time you don't want to miss that. we'll have it live right here on cnbc what looks like it's going to be a big market open of this morning. we'll be watching over the next half hour to see how things open up but make sure you join us tomorrow "squawk on the street" begins right now ♪ good tuesday morning welcome to "squawk on the street." stocks are set to erase their losses for april with futures up strong a lot to watch as the president speaks on fbi and mueller and mark zuckerberg speaks on capitol hill nice gains in europe our program begins with the xi rally. stocks set to soar at the open boosted by optimistic news out of china easing trade war fears. plus, a trump tirade

president venting about the justice department his cabinet and his political opponents after an fbi raid on his long time personal attorney. and the new era for big tech facebook kicking off two days of testimony of increased talk of government regulation. stocks on track for a strong open as president xi jinping eases trade tensions he vows to open china's economy, lower tariffs for cars and property intellectual property for companies. comments after stocks gave up most of their gains on monday as the fbi conducted a raid on michael cohen. yesterday the president spoke about the market's reaction to the news. >> our economy is incredible the stock market dropped a lot today as soon as they heard the noise. you know, this nonsense that is going on it dropped a lot it was way up and then it

dropped quite a bit a bit at the end a lot. but that we have to go through that we've had that hanging over us for the very beginning. >> did you attribute the loss of those gains to the cohen news? >> very much so. i think part is i want to check with a lot of friends who are lawyers, law school. it's rather incredible i don't people are saying how incredible it is we typically do not raid a lawyer's officer there's an attorney/client privilege. there's no privilege between someone who was on 60 minutes and michael cohen, perhaps. >> you're talking about stormy daniels. >> exactly. >> and stefanie clifford. >> right and what is going to happen is they'll put a clean team the clean team comes in from the justice department these are people who are prosecutors. who run involvare uninvolved wi case they decide what is privileged

and what isn't cohen can go to a federal judge and say, listen, i think this is wrong. i think the president and everybody else who follows this knows when you violate attorney/client privilege, when you go in and raid a lawyer's office, well it takes the highest part of justice. this is a rather amazing thing it's what every lawyer fears violation sixth amendment. but if you go read about the clean team, what you'll recognize is hold up a second. how do i know the clean team isn't talking to the team. >> right they need to go to rod rosenstein to get the approval to this and then to the new york southern district. >> it's a witch hunt by his own justice democrat so, therefore -- >> you're saying it's a witch hunt >> no! i'm quoting twitter. but i am saying that i don't think the american people -- i'm not watching the news on this. i don't think we realize this

doesn't happen okay it doesn't happen. and it's the lawyers' worst nightmare. they can say wait a second stormy daniels that's not his client. russian banks are not his client let's get that once you go down the path. you don't know who is on the clean team and the clean team and you go and read about the clean team. they sit next to the nonclean team they have to have everybody decide wait a second, maybe this is privilege maybe it isn't privilege. it's a dicey call. and if you're anyone involved in this kind of investigation, you are frightened because what happens is who knows what the clean team is going to say and do. >> so you think it's pressing some of these premarket gains? absolutely i think we'll be up 500. i think we would have been up big at the end of the day. xi gave you something to think that perhaps the president is winning on this, you know, we had larry yesterday talk about -- i think it's interesting that xi is a game's

player he makes it sound like we're good you've been over there, you've know they've been saying they're not going to steal intellectual property for as long as there's been intellectual property is tonight the last night the definitive >> of course not of course not. and, listen to be fair what they were stealing our intellectual property by having teams of people associated with the military set up in places that we knew about that for years were just hacking into the systems of corporate america it did become a board level issue over the last five or six years. it slowed dramatically but the jbs we've been referring to, as well, where they legally just take your intellectual property. have taken it from perhaps outright stealing. none is seemingly going to change xi did say some positive things, though, overall and kept a measured tone in contrast to what we're hearing out of our administration, to a certain extent. >> and, look, i absolutely agree

that the tone of the markets today is basically saying, you know, you're not going to have $100 billion slapped on you. we're going to talk about this i think the markets like that. is it enough >> i don't know. president refers to a strong economy. the economy is strong. we know that 188,000 jobs, i think, average the year prior and then the cbo numbers yesterday. anybody care about the numbers do they make a difference in your world at all? >> well, no. a trillion in deficits no one was willing to say, wait a second i had to put up a bit of a dispute with someone not on-air about the chinese. they'll get cash and they from all their surpluses and the best place to put cash is u.s. bonds they'll buy. i wonder whether xi is a trojan horse. i think that what you think

about when you think about getting rid of the tariffs on cars is wait a second. the eu has a 10% tariff. does it break up what was going to encircle china. i don't want to take away from the rally. i like higher prices response does larry kudlow, by the way. i'm sick of being attacked because i'm trending with larry. is he my enemy because he went to work for the white house? i'm tired of that. i think one of the things we saw yesterday was when the cohen news started you just said wait a second they raided this office and this office is the guy who has stuff that may have stuff on the presiden president >> will the market go into i don't know friday night, the weekend defensive? worried about what the president might do yet again >> when he calls it a wind chime, i think that it's not going to stop. i mean, look is he going to fire the special prosecutor like

president nixon had to get three because one and two resigned >> how much does the market need to worry about that? >> i think it's on the table. >> i think it's on the table i think it's on the table in a way that makes it so when you have rips like this, you have to say to yourself, okay, here is an opportunity to sell some of the stuff i bought because, look, and yesterday, again, i'll come back to the michael cohen raid it doesn't happen. it happens, by the way, with the mob. when you're a mob lawyer because the mob and it's always been suspected that perhaps the mob lawyers are going to destroy evidence it does not happen, typically, to a lawyer who is in high level negotiator with the president of the united states. >> wow. >> yeah. >> why are you now saying the president is pulling out of his planned trip for friday to go to peru and colombia. the summit of the americas was the event. president trump will not attend. >> really? >> pence might go instead.

that's different. >> wow. >> you've got syria, by the way. let's not forget. >> yeah. >> yesterday he made the comments and mueller and the witch hunt and discussed syria with members of his cabinet and the military and, you know, clearly we're going, it would seem, we're going to do -- >> got to be hands on. >> right. >> that adds another layer of complexity to the market. >> i thought syria and mueller matter i mentioned clean team i felt the justice department in our country is amazing and a clean team is separate from the nonclean team i'm saying, you know, when you're looking at these documents trying to figure out what is privileged and what is not, i don't think the justice department is going to fix it. >> i keep thinking of mark wahlberg at the end of "the departed." he was all clean remember >> that's what i keep thinking of when you say clean team. >> fiction.

>> okay. >> booties on the shoe. >> he was clean. >> okay. let's make some judgments and i think that our president is going to find that those judgments don't seem fair. but the history of the justice department is a good history. >> really? i mean -- >> yes. >> the fbi managed to botch some raids over time. >> i'm just saying the people who work for the justice department -- look, my experience is this, i have a lot of friends who went to justice and many friends in justice, and my experience is that justice has always been, other than when bobby kennedy got jimmy hoffa, it was a honest place. hoffa was -- that was when bobby kennedy was a tough guy. tough attorney general whoa we don't talk enough about him >> we haven't yet talked about facebook a big day for mark zuckerberg as he goes to capitol hill to

testify in front of lawmakers. a lot of calls out today, which we'll get to netflix, exxon, hershey, goldman, itw, to name a few. >> newer companies yeah i like companies >> so do i. >> you like congressional testimony. >> no, i like companies. >> that's why i did this job. >> report something. reach a conclusion. >> if i want to cover something i don't like, you know, i would go to espn and cover the sixers and nova and the fliers. that would be crazy. >> they had a good run of things >> yes. >> of course, the mets won i'm not saying anything. >> i'm 4-5 i'm happy. >> we have the sixers. take another look -- >> you ruined my luck with the eagles. yketake a look at the premart.

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let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. mark zuckerberg heads to capitol hill to begin two days of testimony on the data misuse scandal involving facebook and cambridge analytica. he'll appear before senate judiciary and commerce hearings. tomorrow is a house panel. he apologized and said facebook must do more to protect users' personal information

>>well, he directed. okay that's no good washington is not going for that he directed these investigations they want someone outside. they want to find out what is really going on. they want to find out how many other cambridge analyticas there are. and they're not going to accept his analysis because his analysis these people work for him. i don't understand why he doesn't get that why doesn't he get you need independe independent analysis after he's taken to the cleaners today, i think he'll realize he can't tell them, hey, you know, i directed and it's happening. because it doesn't work like that in the capitol. they want to know who independently looked at it and two, they'll presume he's hiding something that's the way it works in america. what the heck is he doing? >> is any of it going to have a true impact overall on their business longer term >> yes. >> i now think so. >> why >> margins may be compressed a

bit. we're talking about the country that has the most unbelievable -- it's a profit-making machine. the likes of which we've rarely seen. >> it's amazing but i think congress can impact it i think the government can question the model if there is someone sophisticated in the government that said wait a second, here is the problem. you do this you violate a standard of privacy that actually doesn't exist in the country. i do think they could make facebook change. >> justice department made microsoft change the model. >> and they've gone on to do just fine. there was a period, though. >> i think you go down, first. >> adjustment. >> you go down, first. he didn't do what i wanted which is to appoint someone from outside. someone does not work for him. those people work for him. anyone who works for you is unlikely to come up with something that congress wants. okay congress wants heads what heads have you seen

>> facebook is on the cover of "business week." and the story largely about how instagram, now, might be the key to facebook's future. >> yes >> peter -- >> not peter. >> here is the problem with kevin sisstrom i don't think he wants anything to do with it. i think instagram is very separate i agree with this whole idea because he can emerge. because i think he's completely untainted. that would be sensational. i think he's undated you disagree with me >> i don't have an opinion i'm interested to see. we have a clock down clock. >> we've had that going for -- >> have we >> how many people are interviewing him how many congressional -- >> he'll get the toughest questions from the panel who will present him with the

toughest questions blumenthal. >> who wants the most? >> there is a school of thought that facebook will be surprised at how angry republicans are it's not just democrats who feel the election was stolen somehow or something like that but that big tech is in this strange cross hair, a bipartisan cross hair. >> this is what i'm talking about this conglomeration of power with the couple of companies. you know, they don't know what -- okay and black tooth. they don't know. but, you know, they don't like companies that are really big that are really powerful because they're the government the government wants to be big and powerful they don't want anyone as big as them. >> there's only one company that gotten the attention of the administration, because it's big and powerful it's not named facebook. >> yeah. >> you tweeted this morning about whether or not these massive distractions give amazon some breathing room. >> i think president is off his game i cannot believe i start the day

reading washingtonpost.com and trying to catch how negative the "washington post" is on the president. yesterday my friend had a stinging, you know -- >> so amazon is going to do that >> yes. >> i see the masters helped right. >> right. >> no tweeting no tweeting through "washington post" during the masters i cannot wait until the gnats start winning or the redskins come the distractions could be really good this is way too -- you got to read "washington post" every morning. not because -- i think bezos is separate i think the "washington post," if he's distracted and doesn't get a chance to watch the "washington post" and fox doesn't read "washington post," then amazon goes higher. believe me, i care about amazon's stock price and this stock could be in the void, in the void of the witch hunt the stock could go back to 1500 what do you think of that analysis >> i like it.

>> you do? >> yeah. >> you know amazon and you know the chinese. what don't you know? >> well, vix. >> there's a lot i don't know. >> amazon is up about 2%, but invid ya up almost 4 we'll get to some of the calls when we get to the mad dash. we'll count down to the opening bell where can investors seek predictable income in an uncertain world? pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over one hundred fifty billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.

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time for a mad dash on tuesday. nike is what you wanted. >> nike made the acquisition yesterday to support consumer direct initiatives this is the company that the ability of the chinese to say i don't want this company to do well it's just a fantastic company in china. but this whole idea mark fasher one of the most competitive guys in the world said a couple of years ago the secret to what we need to do is personalization. and this is 3-d scanning to facilitate product customzation. everything this man does is thoughtful about how to beat the competition and he thinks if he personalizes sneakers, he's going to win he's a total team player. >> you can 3-d print your

sneaker in store one day >> yes. >> really? >> wouldn't you not want that? i have out to the things in. the orthotic i have to walk around. no, i want it to work with my foot and i want it to say jimbo! >> that's what you go with >> yeah. i'm from philly. >> really? >> yeah. yeah. >> we'll keep an eye on nike it's a victim of a lot of rhetoric, no doubt. >> one of the best performing stocks in the dow this year. if it's a victim, call me victim number one >> got an opening bell coming up right after this fire fighting is a very dangerous profession.

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not necessarily u.s. automakers. it's arguable that mercedes and bmw -- >> german trade surplus it makes me sick. they make so much money and they, of course, both mercedes and bmw didn't listen to the president and open those plants they're coming online in mexico at the same time that ford pull back i think that ford is going to shrink to grow i think ford will get out of the worse markets. tesla is a winner. goldman sachs reiterates the self tesla they said they have to do a financing. and that's no april fool's check >>well, this is a company that lives off of the capital markets and has successfully for many years. >> didn't mr. musk say he wouldn't need to do a finance? goldman sachs disagrees. >> who do you think will be right? >> didn't goldman have a hand in that last? >> i think they did, yeah.

right. >> i don't know. i think that the model 3 production that they go over with in the goldman thing makes me say that they're going to need the financing their model 3 analysis also, wow. you know, they're saying maybe there's not as much demand as we think. wow. >> it was a wow piece that no one is talking about. >> in the volkswagen story the ceo is leaving it's the latest by that company to make a clean break from the lingering effects of that diesel scandal, which is going back a ways >> the stock did pretty well the diesel scandal they got through it but i guess, yeah. the way it heads right. clean team now at volkswagen. >> so watch all that by the way, tpi came in pretty warm. >> yep. >> up 3% we're looking for 2.9.

looking for 2.6. the question of whether or not inflation is really here. >> i don't know what moves these bots -- [ bell ringing ] >> there's the opening bell. it's taylor morrisson celebrating its listing anniversary at the nasdaq. and the petroleum association of america wti trying to get back to 65 and brent did cross 70. >> exxon upgraded. exxon added to the u.s there is a move in the conocos a move at bp these moves, i think, may be off the middle east and in the case of oxy lower break even i don't think anyone is talking about it it's not something i thought

would happen in the age of electric vehicles. but the oil stocks. >> exxon is trading where it was trading when brent was 28. >> i know. pete singled that yesterday by saying i think there's a lot of buying that was nice. you know, there wasn't a lot of buying is invidia. look at that stock a gutsy call by morgan stanley everyone should read that piece. it says listen and everybody else yes, it's absolutely true that the amount of business that is going to be crypto currency is going to zero. but do not write off invidia and they used a parts analysis i was not crazy about because jenson wang i spoke to a couple of weeks ago, he has no intention of breaking the country. >> is that a appropriate way to value a business >> it isn't. >> no. >> maybe we have a tape of jenson wang. >> this is wang with jim march

29th. >> computer graphics and video games is the driving force of gpu computing. this week we announced twice as much performance as we announced just months ago. this is the v 100, 32 gigabytes. along with it, we announced ground breaking technology rtx it's the biggest breakthrough in computer graphics in the last ten years. >> that's a big part of the call gaming and data center will offset crypto weakness >> i thought it was important to have jenson on it's the theory of the play. right. what it is is they are beating up the traditional semiconductor as a way of big data and the innovation they're showing on machine learning and artificial intelligence, they're taking it to the next level. artificial intelligence wildly overused term. to change machines to learn?

jenson and to get the data center to run cool and have more power is the holy grail and jenson figured it has to be with graph not with traditional processing. an one of that i remember when intel was debating to get into the notion of video games. and they made some flurries. but video games that are life like require a tremendous amount of performance. >> yep. >> and that performance transfers to the data center and so, i mean, the piece is a good piece part of a larger piece that morgan stanley had c-gate c-gate >> c-gate? >> yes where they did the work to make lou a super hero c-gate. >> i see. >> reference to it netflix. speaking of netflix, jpm goes to 328. ms goes to 350

piper's teen survey said it's blowing away cable and youtube. >> 300 million they're talking about? 300 million subscribers! i mean, netflix we debated the other day how much netflix was worth. if they get 300 million survivors -- >> survivors or subscribers? >> subscribers sorry! hey, yeah. 275 goes to 350. i mean, i'm telling you! president can't attack because he's busy with the witch hunt. that's his quote facebook, obviously, z-man he's in a tough spot. but alphabet there was a number. morgan stanley said the expenses will be too high expenses seem too optistic and morgan stanley putting on a damper on. >> yeah. not on netflix. >> yeah. netflix is having a good year on the stock market. >> morgan stanley was active yesterday. they like paypal.

>> aulta. >> yeah. >> one of the top preferred destinations for teens in the middle income brackets. >> they said it's better now than sephora which is jk penny you used to love ulta. >> i did. >> and tractor supply. >> i used to like to talk to you about them they were the key to the market. >> they were. >> that was the age of the retail. >> yes. >> brick and mortar retail. >> yeah. >> remember that >> you mentioned netflix, of course, it brings up, in my mind cbs and viacom why you want to consolidate in this current world. >> right. >> a couple of things to share there. this is a miniseries now but i think it's on the way to being a major motion picture what is the growing encyclical both sides. cbs management teams not as much.

they're not arguing with each other. the controlling shareholder. but one of the keys i pointed out yesterday is the huge differential they center in terms of the potential synergies they see. >> yes. >> viacom people close to the company telling me it identified close to a billion dollars its management team, by the way, bob cfo have presented to the special committees of both companies. however, cbs moonves chose not to present to the special committee. they did not present in terms of going through line by line where they saw the synergies instead, cbs has a $530 million target, roughly, of synergies. that's about 5% overall of where they see it. and it seems as though they may, at least, relied in part on at&t time warner which is a merger. the cost would not be as much, in terms of coming to that but there is a vast disagreement on both sides in terms of the

numbers. how you get to them, and viacom said we've been a lot more focussed line by line than our counter parts at cbs have. then you got the todd younger piece out today. >> enraged >> both sides being aggressive they're hiring up on pr now. it's getting -- we know where this is going! i know where it's going. >> yeah. >> it's going. it's going to sherry redstone. it's their way of art on value and management structure but maybe they come back with something. and it's unacceptable and shari red stone is going to do what she has to do. >> we used to think about cbs how were the masters ratings >> i know. puts in perspective, we have a quick quote from younger when viacom responds to cbs and said it needs to be higher,

normally we'd expect cbs to say no thanks good luck on your own. what the heck is going on there? >> absolutely nothing other than this opsoap opera. >> that's the key thing. it's the key thing it's the future. >> by the way, bernstein, thinks there's an 80% chance it happens. >> "black panther" no one talks about this they have cbs. no one talks about that. what they talk about is netflix and subscriber growth. i remember when netflix was 25 million, david and everybody laughed. not unlike the breakthrough scene with john travolta. >> "black panther" is the third highest grossing film. adjust for inflation 34 is a crazy number. >> hasbro didn't have enough

black panther toys. >> this was bob iegers. >> add it to the franchise list. that list gets longer and longer. >> did someone stop subscribing to espn yesterday. it changes your narrative as a person who dropped it. >> yes there was one. it's all about that person today who dropped the subscription not the "black panther." maybe being the biggest movie ever. >> the power of the franchise, particularly as they put together an over the top offering of their entertainment. that's the key. >> how can you not do that >> he's going to be competing directly with netflix. right. we know that once they complete the fox deal, if they do. >> i think it's the greatest story. you have to complete the fox

deal what is the latest with comcast and fox? >> i got nothing for you. >> you had a lot of press coverage about how the judge is short tempered with doj. >> they haven't been effective in terms of the presentation their ability to withstand the cross examination from at&t. that's what i'm hearing from people in the courtroom. again, who knows. >> are there arms in the courtroom? >> yes. >> of course it's not just about at&t it's about cvs and, you know, that deal. aetna and cvs. there is so much drawn from a conclusion here one way or the other. >> we did see some price ticks higher on monsanto yesterday. >> wow >> yeah. >> and the time of these deals, again, it takes so long. buyer monsanto announced so long ago -- i think i had it. >> so long ago it used to be

baer. >> thinking that xi is going to -- [ talking over each other >> i struggle. >> buyer man santo same thing. they're not done yet but they agreed with the doj on an investor package that will seem to bring the final go ahead they're going to need. nxp caqualcomm the shareholder votes way too early and you're out there forever! forever! >> hey, look, you act like i disagree with you. i'm with you. >> no, i'm not. >> nxpi is up after xi's so-called olive branch. >> any thoughts on usg >> they're putting out a lot. >> they're now, of course, saying do it with hold campaign. they couldn't try to actually get members elected to the board off a german company that is

larger than usg. they've bid $42. and warren buffett said i'll take the 42 but usg itself said no thank you take a look at the background. they put a proxy out in terms of the meetings that have taken place since late november where they started around $40. they said they can say they want to meet with us. they can say they're happy to discuss but many of the attempts that we've at least made at this point, or they've made an engagement have been light hearted. that's what i've heard from people close to the usg. excuse me, kanoff -- they say we've changed the underlying business we've got a lot more technologies involved. a lot more higher margin. >> that's true they've done very well during the floods it's a great play every time those are moved. >> right. >> usg is a very good company. i think it's undervalued. >> they own 10%.

buffett owns 30. will see if they withhold. there aren't a lot of effective weapons beyond making the board uncomfortable. >> your world is a strange deal, david. the deals take forever. >> yes. >> you can find something out. >> you sound like your world frightens and confuses. >> it does. >> my world is more straightforward. >> it is >> your world is more straightforward? >> it's like kirby's fourth world. for those that read comic books. dow and s&p now positive for the month. bob? >> reporter: oil doing well. if you want to know how much this good trade relations matter, about 30 points on the s&p. i want to show you the s&p futures overnight. i don't normally do that about 10:00 last night, 10:00 p.m. eastern time, we got news of some of the details of president xi's speech and what i was talking about. opening markets lower. auto tariffs look at the s&p futures.

straight up 30 points in a matter of 20 minutes that's what it'll do for you here we held on going into the open if you take a look at what is going on, europe also had a nice move up. fractional you see the european car manufacturers, bmw up. volkswagen also up mathias mueller is departing as ceo. here in the u.s., i love the sector rotation here because, yes, we're getting semiconductors back but energy, finally! all the big names are up 2 to 3% again. that's a good sign financials industrials up. consumer discretionary up. consumer staples are lagging a big. take a look at the big energy names. oil service names like schlumberger even exxon rare to see exxon up almost 3%

that's very good sign overall. fortunately, we're going to change the conversation a little bit. hopefully in the next few days earnings are upon us boy, the numbers are just off the charts good. look at this this is the first quarter. everyone thought they were going to be up 10% look january 1st, 12%. when we figured out the impact of tax cuts suddenly at 18%. we're going to end up at 20% we doubled the earnings the first quarter. those are amazing numbers! you don't see doubling like that very often here. and the sector gains are the right sectors that are gaining so i said many times financials and technology are 40% of the s&p 500. the two ones that matter the most look at these huge gains expected this is earnings growth. technology up 24%. big, big numbers this is why the stock market keeps bouncing back. important sectors are getting tremendously good numbers. now the question before, we want to know what are the companies

doing with the money now we've heard early signs bank of america had a note awhile ago. the companies that commented on this 30% announced one-time bonuses. 20% are doing more retirement contributions. 20% bauy backs and dividends what traders are listening for is buy backs and capital expenditures there's a good relationship between expanding capital expenditures and the stock influence on capital goods groups those are technology companies and industrial companies and material companies capital spending goes up those companies tend to go up. buy backs, we're going to probably see 40%, perhaps 50% increase in buy backs this year. the number is all over the place, but it's generally good news thank heavens. friday starts earnings season, david, and you were talking about companies again. i agree with that. we'll hear a lot about it on friday right now 365 on the dow

back to you. >> thank you we'll check in with rick santelli at the cmi. good morning. >> good morning. we had a bit of a pop around 8:30 eastern didn't last long two-year note yields we're high highly unchanged across the curve. we hit 230 there let's stick with the short maturity theme we'll start it out toward the end of february and look at two-year note yields the way they have moved. now contrast that with the same chart for the shots. the two-year in europe, which is minus 56 sounds pretty negative actually, it's been a lot more negative and that's the point. let's look at today see that flattening we did have initial steepening when things were go, go, go. carrying over from a tail wind in 2017 but a reverse. whether it was the growth,

whether it was not as aggressive implications for future pricing pressures. they gave it up. will it change with tomorrow's cp snirks we' cpi? we'll see. we'll go back and look trading minus 56 basis points. see how that looks same type of pattern a lot of these things we think are so inherit in our system, well, they're global in nature whether it's what is going on with disparities in income or disparity on the yield curve or policy in central bank let's look at the 10-year quickly under the microsoft. we remember the 22 sessions. you see them in the middle of that chart we went sideways in the 280. the ironic part is the 280 we can't penetrate. we get up there briefly but we back away. that's something to pay attention to especially tomorrow's second round of inflation data. dollar index year to date, this is the 10 weeks in a sideways

range. pred predominantly because of the euro relationship. >> we'll see you in awhile, rick santelli robert herjavec weighs in. the dow up 385 as the dow and s&p wipe out their april losses. back in a moment

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a key day. most of the components trading in the green as zuckerburg testifies this afternoon. a couple of bullish calls. dow is up 361. we will get to trading with jim in just a moment. art by asking: did you understand all the fees you were paying? was your broker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm more freedom to act in their best interests. independence lets us do that. charles schwab is proud to support more independent

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let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. >> i have to tell you, one of my favorite stocks is proof point. it monitors your e-mail. e-mail is the way people break into your system going from having $5 to $10 user. why do i mention this? because goldman sachs came out. i want to praise the analyst. we were wrong on the stock. they go from sell to hold.

proof point is the best right now. >> mad money tonight. >> cheryl palmer who is absolutely fantastic. when we find out about how housing is doing and how the country is doing i want to go back to something you said. company earnings and analyst notes do matter. i know the president. i know that michael cohen hurt the market yesterday. the actual research is positive. >> we will get a chance to start parsing it on friday. >> people buying facebook. what do they know? buying facebook ahead of the testimony. >> i don't have the numbers to see what stocks have done prior to important testimony from ceos. maybe they go up afterwards. >> remember when congress changed its mind they brought him back from italy. >> and with this --

>> that's the best movie about this in history. >> i got to watch it again. you guys kill me. >> a lot to process. >> we'll see you tonight. goldman's chief u.s. equities strategist. we will talk to robert herjavec of "shark tank." dow is off the initial high but up 333.

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around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. welcome back. breaking news. wholesale inventories final read for february is up one percent. what that means is 1.1 gets tossed. one percent replaces and one percent equals january's read. it's back-to-back. and one percent, by the way, is some of the best levels on inventories believe it or not going all the way back to october of 2013 when it was 1.1. so pretty solid. let's look at the trade side or sales side.

that is actually also up one percent. a big turn around from down 1.5. so this is not replacing it. down 1.5 is the january read. one percent is the final read. it's nice because these numbers have been running much stronger in sales the end of last year january read of minus 1.5 may be an outliar. markets don't seem to be paying a lot of attention to it. it is significant and do keep in mind that we have an option today. auctions are something to pay close attention to these days. >> we'll talk to you soon. rick santelli. welcome back. markets trying to hold on to a really nice rally at the open trying to wipe out losses.

>> china's president xi planning to open its economy and lower tariffs. >> mark zuckerburg is going to spend the next two days explaining to congress how his company mishandled data. one reason for the rally today china's president xi getting his first chance to address the ongoing trade dispute with the united states even if not by name spoke at a forum overnight. let's get to beijing. >> reporter: he said some of the new measures would turn into reali reality. mostly people who i spoke to in the business community say they were under whelmed because president xi's speech because they heard a lot of promises time and again and some policies

are already underway. in the financial sector the decision to lift foreign equity caps was announced the end of last year and are already happening. others like lowering of auto tariffs are not meaningful since most american cars sold in china are also made here. finally, in terms of easing of restrictions in manufacturing or enforcing intellecual property there were few details and also not a whole lot on the timeframes. so people were not particularly encouraged here. most importantly said president xi did not address core concern of business community here and that is china's industrial policy. the question really is whether or not president xi's speech will be enough to satisfy the trump administration. still there was some good stuff here for american companies. first of all, fund managers are pointing at the financial sector

saying that black rock as well as jp morgan are looking to expand their asset management businesses here and could benefit. insurance folks said life insurance is likely going to change first and one of the companies that has its toe in the market is met life. tesla is really seen as the biggest potential winner. i was talking to a lot of auto people here. they said the reasons are tesla depends on imports. it doesn't manufacture here unlike any other american manufacturers and the tariff on tesla cars here just like it is for all other auto makers is 25%. if that drops significantly it could be according to analysts a game changer. now, there isn't a lot of clarity on what will happen with the system because the foreign car makers are forced to be in partnership with a local partner. we don't know what is going to happen there. some analysts believe that china

could make an exception for tesla in this case because china wants to have tesla here in china and also develop a supply chain around ev. >> a lot of good information. tesla up almost four percent. we'll talk to you soon. for more on the markets we are joined by chief u.s. equities strategist. you really haven't been thrown by this whole trade conversation over the past few weeks in terms of your market outlook. why not? >> volatility has doubled versus last year. that has been an environment that was sort of expected given the pivot in conversations. the reason is that if we look at core fundamentals and one of the benefits in equity market is every three months you get a chance to focus on what is really happening in terms of profits. one thing happening for this

quarter is the first time we have seen companies report results under the new tax law. so earnings are expected to be growing around 17% which is why it's really important for portfolio managers to focus instead on revenue growth and pre-tax margins to kind of strip out the impact of lower tax rates. lower tax rate is great from usage of cash and other things. if you focus on what is driving the market we are expecting around ten percent revenue growth this quarter versus last year. the pretax margins are coming down in part because you have labor costs and commodity prices up significantly. >> you think this is a quarter in which top line deserves more attention? >> most of this year looking at year over year growth versus a year ago earnings will be less influential and less informative. >> kind of hard to break the market's habit of looking ateps. >> it's a job of portfolio

manager to focus on this. the reason is expectations for some companies in technology, for example, there is belief and forecast that revenue growth this quarter will be up 20%. market up ten. technology much faster. to the extent that you had disappointments on the top line would be a significant development. >> you say trade tensions represent minimal risk to s&p earnings. i get exposure may be minimal. >> the economic impact of tariffs is relatively expected to be if implemented. a lot of assumptions in that statement relatively modest in terms of the impact on the size of the u.s. economy given the size of that. from an earnings point of view result likely to be relatively modest. from valueuation perspective that is different. it will certainly differ.

we see companies with significant amount of revenues say north of 20% of revenues those stocks are down 15% since the discussions of tariffs really about a month ago, the passage of the statement. >> one more question on buybacks. we have been in a blackout period. you think that has contributed to volatility we have seen >> i believe it has been a significant component of why the vulnerability of the market in the end of january and early february. when companies are precluded from purchasing shares that is really the only net source of demand in the market not coming from other areas but from corporate purchases. that is a period of time most companies are in blackout period between next week, following week and third week after that you have 80% of market report results and as the calendar goes along you will have more companies be able to step in.

>> do you see a big hiccup between now and your target? >> the target of 2,850 is up around nine percent. expectation is that is further back end loaded. the history of experiences in corrections, ten percent correction in february is about four months down and four months back up which tells you you are not back towards a level where we were at the start until sometime later in the fall. so that would be the risks are certainly rising but from a trajectory perspective at the end of the year 2,850. >> you point out the possibility of shocks seeming to be something the market is thinking more about. what would one be that you are most concerned about >> the big area of focus would be on inflation and to the extent we had on the wages side if you had a big increase on wage inflation that would lead

to negative earnings revision. the area of greatest risk would be on inflation and that would have implications on fed policy, the pace with which the tightening would be anticipated. current forecast from economics is about three additional hikes in the federal reserve funds rate this year. that's consistent i think pretty much with our model. and the idea is that the economy is still growing. it's likely to continue to grow with fiscal -- and lower tax rates all to the positive from overall economic demand and that will drive sales. sales are growing higher and the market generally follows earnings. >> cbo spoke to this yesterday when they said we added a lot of stimulus to an economy with very little slack. their dot plot looks more aggressive than the feds. >> so that would be in terms of the question one concern would be on wage inflation.

clearly to the extent that tariffs and the trade tensions were to materialize that could be another significant issue that from a perception of risks out there. broadly speaking valuations are high. they have come down clearly with ten percent correction. the thrust of ten percent revenue growth and year over year for the sequence of second, third and fourth quarter is a positive for most companies. >> we look forward to talking to you in the midst of earnings season now that we are on the eve of it. we'll talk to you soon. when we come back, day one on the hill. facebook ceo mark zuckerburg getting ready to make his debut before congress. plus 20%. that is how much less women make than men on average according to organization lean in. we will take a closer look at the gender pay gap and big businesses.

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. as you can see some protests happening on capitol hill ahead of mark zuckerburg's testimony later this afternoon. we will cover it for you live on cnbc. facebook is making news this morning ahead of that. julia boorstin joins us from washington with more.

looks like a fixed facebook protest with a bunch of mark zuckerburgs. >> reporter: i'm in the senate hearing room where mark zuckerburg will testify. they have announced a bounty program who award people to report misuse of data. they said high impact bug reports have garnered as much as $40,000. they are clearly looking to attract a range of people to report problems with facebook's security system and data protection. this is part of a range of changes that the company is announcing ahead of this hearing today and when the hearing happens mark zuckerburg will be in the hot seat which is right there. that is where he will testify as he is grilled by more than 40 senators who will be sitting around this room here. it is unusual to have so many

people in this room. they had to add the extra table here right in front of me as each gets a question for mark zuckerburg. yesterday zuckerburg made the rounds in this very building. he met with a number of senators. we hear he is hunkered down preparing for today's testimony and a source at facebook tells me his comments in the prepared remarks and answers to the questions will be really focussed on the idea of accountability, taking responsibility and all the steps that facebook is planning to take to make sure that this kind of thing does not happen again and that the company can better protect users and their data. zuckerburg focuses on the changes to limit the information developers can access, investigating other apps and building better controls to prevent situations like the cambridge analytical scandal.

senator john thune, the leader of the commerce committee will be sitting here when the hearing takes place. he said he is really interested in pressing zuckerburg for answers on how he will make sure that this does not happen again. >> i know that there are people who say we have to regulate social media plat forms. i'm not convinced that is the case. what most people are looking for from mark zuckerburg is transparency and accountability. >> reporter: we can expect him to focus on the idea that they are more interested in protecting users than profits. it will be interesting to see how he responds to the big room of senators nearly half senators will be here grilling him today and interesting to see how he responds when he is in the hot seat. >> this data bounty program is interesting. they say while there is no

maximum payment, high impact bug reports have garnered as much as 40 grand for people who bring them to our attention. is there any indication that they are going to expand their process of audits to include third parties rather than doing it themselves? >> i think that they are looking at everything right now. they do have third parties involved in various things especially when it comes to journalism and the fake news issues on the platform. they have engaged with third parties especially in that category but i think everything is on the table right now. it is interesting they are trying to open source this issue. cnbc discovered there was an app developer that was improperly using data or misrepresenting how they were using data they were gathering. i think it is a big deal when organizations can identify this kind of thing and embarrassing for facebook. they are trying to use that to their advantage saying everyone help us find instances of data

being misused and we will try to stay on top of it that way. they are looking at all potential weapons to try to get on top of the issue. >> thank you very much. it's going to be a busy afternoon. we are getting some word from the white house and confirmation about another high level resignati resignation. we will go to eamon javers for that. >> reporter: we just got a statement saying he is grateful for the commitment. tom led the white house's efforts to protect homeland from terrorist threats, strengthen defenses and respond to unprecedented series of natural disasters. president trump wishes him well. no indication from this of who they have in line to succeed tom bossert or what if anything was behind the resignation. there are a number of moving

parts afoot here at the white house. we have a new national security adviser in john bolton and the president canceling his trip to south america and we have that fbi raid on the president's personal attorney's office yesterday. a lot of moving pieces here at the white house but not clear how the homeland security adviser's resignation fits into all of that. nothing from the white house yet on exactly why this has happened or who might replace tom bossert but simply the president wishing him well. >> we'll wait for more answers. another white house staffer on growing list of ones who resigned or left the white house. with the testimony now only hours away for mark zuckerburg what do lawmakers want to know from the ceo let's bring in a panel. former ftc commissioner and former adviser to facebook. also electronic privacy

information center president who charged facebook with data misuse back in a 2011 complaint to the ftc. thank you for joining us. i'm trying to figure out what the biggest risk is to the facebook business. is it losing users, advertisers or increased regulation? what is your take? >> i think all of those are on the table. i think they have a pretty solid advertising base and have a solid user base. i think the challenge is what kind of regulation could take place that would single them out and for practices that everybody in the industry is involved in. and so if it's lop sided in that way then it could be harmful to them as opposed to their competitors. i think what we are going to hear on the hill we will hear a lot of venting. what i would like to see is

something come out of this where we can have a candid conversation between regulators and the community about the handling of data and what is reasonable to expect and what the public should demand. that is an opportunity. sometimes washington doesn't take advantage of all the opportunities it meets. >> we'll see if they can go beyond just airing grievances. mark, you have done a lot of work on what you would like to see in terms of protection of privacy and increased regulation for companies like facebook. detail what you have in mind and whether you think any of it has a chance of passing in this congress. >> i'm very pleased that the senate is holding the hearing today. i think it is a significant moment and the fact that you see both senate judiciary committee and commerce committee working together is also favorable. our view is shaped in large part by the work done on facebook and

privacy almost a decade ago. users had many of the same concerns about how they data is collect skpd how it is used. we went to the federal trade commission and said we think you need to do something about this. we basically gave the ftc the evidence to establish consent order, legal judgment against facebook which they did in 2011. and that consent order put facebook under the ftc's authority for 20 years. there are lots and lots of requirements there. what surprised us, of course, is that the ftc didn't act. we are hoping that today during the hearing senators will ask mark zuckerburg about the consent order and then they will have another hearing, bring in folks from the ftc and say why didn't you do something when you had the chance before? >> one question is how do you implement remedies that don't lock in the incumbent advantage that a lot of these big cap tech companies already have just by

the fact that they have been around for ten years >> i think that's an important question. i think they do have an opportunity to sort of set the standard for what is going to happen in this industry. what i would not like to see happen is for them and for that matter regulators to raise the barrier so high that there can't be future competition in this area. >> i'm curious about the 2011 consent decree that facebook entered into. do you believe that is going to come up at the hearing is it of importance whether or not it was violated or simply not enforced effectively by the federal trade commission >> i think it is the key issue. we are certainly listening this afternoon to see how it is addressed. to be certain, there will be a lot of criticism of mark zuckerburg of facebook. he will talk about the steps that the company is taking to

change its business practices. as i said at the outset we have had this discussion before. the senate commerce committee held a similar hearing almost ten years ago. the question today will be what happens next. to get to that i think you have to talk about the consent order. you also have to talk about updating u.s. privacy laws because the u.s. right now has really lagged when it has come to improving our privacy protection for users. i agree you don't want to lock in a current business model. if you establish technology neutral safe guards for personal data and have them apply to everyone then i think you have a good starting point for an effective privacy law. >> where i also agree with mark, by the way, is that where the opportunity is there are a lot of people involved in the data space. for example all data minorsers don't tell you what they are

doing and you have no idea what they are gathering. all the app developers to give a signal how they are using data they get from people. i hope we can get to that discussion. >> i was going to ask if europe's new privacy rule is a model for the u.s. one that goldman sachs analysts say will effect seven percent of facebook's revenues. >> i think the europeans are definitely on the right track. they have except a lot of time developing the privacy law. it is going into force in may of this year. u.s. companies that want to participate in european markets which is to say collect data on european consumers understand that they will have to comply. so you have a situation where a lot of u.s. firms are already aware of the european privacy law. very interesting question to mark zuckerburg which i think will be asked this afternoon. he said he is going to comply with the european law for europeans. would he also comply with the

european union law for americans? in other words -- >> we will have mark zuckerburg testimony on power lunch starting at 1:00 p.m. eastern time, a show that i'm a part of now. stocks close to session highs as stocks surge on the back of the speech by chinese president xi. we will have more after this.

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play [music plays]his". when everything's connected, it's simple. easy. awesome. good morning. here is your news update. the white house says president trump will skip upcoming summit in south america to oversee the american response to syria. vice president pence will travel in his place. president trump said he would respond to a suspected chemical attack by the assad government.

china is carrying on all parties to carry out a fair investigation into the apparent chemical attack. the daughter of the exrussian spy was released from the hospital this morning. the hospital stressing it did not mean the end to her treatment but does mark a significant milestone. and authorities say no one survived a fiery plane crash on a scottsdale arizona golf course which is adjacent to the grounds where the pga tour holds a popular tournament. the exact number was not immediately released. you are up to date. that's the news update. i will send it back downtown to you.

>> for better or worse the tech sector has been overall biggest driver over the course of the past month. the spy has fallen by around six percent. the tech sector ticker has lost over eight percent during that span and most heavily weighted sector in the s&p 500. over the last 12 months thanks to blistering performances like computer chip industry where semi conductor fund ticker has gained around 31% activity four of the six biggest te technically -- the power shares around nine percent below recent highs. whether or not the bulls could turn things around could depend heavily on whether tech stocks not just facebook alone.

facebook front and center for a lot of investors today. >> thank you very much. when we come back zuckerburg getting ready to testify before congress as we now know. we will get a look at what legislators are trying to change in order to regulate big tech.

welcome back to squawk on the street. as always live at post nine from the new york stock exchange. an hour into the trading session and stocks are green. we are near session highs. s&p up 1.6%. dow surging nearly 2%. all 30 dow stocks are higher. some conciliatory remarks from president xi from china helping with the gains. much more on the markets in a moment. first, we are just hours away

from mark zuckerburg's testimony on capitol hill. he will be speaking this afternoon before the senate judiciary and commerce committees. >> reporter: good morning. we are just outside the hearing room where that joint session is going to take place later this afternoon. i want to show you this door where the senators will be coming and going. we will hope to speak with many of them and ask them about their impressions of the ceo of facebook as he continues his apology tour. this morning senator john thune who is chairman of the commerce committee signaled he was not a fan of heavy regulation on facebook. he feeldid say he was disappoin. that illustrates the fact that you are going to see a very partisan break down in the questioning that we see during a marathon session this afternoon because those comments differed dramatically from what we heard from the connecticut democrat senator richard blumenthal.

>> really want to know about specific action that will change the business model and make sure that all this contrition and nice talk is followed by very definite protection of privacy to change the business model and stop putting profits over privacy. >> reporter: blumenthal will be one of 44 senators questioning zuckerburg today. they each get about five minutes not including about 30 minutes for opening statements. it is going to be an extremely lengthy hearing for the ceo. just to give you a taste on how much focus the town is putting on the hearing today. this is the complimentary paper they hand out on the metro and you can see zuckerburg apology tour with the headline it's show time. >> thank you for that.

particularly interesting to see what republicans want. make sure to say with us here on cnbc. full coverage of mark zuckerburg's testimony live on power lunch this afternoon. stocks surging today. dow is up 452. best day of the month so far as the dow and s&p erase losses for the month. global market strategist over at jp morgan and michael santoli to talk about where we stand going into earnings season. your point today in some of your written work is that we have had all of these excuses since january for the weakness. trade worries, tech regulation, inflation. really, we are trying to answer for the way sentiment was positioned. >> i really do think it has been the process and remember if you went back two months and said if the yield doesn't get three percent. you can look back february 5 was

a monday. s&p closed at 2641. we are 2656 right now. this has been a long process of chopping away at the valuation and i do think a lot of process has kind of well underway if not really done its work. i think we will become susceptible to positive catalysts at some point here if we hold the bottom of this box that the market has been in. >> do you think that is possible if so what might that be >> i think investing last year felt relatively easy. i compare it to this year and too many things moving and shaking. there is trade issues and regulation on tech. it feels less easy but we come back to the point that we are expecting 25% earnings growth for this quarter. that's tremendous. that is enough reason to feel good about the market. that being said i can see the issues we are seeing and the sentiment may be shifting. >> we got this news that the fbi

conducted a raid at president trump's long-time lawyer. and the s&p lost almost two-thirds of its gain for the day. what is the market risk there? >> interesting because the market really faded hard starting around 2 p.m. the reports came after 3:30. clearly word was getting around that something was happening. the markets reflex in the instances if you look at mueller-related headlines and trump/russia headlines. it is a reassessment and it hasn't been a continuing source of weakness. the market closed right as the process was underway of just let's back away. that's why i think you had the market find footing afterward. it says well what are we pricing in here exactly? yes, there is risk there. obviously become a very disorderly process. if you have that much more kind of volatility on the policy side and exactly what is the reaction among different branches of

government. i don't think it is the main driver of what this market is trying to figure out. >> maybe not main driver but clearly the market is paying attention to the headlines. as the mueller investigation continues it's not something we dive into too much here on cnbc but if the market reacts to that what does it say >> i think it is the uncertainty. i agree with mike. the market has reason to think and pause but then you come back to what is growth doing and is anything happening in washington going to fundamentally change the business landscape we have tax reform and that changed the business landscape. we think we get an extra ten percent because of that. >> i do think that ultimately the trade stuff matters. i think a lot of it matters because of see you confidence in the sense that it was going to be all of this running room for growth and investment and maybe just one reason to pause. meanwhile, all of this is

happening as global economic momentum has decel rated a little bit. you have had the pause. i think to the point about the contracts. last year the market was a machine for turning all news into an excuse to go up a quarter a percent a day. this year you look around and you see the path to something that could be a little more hostile whether on the monetary policy side, on the trade side or general policy risk and then the sense of late cycle action in a lot of different areas. that is the back drop. it doesn't mean it is all over. it means it is a little more of give and take. >> last year was the easiest investing year of all time. thanks, guys. good to see you both as we hit new session highs. we will have a lot more on the big market rally underway plus women on average earn 20% less than men according to lean

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dow at 488. this is the best gain for all three major averages since the beginning of april. nasdaq just joined the dow and s&p in going positive for the month. >> energy, materials technology leading the way. it is equal pay day today. a new study shows women on average are paid 20% less than men and gap grows bigger among women of color. lean in launching a new campaign

between adidas to help shed light on the gender wage gap. to talk about what we can do and how big business is acting, rachel thomas, president of leanin.org. thank you for joining us. >> thank you for having me. >> how are we talking about a 20 pkd gender wage gap? >> how are we? we conducted a recent survey and learned 75% of americans say it would be a major problem or crisis if they made 20% less money and yet that is happening to women every day in the country. as you said it is worse for black women and worse for latinas. >> i get so much hate on social media. people say women are taking lower paying jobs. they are not being represented as much at the companies and don't have equal jobs. how do you define what is equal work and equal pay to get to the number snz. >> it doesn't matter how you

slice the numbers women are paid less. if you control by occupation, hours worked, education level, women are paid less than men. the more educated women and men are the larger the gap is. >> are we finding even in service areas -- which areas have the largest pay gap would it be service arena has a higher one or law profession >> i don't know exactly. i wouldn't want to misspeak. what we know is women are paid 20% less than men in this country and that has been with us for years. the equal pay act was passed in 1963 which makes it illegal for women to pay less. one in three americans don't realize it exists and men are twice as likely to not think there is a pay gap which is why we are returning our campaign to reach with the message that women are paid less. >> today is the day women would have to work in addition to last year to make as much as a man would have made.

that's the nice bookmark about this day. >> latinas would need to work to november. they make almost 50% less than men. if you close the gender pay gap the average -- i don't care who you are that is a lot of money. >> i think this starts with transparency. the uk required businesses as you know. if they have more than 250 employees and operate in the uk they have to disclose the pay gap. you have companies like facebook whose median salaries in uk are 9.9% higher in uk for men than women. this starts with the companies. >> absolutely. we think transparency is critical. they should be correcting pay discrepancies. i think aggregate data is pointing to something different. i know they pay women and men

equally for the same type of work. the issue is less women are coming out with computers in computer science and engineering. >> what is the main reason this persisted for as long as it has despite pointed out earlier that laws have been passed to make it doesn't. >> that's a great question we asked americans why they think it's a pay gap 60% said because there's sexism or unconscious bias and thaeey' right. it's call to acts for companies to level the playing field they're promoted more slowly there's bias in the performance review process and they really need to level the playing field for women. >> because they have kids. isn't that a big part of it? they go out on maternity leave. >> even if you control for hours work there's a gender pay gap. women in this country need

support to take care of their families, elderly in their company. that's another issue we talk loudly about, paid family leave, making sure that everybody in this country has it. >> can you boil down the message into 20 seconds, if you were to advise a woman on how to increase her pay are there three, two mandates? >> women are negotiating at the same rates as men in this country now, which was not the case a decade ago. companies need to step up and do more. >> we'll all reveal our pay, right, guys? >> right now >> i'm just kidding. rachel, thank you for joining us leanin.org. >> "squawkalley" john fort has details. >> tech entrepreneur, we'll talk about facebook and how the

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welcome back to "squawk on the street." keep an eye on conocophilips, hitting record highs let's check in with rick and get the santelli exchange. good morning, rick. >> good morning, carl. we have knee-jerk reactions because of algorithms and computers and moves we know they're going to occur in many ways we know they're not going to last. defining, a, if you're in a sector, can you ride out the volatility for the ultimate prize? because there's a lot more volatility but there's not necessarily a lot more change in direction or actual policy enhancement with regard to the markets, meaning we talked about trade before what many seem to have a problem

with was the process the policy so many agreed with well, they said, he said, she said so, president xi speaks last night. i hear a lot of "they say" and certain ambassadors say. these are promises heard it before. they're not meaningful many of these things were already under way. sound familiar sounds a lot like when we've gotten to the point of negotiations with north korea. granted in both cases there are similarities in many ways certain things we have heard before. think of intellectual property and disarmament on the north korean side. we have specific powers, particularly this administration that, seem more action bound the point is that if process was the problem, what you really have now is the key because the tone of president xi, forgetting all the other details, really addresses the process that we have on this side of the globe

in my opinion, we still don't know how all this is going to turn out but the fact of the matter is, if the markets believing in the policy and the tone of president xi was what it was last night, i really think there's a lot more legs on this market, given the amount of detail we have just take a look at soy beans. they've rebounded. the equities have rebounded. we'll continue to monitor. at this point, i think there are only two voices that matter, the president on both sides, president trump, president xi. carl, back to you. >> thank you very much, rick santelli when we return, a lot more on mark zuckerberg's big day on the hill and the market rally under way as well. best of apl rias well. "squawk alley" is coming up in a moment

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