in market value. and the will they or won't they merger talks t-mobile and sprint talks are apparently back on it's wednesday, april 11, 2018 "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen, kelly evans hanging out today. let's show you the markets now show you how things are setting themselves up. not in a good way. dow would open off about 117 points nasdaq looking to open off 32 points s&p 500 looking to open off about 15 points. let's show you what's happened overnight in asia as we flip the board around you're looking at red arrow in

japan. but green arrows on the hang seng and the shanghai composite. let's show you european equities treasury yields as we get ready to talk about some big news making headlines you're looking at the ten-year note, 2.795. >> just pinned up there. 2.8% here are the big stories the head of the imf out with a warning on trade christine lagarde says the entire global system is at risk as the u.s. and china go head to head over trade. she urged governments to steer clear of protectionism of all forms. we're watching crude prices after a 3% jump during yesterday's session. that was overshadowed by mark zuckerberg's apeernls pearance hill crude approaching $66.

syria not a significant oil producer, but tension in the region can put crude markets on edge "wall street journal" reporting sprint and t-mobile restarted merger talks they called off previous discussions in november after they were unable to agree on terms of a deal. big jump in those shares yesterday. even this morning sprint is higher by nearly 4%. >> mohamed el-erian insisting i say hi to you, kelly >> to me >> good morning. wishing you -- all right that's nice. >> i don't know if he was insisting that be done on the air. >> he doesn't stipulate. >> i am glad -- >> doesn't mention you, sorkin >> thanks. >> doesn't say much to me either okay you know, thanks mark zuckerberg took the stand

before the senate judiciary and commerce committees yesterday, and during his testimony facebook shares rose ending up 4.5% i was doing the 100 points on where the dow is, but 4.5% on a -- >> he did very well. i watched every last second. the way you would watch the masters, i watched this. >> i know. >> this is the "new york post" cover. they gave it the thumbs down >> i thought he did very well. all things considered, we'll get to julia, she has a take on this i thought he did very well considering the potential pitfalls today may be tougher because he's got the house the kind of speeches that go on there are different than the senate >> you want to drop the mic and say i did my peace and leave >> i saw the tred cruz part i thought that was good i was

impressed that zuckerberg actually admitted that everyone that lives around -- we can't hire anyone not a lefty. we can't find anyone not a progressive. i do my best not to make everything progressive, but it's hard did you see this the financial times. it was my mistake, i'm sorry it was a breach of trust, i'm sorry. these go back years. >> he's been on the apologizing tour for a long time >> the dick durbin tour was the best where did you stay last night? >> he looked like he saw a ghost. i would never tell anybody where i stayed how about your texts, how about some of your messages. >> you could see he was trying to figure out where this was going. >> julia was there she has the insight that we

need let's see what she has to say about it >> good morning to you i did think mark zuckerberg held his on as he was pressed on data privacy, election interference in a hearing that lasted nearly five hours they talked about facebook's dominance and short-term -- shortfalls >> would you be comfortable sharing with us the name of the hotel you stayed in last night >> uh, no. [ laughter ] >> if you messaged anybody this week, would you share with us the names of the people you've messaged >> senator, no, i would probably not choose to do that publicly here. >> i think that may be what this is all about your right to privacy. the limits of your right to privacy, and how much you give away in modern america in the

name of "connecting people around the world." >> are you a tech company or the world's largest publisher? >> senator, this is a really big question i view us as a tech company, because the primary thing we do is build technology and products >> you said you responsible for the content, which makes you a publisher. >> i agree that we're responsible for the content, but we don't produce the content >> is there an alternative to facebook in the private sector >> yes the average american uses eight different apps to communicate with friends and stay in touch with people. >> which is the same service you provide. >> we provide a number of different services >> is twitter the same as what you do >> it overlaps >> you don't think you have a monopoly >> certainly doesn't feel like that to me >> okay. >> how do you sustain a business model in which users don't pay for your service >> senator, we run ads

>> on a number of different occasions, zuckerberg had to explain how facebook works, both as a service and also as a business he also responded to a question from johnson about tha that #deletefacebook movement, he said despite that being shared on social media, he said there has been no indication of a dramatic drop off in usage in the wake of these data scandals. he stressed he's open to regulation i think we'll hear more when he takes the hot seat again today when he testifies before the house at 10:00 a.m. eastern. back over to you >> we'll be watching that and coming back to you throughout the day. want to bring in dr. michael burgess from the energy and commerce committee you saw his testimony yesterday. can you give us a sense of what questions you think were left on the cutting room floor that you

would want to pick up on or new questions you would want to ask? >> from what we've been working on in onecommittees of commerce and that is what applications were running in the background and collecting information and disseminating information not transparent to the consumer i think there is some value in educating people as to what, in fact, is happening in the background i'm grateful that the -- that mr. zuckerberg agreed to appear before the house and senate. that's an important part of communicating with people. this is not really the first time that facebook has been faced to responding to allegations. there is that business with the

federal trade commission from several years ago. i suspect that will come up as well as our committee has jurisdiction over the trade commission, and the agreement they entered back into in 2011 >> to me, one of the most interesting exchanges and the one comment that is going to get raised over an over again, not just today but i imagine for the next several years was mark's comment that he feels responsible for the content on facebook that's a distinct shift. there's always been a question of are you the platform or the publisher, and are we, the consumers, responsible for the content or does facebook have some kind of big brother system on top of it where do you stand on that issue? >> i think the issue is -- has facebook been transparent with

users about what they are collecting and how they are utilizing it that monetization of data is how i think, if i understood the discussion yesterday, that's one way that facebook achieves a return on investment they sell ads but also access to information. the consumer does need to know that they need to be aware of what information is being collected and used, and then does the consumer have the ability to withdraw that consent and be informed of what data they are collecting and take it back. >> mark zuckerberg talked about this yesterday, the terms of zf that you si th that -- terms of service that you sign and the numbers of pages, yet most people don't read it. how do you fix that? >> i'm the same as any other consumer i download an app. yeah yeah get me to the reason i

downloaded the app >> whose fault is it, right? you can explain it, but if nobody reads it, it doesn't matter >> the question is is there any metric as to who is opening and looking at the information, and is it making an impact on their decision on whether or not to download the app that would be useful information, i would be interested in knowing that the other thing is that facebook and mr. zuckerberg acknowledged there's a change in how data is managed over in europe and that general data protection requirement going into effect in europe may affect some of their business model as well perhaps that's a good thing. i'm not a big one for regulation i think the internet has been successful because it's not been regulated and taxed. that made it a powerful consumer

force. at the same time people need to stop and think about what they're doing. if nothing else is achieved, perhaps the consumer will be more educated about what it is they're sharing. >> do you think you and your peers have a technological prowess to fully understand what is going on? as i was watching the hearings -- >> ouch, andrew. >> i meant on twitter, at the same time a number of people commented that the questions were not as sophisticated as they otherwise could have been, not because it appears the senators don't use facebook regularly, but any time there was a comment about machine learning or ai, there wasn't a follow up to say, okay, so you upload your picture, you upload your video, what is facebook's ai and machine learning doing with that, how are they tagging it, taking those tags and creating a definition of who you are in a way that's far beyond you entering information to say you're whatever -- you're a male and this is your age

>> in the house of representatives we are a reflection of those people that we represent i will be the first to confess that the degree of technological sophistication that i possess is probably some what significantly less than the average 12-year-old. >> if we need a baby delivered -- >> there you go. >> i am thinking about on humphrey hawkins questions, financial questions, we had a carried interest discussion about the cars that were on the lots of the auto dealers i think congress was just about where i expected them to be, which is with me on knowledge about facebook you don't want to be called congressman, he said call me doctor i wouldn't want to -- with their expertise -- no.

no >> you figured out my world. always call me doctor. >> and you're not even a doctor. no, you are. ob-gyn for 25 years. >> i was going to ask, how many babies have you delivered, doctor >> 3,000 is the official word. it's probably more than that but that's the safe number to say. >> it usually goes well, right tell her it will be okay it's fine. >> just breathe. >> this is like everything else, it's a serious business. we need to approach it that way. you'll see the committee does. i can only speak for myself. there were times i wish my technological sophistication is greater. i go back to the days when dilbert took the shrink wrap off his agreement, and didn't realize what he was in for

>> we let you go you said you were reticent to enact regulation give us a sense in terms of realistically -- i think the technology community is trying to grapple and understand what is possible or what may or may not happen if you had to handicap it, what do you think over the next 12 months might happen when it comes to companies like facebook and other social media companies? >> in my experience, in the previous congress, we did work hard on data breach notification from the consumer aspect, after the large number of consumer data breaches that were revealed it is to give people the ability to know their data was breached and what remediation was available to them. we were never able to get that to the floor of the house. i don't fool myself. this is tough stuff. any time you do undertake a regulation of an industry like

this, it does need to be done carefully. it will affect people downstream at the same time people have been affected and they need to know how to protect themselves >> dr. burgess, thank you. look forward to the hearing later today. tune in to cnbc all day where we will have full coverage of the second day of mark zuckerberg's congressional testimony, that starts at 10:00 a.m. eastern time. stocks are coming off that 400 point rally yesterday after trade tensions eased the dow today looking to give back some of that down about 163. s&p down 19. nasdaq down 44 nasdaq was up 2% yesterday we'll have some of today's market drivers when we come back

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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. let's look at today's stocks to watch shares of analogic sharply lower. agreeing to be taken private for

$1.1 billion the european commission raided the uk offices of fox networks yesterday, regulators are conducting an antitrust probe into sports rights and distribution of content. fox says it is fully cooperating with investigators and starboard value is seeking seats on the board of newell brands. the hedge fund, which owns nearly 4% of the company says more work is needed to repair the maker of rubbermaid containers even after carl icahn was handed board seats. let's talk about the broader markets. joining us is ryan dietrich from lpl financial research along with james liu welcome to you both. james, yesterday we had a big rally in facebook shares into the close. this is not a small cap.

this is one of the biggest companies in the market. >> this is the most interesting that we found u.s. markets in about two years. we had this volatility it created tremendous volatili y volatility we are expecting about 15% earnings growth from the technology sector this year. you think about trade wars, and our view there is that is also a short to medium term issue you're seeing the opening volley >> so people need to look past it >> yeah. >> we saw boeing and caterpillar rally yesterday. chinese president xi jinping wasn't as tough on the trade issue in his speech as people thought he might have been so you think this will blow over >> we think there will be conciliation in the end.

everybody talked about inflation two months ago that issue may come back this year >> the market in the last two years -- what did you say in for the first time in two years the market is attractive or interesting to you this is the most interesting the market has looked in the last two years. >> that makes no sense to me >> why is that >> went up 40% since the election so you missed the 40%, and now are trying to get in -- >> joe, every single time i'm on -- >> you say it was much more interesting to people that were long that enjoyed the 40% upturn, right? >> joe, we are not short-term traders. we don't just look at performance. the 40% -- >> you are looking at me telling me up is down, down is up -- >> the 25% up since the election, the emerging markets have been up 35% developed nations have been

doing better >> depends on what currency you're looking at. >> would have been better to embrace the move of 40%. maybe it's interesting now because it pulled back 10% >> it would have been better to be balanced across emerging markets and developed markets. we have not been risk off or bearish. >> ryan, what do you think about the markets here and how they're set up >> right here we think we're in the process of a bottom. we want to talk about market sentiment. the spread on the bulls and bears on the investor intelligen intelligence are tight there is some kindling there

if there's good news, negativity, market goes up we had that 10% correction real quickly in early february. came back and tested it last week if you look under the surface, there are a lot less stocks making 52-week lows right now than two months ago. that's a sign of underlying strength all 11 sectors of the s&p 500 should have positive earnings coming up. with that negativity, with any good news at all, we think we might have made the lows for the year we think this upward trend is still in play. >> at the same time street strategists have lowered their s&p 500 targets after raising them to catch up with the rally, then lowing them on the way back down is there a sign of capitulation? have people gotten bearish enough >> i generally think that's the case obviously there's recently bias in the market, looking at what happened the last few weeks or two months ultimately as a long-term market strategist who focuses on asset allocation, it is about the

earnings story we're still expecting 20% earnings growth in 2018. the argument is even if the market doesn't hit that number, that's solid return for the rest of this year >> how much of that is priced in ryan, i'll ask you where is the bar even if 20% earnings growth is great, if you have been expecting 23%, it doesn't seem so good. >> the bar is set very high. overall, if you look at manufacturing, at decade highs, consumer confidence at decade highs, the global economy is still strong since 1991, when earnings growth the s&p is up double digits, the entire year is higher 12 out of 12 times that tells us s&p is flat. we think there's potential for double digit returns in stocks before the end of the year because earnings are still going to drive long-term gains >> blackrock on thursday

jpmorgan >> april of 2016, the dow was 17, 7 17,700 it's now 24,400. in general a person would have been better to have been friendly to the market at 17,000 than -- it's better to buy it at 17,000 than 24,000 yes or not >> that's not what we're disputing. it's about asset allocation. >> the market looks more attractive to you now than it did two years ago. >> i keep trying to paint me as a bear >> i don't understand if you say you liked it better now than two years ago. >> it's going to be more attractive in two years. >> nevertheless, futures are sinking. >> i'm questioning everything. buy low, sell high coming up, two great voices to talk privacy and security in silicon valley john chambers and kevin mandia

will join us from the tech net summit in washington as we go to break, here's yesterday's winners and losers

welcome back, you're watching "squawk box" live from the nasdaq market site in times square welcome back the march consumer price index out at 9:30 a.m. eastern

at 2:30 p.m., the minutes from the fed meeting. dow is off triple digits, off by 202 points nasdaq off by 60 points. nasdaq off by 23 points. facebook's ceo mark zuckerberg will be back on the hill today the hearing gets under way at 10:00 a.m. eastern time. we'll have full team coverage on cnbc yesterday social media went into a fraenzy after he started his testimony on capitol hill. kate rogers has some of the highlights good morning mark zuckerberg was fairly refrained in his senate testimony which stretched on for five hours on tuesday. before the testimony began zuggzug mark zuckerberg said he would testify on how facebook needs to take broader responsibility.

much of the testimony unfolded not on facebook but on twitter chris coons said i woke up this morning and wa notified by a whole group of friends across the country asking if i had a new family or if there was a fake facebook dick durbin asked the ceo where he stayed, trying to underline the right to privacy >> somebody said they wanted to marry durbin >> that question got so much buzz mark zuckerberg didn't want to

answer it because of his own privacy. that drove the point home, you are entitled to your own privacy, this is how other facebook users may feel. >> the market reaction from social media, facebook was up. tech industry titans are in washington for high-level meetings with lawmakers to collaborate on innovation agenda for america. we're joined by john chambers, and kevin mandia, ceo of fireeye. you're a spry youngsters, chambers lots to do, lots of worlds to conquer, you're in process in look at what your group tries to focus on, it made me worried about the future, or at least high lighted the concerns that

are paramount as we hurdle head-long into this technology future that we have. there's a lot of things to think about, not the least of which is being the best at it >> joe, i think you nailed it i've been coming to washington for 21 years we come here to listen, share what's possible, show where the u.s. is in terms of technology leadership, and what we can do together for the benefit of our citizens, businesses and governments. i like you am the most concerned about our technology leadership in the u.s our innovation, we got ranked by the bloomberg innovation survey the other day, number 11 in the world. you know what's happening in the venture capital world. we used to get 90% of the venture capital spent in the u.s. a decade ago that was down to 80%. we have to think about how do we

gain technology leadership, and we're here to listen and share what's possible together with the democrats, republicans and the administration this is something that requires us all to focus on it together i'm optimistic about the future of our country, but we have to address these issues other countries are moving faster than we are >> we have to figure out immigration, to keep the talent and bring in talent. figure out s.t.e.m., how to get people -- i always kid around about that you guys have to be engineers. check out an engineering textbook there's got to be a way to induce them. that's where the jobs are. you are talking about four years in college, it may not be as much fun as your communications roommate >> this is not a single variable equation we have to teach technology and

entrepreneurship in 10-year-olds to 14-year-olds. you have to look at immigration, attracting the best and brightest to this country. 43% of the fortune 500 companies were founded by immigrants or their children we have to have an immigration policy that we only have 4% of the world's population, but we want to get the best and brightest from around the world to create jobs for america if we do this right, we can create 1 million to 2 million job jobs, and you don't have to have a college education, you have to understand its a learning curve. >> kevin, it's like -- i liken it to where we are in biotechnology. we can do a lot of great things,

but wait until we create the andromeda strain or something. it's great but when you have cyberattacks, or ai, i don't want to live in a post-terminator world with skynet this is all stuff we need to think about. >> back in my history i was a law enforcement officer, entime we created technology, always think about how the technology can be used for good but in the back of your mind be prepared for it to be used for something bad. think about how you would cover for that that's another reason why we're here in d.c. we would love to ask the government, as we innovate what are some things we need to think about ahead of time in case it is used for the wrong purposes make it for the good folks, presume it will be used for good, but always have in the back of your mind what would

happen if somebody with malintent used this technology >> craig wenter said probably nobody will take smallpox and find a way to spread it, no scientist could do that. i said you could do it if you wanted if you became an evil genius -- >> look at bashar al assad in syria. >> let me go one other place i will ask your question to john chambers >> i don't know what my question is, but go for it. >> can you guarantee me when we conquer everything in technology, there will be more jobs than there are now? we're putting all these people out of business. are you sure there will be three technical support people to do the technology that displaces these workers that have jobs now? there's no stopping technology, but is it a choice we're making, the society we live in, it will

be automated are we sure that will work for everybody? >> the answer is no, not unless we take control of our destiny that's another point we're making we have to redo our education system, especially k through 12. i'm from west virginia, we could have start-ups out of that state. we have the start up engine at a whole new level. you know the numbers we used to run 200 to 250 ipos off the nasdaq, last year it was 138. that needs to be 300 to 500 to create the jobs you're talking about. artificial intelligence, machine learning would destroy jobs in the big companies. so the entire job creation engine of this country would be around job creation and start ups. we're not moving with the speed we need to every other country has a major

start up agenda. we have to do the same thing we have to change the education, be honest with citizens, if we don't teach start-up skims eaki early on, they won't get a good job. literally 34% growth in gdp. if we execute right we control our destiny, but we have to be realistic. we are not moving fast enough. others are moving faster it's not a zero sum game this is where business and government must work together. we have to quit thinking about it we have to say how do we think of everything from modernizing the infrastructure to a tax policy that is favorable to small startups >> we let you go i have a cybersecurity question. it relates to facebook it is a thing i was working n. as i was looking into it, i was

putting it in the cybersecurity context. if you go back and look at all the breaches that happened over the last decade, the most high profile ones,months later, tr three months later, we all, the consumer, the public returns to the scene of the crime we go back we're like sheep you think about facebook, yesterday as this testimony was going on, people -- hundreds of millions of people were playing on facebook. what does that say about the public and then also what does it say about the role of regulators in all of this? in an odd way the incentive system seems to be out of whack. >> i'll jump on this one you know, i can tell you this, having responded to over 90% of those breaches that you're referring to, at the end of the day most of these companies were

not negligent. they were doing the best to secure systems a lot of folks will think they had their guard down most of the time when there's a breach, there's well intentioned security staff trying to prevent it when there is a brief, the security posture comes up. i think it's okay to go to those organizations. i always said this, we're getting sucker punched in cyberspace there's no repercussions to hacking our companies. what lever do you pull if there's a north korean hacker hacking your company we are just playing goalie and every once in a while wayne great gretzky will put the puck in the net there's no stopping these hacks from overseas. >> gentlemen, thank you. >> pleasure. >> we have a few answer. i still have a lot of questions, concerns, worries. then i think we have no choice

whether we move into the future. there's a race in technology, just thinking we ought to every once in a while take a look around that's what you guys are doing thank you. appreciate it. coming up, when we return, crude coming off a 3% gain trading above 65 dr$65 a barrel you're watching cnbc right here. tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night.

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welcome back to "squawk box. time for the executive edge. vevo channel was hacked and multiple videos had to be temporarily taken down yesterday. the issue was fixed including the video for the popular song despacito. videos by taylor swift, shakira, drake and more had their cover images replaced with people

wearing masks and texts of the hackers names. >> we were just talking about that, about cybersecurity. these videos have how many billions of views? this was not a fringe thing messed with. >> owned by youtube, owned by google and your g-mail i don't know if the systems are the same, but we are now relying on only a handful of people and companies to protect us. i thought that was one of the most interesting pieces of the facebook testimony, when you appreciated how one person -- >> i use g-mail because i like the interface. if the consumer wants something that's disconnected from those tech titans, can't the market place create it? is there a fundamental reason why -- other than the fact i had one g-mail account for 15 years, i don't want to lose t can't

somebody come out and say we'll give you a secure product? >> there are other services. you can use it >> hotmail is that around >> can go to yahoo mail. a couple other encrypted versions of e-mail you can get sure >> telegram. >> how did you replace twitter >> i didn't need to. >> what do you use to see things that are happening realtime? >> for context, kelly evans is off of twitter >> correct you know, the only time i need to see in realtime is during the show, we have a platform for headlines. >> you don't care if you see -- >> no. it's not mattered once in my life i read these two publications. >> i hear about syria first on twitter. >> there's often more misdirection than necessary information. >> i don't think -- then you get material too sometimes >> yeah. it's a lot of -- >> i'm 51/40

it has to be higher for you. >> i have ten reasons to get off, 11 reasons to stay on -- >> if that goes to 20/1, you know -- >> all right coming up, assessing political risk in the markets. what would happen to stocks if president trump were to fire robert mueller or if we reach a deal on nafta? dan cufton is here to answer these questions and more next. at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets

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welcome back to "squawk box" here on cnbc while trade fears seem to be easing on wall street just a little bit, the political pressures on the white house continue to mount. joining us now for more on the policy decisions likely to impact investors, dan clifton is here from strategic research partners we were having a little bit of a debate off camera. we could talk about trade. we could talk about politics >> that's all related. i mean, the trade deficit has gotten a lot worse >> do you think that people appreciate that point? >> well, i think the economy's growing. and so people are buying more and so we're going to import more we're importing more crude we're exporting some, but the crude for our cars we import so the trade deficit expands when the economy goes from 2% to 3% like we've seen over the last

12 months. >> go ahead. i know where you're going to go with this. >> cbo numbers yesterday come out. they give these scary head -- the debt to gdp is going to be blah blah blah by 2028 this is with good growth you guys pointed out it's not all catastrophe. in a way the tax cuts have started to pay for themselves already. >> that's correct. this is a controversial idea, so i want to be careful how i explain this the cbo was forecasting 2% growth now they're forecasting 3% growth they had to revise up their tax revenues we're now at 30% of the tax cut being paid for and we're only three months in based on that revise forecast. >> because they changed the outlook over the decade. >> $2.5 trillion of more growth than they forecast zbl so then you're looking at a $400 billion reduction in the quote,

unquote cost of the tax cut. so we're making progress a deficit of 4.5% of gdp is not good you want to jam that down to 3%. the forecast today is identical to the 2003 tax cut. 4.5% deficit of gdp. the tax cut went into effect and they underestimate exactly, kelly it came down to 3% by 2007 we were at 1.7%. >> but where are you on the growth rate? because we always thought that the math was the growth rate had to be much higher to make this math work. >> to fully pay for it i don't think any economist says they fully pay for themselves. what you're seeing is dynamics paying for portions. when you lower the capital gains tax, that pays for itself. when you change the child tax credit, people don't -- >> they don't respond to that? then they still have to get the deficit down how do they do that? is this move going to make any difference

>> we don't think they're going to vote on rescission. there's going to be a lot of talk about it. but you have to put in more restraint moving forward >> what's fiscal restraint are they cutting -- what does that mean? >> in the short run, it's discretionary spending you've got to freeze it like we did in 2011. really it's entitlements there's not an appetite. >> in simplistic terms, if something doesn't pay for itself and it's done for growth, why do it if it hasn't paid for itself. but if you ask the government what have you done that's paid for itself out of all the spending in the last -- i don't think anything else. so the government does do things that don't pay for themselves with growth. >> what was our goal our goal was growth. we were at 2% growth we're now getting that 3% growth whether it's sustainable remains to be seen but my sense is we'll get higher levels. >> thank you appreciate it. coming up, why is facebook regulated as a tech company and

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facebook under fire. mark zuckerberg heads to capitol hill today >> we need to take a more proactive role and a broader responsibility >> is the social network a tech company or a media company and what does the answer mean for investors? new this morning, throwing up a red flag. why the imf is warning plus wall street's wild ride the dow rallied more than 400 points hold onto your hat the second hour of "squawk box" begins right now ♪

good morning welcome to "squawk box." we're live at the nasdaq market site kelly evans hanging out with us today. we're looking to open lower this morning. dare i say triple digits lower the dow looks like it would open off 202 points nasdaq looking to open 55 points off. s&p 500 looking to open off 23.a poi -- 23.5 points. >> double triple digits. we call it triple triple digits if it's 300. a hundred points is only 4.7%. >> even this is starting to feel normal >> if you're the market today and you're anticipating, what do we have to look forward to something maybe with syria or something maybe with stormy and

mueller and cohen and everything >> zuck. >> but that's unsettling because a specter of these guys -- maybe legitimately wondering whether the government needs to get involved. >> the regulation is not going to be -- the regulation is inevitable like any big industry, they're going to be hand in hand >> i don't remember who asked the question yesterday about the regulation the idea, though, that the regulation could actually help facebook >> of course it will it will entrench their monopoly. >> i think it's a monopoly too i think that was faux sort of incredulity when he said what do you mean this is a monopoly? there's nothing that's facebook and he's worth a hundred million dollars.

>> it's digital advertising. if you want to say by what -- facebook, google, they have the duopoly over the market. google at least has come up with other revenue models >> google seems to me -- i mean, i use it all the time. i don't use facebook at all. so they don't seem like they're the same how much has he got of facebook left >> $64 billion >> i totally made him richer than he is but that's a pretty good business when you're 30 years old. >> but don't you think it's more likely to entrench their let's call it duopoly if they're regulated by washington opposed to if they're not. >> it'll make it so much harder for the smaller guys because they'll have to deal with whatever the regulation is and the costs of that are going to be much higher for them than for facebook >> i think about you you don't care about your privacy. >> i do care about my privacy. >> you were saying people don't

really care about their privacy. >> i think the public doesn't care about their privacy. >> who are you >> in this instance, i am not with the public on this. >> so you're andrew ross sorkin. so your privacy is important that's what he was saying. well, everybody else is so -- who cares where joe shmo stayed last night mark zuckerberg, i can't share my information that's the same with you where do you live? where do you go on your vacation now we're talking about the whole country i wasn't allowed to bereathe wind of it on air because andrew ross sorkin's privacy is much more important >> i'm not saying that what i find strange but maybe out of the demo is most people i know want to share where they are. >> here's my instagram >> all these places. >> they're doing that with their friends and maybe they -- there are certain things they wouldn't want to share. i'm sure you could find something. >> absolutely. but this goes to the issue of what does facebook track to me what's interesting and has

not been realized, what does facebook track that you don't manually enter yourself, right and what i mean by that is if i took a picture of my medicine cabinet at home, the picture would be there but i am sort of under the impression that facebook's algorithms would look at the picture and know more about the picture than just the picture itself >> with the like button and everything, they're able to see everything you do on the internet all the browsing you might do. if you're not logged out of facebook, once you've logged in, that's how they can put the ads in front of you that are so targeted >> julia can speak to that i don't believe that if you're just logged in and you race around the internet that you're getting tracked fully. i think that's actually not totally right. i think what's happening is you're landing on certain sites that are then sharing information back to facebook to get what's called retargeted on the advertising. >> it's a two-way street between them and a lot of these other

companies. they give that information back. mark zuckerberg will testify before the house committee this morning. let's get more from julia boorstin now in washington >> facebook shares rose over the course of mark zuckerberg's testimony. he didn't break a sweat as he apologized, took responsibility, and outlined a number of ways that facebook is making changes to prevent the misuse of data and any potential manipulation of elections was we saw in the 2016 elections here's what he said when pressed by senator johnson about fallout from the cambridge analytica scandal. >> with all this publicity, have you documented any kind of backlash from facebook users has there been a dramatic falloff because of these concerns >> senator, there has not. >> you haven't witnessed eed ey

>> there were some people encouraging friends to delete their account. i think that got shared a bunch. >> it's safe to say that facebook users don't seem to be overly concerned about all these revelations although obviously congress apparently is >> zuckerberg did say explicitly in his prepared remarks that facebook's growing investment in security will have a meaningful impact on the company's profitability. he was also asked how he thinks facebook and its rivals should be regulated >> i'm not the type of person who thinks that all regulation is bad so i think the internet is becoming increasingly important in people's lives and i think we need to have a full conversation about what is the right regulation, not whether it should be or shouldn't be. >> i'm sure we'll hear more about regulation and other changes that facebook is making to get ahead of regulation when zuckerberg testified before the house. that starts at 10:00 a.m. eastern. back over to you >> all right julia, thank you and once again, seeing this on

twitter. you may have seen it an hour later by not being on twitter. the president is tweeting did -- >> this is unbelievable. >> i wanted to make sure there's a check mark next to the real donald trump -- >> this is him this is him. >> this is why futures have gone lower. >> anyway, russia vows to -- you care about gas attacks, right? do you wish obama had crossed a red line anyway, russia vows to shoot down any and all missiles fired at syria get ready, russia, because they will be coming nice and new and smart quotation marks, exclamation point. you shouldn't be partners with a gas-killing animal who kills his people and enjoys it he's got to work on his russia collusion. >> so take the collusion front off for a second it's like being in high school except there are bombs involved. >> dow futures down 240 points

but you have to say he took the same approach with north korea and look what's happening right now. yes, it might not be the most eloquent, but it gets to the point. people aren't sure -- it's not in the diplomatic language that people are supposed to read between the lines. he's putting it out there because you have to take your case to the american public too. he said recently he wanted to get out of syria this was before the chemical gas attack now he's saying gas-killing animal, russia needs to be held accountable. >> get ready russia because they will be coming nice, new, and smart i mean, there's just a -- no >> listen, i don't care how it doesn't have to be put in -- you know what? no one's going to confuse what he's saying here >> that's true. >> are you like this on "the closing bell" from 3:00 to 5:00? i'm going to start dvr'ing that.

>> i'm just saying -- >> is this you this isn't because you're on "squawk box" this isn't because of andrew or me >> there's nothing more significant right now than watching him try to figure out is he going to be the non-interventionist that never wanted to go to iraq or is he going to make a stand on the world stage >> let me clarify. i'm not horrified with the policy i'm horrified with how -- >> by the tweet. okay let's go back to facebook. i mean -- >> we're down 257 on the dow >> you know, france and there are european countries -- england are going to probably be involved too >> everybody says they get so angry at america for doing anything, any intervention at all. where's macron on this does he want to fire those missiles to teach somebody a lesson because if nobody's going to, is anybody going to stand up to people who were just gassed? >> wow >> i'm just saying if president trump is choosing to step up on this and of course

he has to, but he's willing to change his mind. a couple weeks ago he was saying he was going to pull out now he's out there and putting it plainly for everybody >> politically correct and not say, wait, you're questioning what the french will -- but i'm not going to say that. back to facebook now and the questions of regulations from u.s. -- from d.c did you decide how to say this kovacic. >> that's great. or just bill >> all right former ftc chair he is now a washington university law school professor and director of the school's competition law center i'm just wondering we talked about how successful this company is. i mean, it's an american -- it's an incredible story. mark zuckerberg, 32 years old. what he's done since starting this at harvard. is there a way to keep the business model intact and protect privacy? or is there a light touch on

regulation that can solve our problems and let this company still flourish >> i think there is. we have a federal trade commission that has huge carveouts in its jurisdiction. if we improve the overall framework and institutions, we have a way to reconcile the need to have innovation, growth, productivity improvements. but at the same time give users assurance that their data and information is being used properly >> it's funny because it's gotten bipartisan somehow. in the past -- until cambridge analytica, the left wanted a complete hands off approach to technology think of net neutrality and the way they approach net neutrality the right never wants any regulation on an american business suddenly both sides have decided for whatever reason that the company stepped on the wrong

toes in the last 12 months so that's dangerous if both sides agree on something because this is the only thing >> i think an unfortunate part of our legislative process is our reforms in this area tend to be driven by crisis. we don't step back and say what are the tradeoffs. we wait until there's a mashup there's a derailment then we try to fix the train and the danger in that is when you do that kind of emergency room surgery, you can make a lot of mistakes. >> so what's it look like? what does the right amount of oversight by regulators look like for facebook? >> for starters, you take the federal trade commission which has a relatively small allotment of personnel dedicated to this function you increase their resources, and you increase their mandate and eliminate carveouts that deal with transportation the deal with not for profits,

with banks you also give the ftc a clear mandate to address concerns about comprehensive policy approaches in other words, you create an institution that's much better suited to the purpose. you give them a better overall framework and mandate. i think if we do that, we're on the way to having a good result. >> so earnings per share, what do you see this? does the growth of facebook slow based on any of this >> i think it slows you down some it inhibits you. the swirl of attention tends to diminish some user confidence. it probably slows things down. but these tend to be temporary disturbances rather than enduring matters we haven't really had the cataclysm yet that would cause a basic rethink about whether the service is useful. i think the extent to which the company corporates with the ftc and the more deliberate investigation that would be

forthcoming and perhaps coming out of that with a better solution going ahead, that provides assurances to users that this is a service that will treat them properly. >> all right bill, thank you for joining us this morning we got another day to look forward to of so many things we'll see. especially with this most recent tweet. anyway, we appreciate it thanks be sure to tune into cnbc all day. we have full coverage of day two of mark zuckerberg's official testimony starting on "squawk on the street" at 10:00 a.m. eastern time we'll get another inflation reading following yesterday's price report the march consumer index at 8:30 eastern time expecting the number to be unchanged. forecasts call for the core, ex-food and energy rate to be up 0.2% on the month the fed will be in the spotlight today for its own reasons. minutes of the most recent meeting will be released at 2:00 p.m. at the meeting last month,

central bank raised rates by 2 by 0.25% and the conclusion of two ratings agencies moody's and fitch in separate reports both think a negotiated solution is the most likely outcome to the trade dispute. coming up, the dow surging more than 400 points yesterday after china trade fears a bit. now this morning, market is looking to give back 260 of the 400-plus points. we will watch and monitor. and then later, day two of facebook ceo mark zuckerberg on the hill house democrat jan schakowsky will ask questions but first she'll join us as we head to break, here's some of zuckerberg's testimony on regulation >> i'm not the type of person who thinks that all regulation is bad so i think the internet is becoming increasingly important in people's lives and i think we need to have a full conversation

about whats ithe right regulation, not whether it should be or shouldn't be. you know what's awesome? gig-speed internet.

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welcome back to "squawk box. we're keeping a close eye on futures right now. dow down 255 points. we've lost 50 points or so recently after the president tweeted about the syrian situation specifically russia. take a look at the latest from the president. he said in response to russia vowing to shoot down any and all missiles fired at syria. get ready, russia, because they will be coming nice and new and smart. you shouldn't be partners with a gas-killing animal who kills his people and enjoys it charles campbell is here from mkm partners along with gene goldman who is director of research at setera management. welcome to you both. charles, this morning now people are extremely focused on what the u.s. response in syria is going to be. you know, in context, we had a lot of 300-point moves there's some skittishness but not too much at the moment

what is important to watch here? >> the u.s. because of what we've seen over the last defrl seconds, if we go in there in full force, do we really have the will, do we really have the financial wherewithal and conviction we want to be in there for the long-term? probably not so what i would expect would happen is we go in there, attack some airfields, maybe them in disrepair. they're inoperable for a period of weeks or months we do this with a coalition. markets pay attention to it. we bounce back >> gene, a couple of things though we saw russia's stock market was down big earlier this week after the u.s. imposed some sanctions on individual russians rusal was one of those hit could there be a bigger response if we're concerned about the u.s./russia relationship and the context of the president's remarks this morning >> this is not world war iii >> thank you for that reassurance. >> you're welcome. think of last year when we launched missiles at syria

same thing happened. we reached out to russia to say listen we're going to shoot missiles move troops out of the way we're going to do the same thing here this is just more of -- there's a loss of human life in syria. >> you don't think this time around that the stakes are higher for this -- for whatever strike may be coming >> the stakes may be higher. but just like russia, just like us, we don't want a big war. we don't want any type of significant -- >> you don't want it but is it getting dicier now they're focused on facing off against ooech other. and when you're talking about iran and turkey trying to figure out what that response might look like, does that involve more assets than simply the dozens of missiles that were

launched in syria last year? >> yes, definitely would be some concerns but also you look at oil oil prices obviously russia has some key oil prices where they are. they don't want to see some changes in the middle east that would cause these issues to really drive a lot of these issues they don't want to see the dollar rally dramatically. >> what else as we sort of figure out what might happen there, we also have earnings coming up we have the facebook testimony there's a lot of different things here for markets to digest >> earnings are interesting right now. why is it interesting? here's why back in december we were expecting an 11.7% gain. it's now expected to be about 17%. nearly a 50% increase. last time we had a 17% year over year gain was over a year ago. for the whole year we're expecting about 20%.

typically when you have eps growth that's like that, it's discounted into share prices in anticipation of it >> you don't think it is >> here's what's interesting when it's discounted, the markets then sell on the news there's a pullback when you have large earnings in the season, the s&p return is not very substantial actually underperforms other eps returns. in this environment, though, the s&p is actually down because of other issues like the china/u.s. tariff issue >> so maybe it'll be okay. >> and earnings, though, are expected to be 17% growth instead of 11% growth. so it's actually much higher than it had been previously. so there are other head winds in the way. so i think earnings will fundamentally dictate market action >> we think so too you never know charles, gene, thank you both. appreciate it. coming up, rules of the road what lawmakers want to know from mark zuckerberg today.

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♪ >> announcer: welcome back you're watching "squawk box" live from the nasdaq market site in times square. >> good morning and welcome back to "squawk box" here on cnbc we are live at the nasdaq market site in times square a moment ago equity futures were down more than 300 points on the dow. we've backed off that a little bit. down 282 nasdaq down 67 the president tweeted about syria calling out russia a few moments ago and warning about

some strikes so we'll see what comes of that. among the stories front and center this morning, big changes in the works at the world's biggest automaker. volkswagen is looking to replace mueller at a board meeting on friday it's also planning other management changes as well as giving labor leaders board representation vw is still trying to shift its corporate culture after the diesel emissions scandal starting in 2015 >> if that does happen on friday and they fire mueller -- >> let's make sure everyone is prepared for that headline >> volkswagen fires mueller. right, andrew? we have that on the bottom, like mueller -- >> mueller out yeah diesel emissions -- okay >> i got it. >> diesel emissions are also at the center of talks between fiat and chrysler and the justice department the two sides are in talks over the allegations they used

software to illegally pass emissions units. >> i don't pump my own gas so i don't know about these issues you're talking about. >> but you don't live in new jersey >> no, but i occasionally go across the bridge. >> you know he makes fun of new jersey, too. even though we take all your trash. >> on my way to teterboro. >> exactly to fly on a gulfstream we just talked about. >> that is barry diller's joke >> yes >> great line. puerto rico will get $18.5 billion from the department of housing and urban development. that's for the rebuilding efforts after last september's hurricane. it is the largest grant in the history of the department but still less than the $46 k4$46 b that they requested. mark zuckerberg is testifying day two now on capitol hill here are some of the highlights from yesterday >> would you be comfortable sharing with us the name of the hotel you stayed in last night

>> no. >> if you've messaged anybody this week, would you share with us the names of the people you've messaged? >> senator, no, i would probably not choose to do that publicly here >> i think that might be what this is all about. your right to privacy. the limits of your right to privacy. and how much you give away in modern america in the name of, quote, connecting people around the world. >> are you a tech company or are you the world's largest publisher? >> senator, this is a really big question i view us as a tech company. because the primary thing that we do is build technology and products >> you said you're responsible for your content which makes you kind of a publisher, right >> well, i agree we're responsible for the content, but we don't produce the content >> is it an alternative to facebook in the private sector >> we, senator the average american uses eight

different apps to stay in touch with people. ranging from text apps to e-mail >> the same service you provide? >> we provide a number of different services. >> is twitter the same as what you do >> it overlaps. >> you don't think you have a monopoly >> it certainly doesn't feel like that to me. >> okay. >> how do you sustain a business model in which users don't pay for your service >> senator, we run ads >> our next guest will be at the hearing with her own questions i'm going to bring her in. jan schakowsky, she serves on the committees good morning to you and thank you for joining us ahead of this hearing. >> thank you so much >> given the questions that have already been asked, what new questions would you like answered >> well, i think first of all that we have to look at this as just another road show you know, we in congress tend to bring in the ceos of companies

like equifax and they come in and they apologize and then they go home. and then the congress does nothing. what i hope to hear today is what are we actually going to do we're going ask questions again of zuckerberg, but i think people deserve more than apologies and promises and then that's the end of that. i'm hoping that there will be a commitment from colleagues on both sides of the aisle that this time we're really going to do something like the legislation that i've introduced, the secure and protect our privacy act. you know, we can do this and yet that hasn't happened at all. >> so do you think sentiment has changed and if people -- what they really are trying to understand from these hearings both in silicon valley and among the investor community is what the appetite is for regulation and also what that regulation ultimately looks like.

>> well, i certainly think there's a quest for regulation from the american people i think they feel betrayed i think that they have enjoyed facebook, yes, but they had no idea the scope of the ability to track you even where you are as senator durbin said where you may sleep at night and we know that, you know, it's not enough to say, oh, you know, sorry about that 2016 election and cambridge analytica. they told us that they were going to absolutely take out all of the data that they had gotten that they weren't supposed to get. and that it was not supposed to be shared. and really nothing was done to make sure that that actually happened and so i think that among the american people, they want to know that their privacy is protected. >> congresswoman, there was a question posed to mark

zuckerberg yesterday and i'll pose it back to you which is to the extent that regulation is imposed, do you have any worry that it's going to increase costs for start-up companies meaning that it embeds or cements, i believe was the word yesterday that was used during the testimony, that would cement the place for the facebooks and googles and snaps and twitters of the world that can afford to deal with some of these privacy regulations. but if i'm a kid in a garage starting a company, it actually makes it harder. >> well, you know, i think certainly we can see that facebook can afford to do the privacy regulations. but that's ridiculous to say that we will allow any company to be a start-up that doesn't have to protect our data why would any consumer decide that we will go and use that site and that we will invest in that personally, our personal information. no, i disagree i think that we have to -- in a

way we have to treat these companies like facebook like a public utility and that there absolutely has to be regulation. and the only thing congress has done so far is actually reduce some of the protections that we had on broadband last year taking away powers from the federal -- the fcc the republicans have gone in the opposite direction >> but what do you do about the idea that consumers of these products don't necessarily understand or even try to understand to some degree exactly what's -- how their data may ultimately be used one of the other questions yesterday was how long those terms of service, when you say i agree to this, it may actually tell you what you're agreeing to, but most people don't read it >> seriously, have you ever read through the small print before

you press agree? zbl >> i have not. i'm as guilty as the next person but the question is what do we do about that? >> first of all, i think that means that it's not just enough for facebook to say, well, the consumers agreed to that they press that agree button but they know they are protecting our privacy not sharing it with companies that are going to sell it. $800,000 from cambridge analytica to buy all that data no we have to know that up front that before it gets to our pressing an agree button, that they have already agreed to protect our privacy. so i don't think it should be oh, well, the consumers blew it. they already said that they agree. no >> okay. congresswoman, we have to leave the conversation there we look forward to the hearing and we will all be watching. appreciate your time this morning.

>> thank you >> thank you >> bye >> be sure to tune into cnbc you can watch the whole thing, live coverage day two starting at 10:00 a.m. eastern time right here on "squawk on the street. okay the latest tweet -- andrew, you might like this one. i think he's talking about some type of de-escalation in the arms race. i think that's what he means our relationship with russia is now worse than it's ever been that includes during the cold war. there is no reason for this. russia needs us to help with their economy, something that would be very easy to do and we all need nations to work together stop the arms race question mark. >> very interesting. >> so he's got an angel on one shoulder and devil on the other shoulder >> he's good cop and bad cop >> as i said to you, the other tweet was more about the -- i had less an issue with the policy so much how it was described. >> i understand. >> but this is -- by the way,

this is one of the first times -- i could be wrong about this -- that you've seen him be this pointed about the relationship with russia >> no. he said this last year he said our relationship with russia is the worst that it's ever been. he's doing the same thing with china. one hand saying we have an issue trying to keep the leader of that country, a personal relationship or some kind of personal rapport there you know, for all of the headlines about russia and the president and this and that and the other. but as he -- >> we can go back and look i don't think he's been -- one of the reasons there's been so much criticism of the president around russia is he has not been critical of putin or of russia in this instance he has -- >> i think it's in the eye of the beholder a lot of times. the arms race, these are things we're making that we can never use. it's such a waste. but i mean, it's idealistic to think that there's a way to do

that but think of north korea think if the guy really did care about the quality of life of the people living there. in all these places. assad. does he care about the people living there it would be a better world, andrew >> but even on the north korea thing as well, i know they have the summit coming up and everyone is excited about this breakthrough moment. but they've said we're committed to denuclearization. it was during the bush administration what happened? we'll see. >> there's still an axis around some degree of evil, i think coming up, the work ahead. a task force presenting a new report to the white house this week on machines, skills, and u.s. leadership in the 21st century. all about jobs in america and the man behind it will join us live you ever see a power outage in the altec trucks they send them from everywhere it's a private company one of the biggest lee stys linger in institute owe next

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despite u.s. payrolls rising by only 1,000 jobs -- or 100,000 jobs last month, gains in the last three months are still averaging over 200,000 both each passing month, the definition of what a job is and what skills it takes is changing rapidly. we've talked about this a little bit already today, but it's something our next guest says the u.s. needs to address more effectively. joining us now altec chairman and ceo lee styslinger for people that don't know, lee, we were talking off camera i see those trucks whenever we had a bad storm up here and there's power down you send -- altec trucks come up you're a private company which

operates in more than a hundred different countries. and not that many people may know about altec >> that's correct. we were founded back in 1929 so this is our 89th year products and services in over a hundred countries mainly focused on the electric utility, telecom. >> you picked the bottom >> nowhere to go but up. >> very few private companies, for example, at the business round table or other organizations. you're one of them for you -- for people that don't know, you might know something how many employees -- can you tell us anything about altec >> basically we work with every investor-owned utility, every cable company, every municipality in the country. we also work with the department of defense so providing products and services that provide telecom infrastructure and defense infrastructure >> for every public ceo out there, they're like i hate this.

>> i serve on a couple public boards and have great appreciation for not having to operate in the arena where you operate all the time >> exactly so we had john chambers on earlier. he's in d.c. trying to figure out -- >> sure. >> -- how to have a workforce for the future of technology but it's a daunting challenge for adross -- >> you look at the strength of the economy right now, all the momentum we have it's great but we've got to be looking not only now but into the future right now, 6.5 million unfilled jobs in this country so we do not have the skills, we do not have the skills and in order to match up with the needs in the marketplace so you combine 6.5 million unfilled jobs, combine that with

$1.6 trillion in student debt. a lot of opportunities and you overlay that with almost 50% of every student who enters a four-year college program, takes them six years and only 50% graduate clearly a lot of opportunities to improve and do a better job of matching skills with needs. so a little background working with the council on foreign relations, business round table, and others, we put together this report working with the white house, working with department of labor, department of commerce on initiatives and to really raise awareness of these statistics. >> so how -- okay. so that's what we need to do, obviously. and knowing you it's not going to be hey, big brother government, what can we do it's got to be the private sector >> basically it's a combination. this is is a how-to approach for

local governments but most importantly the private enterprise to go out and work with individual communities in making sure there's a right match in skills. so you talk about apprenticeships, work learning programs, ways that we're engaging at the locallevel and then getting some support or oversight at the governors level as well as at the federal level. >> how many of those books did you bring? >> i brought you a couple books. this is the actual publishers document -- >> he's not a regular on this show >> there's an executive summary. >> are you signing these books i want to make sure. >> let me give you a little background >> he's not a bad guy. >> so this was a non-partisan deal

question put together together this is one of the first times the council has ever focused on a domestic issue like this because the focus is by definition national security >> two things that come to mind when i think about this. one is it's all cyclical one is, okay, there's been a problem because we had a deep recession and it's just taking a little while for the market to kind of clear in terms of the lab labor. things that are just kind of hard to fix. you know, so it's on the one hand, maybe it's all just up and down with the business cycle on the other, maybe it is difficult to fix >> i think it's a combination of both what we're seeing is there's been a transformation of work. look at facebook and how far it got out in front of legislation. now we're saying what is the right balance between making sure that companies from the right oversight.

obviously i lean towards less oversight than more. but at the end of the day, we have to have the right balance >> we were talking to chambers about do we just rush headlong into the automated technological future we have no choice. it's scary and daunting and i don't know if we replace -- i don't know if it's a 1-1 replacement for automated jobs we lose for people that fix the machines that do it. i worry about the -- like you do and i look at these things on the front of this thing. what if they don't like you? do you think you can go up against one of these things? >> that's the problem. i have one reskilling question given the tax cuts, all the money coming back -- >> that's where it should be invested >> and it's not. >> depends upon who you talk to. that's what we're raising awareness. there's a lot of capital out there to reinvest in our most important asset which is the american worker. i mean, you talk about what's coming out of the white house. yesterday we were in washington. had great meetings with ivanka you know, she's passionate about

this others in the administration also visited with wilbur ross. >> can everybody else get these too? >> we're get -- i can get you plenty of them >> lee, thank you. thanks for doing this. >> thanks. coming up, mark zuckerberg wins on wall street. a look at facebook shares turning in their best day in weeks. we're going to talk ceokfabo and the other morning's stocks to watch right after this they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more.

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coming up when we return, futures adding to losses after president trump tweets this morning about syria. we're going to talk to former nato ambassador nick burns we will do that next tslit f about 240 poin fgh back in a moment

new this morning president trump tweets a strong warning to russia. stocks pointing to a triple digit drop at the open after one day on the hill, zuckerberg returns for round two. we'll talk to a congressman leading that hearing plus one thing that caught attention. >> we're responsible for the content but we don't produce the content. >> so is facebook a media company or a tech one? we'll have the debate as the final hour of "squawk box" begins right now live from the most powerful city in the world, new york, this is "squawk box.

>> welcome back to "squawk box" here on cnbc live from times square i'm joe kernen along with andrew ross sorkin and kelly evans who i wish could be here every day but i also like becky and want her to be here every day >> no one's going to know what you're talking about >> well, we may need four people we may need to have four because we -- >> no. just futures >> okay. let's get to the futures then. from the new boss kelly evans. the mail is coming in. anyway, down 231 points this morning. digesting a lot, i would say, given the situation in syria. >> especially after the second tweet, a little better >> but the president is tweeting about syria and it is a little bit flippant, i guess, when you talk about armed conflict. saying we've got smart bombs headed your way.

>> just a little flippant? >> nothing that you haven't seen before should be getting -- >> it -- i never -- i wish i could say i was surprised. >> i know. russia vows to shoot down any and all missiles fired at syria. get ready, russia, because they will be coming nice -- probably not the word you'd use for a missile. but they are new and they are smart. and you shouldn't be partners with a gas-killing animal who kills his people and enjoys it and later another tweet actually came back. >> yeah. he followed up by saying our relationship with russia is worse now than it ever has been and that includes the cold war there's no reason for this russia needs us to help with your economy something that would be very easy to do we need all nations to work together stop the arms race the dow down more than 300 points after the first tweet now down about 232 nicolas burns is a former

ambassador to nato and joining us this morning. a lot of speculation about whether the u.s. is going to send missiles into syria the president making that sound like it might be imminent. what response do you think we should expect? >> i think the president has been signaling for 48 hours now that the united states is going to respond he has a right to respond. you know, we're the -- we've outlawed chemical weapons. we're the only country that can enforce that ban on president assad. there's no reason to think that russia is going to fire back at the united states if we go after syria's air force, its helicopters, command and control. because they've launched eight chemical weapons attacks in the last year on their own citizens. i think the united kingdom and france will be with the united states that's one issue the second issue that you're looking at here that's affecting markets is the president's tweets about russia. i think that's a second issue we can talk about >> but to that point this morning, a spokeswoman for the foreign ministry of russia on

facebook wrote, smart missiles should fly towards terrorists and not towards the lawful government which has been fighting international terrorism on its territory for several years. is that the russian position on this >> well, the russians have maintained all along they're protecting assad they're in league with assad they don't want the united states to strike at assad. they didn't favor the strikes a year ago when the president ordered them but the russians have forgotten their responsibilities here. they're signatories to the chemical weapons prevention. i would expect the air strikes would go ahead the trump administration, the president had been signaling that the president's other tweet today kind of goading the russians i think is very unfortunate and unwise we want to separate these two issues the united states is not going to go after russia, shouldn't go after russia in syria. >> mr. ambassador, if russia is goading us and threatening us, what is the u.s. supposed to do? who's starting this?

>> this is not a video game. the president of the united states needs to be calm and needs to act presidential and not respond to a facebook comment by an unnamed russian official from the foreign ministry this is not president putin talking in this facebook entry by the russians. we have to do what we have to do against syria. the russians are going to oppose what we do in syria. we have to be very careful as the president was the last time. not to target russians i don't think he will. there's no reason for the united states to do that. i would separate the two issues. i believe the president probably is, but the tweet this morning i thought was irresponsible and it wasn't effective. >> that's what people said about his tweets about north korea they were irresponsible, he shouldn't use that kind of language and rhetoric. now he's going to be sitting down with the north korean president after their agreeing to put denuclearization on the table. >> these are entirely different situations as you know, russia is our

strongest adversary in the world. there's never been an american president going back to the dawn of the nuclear age who was goaded in a statement or tweet like this. a statement of the russians. we have to be responsible. we have to be careful. we want to signal to the russians that this is not about them that it's about syria. you have to separate those two issues the president did not do that well this morning. >> i don't know you can separate those two issues given the way syria and iran have been -- russia and iran have been pat n patrons of syria throughout this >> there's no question the russians are wrong to support the syrian government. the russians, iranians, hezbollah are in league together they're a problem for us but we're talking about air strikes here and we've been talking about them for 48 hours. the president has a right to do what he's going to do. i will support the use of power, of air strikes against syria but you don't want to mix russia

into this. you don't want the russians to think that in some way the united states is targeting them. because we shouldn't be targeting russia that makes no sense given russia's nuclear power status. >> mr. ambassador, thank you for joining us this morning. >> thank you >> nicholas burns. day two of mark zuckerberg's congressional hearings kicking off in two hours he's going to appear before the house today. here are a couple of highlights of his grilling by the senate yesterday. >> if you and other social media companies do not get your act in order, none of us are going to have any privacy anymore >> there will always be a version of facebook that is free it's our mission to help connect everyone around the world and to bring the world closer together. in order to do that, we believe we need to offer a service everyone can afford and we're committed to doing that. >> you don't think you have a monopoly >> certainly doesn't feel like that to me >> with all this publicity, have

you documented any kind of backlash from facebook users has there been a dramatic falloff in the numbers of people that utilize facebook because of these concerns >> senator, there has not. >> want to get over to deidra with reaction to the first day in congress. good morning to you. what's the take on the west coast? >> good morning, andrew. certainly folks here are watching closely it's not just facebook's business but regulation that could impact the tech the world at large there is this sense that yesterday's questions were a little soft and there wasn't a lot of consensus from lawmakers. one who preferred not to be named tells me the senate panel was outmatched and facebook would ultimately take the lead on drafting its own regulations. now, another well-known vc in the valley, tim draper told a room full of several hundred people all in the tech industry yesterday that zuckerberg is actually a hero, not a villain

users are responsible for giving up their own privacy and warned washington that going after tech titans is a mistake. have a listen. >> if we keep attacking our entrepreneurial heroes, if we keep attacking them and taking them down, they're going to move they're going to go to another country. i mean, we've got -- i got a message for all those guys in washington we want these people bezos can live anywhere in the world. >> draper went on to argue that the industry is already regulated and more oversight would damage america's competitive edge of course, guys, zuckerberg is in the hot seat for another day. european privacy laws which the tech industry has a close eye on may be less likely to let these giants off the hook. no doubt we'll watch just as closely here in the bay area >> thank you for that. here is one exchange that caught investors' attention. take a listen to this. >> are you a tech company or are you the world's largest

publisher? >> senator, this is a really big question i view us as a tech company because the primary thing that we do is build technology and products. >> but you said you're responsible for your content which makes you kind of a publisher, right >> well, i agree we're responsible for the content. but we don't produce the content. >> joining us right now is michael wolf, the cofounder of activate good morning to you, michael >> good morning. >> you listened to the testimony yesterday. before we get into it, your quick takeaway who won the game >> well, mark did three things that were important. first, he admitted there was a problem and he owned it. second of all, he talked about concern about people's privacy and third of all, he said that he believed that some form of regulation would be helpful, but it had to be the right regulation the problem is that the senators in a lot of cases weren't very prepared to ask follow-up questions. so he was able to stick to his

talking points >> having seen and listened to that testimony, do you think yourself as somebody who's been around this industry for some time that regulation is coming meaning, what kind of appetite do you think there is going to be as a function of this hearing and others around regulation what do you think it would look like >> well, first of all, this really comes down to the most important thing which is users and users don't appear to be that concerned despite a delete facebook effort, not many people deleted facebook so the kind of regulation that's likely to come down the road that will be well received by consumers and voters, more has to do with privacy more has to do -- has a great deal more about people's ability to know how their data is being used >> what did you think of the comment men mark said that he's

responsible for the content. meaning that for so long in this he has stuck strictly on the technology side. taking responsibility for the content to me seems like a new front for the company. >> it is it's a new front yet a lot of this was about legal ease it's about making sure people and lawmakers didn't view facebook as a media company. the reality is that facebook does have a responsibility to its users which is to properly identify who's creating the ads as well as the content that's shared even if it's not paid and the second thing is if they're going to be responsible for the content, they do have to not only allow media companies to make sure that their content flows freely across facebook, but also to pay them for that content because a lot of that is

what's driving facebook's enormous revenue let's play pretend for a moment. zuckerberg calls you up. he says i think you're one of the smartest guys i know i'm going to take a step back for a moment i want you to come in and be king for the day what would you do to the company? how would you change it? >> first of all, make sure that users know exactly how their data's being used. the second thing is you do everything you can to eliminate the companies and the people that are sharing misinformation or what can be called fake news. you want to do as much as possible so that somebody isn't able to weaponize facebook and use it for things like voter suppression and to provide fake information. >> i think we all agree with that but part of the issue becomes how easy or harder does it become for advertisers who might

seem benign or doing things in good faith to actually have their ads be as effective as they had been? meaning are we changing the type of data that they're going to have access to >> they definitely need to have -- we definitely need to change the amount of data that advertisers have access to some of that targeting if people knew how they were being targeted, i don't think they would be happy with it the real opportunity, though, is for facebook to not only clear up and identify who's an advertiser and who's not or where content is coming from, but also to eliminate the bots and fake friends people who are on facebook who aren't real. and are sharing information and people don't know where it's coming from and think it's coming from their friends. >> okay.

we got to leave the conversation there. michael, have fun in vancouver are you out there for ted? >> yes big ted week and this is on the top of everybody's minds. >> we will see you soon. we should also mention that you can all watch mr. zuckerberg live right here on cnbc day two. we will have full coverage starting at 10:00 a.m. on "squawk on the street. all right. let's get a check one more time on the futures here. little bit better than they were they almost got down 300 down 235 on the dow. 23.5 on the s&p. 56 or so on the nasdaq tethill talk market strategy afr is break stay tuned you're watching "squawk box" on cnbc in these turbulent times, do you focus on today's headwinds? or plan for tomorrow?

at kpmg, we believe success requires both. with our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. kpmg.

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. welcome back jonathan swan reporting that paul ryan has told confidants he will not run for re-election in november the announcement is reportedly expected soon.

there's been with yes he's not going to and then yes he is, yes he's not, yes he is. but this is at least three, four, five months old in he was telling some of his confidants he was -- you know, wasn't that pleased with -- >> one of the worst kept secrets in washington. >> i look at everything, andrew. >> i know. >> mother jones i start with then "huffington post. >> uh-huh. >> spend awhile there. >> i finally get to drudge there's a piece on kevin mccarthy >> and breitbart when? >> breitbart i kind of just live, eat, and breathe >> okay. >> actually, breitbart is so against any intervention -- did you see this >> that is true. >> in syria. you never know you need a score card now to figure out where everyone comes down like nick burns wants to do the thing in syria normally he's -- i don't know. i need help. we know that know.

let's get back to the broader markets. the futures are now down now we're down 216 on dow. down 48 on the nasdaq. the s&p is down about 21 we're getting close to a number we haven't seen in awhile for oil. $66 right now. brent up almost $72. joining nous now chief market strategist at fitzgerald i've been watching the market so long, peter. there's always noise now louder than ever at this point. what matters and what doesn't? >> there is a lot of noise i think the reason the noise has been mattering and causing volatility is because the backdrop has changed in terms of funding costs in particular. we've been focused on the rates environment. it's about the fed, but what's interesting is it's also about

the deficit and what t-bill issuance has been. this has impacts on companies' abilities to earn. a lot of net income gains have come from a low cost of capital over a long period of time and companies actually fund operations based on that >> that doesn't offset what they're going to save on taxes, does it? >> to some extent, it will it's a tricky calculation to make that comparison but i think it offsets a good amount of the tax gain i really do. so i'm very concerned. and not only does it affect the earnings portion of it but the way it discounts future cash flows if you're talking about a higher terminal rate which the fed is talking about a little bit higher terminal rate you're talking about valuations that are affected quite a bit by a higher cost of capital over the long-term. small change in long-term capital costs makes a big difference in valuation. >> so we can't count on the increase in earnings offsetting the possibility that multiples

contract >> yeah. that's the interesting part. we're coming into an earnings season where expectations are incredibly high. 18% earnings growth. i think 7% revenue growth. so the question becomes which is more important is it the cost of capital which has gone up? or the fact that expectations are so very high at about 21 to 22 times on the s&p. you know, there is some growing into the multiple to be done and i'm a little bit skeptical as to whether or not that can happen combine that with a higher cost of capital and we're talking about a tricky earnings season here >> really? you're one of the few that we've heard the different narrative in the last couple of days with a lot of our guests. >> i like to be different, joe >> so year end the s&p versus december 31st looks like what for 2018 >> well, i came in, i was fairly bullish early in the year. we had that big 8% rally i came on in mid-january and

said i think we're going to get a pullback i've become a little bit more cautious since really around this cost of capital narrative and around the fact that i think that, you know, stocks are priced about right here given the very rosy picture everyone is expecting both in terms of global growth and earnings i think expectations are just a little bit too high. i think equities will continue to be range bound. struggle into the year >> but not down, no bear market? >> i don't think it's going to be a massive down year the global growth narrative still does have some legs. our view really is range bound a little bit more interesting from a trading perspective >> you know, you didn't say syria. you didn't say mueller you said powell. >> well, i still think that's the most important but talking about syria for -- >> no, we don't have time. that's why we're playing music. >> got ya. >> you don't have an ifb in.

>> no, i don't my apologies >> a lot of moaning and groaning from the control room -- i'm kidding. less than two hours to go until mark zuckerberg faces the house committee. greg walden is the chair of that committee. we'll hear what he wants to hear from the facebook ceo. we will also talk about donald trump's tweet and how it might be affecting the market this morning. back in a moment

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we've got some breaking economic news coming up in a couple of minutes. we're going to get key read on inflation, the consumer price index. a live report from the cme with dow futures down 250 points. right after this is the monolithic view of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential.

welcome back to "squawk box. rick santelli here breaking news. march read on cpi. remember yesterday's peak was a bit hot. not cpi. down 0.1% on headlines strip out food and energy, up 0.2% as expected. year over year headline up 2.4%. the real benchmark there is should we take out 2.7% and obviously we haven't 2.1% year over year ex-food and energy now, not to say that isn't a little warm. it's as expected though. but it is 0.3% higher than our last look. and the year over year headline number 2.4% also is expected

but 0.2% hotter than our last look one could say the headline at down 0.1% really mitigates many of the issues. the real thought process here should be it's not that cpi is in any way cold, but it didn't seem to appear as warm as vpi. to that end, we haven't moved much on the 10-year note yield it pushed down toward the 276, 277 level. that's where it remains. that's getting to be a boilerplate every day. now finally we have the long maturity auctions at 1:00 eastern. "squawk box" gang, kelly, nice to see you in the morning again. back to you. >> good morning. if you don't mind, i was going to ask if you think this inflation report makes it back to that whole idea that maybe the yield of b tthe 10-year may

got as high as it's going to get this year. >> i couldn't agree more but i would put a couple of asterisks there. listen we're probably 80, 100 base points lower yields should be but having said that, it doesn't at all shock me that the 295 is the high yield because there has been some spotty fundamentals on the growth side. and we haven't had some big inflation scares like we did a couple of employment reports ago. even though it isn't moderating much i think everything is pretty happy here key if you're a technician is if we trade under 2.63, the high yield close for 2016 before we take out the current 2.95, that would absolutely lock for the rest of the year >> we're at about 2.75 now thank you. steve leisman looking through the numbers, too, to figure out is this a wonky one off or

what's going on? >> it's always wonky, as you know we've got to take this number and translate it into the fed's preferred indication which makes me angry every time i have to do that. let's pick an indicator and all go with it wish we could do that. i see a lot of negatives and positives. there's no sort of diffusion for this indicator here. but for example, big decline in gasoline down 4.9% probably down more than economists expected which is why the headline was lower than expectations i see negatives on education i see negatives on commodities positives -- big negative on apparel which we had been talking about. up strongly 1.5% now is down 0.6%. transportation down. medical care up a strong 0.4% as were housing and shelter so the cpi -- i think rick had it -- >> when you start talking about

medical care and shelter, that's the stuff people point to when they say the trajectory is up. >> i think that's right. we had a decent turnaround medical care had been well under control for awhile now it seems to be behaving more like it used to behave which is -- >> unfortunately >> and housing is also a big deal as you say. kelly, i think rick has it right as he normally does. worth remarking how often we agree on the interpretation of the data as much as we may disagree on other things that this is not the hot one that everybody was concerned about and the concern here was that you had stuff dropping out of the index that was pulling it down and march was the month that everybody was pointing to saying this was the one we have to start worrying about inflation it's firmer. it's higher. but it's not hot especially given all the push and pull in this report of some negatives and positives. >> why do you think gasoline if anything, we're talking about gas prices back up >> yeah. you got to remember that it's the month before the current

month. so you got to remember what happened -- >> did they drop >> it's always a little how weird they pick up you're right thinking it's going to come back up. so forget that headline. we'll go back higher but also we've had this debate for over a decade here on "squawk box. which rate to follow, the core or headline. and this shows you why the core is a better indicator. if all this these -- gasoline up one month then down one month and all this volatility, that it makes sense from a policy standpoint to follow the core index. >> josh, what do you think the interpretation is? >> i think steve's right it's a mixed bag but generally speaking in line with expectations. we had the dropoff of the decline from 12 months ago so the number moved up >> what was the year on year number >> 2.1% on the core. 2.4% i think on the headline that's going to translate to a similar story with the pc index.

>> so taking that, 2.1% and 2.4%, that's over the target. >> not for pc. >> i'm just saying we're pretty close. >> no, no. >> we're in the neighborhood. >> the pc is down -- >> the core is probably going to be 1.8% when it prints >> that's close. >> there are some on the fed who think they can take this needle and really just hit the mark you're darn close. by the way the fed is acting that way they are acting they are close enough they're raising rates. you have some people saying where's the inflation? >> and i think we are going to be pretty close. i think that's going to be consistent with the fed narrative which is if the labor market continues to do well, inflation is getting close to target we're close to full employment they'll continue to reduce

accommodation. >> what about the way the 10-year is behaving? are we at the top here we can't get there we keep going up what was the top 2.95 or something and then we turned tail and ran scared >> you need to start listening to rick. he just said the exact number. i think you ignore rick sometimes. >> i don't ignore rick >> okay. >> i think the 10-year -- >> we have a different guest on. >> but he was talking. rick before. he said 2.95 and if it gets to 2.63 the top will be in. >> but that's technical stuff. i want to do the economic discussion >> on the fundamentals we had a little bit softer growth in the first quarter. we had some political uncertainty, market volatility and i think those things have helped support >> but it gets to a discussion that was had earlier in the day about the cbo and deficits part of the cbo projection is interest rates will rise and offset some of the effects of

the tax cuts what if they don't then you have better revenue, better outcome >> if you look at the growth forecast cbo has, they have a pop-up in growth but then coming back to under 2% that kind of environment maybe interest rates don't go up a whole lot. it's not going to mitigate completely we're going to have big deficits for sure >> the last couple days have had a turn in the narrative in china and gone from oh, they're going to dump treasuries to they want to weaken the currency which would probably mean buying treasuries if anything >> sure. but fears of trade wars i think the initial reaction little bit of a selloff in the stock market and quality that narrative i think has been in part of the story >> i had a friend who used to be at a hedge fund. now he works for himself i imagine him every day e-mailing me and talking to me from his bathrobe -- in his bathrobe because he trades from

home rick, i'm talking about you and not another rick he says the markets never trade on supply. that you just put it out there and the market doesn't care. it's always the macrofundamentals with the first factor the inflation >> i always thought, you know, people who lived through the '70s and all these different periods must have a totally -- i don't know if somebody who has been through that says it's still not >> the evidence i have is when i have come on over the past year and broken what i thought was important news to the market about the fed's reducing balance sheet, the market has yawned and not cared. so far it seems to be going reasonably well. these deficit numbers are out. they look worrisome. what has the 10-year done? absolutely nothing >> hey, and the deficit soared during the great recession what did interest rates do >> that one you can kind of understand this one you go, okay.

the macro outlook is strong, deficit number is bigger, dollar is weaker. and yet here we are. >> i know we got to go, but the market also trades on the fear of a fed mistake that's another thing if the market sees the fed pushing too hard, that could lower rates further. >> absolutely. and they're probably watching for that reason to see what is happening. guys, thank you very much. >> okay. when we come back, a lot more round one of the senate. mark zuckerberg gearing up for round two of his congressional testimony. in less than 90 minutes. we will hear from him in front of the house we'll talk to the man who will be in the room congressman greg walden about that and president trump's tweet ouruiandyr rht after the break.

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we're a little over an hour away from facebook ceo mark zuckerberg testifying before the house energy and commerce committee. house energy and commerce committee chairman greg walden now joining us >> good morning. >> help us understand what you want to understand from mark zuckerberg that you didn't already hear from the senate yesterday. >> well, he's very well prepared and polished i want to get beyond the talking points and get into some very specifics. our members are set up to do that as am i we want to know what happened. what did he know, when did he know it, what did the company do

about it, are they living within the decree they entered into in 2011 can they do it on their own? is federal regulation necessary or will that stifle innovation in america i mean, these are really the important questions. >> what do you think the appetite is in in washington right now for some form of regulation >> well, i think people are concerned about their privacy. we hear it from back home. i also think they love these apps they love the ability to navigate and shop online and communicate online and do it with great ease and no costs but remember it is a goods for services transfer here the goods are you and your data that they're monetizing to give you this platform. so it's what i want to get to the facts on let's get to the truth and then we'll decide what kind of public policy changes may or may not be required. >> mr. zuckerberg was asked yesterday about an idea raised by a yale professor. i don't know if you read about this or saw him asked about this this idea of a fiduciary duty

for information. which is to say whether companies -- social media companies and others who take our data should have a fiduciary duty, if you will, on behalf of us would you support that in terms of how you think of regulation >> in some respects, they do already if you think about the rules and regulations for your health care information, your financial services information there are already some rules on the books. some laws on the books and that's a question we raised when we had the equifax hearing. you know, how do you not protect our data you're already required to and so then the question is about liability. the question is about recovery of damages all of that. but we also want these platforms to work. the whole economy is lubricated by this exchange of data >> what do you think about the idea that despite all of the rhetoric, the screaming going on i imagine you do hear from constituents a lot of people say they're upset about facebook and a lot of things. yet when you really look at

whether it's a privacy breach, a hack, we the public oftentimes go back and continue to use the exact same service >> well, let me ask you this who reads the user agreement or understands it i think that's an area we can do better on terms of transparency. there's a lot people don't understand i ran into constituents who said they don't care. i like it. i understand it. i get they're using my data. then others say that was never the deal i thought i was entering into. we're going to get to the bottom of it today. and if we need to, we'll follow up we're going to open our lens wider than just facebook in the coming weeks and months ahead. it's not just facebook although that's the current issue with cambridge analytica. this is across other platforms too. >> i imagine a lot of folks in silicon valley, their ears are perking up when they hear you say that how broad do you think this really is? again goes to the regulatory

issue which is not just about regulating facebook but the whole industry >> well, i want to be careful in this space because this is trillions of dollars of our economy the innovations occur in america because of light touch regulation i prefer to have the market manage this. i want consumers first if consumers are taking care of, everything else will be sorted out. if we go too heavy, we'll become europe where they -- you know, this stuff hasn't developed over there for a reason but on the other hand to your earlier point, what's the fiduciary responsibility when these companies house your data, some of it knowingly, some of it unknowingly for the consumer and what role is there for additional resources at the federal level? i think there have to be standards. i think we have to look at how those are being used you know, the ftc is doing this investigation to see if -- what facebook agreed to in 2011 was followed or not. they have some substantial penalties they can levy. so we want to be careful in this space. but we also want to protect the

consumer and at the same time not diminish the economic opportunities that have just exploded from this great industry >> chairman, want to also get your thoughts on the news of the morning. the president using another social media outlet to make that news this is what president trump said on twitter. he said our relationship with russia is now worse than it's ever been. that includes the cold ware. there is no reason for this. russia needs us to help with their economy. something that would be easy to do we all need nations to work together stop the arms race, question mark prior to that, he said russia vows to shoot down any and all missiles fired at syria. get ready russia because they will be coming nice and new and smart. you shouldn't be partners with a gas-killing animal who kills his people and enjoys it >> yeah, yeah. i go back to how president trump reacted a year ago when his team put very targeted guided missiles in and wiped out the little cell using nerve agents on their own people.

i assume and hope that that will be the response year look, assad is using nerve agents on his own people this is documented by international sources. you cannot let that continue and by the wa i, it's pretty evidence the russians may well have used nerve agents against their people in england. so this is bad, bad stuff. and it deserves a coordinated thoughtful response. and i'll wait for the actual response. >> let me ask you, though, just about the rhetoric of it because the markets are down this morning some concern just about the language itself. i should also tell you and i don't know if we have a copy of it, this is a tweet from donald trump back in 2013 he says why do we keep broadcasting when we're going to attack syria why can't we just be quiet and if we attack at all, catch them by surprise? so being on both sides ofthe issue. but the question about the language >> yeah. i -- you know, it's not necessarily my style, certainly.

let's face it. there's a lot of sort of ma nnoy mano going on here i think that's important and that's the way he communicates. important. that's the way he communicates, and it's been pretty effective for him. i think he makes a clear distinction here if russia is shielding assad and allowing him to use the banned nerve agents on his own people. that's wrong we have to speak forcefully. >> okay. chairman, we appreciate your time, your perspective we wish you well with the hearing. you'll be able to watch the hearing at 10:00 a.m. eastern time of course, carry it live on cnbc you're looking at a live shot where mark zuckerberg will be testifying when we return, a little

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let's get to the new york stocks exchange. jim cramer joins us. facebook yesterday facebook today you were impressed with zuckerberg, i guess, to some extent yesterday, right? >> well, i mean, he's dealing with people who are, frankly, over their heads when they're asking their stuff it's pretty easy you're trying to teach people how it works in minutes and there's not a lot of ways to relate to them they don't understand. when you're in front of the senate, it's bad to begin with you never want to be in front of the senate i had to explain about mortgage products and it didn't mean anything but i think, look, he knows how to do this stuff you don't want to be in front of congress if anything else goes wrong another cambridge analytica or russian thing, they'll send it to the ftc and the ftc will ruin

the model. that's why facebook sells an inexpensive price. >> sometimes those guys in the senate make the house guys look -- or the house guys make the senate look smart. now we're going to the house today. >> yeah. technology illiteracy is incredible when you post things on the web, there's no privacy it's the lack of understanding of how it works that is palpable and i think, you know, they didn't -- no one made fools of themselves but it did explain there's another mistake, if zuckerberg has something else that is lurking, if sandburg knows something is lurking, they never put anybody from the outside examine. apparently nobody got fired. it means they're not done. >> no. all right, jim we'll be back for more in

minutes. "squawk on the street" at 10:00 a.m. eastern time. for complete coverage of day two of mark zuckerberg's testimony stay tuned we'll be right back. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, 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. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall.

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a couple of stocks to watch, oh, my gosh. it looks like when you were in ajax recently, right, andrew look at all it straight down. straight down. general electric if you took the name off the top and said this is-- the firm recs the investors avoid ge stock ahead of a restatement of prior earnings this friday and the quarterly earnings this week cowen said a miss is probably and there's no assurance the already cut dividend is safe let's gate final check. >> it'll be special. down 245 from the open we'll see what happens throughout the session got the paul ryan news. >> yeah. >> he's not going to run for

re-election. you have syria and mark zuckerberg the s&p down 24 and the nasdaq down about 53. oil been strong. the ten year yield has been lowered. down under 280 again thank you. >> thank you for hanging out. >> thank you for having me. >> at lot of people want you here and becky back, too i don't know what it means there's only so many chairs. anyway. >> you don't have time to explain the back story. >> it's better that way. >> join us tomorrow "squawk on the street" is next. ♪ looking at a live picture of the hearing room on capitol hill where mark zuckerberg will testify for a second day welcome to "squawk on the street." premarket took a spill about two hours ago as the.open twitter told russia to get