good morning, it's 8:00 a.m. at starbucks headquarters in seattle. it's 11:00 a.m. on wall street and "squawk alley" is live ♪ got to testify looking extra fly before the day i die i'm going

to touch the sky ♪ ♪ gonna testify before the day i die i'm gonna touch the sky ♪ ♪ top of the world baby top of the world baby on top of the world ♪ >> good monday morning welcome to "squawk alley." i'm carl quintanilla, morgan brennan and jon fortt. busy morning, morgan. >> it is 90 minutes into the trading day as investors shift the focus from political concerns to earning season, seven dow components alone steve liesman sat down with bill dudley last hour take a listen. >> if you look at the stock market, the context of the economy that's growing and expected to continue to grow over the next few years, stock valuations don't look unreasonable i think the volatility is sort of -- we're back to a more

normal regime. what was unusual was the low volatility that we saw in 2015, '16 and '17. i think we're back to reasonable volatility in the stock market. >> rbc capital markets, lori calvacina and u.s. equity strategy carl parker thank you for joining us on this monday morning. >> thank you. >> lori, you recently revised lower your s&p target for 2018 what's driving that? >> we addressed the number and reduced margins a little bit we're still expecting flat margins but didn't want to anticipate margin this is year that had impact on our price target we wanted to refine our assumptions for what the multiple would be at the end of this year. >> when you hear that volatility sort of returning to a normal regime, keith, what is your take on that and how do you sort of look at balance, i guess, earnings with very high

expectations as really the season gets under way in earnest this week versus all the headline risks we've been seeing >> from a volatility perspective, we've seen elevated equity volatility. what other macromarkets are telling us, rates volatility has come down significantly. in those instances where you've seen such a high, elevated vicks, you've seen an average of 16%. first key circuit breaker is really earnings. in those instances where we've seen a sell-off preearnings season, rallied 3% we're seeing that from a growth perspective, you're talking about earnings per share growth up 17% consensus and earlier reporters are beating by a median of 10%. not just on earnings but on revenue. >> keith, did you just take your target higher for the s&p? >> we started out pre -- i guess in november we upgraded our

target in january. we're in a wait and see mode we're now in this air pocket where does the market start to reflect those positives? and as lori had said, the multiple will get back to where we think fair is as we deal with a lot of these overhangs >> a lot of the work being done now looks at stocks and bonds. it's happened maybe one time in the last few decades and i think it was 87 if i'm not mistaken, where there was this big scare stocks managed to trudge through it was that the model for the year then >> in terms of the volatility itself, it's at a decent level now, enough to have active managers take opportunities for. we're looking for 25 on the vicks. >> 25? >> we're not expecting it, but that's our threshold of paper. we've been trending 16, 17% on the year average volatility tre itite iis

25 we have enough to give us >> a growth player, seen that stock run up 60% ahead of the earnings report after the bell today. do you play the market for growth or for value right now. >> >> i'm clearly in the value camp at this point in time we think we're late in the bull market typically you see big style shifts happen toward the end of the bull market. not necessarily at the tiptop. we've been in a tremendous growth market in the middle of 20 2006 this is the time you should look for that rotation. >> keith, what do you think of facebook's action, given all the attention around that company. it did bounce back a decent amount other fang stocks have done okay. >> i think it's a bit of a microcosm. you have the fears and

fundamentals fears of regulatory. but on the fundamental side you have strong 20% plus growth in many of these companies and strong cash flows. unique company on its own, netflix. this is a snapshot where we need technology and banks to drive the market higher. and, as lori said, you do need that growth and some catch-up in value to lead the market through the course of the year. >> in light of that, before we let the two of you go, keith, where are you investing or where would you recommend investors put their money right now? what happens if earnings aren't as strong as everybody is expecting? >> for where we are investing, we're along the consumer tactically we think the tax cut to the consumer 2 to 4% completely underestimated we're long tech and industrials along the secular side and i think if you do have the

message of earnings disappointing or guiding down, i think that lengthens, potentially, this period of volatility. >> great thank you for joining us, lori and keith. >> thanks. >> all right so, we've talked a little bit about earnings here. on the error air strikes over te weekend by the u.s., french and british forces take a look at the hardware that was used and companies making it powerful missile attack on three targeted sites involved 105 weapons, 66 tomahawks, the u.s. military's go-to launched from three war ships and virginia class submarine. 1,000-pound warhead can be reprogrammed midflight this put a spotlight on the pentagon's new stealth guided missile, jassm with 19 fired for the first time in a combat situation. those, too, can travel up 900

miles with a thousand-pound warhead. three french naval cruz missiles defense stocks are higher today. those moods relatively muted if history is any indicator, funding for replacements will likely make their way into the defense budget i was at raytheon's facilities where they've been manufacturing the tomahawks after the strikes we saw last year as well. >> the actual effectiveness of these weapons when they're being used in an operation like this. >> absolutely. the technology is pretty incredible it's interesting to see the rhetoric we've seen back and forth with russia's response and syria's response over the weekend. the pentagon and our allies are saying, no, nothing was intercepted. nobody even reacted until after we made our strikes possible

but i'm going to be talking about this, looking at this more in technology from both a defense and space perspective. tomorrow we'll be at the space symposium, broadcasting there, including air force secretary heather wilson and boeing's ceo. more conversation to come this week. >> all right when we come back, shifting gears. starbucks in damage control mode after an arrest video goes viral. more on the calls to boycot them coming up. taking a look at the dow this hour, stocks are near their highest levels of april. we're up above 200 points on the dow. s&p up about .75%. more "squawk alley" coming up. alerts -- wouldn't you like one from the market

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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. martin soro, one of the longest serving ceos in the world is out julia bo orstin has more on that good morning to you, julia. >> reporter: good morning, carl. martin sorrell leaves wpp after alleged misconduct the company is not revealing details of the investigation and sorrell rejected the allegation. he said in a memo to staff, quote, it's putting too much unnecessary pressure on the business, saying it's in the best interest of shareholders for him to step aside. 73-year-old's resignation is

being treated as a retirement, qualifying him for 19 million in pounds over the next five years and brings to end sorrell's 33-year history in which he overturned a company which made shopping baskets through a series of massive acquisitions, including j. walter tohompson an mather he was known for his massive pay packages, 70 million sterling in 2015 that drew backlash from shareholders but worth noting that he has relatively low ownership of the company, only about 1.5% as the company continues its ceo search, it has, in the meantime, promoted its chairman to executive chairman and has named two co-coos. this comes as wpp shares have lost about 35% over the past 12 months on disappointed quarterly results and the company also forecast zero revenue growth for 2018 all of this raises questions

about wpp's future, whether it should be split up or managed differently, given the growing dominance and more competition as for sorrell, a source tells us he does not have a noncompete and he's not ready to retire we'll have to watch and see what happens next. >> julia, thanks for that. julia boorstin for more, we're joined by executive editor at ricoh and. cara, we can talk about sir martin in a second but does it change the way that the firm operates in what was an increasingly difficult environment? >> the firm was him so it's interesting. he was wpp he's the one that spends time in silicon valley he's the one who has been competing with facebook and google it's interesting to see what happens. they face other issues other than this one, which is a big

issue, obviously, in terms of how the advertising business is changing it's a bad -- the whole thing is not great for wpp, i think. >> implications for some other large names we've been talking about the last couple of weeks. >> yeah. what steve jobs was to tech or henry ford was to the auto industry, he defined the modern communications era to kara's point, i don't think it survives without him. you'll see good bank, bad bank they'll take their growth assets and spend them or you'll start seeing the disposition of assets modern conglomerate, if you look at single brand name focus, the latter vastly outperform breaking apart itt and the conglomerate. >> does the industry need a wpp, something of that size, a conglomerate it's questionable whether anybody else can hold that thing together, which sir martin put together if it breaks up, does somebody else essentially have to put

together another one in order to be able to survive in the age of google and facebook, controlling so much data and manipulating the industry >> no. how about google and facebook controlling so much data and manipulating the industry? that's how it's going to go. >> not good for marketers. >> he did a seefrs acquisitions and various things that were somewhat -- he didn't do a great job on the internet stuff, i would say. i don't know who could do that this is what's happening fa facebook is splitting up the digital ad market. that's it. it's very hard to think of a counterforce in this area unless publishers get together in some manner it's extraordinarily difficult to compete with the two of them in this area. >> as julia said, his deal apparently means he's able to compete with the firm after this you think we've heard the last of him what would you expect him to do? >> you never want to count sir martin out

he just had a kid at 73. i'm not saying it's a good or bad thing but this is not an individual who is looking to hang up his cleats the noncompete, his company will not go down as a poster child for great corporate governance to let someone walk out the door without a noncompete -- by the way, i had two companies that almost got sold to wpp, my contract was 40 pages long and it appears that martin sorrell's is zero. starbucks is the other big story, kevin johnson apologizing, following this incident over the weekend, two black men arrested at a location in philadelphia. they asked to use the restroom but were denied because they hadn't purchased anything. the #boycottstarbucks did surface online. >> starbucks was built as a company that create ace warm, welcoming environment for all customers. that didn't happen in this case.

that, i know and so it's my responsibility to ensure that we review everything we review the actions of the store manager, the guidelines that were provided and we review and invest in the training necessary to ensure that doesn't happen again. >> kara, your reflections on their response so far? >> it's a tough situation. i think they're going to philadelphia, all the executives i think howard schultz is probably already going there, too. they are to deal with the philadelphia situation there's a protest today at the store. this is a test for kevin johnson, the ceo he used to be at microsoft i know him pretty well from when he was at microsoft. what's interesting is that starbucks is considered one of the more progressive companies if you made a list before this this is just an incident where there's failure all over the place. it's really a test of how they respond. and if this picks up, this idea of these -- there's always delete facebook, delete uber,

delete starbucks we'll see if it picks up around the country. it could, because of social media and other things, unless they don't -- if they respond aggressively and apologize and do things, i think they'll be in better shape than not. >> scott, do you think kevin johnson is doing the right thing here, getting ahead of this and being apologetic right front >> he has put thhim on the board of facebook. you address the issue, put him on camera. didn't surround himself with $1200 an hour consultants. he said this will never happen again. what has facebook said what did the ceo said after disappearing there will always be bad actors. in other words, this is going to happen again this is how you handle a crisis. this will be a blip. it's a bad blip. it will be a blip on the radar starbucks will come back stronger playbook that facebook should be learning from.

>> one of my main issues is that we're in this culture now that there's a bit of video that doesn't show the entire incident and everybody feels obligated to react. i still want to hear the whole story on everything that was said, everything that happened in that starbucks. >> good point. >> for some reason, people are eager to protest before we get the whole story, the link is barely, what, 48 hours old. >> after the united flight, we were talking about it just as much. >> exactly and there could be very good cause to protest but still, let's get all the facts. if you were meeting somebody there who showed up a little bit later. they asked to use the bathroom and were denied. why were they asked to leave the store after just asking to use the bathroom that's a good question you have to ask the manager or employee who had the interaction. >> there was an incident a week before, very serious robbery situation a week before. this group of people were

probably nervous and gives them no cause to have done this this is failure of management at the store and perhaps starbucks in terms of how to deal with that and these kind of incidents. it's very clear. this is just -- this is starbucks problem. i think it's pretty obvious what happened here. it continued to escalate that's what it looks like to me, against a backdrop of a store that was already nervous about a previous incident. >> that points to the difficulty that companies have in responding to situations like this clearly. >> yeah. >> netflix results after the bell tonight, taking the stage in vancouver for a tech conference over the weekend, facebook board member, offering his first public comments on the scandal, saying social media companies are trying to grow up quickly and that he didn't think they were being completely unfairly criticized. also netflix is the anti-apple

because it shares so much sensitive information about its business across departments internally just for mentioning the board of this company, facebook. >> it's not really a board of directors. you have a board of advisers at the end of the day, they can't fire the ceo we have a ceo who will probably be there 70 years. reed hastings is probably the most underrated ceo. a lot of people get a lot of press. ultimate pivot from going to dvds being mailed to streaming company, it's the best performing stock. >> it is on the s&p. >> managed to replace profits with vision and growth, which means other content companies cannot compete with the chief capital that netflix has. >> is it about international in this report, kara? >> yeah. >> and overall users numbers what does netflix has to say to impress the street, who has already been pretty impressed with the stock >> the stock is pretty

expensive. international growth will be critical for the company maybe not so much spending on content. they've made a lot of spending -- they've done a lot of spending not made a lot of spending where the growth is going to be and how they handle it international. i think scott is completely correct, this guy is a really impressive ceo, really mature. he seems better because he's mature and you're dealing with people that aren't mature. when he says something that's reasonable, you're a genius. he runs that company in a really interesting way. i don't know that he's the anti-apple he was just pointing out that he does it differently. the headlines were all anti-apple they have a way of running their company. he does it differently i don't think he was making a particular value judgment or not. just saying this is how we do it. >> scott, given the content spent, $8 billion this year. if that number were to be higher and in light of comments about

how netflix compares spending to other social media companies, how close do you think investors will view that >> we are in a golden age of tv. the amount of content and talent going into television. netflix was at 6 billion, increased their 2 billion. amazon six steps behind them everyone talks about netflix versus cable amazon video versus netflix is the match shaping up netflix is the best thing that happened to google and facebook. advertisers need to reach those millennials. take money out of broadcast, shuffle it into goog sbl facebook n netflix versus amazon will be a fun match to watch the next couple of years. >> do you look at --

>> disney and time warner. if for some reason -- with bob iger, you have two of the most talent executives that aren't in a dual share company they actually have to earn a living disney is probably the only one that could take on netflix or amazon could with their chief capital. you make that jump to light speed, netflix, amazon prime, it's a great time not to have anything to do on a friday night. >> try getting that past the doj, time warner. >> kara and scott, thank you good discussion. >> thank you. facebook under fire. we take a look at the amount of money executives are spending to stay safe and check on the s&p 500, all 11 s&p sectors are higher this morning. s&p is up 17 points. [phone ringing]

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let's get to dominic chu with the european close. dom? >> different story in europe stocks mostly lower in the wake of those u.s.-led missile attacks in syria russ russia one "the biggest loser"s. that rts moscow index down by about 13% in the last two weeks alone. recouping its earlier losses against the u.s. dollar. meantime in the uk, pound sterling rising to an 11-week high against the greenback, helped along by optimism about this week's brexit talks on the m & a front, volkswagen trucks division suggesting its open to acquiring a majority stake in navistar of the united

states the current stake is around 17%. according to u.s. law, any stake above that number would require volkswagen's heavy truck business to issue a formal takeover bid for the company sir martin sorrell stepping down as ceo of wpp. shares of that uk ad giant have handily outperformed the london ftse certainly a big focus in trading in europe and the u.s. today back over to you. >> all right thank you, dom and as we head to break, taking a look at the major averages in contrast to how things were going in europe. stocks are trying to avoid their first back-to-back declines in april despite geopolitical tensions former ambassador to syria joins us next as the dow is up almost 200 points s&p and nasdaq also higher "squawk alley" will be right back

good morning, everyone i'm sue herera the defense department releasing video showing the uss john warner launching missiles toward syria. u.s., french and british warplanes and ships launched

more than 100 missiles mostly unopposed by syrian air defenses iran calling those missile strikes an act of aggression spokesperson also commented on an april 9th strike that damascus blamed on israel, saying that country would regret that attack. new research suggesting combining immune therapy drugs with chemotherapy may improve survival for lung cancer patients it overall doubled the survival of patients. powerful spring storm brought rain and ice over the weekend. some 250,000 people remain without power this morning that is the news update this hour back downtown to "squawk alley." carl, back to you. >> sue, thank you very much. sue herera stocks are shaking up those geopolitical tensions. we could see volatility

following those strikes by the u.s. in syria. we're joined by the former ambassador of the u.s. to syria, ted kattouf. mr. ambassador, we appreciate your time as always. we heard these words over the weekend. surgic surgical, precision. obviously, mission accomplished. can it be this easy to thread that needle, make a stand and then back away >> well, i think it is essentially, the u.s. gave russia plenty of notice that we were going to be launching an attack they could pretty much guess what we would be going after so they had time to make sure their personnel were clear of those places there were no casualties not even clear if there were any syrian military casualties we sent the message. we didn't start world war iii. as far as i'm concerned it's all good. >> what's the risk now for escalation, for bigger

geopolitical risk? >> there are quite a few basically if you think about it, you've got turkish forces in syria, iranian forces, russian forces, u.s. forces and, of course, syrian regime forces then add to that a number of militias sponsored by this group or that group. particularly iranian militias, hezbollah being the number one above those out of lebanon and virtually you have israel dropping in and out of the war and there's reason to believe that that april 9th attack was launched by israel indeed, i was in lebanon a few days ago and lebanese north of beirut told me they heard these loud noises from israeli planes and presumed that israel did a standoff attack on this air base, but stayed out of syrian

air space in order not to risk being hit by soviet -- excuse me, russian made the biggest threat out of syria is that iran is creeping close to israel's occupation along with hezbollah, they're manufacturing guidance systems for missiles that hezbollah may have and israel is taking the threat very seriously you could see an iran/israel war break out virtually this year. >> ambassador kattouf, if we see n an iran/israel war play out this year, how would you guide the current administration if it happens? >> well, it would be -- you're correct, it's a very dangerous

situation. on one hand we have to remind ourselves that russia's interests are not iran's interests and vice versa those two countries have their own differences where syria is concerned. and israel is in a position to defend itself with some of the weapons it has it doesn't necessarily need any direct u.s. participation. but, of course, anything can happen in that situation we still have 2,000 american troops on the ground most of them euphrates river, closer to iraq. >> ambassador, how did this strike change where the pieces are on the chess board for the u.s. it certainly indicated that we are watching the situation and willing to get involve d. does it obligate us or stretch us in any way that people might not realize? >> i don't see it that way

basically the use of chemical weapons, we've said, is unacceptable to the international community. you've gone too far. you pay somewhat of a limited cost we haven't said anything about bombs or other brutal methods that the assad regime and its allies are using to root out pockets of resistance to the regime and basically assad is winning and he's going to win with russ russia's help. i don't see the 5.5 million refugees or so coming back any time soon. at least not most of them. >> ambassador, refugee story remains something we need to talk about in addition to the war component we saw over the weekend. we hope to talk to you again about it thank you so much once again, ambassador ted kattouf, former

u.s. ambassador to syria, kuwait and the ue top of mind for tech, ceo of symantec will join us. how artificial intelligence is powering their brand new initiative the dow is up 201 potsin more "squawk alley" in a moment. . mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

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report." is it enough to give investors the green light to buy more stocks plus the one big box store that the top retail analyst says you need to buy right now. big shakeup for your guest trader kevin o'leary find out about the big change he's making in his portfolio "half time report" starts at noon eastern i'll send it back now to jon fortt. >> thank you, brian. internal threat detection tools, symantec launching targeted attack analytics, a new tool that can discover attacks that often go undetected joining us is symantec's ceo, greg clark good morning, greg. >> thank you for having us on the show. >> dealing with attacks and

threats, trying to use ai, tanium, baracuda any of your smaller competitors trying to do this. how does this move by symantec get you more entrenched in this game or offer something that the market hasn't seen before? >> the difference between us and some of the others is that we have like 500 researchers that for many decades have been work ing on this problem and we have a lot of data. we see a lot of what's happening in the world at this given point in time we know about the current situation in malware space we've automated what those researchers have done. if you think about the report we made on dragonfly, very sophisticated attack that happened on our power stations and we found some adversaries. we identified that attack was

happening on the control side of power stations and we've automated that now with machine learning techniques and have made it available to customers so feen you're a medium-sized customer -- this stuff has typically been reserved for the largest of the large. with targeted attack analytics, bringing that to market, we're able to deliver that to companies across the globe, which we think will make a big impact on attacks targeted for a specific use and hard to find. >> how will this affect your top line arguably, you're able to do more analytics, find more threats in a shorter period of time because of this. does this mean you'll be bringing in more revenue how exactly will that filter through? >> we're in a quiet period right now. forward statements are difficult. so i would say that in the business of cyber defense, symantec is the leading company, you have to stop more threats, get more results when you bring the great

knowledge that symantec has, throu automate it, it really is about delivering results for customers. in this era, we have to come back to what are we here for this is really about prevention and detection of things that can harm your company. you pick the paper up every day, someone has had a substantial cyber problem. this allows us to move from an era of we think there might be a problem over there to hey, we found that problem there is a problem and we stopped it for you we think we're bringing the industry back to a prevention stance and really doing that through automation i think that's really the theme of really being able to deliver value to our customers. >> you mentioned the power grid example before to me it seems that's the definition of cyber threat

that's changing. case in point, 2,000% increase in russia trolls on the heels of that u.s.-led air strike friday night. that and given the threat of what we've seen with facebook and russian interference in the election in terms of spread of misinformation, at what point does that become the cyber threat and is that something you're looking at in terms of future tools >> absolutely. over 40% of citizens were affectedpy cyber chrome in the last several months. major, major crisis. in the context of today, what do you really care about? if you're a citizen you care about cyber safety there are three pillars of that. there's also an identity problem. you need to take ownership of your own identity and the protection of that identity. third piece you mentioned is really privacy, making sure that you can take care of your privacy.

europeans have come up with a bunch of privacy legislations under what's called gdpr in there, consumer's right to be forgotten. we have a serious, i think, call to arms across the industry and enterprises around data protection, being able to understand if you're a custodian of consumer data, how do you do that properly? and as a consumer, your malware protection, identity protection and privacy you leave behind in the future of consumers you need a partner in cyber safety under our norton brand at symantec we plan to deliver all three of those. >> greg, we look forward to seeing how this works and whether it filters through to even better performance for investors. greg clark, ceo of symantec, thanks. >> thank you very much when we come back, you heard

the president go after amazon over online sales taxes. it's the supreme court's turn to weigh in more on the case that could change the game for online retailers when "squawk" comes back ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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.

amazon put the spotlight on online sales taxes, which amazon does pay, by the way tomorrow, the supreme court is getting involved courtney reagan joins us with more >> president trump has amazon in its cross hairs. last munjt, he tweeted, quote, i have stated my concerns with amazon unlike others, they pay little taxes to state and local governments, use our postal service as their postal boy and are putting many retailers out of business. in reality, it's a bit more complicated when it comes to the tax part if amazon sold you the idea, it does charge the consumer the appropriate state sales tax. sales tax are online purchases are required only if the business has a physical presence in the buyer's state this is a result of a court case, but amazon has chosed to

collect sales tax on all items it sells since last year but it hasn't required its third-party sellers to collect sales tax on goods sold. they list their goods on amazon.com according to amazon, nearly half of the items it sells are from third-party sellers. amazon says it has more than 100,000 vendors selling more than 100,000 dollars annually. that's worth more than $10 billion. that's the loophole that can cost states big. the government accountability office estimates state and local offices could have made over a billion dollars by taxing purchases, but the physical presence law may not be along much longer. the supreme court is slated to hear arguments starting tomorrow on a case to allow states to collect sales tax on internet purchases even when they don't have a store front or distribution center in that state. we expect to hear the decision in june. the landscape for online sales may be changing. carl, we should say the same goes for wayfair, which, of

course, is the one that's really front and center with the supreme court case ebay, etsy, walmart has a marketplace, all that have third party sellers. >> yes, president has mentioned this case in the past few weeks. it will be interesting to see a decision once we get it. good stuff important to understand. our courtney reagan watching amazon today >> when we come back, you will not believe how much ceos like zuckerberg and bezos are shelling out for security. the eye-popping numbers when we come back in a minute. >> it's 11:00 a.m. on wall street, and "squawk alley" is live >> big tech and the billions riding on innovation >> carl quintanilla at post 9. >> the first stop for companies rtlioung your life and yr pofoo. whether it's a big thing,

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and according to equilar, the biggest sum ever for a fortune 100 company, quote, by a wide margin by comparison, oracle's larry ellison had what was believed to be the previous record at $1.8 million. jeff bezos said they spent $1.6 billion in 2016. and warren buffett had around $387,000 a huge gap google doesn't list costs for security for larry page. and sergey brin. they also spent $1.5 million on private jets, up 75% from 2016, and sheryl sandberg spent $2.2 million on security, or facebook did. that's believed to be the second highest among fortune 100 companies for 2017 why these big increases? well, in its filing, facebook had it was necessary to address safety concerns due to specific threats and they installed

security systems at zuckerberg's farious homes. they don't list the security guards who protect him, but he has a team of 16 guards working in various shifts at his home. so many of those guards have shown up every day that local residents are complaining about taking up too many parking spaces another reason we may have had an increase last year, mark zuckerberg took that famous road trip across america to learn more about how the rest of the country lives. that required a lot of security. back to you. >> robert, thanks. interesting, i think part of the reason for these security expenses is this tradition of silicon valley ceos trying to live like everybody else some live in atherten behind gates. in some ways, it's probably less expensive to secure those locations than in a leafy residential area in palo alto like mark zuckerberg does. >> not like haes the biggest house on the block he's been notoriously understated despite the billions in his bank account. >> definitely some intriguing

numbers that got a lot of attention last week in the wake of those congressional hearings. robert, our thanks to you. >> by the way, dow is trying to push past its 50-day moving average for the first time since late march s&p has a little more ways to go not far from session highs let's get over to sully and the half >> carl, morgan, john, thank you all. welcome to halftime. i'm brian sullivan in for scott wapner the dow within striking distance of what some are calling a very important technical level. the 50-day moving average. the number to watch is 24,620. 24,620, and there will be a quiz write that down. joining us for the hour is joe, jim, steve, josh, and kevin o'leary, chairman of o-shares etfs a pretty good day on our hands dow is u