucks to your favorite smartphone game a story that you and your privacy cannot afford to miss >> plus, a "squawk box" news maker, lyft and why it's full steam ahead for the ride sharing company's driverless cars, as the final hour of "squawk box" begins right now

[ music playing >> live from the most powerful city in the world, new york. this is "squawk box. >> good morning, and welcome back to "squawk box. here on cnbc live from the nasdaq market site in time's square, i'm bill kerr none with becky quick and andrew ross sorkins. the futures are up, a couple digits from what it used to be it's up 101 on the dow, nasdaq bouncing back after a brutal week up about 45 points, treasury yields still below 280, 277 last time we checked 276 right now and president trump just tweeting, i have stated my concerns with amazon long before the election, unlike others, they pay little or no taxes to state or local governments. they use our postal system as their delivery boy, causing tremendous loss to the u.s., and are putting many thousands of

retailers out of business. amazon affected this week. there you can see it that's actually, that's just today where it was up, it was rebounding a lot more earlier. >> this comes after sarah sa sanders said yesterday there are no potential plans, regulations she is aware of. interesting this trump between comes after sanders is making those comments yesterday he is not willing to let it go >> no. >> in our headlines, he is slamming the leader, mark zucker burg cook said he would not be in this scandal leak situation. >> the truth is we could make a ton of money, if our customer was our product, we could make a lot of money we have elected not to the that

our product, sir, iphones, ipads, macs, home pods, the watch, et cetera, if we have a convex, we will make money but you are not our product. you are our customer you are a jewel and we care about the user experience and we're not going to traffic in your personal life i think it's an invasion of privacy. i think it's privacy to us is a human right. it's a civil liberty and it's something that is unique to america. now, this is like freedom of speech and freedom of the press and privacy is right up there for us

and so we've always done this. this is not something that we just started last week, when we saw something happening. we have been doing this for years. >> in the meantime, facebook is cutting ties with experian and axiom. those companies would provide targeted user data uber reached a settlement with the victim of that self driving irish car in that accident that happened in arizona earlier this month. >> that avoids a potential legal battle over the first fatality caused by an autonomous vehicle. we will talk about the self driving cars with lyft co-founder john zimmer will be joining us ceo john cryan says he is absolutely committed to serving the company, deutch bank it was posted to the lender's website. this comes a day after they said the chairman reached out to potential candidates to replace

cryan as ceo a couple stocks on the move, reporting a quarterly profit of $1.90 shares, revenue was booked, forecast with the producers boosted by strong sales of its beers and what did i say? i don't know these brands. you know them better than i do >> krochrone corona. >> that did not say corona if you were a polished anchor you would realize, modela. >> i like orona. >> think it through. >> the company also raising its dividends. >> it does say corona. >> they changed it quickly >> i know, i'm passive aggressive >> you help you. game stop reporting. >> i'm married you are familiar with this,

aren't you >> wives are passive aggressive. >> you are aggressive. >> a segment on marriage in just a moment but in the meantime, game stop, same store sales rose more than 12%. game stop might be hurting marriages the retailer continuing to see strong sales of the nintendo switch consol, the sorkin boys team to like too much those days, they say the revenue, the retailer was helped by increased sales in calvin klein brands >> you squeeze itble right, don't you >> don't even try his name >> you probably will nail this one. right? >> it's unfair >> it is it is. they spelled it wrong. i saw it it's not your fault. >> you can never blame the producer it's your own.

so i take it on myself >> okay. >> all right >> thank you, joseph >> still can he does no, this is me volatility a lot of volatility. >> volatility continues to slam the market we know that joining us for more investor reaction, all the swings we seen on wall street. let's bring in stifel ceo and chairman ron kruszewski. >> i'm not sure i want to weigh in >> corona or corona. >> ron, we've seen all this volatility on wall street what does it mean from your perspective? where are people concerned about this, where are average investors thinking of all this >> average investors, if you got an ad advisor, you'll get through this, okay that's what we do. we get people through the volatility so, what do you expect last year we had no volatility it will revert we will have a lot of volatility it's a volatile year >> it's good news from somebody

on wall street that has to look for volatility this is leak making hay in the scenario for you >> again, i think the volatility will, you know what's goingto happen here the low volatility, low interest rate, low inflation environment was big for passive investing. big for the things when you think about this >> that will change. as that changes, it's going to be more stock picking is going to come back. >> let's already take issue with this low interest rate environment. we're already looking at lower interest rate environments that's not going away. >> let's see, it has come in a little bit but the fed, you got unemployment below 4, you got gdp growth above 3 this year the feds will be raising interest rates. i'm not so sure everyone will be looking at low interest rates for the whole year. >> if you think you need to actually pick stocks at this point. tell us which stocks, which sectors you think are going to perform well in this

environment? >> i think if you look at higher growth and higher interest rates, in an environment leak this, you might be rotating out of the again the high growth names, high pe names the things, into you might be looking at some more consumer, maybe more defensive i can't believe i'm saying that, right, more defensive stocks >> if you think the banks and financials have been under increasing pressure, too, possibly because of what we seen with libor what do you do with that situation? >> i think banks are in well position for rising rates him although they've had a nice run. you know what's interesting, what's driven this market is deregulation, it's one of the factors under pinning this mark. what everyone is worried about today is regulation of these tech companies so higher regulations people are worried about. >> we got a republican you know, talking about amazon

and pretty non-free market ways. >> he is also talking about trade. so when you look at that, i'll look at it ithink that a lot of negotiating over that's overplayed at this point. i think the trade thing is negotiation. that's what he does, he comes out strong and negotiates. >> maybe there is something to the reason why amazon has done really well. you wonder, i think for a while you thought, you are not crazy about just avoiding all state taxes, are you >> oh, no, they should be and amazon has moved towards a blaise they are collecting taxes in more and more places, i think they should not get a free ride. >> i then think about the effect on the post office i didn't really thought about it the post office never makes money. >> but amazon. >> it's like a subsidized way of delivering your stuff, right >> amazon changed its tune, too, though it's on board with the idea, it says it has been, it has been on board for a while of checking taxes. >> i think amazon will do just

fine i will tell you, that's e-commerce and when you think internet, you can think amazon i think today these emedia companies are the ones really under pressure. >> what do you mean? checking data? >> anyone checking data, when you think about what's going on with data, i was mentioning earlier, that if you took, can you believe you could actually give someone your dna? oops everyone is doing it and when that gets, what if peacebook bought ancestry.com? you want to see some controversy? this is what could come out of it >> what about tesla? what do you think they should do in. >> i think tesla is a great concept. it will face a lot of competition. few think the traditional auto companies will not be in electric cars, c'mon, it's going to so i think tesla is a leader. they need to make money. >> that's turning into an ugly

chart. >> it's a great car. it is a great car. it may not be a great stock, but it's a great car >> that's a big comment. right there. >> well, looking at that chart. >> that's why it's a great stock, because it's a great car. no one's ever thought about the company in terms of real metrics and what you would normally use to evaluate an investment. it's always been about the car right? >> well. >> and about musk? >> well, it's true >> there has been, no, it's been this gamble that the car, costs so much to ramp up production and to build these things? you know, you can't do it without some help and. >> logistics that's what you are saying i think the reason that chart looks like that is can they mactheir protection go up. >> i can't physical out why bmw can't figure something out they own and every yuppy in the world wants a bmw. >> you think they won't figure it out. >> i just don't understand, they got tons of money and german

engineering, everything else >> i will say this, if you are not an investor in tess larks i think he has pushed this whole thing forward. >> no question >> everybody is chasing him. >> right he's been subsidized to make this money along the way, pushing humanity forward it will cost other people. >> so let me leave with you this 24069 the markets are fairly valued if you look at the equity rick premiums, where i that are. when you look at this, where money will be made now is by picking sectors of the market. it's not going to be passive investing. okay i just don't want to own, if i look at the s&p 500, i don't see a lot of upside for the rest of the year in the index. but within the index few look at again, look at defensive versus the technology, you can make some money. >> ron, thanks a lot for being here it's good to be here >> thank you coming up, the netflix of china is coming to a trading screen near you

echie will maybe it under the texter iq the techer is iq we will talk to the cfo. stay tuned you are watching "squawk box" on cnbc kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work.

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very busy, yes, join us. today the buy new back video streaming service, ite, symbol iq, that's why, ite begins trading on the nasdaq. the ipo price last night at $18 a shamplt tre it brings in more than $2 billion. this is china's netflix x best platform joining us now the chief financial officer at ite, made it, welcome. >> good morning. >> this values, so this is the biggest ipo of the year i think. it would have been one of the biggest of last year, too i think the second biggest to raise that main. it values the company at how much overall

>> i think the relationship is 14 billion to 15 billion >> xiaodong wang >> we are saying it's original content, tell us about there is four different revenue streams se company gripped in advertising >> i think a simple way is netflix class. igiyi's ipo expectations you grew up the cable tv league you used to pay for content. back home, actually we are the first to start kind of paying models in chosen so that's why, we have the user base first, unlike net wicks they grab you with cable tv for whatever other surveys but we have the field, you pay

first by offering free content at first the first stage, free content. you let them watch content on your platform. gradually, you have some of the active users are paying members. that's how it works. so but we have the subskreeber revenue, ad revenue, content streaming revenue, costs sometimes we every dollar we spend is not only for the content of subscribers, but equal whole ecosystem. we try to develop a whole system so that's how it works. >> premium models. >> yes. >> very expensive. if the revenue doesn't cover expenses at this point, how long will you run a loss, do you think? >> okay. that's a good question the typical answer, say you have to cash out margins and

typically they will bring out all the cash to the markets. we use all the cash. we have to figure out another way to support business. however, therefore, it's true. a lot of company is special for the company, it's similar statement a lot. but, i think we are more responsible, we see every dollar we spend on the content, we have to make sure it's bringing shareholder. so actually i see we are suffering some loss, we still have a very clear study on the content and however to make profit in the future pricing quite over the content because you know, actually in china, original content is much cheaper than for license content for the parties. so now we are seeing early stage, you can't understand why because every years ago the whole industry starts maybe ten

years ago, like you have over 100 year history of the entertainment industry so i think it is quite simple, we increase the content that we can achieve and high monitoring ability from original content because as i just said for our content, we can charge people for premium content and we can also generate revenue from our shows. actually, we have a graph in chosen, it's like everybody is hoping mark. so if you look at a way chat in chosen, almost the top ten hot topic maybe like say seven or eight are talking about chosen so that gives you some sense how we are going to do business in the future because i think

although we are suffering some loss today. >> yeah. >> probably next year, but we have a clear path to profit. we know what we are doing, so we are -- we are offering our share with great benefits. >> iq and you put in red carpet. it's not just a strip. >> wall-to-wall carpet >> can you leave that? i leak it. >> soft on your feet >> it is, i like walking on the red carpet good luck. >> and welcome >> okay. coming up, a new york councilman is pushing for the right to disconnect, depresent them from allowing employees to respond after hours. that story next. lyft is in the fast lane, why the ride sharing startup is not backing away from self driving technology wl lk's taking on rival uber. weilta to the co-founder, john zimmer, you don't want to miss that interview.

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companies really well positioned to be on the privacy side. google has some exposure here. >> what happens if that sect roar remains out of favor? >> long-trends are largely intact. >> the tech sell-off has reached university all 27 constituents trading in negative territory >> top five biggest tech stocks. when they move a lot it's hard for you to move the market forward dow futures up by 92, not quite as much as we saw earlier today. still green arrows across the board. welcome back to "squawk box," everybody. a brooke len councilman proposed

a bill for people to require ploy 82 es to respond to e-mails after work hours this concept is the right to disconnect it's based on a french law that requires large companies to negotiate with workers and unions to develop guidelines on how to deal with after hours communications good luck with that view all right, coming up, a big half hour still ahead on "squawk box. first a blitz of economic reports, we'll bring in the market reaction. later, why lyft isn't backing away from driverless cars, we have technology with uber and nvidia pumping the brakes after a crash. lyft co-founder john zimmer joins us on set after the break as andrew works on a discount.

we are just seconds away from weekly jobless claims,

personal income and spending on this last trading day of the week the month and the quarter, you can see that right now the dow futures are indicated up by 95 points. s&p futures up by 10 the nasdaq up by 38. it's not enough for the carnage we seen this quarter jim, take it away. >> thanks, becky i agree with you, it's an uninspired bounce. however, we expect good numbers out of the labor, we got them. we expected 230, less jobless claims than expected last month was revised from 227 to 229 personal income is as expected at .4. personal spending .2 as expected as well. the stockmarket came into this up 8 they gained about a ticket nevada the s&ps up 9 and three-quarters it was 277 in the ten year stays about 277. like we said the market expects

labor numbers to be good they didn't disappoint again today. i don't think it's a huge deal i think personally this bounce in the stockmarket is a little uninspired we need a little better than ten handles. in the next ten hours, we test the downside again back to you, andrew there thank you, jim appreciate it very, very much. in the meantime, i want to go over to steve leishman he has reaction to those numbers. >> good numbers. i like the wage personal income is up 0.4, spending is up a slight 0.2 the savings rate, it's interesting, the stockmarket goes up, savings rate goes down. i don't know if this is unusual sensitivity. we had strength in a little strength in durables not so much, down 0.2.

and i'm looking for the inflation numbers. there they are 1.8 on the overall price index that's up a tick the core number up a tick as well 1.6% everybody says we're just on the cusp of the month. i guess it's next month is that will be the one to show the increase in the pce because of old stuff developing out of the old month comparison, we'll see how the market processes that. it's pretty well telegraphed we noe itknow it's coming there should be something of a rise as it rises towards the fed's preferred indicator. 2% is the target there you know, today is thursday, right? the last day of the week. >> the month >> and you know what next week is >> next week >> what's that >> april. >> jobs. can you believe it i think february messes up the whole calendar when you do that, because as eb knows, it only has 28 days -- as everybody knows,

it only had 28 days. another strong jobs report >> thank you, sir. when we come barks lyft is speaking out, it's been a bumpy week for it's rival. we will talk about that and so much more the co-founder of lyft is here. why they are going away from timeless cars, where the business is headed he's going to join us right on set tethafr e break. set tethafr e break. back in a moment i think that she's a very nice girl... set tethafr e break. back in a moment you never got the brakes looked at?. oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services

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welcome back there's the futures this morning right now up triple digits again, 99, 101 on the do you the nasdaq bouncing a little bit. 41 points after a tough week good morning, welcome back to "squawk box" here on cnbc live from the nasdaq market site in time's square. it feels like friday, it's better than friday you get a three-day weekend. shares of starbucks are lower in pre market trading the neutral can out perform saying it no longer sees the drivers necessary to push comp store sales significantly higher do you think jeff rossen's report, sorkin, i mean, you know, i can't believe howard is letting that kind of stuff go on with the privacy stuff >> are they allowed to collect the data >> the way they collect the data, the person gave the gift

card to. you know all that. >> question, see how i would make the argument. if starbucks is then selling that data. >> right >> to a third party. >> with the is the difference? >> we don't know. >> for better or worse, he's collecting all the data, he says he's not selling it or allowing others to access it. >> by the way, i think one of the great dangers of going as far as some of these executives are starting to go out on a limb is essentially saying, it becomes very difficult if, fact, there are apps or other developers who want access to apis we find out later. i'm not saying that itself case at all it's a tough one. >> someone wrote in. we will get there. someone wrote in that there is a lot of targeting advertisers, that can go after the same eyeballs >> it's a big market task. if they work really well to justify the valuation for a lot of this stuff.

>> that's why facebook is a target they're the beggest. they have the most eyeballs. >> facebook's cart looks horrific, too. dow component boeing on the rise, barclays overweight, saying the jet maker is in the early stages of benefiting from a cost reduction and improved productivity those are the china problem right at the very end of that chart. still above 300. >> okay. we're here the hype around the self driving cars could be coming to a hal, maybe, maybe not we will find out, along with a fatal crash involving an autonomous uber car in arizona, they have suspended other self driving tests and the co-founder of uber's 12 driving unit is leaving the company. there is nvidia, took autonomous cars off the road. one driver not dropping down is lyft joining us to talk about that and so much more where all of

this is headed is the co-founder and president of lyft. we are thrilled for having you here this morning. >> thanks for having me. >> i want to talk about car sharing, ride sharing, where this is going. i want to speak to this issue of autonomous vehicles, how far we are, what do you think has happened at uber let's start there. >> i don't know the details of the tragedy that happened in arizona, but i do know the broader idea behind why autonomous is important is because 33,000 people die every year in car accidents and so for us, we're not going to bring any product to market until it's safe and ready to be deployed. but there is an important reason behind all this, not only just having autonomous rides, having more affordable rides and getting our cities off of this car ownership addiction. >> but from what you know about autonomous technology app, at the moment when you look at what uber was doing. when you look at what wamo was

doing. you are riding -- you are testing your cars, by the way, on a track that's not out in the public yet >> correct our evidence is earlier than other companies, we're on a private track. >> private track the question is, though, should these other vehicles be on the road yet, from what you know about how all of this works? >> i don't know the specifics of again uber's technology. i know that google and wamo's technology is extremely advanced and i believe the top of the field right now. so i think it depends on the provider when we started our company, we -- there wasn't a regulatory infrastructure for lyft. you know, we were picking up people in personal vehicles. but we created a criminal background check a drivercheck a million dollar policy because it was the right thing to do because we wanted our family members to take rides in our service, so either we need to be, you know, self regulating ourselves or there needs to be likely a third party that's

validate wag we say is true is actually true. >> isn't it necessary? there are questions whether uber will shut down its self driving autonomous efforts i don't know how you think about your own but do you think that these networks the lyfts and ubers of the world need to have their own technology which is to say, right now, you contract out all of these cars and drivers without, you don't own -- it's a contracted business in the future, do you think about it differently >> well, again, it's important to think about the broad concept is, our mention is to improve people's lives with the world's best transportation and americans spend $9,000 every year on owning and operating a car. that's what happens when everyone does this themselves. they use their car 4% of the time >> that doesn't make much sense. that's the second highest household expense, americans spend more money on food than they do, on cars i'm sorry than they do on food. so we need a better solution to

the transportation system as it is, it's evolving. i think eventually people will subscribe to transportation as a service. we'll get the share and benefits of lowering the costs. >> real qui, is the worry if you don't create the network, yourself, and have the technology, wamo, bmw, audi did a deal together that others will do it first, is that what's going on >> we want to make sure we have access to the technology, yes, that's critical for us but can you see in some of the ways we've partnered or developed technology, we're not trying to say we have to have it and no one else can have it but this should be -- this is important technology opened to those that should operate safely >> how long before i walk out of the studio and step into a driverless car to take me home seriously? how long the iphone ten years ago, my kidsty these have been around forever. in ten years a lot has happened, ten years from now, will i walk out and get into a driverless car? >> yes

yes. >> how many people will be driving cars >> it will depend on the city. in some cities, cities may decide that it's safer tore autonomous vehicle on the road and separate areas where only autonomous vehicles. >> it's like the jettisons, it will come up, will you get in the back, there will be nobody there, you will listen to a little podcast and go somewhere, right? >> yeah, "squawk box." >> did you know this >> i mean i know this is the vision >> do you think it can happen in ten years? do you believe it? >> i'm less optimistic not that it won't happen, it will be a combination of drivers and autonomous vehicles. >> autonomous cars in places >> absolutely how it will happen it will be a mix >> technology that can make it safe it will be a members. so the thing that's different how we are developing our technology from a car manufacturers, we don't need the car to do everything we only need it to do sol things then we have an amazing community of drivers that do all sorts of different ride. so as we continue to scale up,

we work with multiple oems we have different needs for the autonomous technology. >> john, let me ask you about your market space. i mean, uber got there first, was bigger, brasher, getting into all these places, but they have suffered black eye on black eye on public relations front. how have you benefitted from that >> a couple things, we started with the peer-to-peer ride service. uber started as a littleo company basically. we were trying to create an alternative to car ownership it was a much becker vision. we're going after a 2 billion yearly spends. >> uber was like handing me a kleenex. they were there for the mind set in an area and an urban city like this, that's where you would be doing it. however, uber stumbled badly, how have you benefitted from that there is the enter remove uber instead. >> i think we benefitted by

focusing on ourselves, our vaur values, our mention. our employees, our passengers, our drivers. in the end, yes, there is technology, a hospitality and service business >> that matters. people are realizing that. can i get a ride in three minutes with lyft? yes. can i get it at the same cost or a better cost? yes. can i get it with a friendlier driver happier driving with lyft yes. >> there are areas they stumbled you immediately saw nit your numbers, like a pick up in people dropping uber, going to lyft >> we had about a week last year, our business grew 20%. >> so we were talking off camera you have a way of finding out if a guy like or a gal gives up looking for the ride, if they give up, you got to start all over, they can't do that they can't like do that all the time or else they get in trouble. does uber have that same policy? >> they do >> because they got to watch

their driver, few wait ten minutes and you can't find it. he gives up. you start over, that's bad >> this relates to the driver issue, what is so frankly bad about your business and the uber business the customer facing the component of the business, it's not employees. it's one of the few businesses in the world, where the company is somewhat disconnected in many cases, if not most cases the drivers were for both. >> when you say people want to walk into, get into a car with a happy driver, it just so happens that oftentimes that happy driver, hopefully, are driving with, but when they happen to peck you up by uber, if that happens, they might still be, they will be the same person, how do you think about that? >> >> then out of ten drivers prefer driving for lyft than uber >> they tell new your surveys? >> third party surveys so there is third party surveys that say lyft drivers earn more. we started tips in the beginning and our customers are more

likely to tip because it's been a part of the culture from the begin zblk what's the percentage >> 30 to 40% do both services. >> despite wanting to do one or the other? >> sometimes -- it's on us to make the best possible service for our drivers so they choose us all the ime >> two other quick questions, darragh is now the new ceo of uber, as a ceo who has now experienced this and sort of seen what's happening on autonomous and all these other things, what should be the honeymoon period for him, meaning the company, he jumped into the deep end at possibly you know a very terrible point but as -- if additional things come out that are tough, how would you think about that >> i think -- i think it's on others to judge him in that company. we're really focused on what we're dock, how we're operating. we've had lots of things distracting over the last five.5 years as lyft has been in

business, by staying focused on who we are, what we do, that's been paying off. >> i was going to ask you, you got involved with lots of certainly issues, the company has been dare i say aggressive and public, you were doing free rides over the weekend for the march for our lives company. how does that affect the business how do you think about that relative to the fact that there were customers who i imagine are on different sides of these political issues >> we're not taking a partisan side in issues we have shareholders, tens of millions of passengers over a million drivers on the platform and our employee base. >> you give free rides to a first, second amendment rally? >> i wouldn't say that >> would you >> we are against violence >> sometimes maybe the good guys stop violence. so you are not -- if there is a pro second amendment rally, you are not taking a side. you do take a side

>> we have opinions. >> you are non-partisan. >> we want to increase equality. those are things we will stand up for >> that means something to us. >> hertz, avis, alamo, do you think eventually there will be a third a fourth a fifth, disruptors that come in. it's great there is a lyft, it keeps ub were honest, obviously. is there going to be a fourth a fifth a sixth that comes up with a better mouse trap? >> it's possible i think we're in a phenomenal position it's a big opportunity 2 billion spend every year, changing from ownership to transportation as a service. we continue to take mark share we expect to provide the best service. >> is there a point it becomes profitable for anybody it's been a heavy crash burden to create the market like amazon did, what is the point, it's okay, this is where we know we can make a profit >> amazon is a great example this is a massive opportunity as

i've said. we are investing and prioritizing growth. for our shareholders, we're looking at the return a year from now, five years from now, ten years from now, we're making the right investments. >> is there a point you don't have to go back in and ask for o build a market, right? >> we've raised sufficient capit capital to break even. we get offered investments but we don't need more capital. >> uber said it wants to be public in 2019 do you want to be public. >> going public is a milestone on that path, it is not the end state. >> is there a time line? >> no timeline that we're sharing. >> can i ask -- >> to change subject for one second, the privacy. we've had a big conversation about data and facebook. you collect enormous amounts of information i would imagine. what kind of information do you collect and what kind of information do you share and

with whom. >> so lyft does not sell user privac information. we use data to help improve the customer experience. >> do you -- how much information would you have on me, for example? >> i don't know. >> the question is, you know everywhere i've been does it -- does it say addresses and what -- i stopped at this -- do you know it's a restaurant and mexican restaurant and he likes mexican food so maybe next time -- i think people are trying to understand how people -- how much information they have and how far they are able to take that information. >> there's different ways of obscuring information, there's codes related to street corners so when you store data it's not vulnerable to others seeing it we're taking -- we have a chief security officer and privacy team and taking this very serious zbli what do you make of what's happening at facebook >> i think companies in general should be held accountable

i think we're living in a time where a company, many companies can have a really large impact on the word because of technology and therefore we have a responsibility to make sure that we're taking that seriously. >> john, just a follow-up question, you said there was one week last we're where business was up about 20% what week was that i'm trying to figure out what uber did wrong -- >> end of january or early february, around then. >> was a misstep by uber that sent everybody running for them and only putting lyft on the phones. >> it was around the time of the delete uber -- >> being very polite. >> good to see you, sir. >> when we return, we're counting down to the opening bell with wall street and checking in with jim cramer at the new york stock exchange. we'll be rig bk. y da --htac ♪

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a new round of layoffs announced at snap. 100 employees will leave, mostly the advertising side of the business this follows the implementation of new instruct tours for the various divisions. earlier this month they announced layoffs of more than 100 from the engineering unit. >> let's get down to the new york stock exchange where jim cramer joins us now.

i think it's like -- i don't know what you call it, time die lags, there's so much news every week i don't even know where to start with you at this point how about tess la? is everything going to be okay, jim? >> i think that tesla, it seems like for first time the yield is so high that maybe you can't do another bond yield and yet obviously one is wanted but people say okay, got to do stock. he does whatever billion dollars worth of stock and you know, they sell it and sometimes i think i would rather own like dry ships, even with the reverse split. they've got the collateral i do think the problem with tess la, sto tesstesla, stock has to come if any raise they raise money don't miss jon gray live at 10:00 eastern. stay with us we see alpa in the trends,

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fidelity. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. welcome back to "squawk box. check out the returns of the major indexes so far this

quarter as we approach the end of the quarter after a great january. that shows you what happened in february and march the nasdaq even even after last week, the last week still only -- >> still hanging on. the dow will break and first time in ten months that it has seen a losing streak have a great week. we'll see you back here on monday right now it's time for "squawk on the street. ♪ >> good thursday morning, welcome to "squawk on the street" i'm carl quintanilla with jim cramer and david faber. we'll put q1 to bed before the long easter weekend and despite solid futures the win streak looks to be in jeopardy. all of the big faang names in focus. 30-year yield falls belo