it's 5:00 a.m. in new york, 6:00 at night in seoul, south carolina here are the five big things happening now. the leaders of north korea and south korea meeting face-to-face for the first time in decades. amazon shares soaring as earnings came in strong but they also announced a big surprise you may not be happy about. sprint and t-mobile could rap up a deal within the coming days. president trump hosting german chancellor angela merkel at the white house. and meet your number one nfl draft pick >> the cleveland browns select baker mayfield

>> wow and more on the browns big bet on baker coming up it's friday, april 27th, "worldwide exchange" begins now. all right. good morning from wherever in the world you may be watching. that's a live picture of the president of south korea and kim jong-un of north korea meeting today in the dmz, the demilitarized zone between the two countries on the southern border, on technically the south korean side. this is the first time that the leader of fnorth korea has traveled south of the dmz since the 91950s, to call this a historic meeting may be an understatement doesn't seem to be helping the markets now. you can see the implied open is a drop of 43 points. there is kim jong-un who signed

the welcome book at the dmz last night. writing this is a new era of peace. we'll have more on what is a monumental meeting coming up there is your futures look nasdaq may go up dow may go down, it's so early let's move on. amazon stock hitting another record high. the company posting a big beat there's a lot to talk about in the quarter. cloud revenue grew nearly 50% last quarter what might you not like? the company is increasing prime membership cost to $119 a year and amazon continues to bet big on content locking in a two-year deal to stream thursday night football games let's get to arjun kharpal with more on the quarter. the numbers are massive, but i have a feeling the media will be focused on the hike in the price of prime

>> yes we know amazon has 100 million paid prime subscribers and that they're increasing the key is how much does this put off users from signing up to this key service which includes two-hour delivery and prime video streaming service. i also want to dig in to some other numbers. the key is amazon web services, which is amazon's cash cow it accounts for 73% of the company's operating profit, and revenues in that division grew 49%. that is driving amazon's increase in spend every quarter, especially in content to take opt likes of netflix investors are happy with that, they're saying aws is growing quickly, but you are investing in the areas we think you will grow also drawing your attention to one more interesting thing, that's the advertising business of amazon. it's only $2 billion business

this quarter, but grew at 139% in sales if we look, amazon had some of the strongest earnings out of all of the f.a.n.g. stocks netflix was strong alphabet as well, but there was concern over spending. and massive black clouds over facebook but they managed to beat expectations when it comes to growth as much as these companies have been growing, the market has been responding in a mixed way if you look at amazon, that's up nearly 30% year to date. that'scy can csignificant moves. netflix up, and concern over alphabet and facebook. we are seeing more specificity

in stock picking in particular names. >> arjun, does amazon get the attention in the uk the way it gets it here amazon, i don't want to call it the new google or microsoft, but this is a stock that's in the headlines every day. same way in the uk >> it's a huge company over here they have the prime service. many people are subscribing to it they use the delivery. in london in particular given that it's a big city, they launched some of those key features around two-hour deliveries just the way it's getting scrutiny over tax in the u.s. from president trump it has gotten scrutiny over tax here in europe luxembourg is known as a tax haven in europe, so there's concerns about this company not in the sense of growth but how the regulators come down on it and whether trump's tweets have some bite, and whether any new

regulation on tax, in the eu there are discussions of a new digital tax bill, whether that could impact companies like amazon who are in countries that are in tax havens. >> we will see people getting deliveries in the pub. i swear that will happen >> they will start ordering beer off amazon to the pub. that's my prediction >> i didn't want to say it, but you did. >> i want to order beer from one pub and delivered to another pub. i'm buying, by the way this morning's rbi has to do with jeff bezos' wealth. it's a big number. that's coming up another pair of tech names to report. microsoft's tencent beat equalling a 2% jump in that stock.

likalson microsoe amazon it poi strength in the cloud business intel beat on the top and bottom lines. intel citing strong groent in i growth in its data business for the big beat joining us now is tim lesko. tim joins us by phone. across the board every big tech company seems to be beating on earnings is it enough to make people buy the stock? >> i think so. i think what you're seeing out of amazon with a beat in almost every metric, but amazon is really a stock based on growth trajectory, not on earnings. if you break it down to earnings and look at the other two that reported, you have strong earnings beats and low valuation. there's a lot of room for tech to run in here, even though it gets most of the headline coverage >> it does do you feel at all like there's

any headline risk to that prime jump price hike? do yyou think that's in any way negative or a pure positive? >> i think it's a positive i think amazon needs to make money for the services it provides if you look at t it, amazon web services is not largest part of their business so they need to make money at what their core business is. by doing it through prime rather than raising the prices of the things they sell, they're still competing as the lowest price on the things they sell on the internet, while prime is similar to a netflix or something elsewhere people are paying it on a monthly basis or yearly basis, they're not really seeing it on a daily basis. it's unlikely to change users. if it does change a percentage

of users, they're still making enough margin out of charging a higher price, even if they lose some subs they're still making money. which at the end is what shareholders want to see >> a 50% jump in cloud revenue year over year i went through the numbers, i was trying to find something to come back at you with, some way to poke a hole, i'm having trouble to criticize anything about the quarter, and we're the media. we love to criticize >> and we're value based investors, and we love to criticize also, but those people who value based on earnings froth or revenue growth see a nice trajectory. if you look out through the 2019 earnings estimates for this company, they're massive it's going to be interesting to see whether or not they lose subscribers with prime but with all of these internet services, once they have your credit card and you're signed

up, it seems like a roach motel, very few people leave. >> you don't even have to press anything now, but you say the name of their inhome s-home ass, get me paper towels, and it does that's not a misprint on that graphic. amazon stock is up $106 -- not to 106, it's up $06 to $1,624 a share right now. if you own amazon, take the day off. let's get a live look to the korean peninsula where the leaders of south korea and north korea are hosting a truly historic meeting in the dmz he is speaking on the southern

side of the demilitarized for the first time since north korea was created back in the 1950s. this is an historic meeting. any headlines that come out of it, we will certainly bring to you. the korean stock market, as you might imagine, higher. let's get back to the market travel deals, lattes and barbie. a few other big-name results to put on your radar. contessa >> starbucks second quarter earnings were in line with forecasts. same-store sales in the u.s. rose 2%. slightly higher than expected. but traffic was flat starbucks afifirmed its full-yer outlook. the stock is down in extended hours. kevin johnson will be on "squawk on the street" for an exclusive interview today at 9:30 a.m. eastern time mattel reporting a wider

first quarter loss sales beat forecasts on robust demand for barbie and hot wheel toys, but mattel expects a drop in second quarter revenue, largely due to toys "r" us going out of business. the stock is up 1.5% shares of expedia are up the travel company's first quarter adjusted earnings in line with estimates. revenue topped forecasts booking at expedia, hot wire and orbitz rose 15%. it's almost almost 11% in extended hours trading >> a lot of stocks up today. we'll see you in a you few minutes. sprint and t-mobile are making progress on their merger talks. reuters reporting the wireless carriers are aiming to reach a deal as soon as next week. sprint and tv mobi-mobile came e to a deal in november, but softbank pulled out of talks at

the last minute. square is buying home site builder weebly square has been trying to expand beyond payments with acquisitions of food delivery service company cave yar aiar. come ing up, more on the historic meeting between north korea and south korea. live to seoul when we come back.

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for the first time ever the leader of north korea setting foot in south korea. kim jong-un meeting with south korean president moon jae-in let's get to eunice yoon live from seoul with the latest >> thank you very much the leaders of the two koreas will be sitting down to a banquet dinner in about 15 minutes from now north korean leader kim jong-un will be joined by moon jae-in, the south korean president along with their wives for this multi course meal. this dinner caps off a full day of ceremony as wells a pleasantries the two leaders in the morning were exchanging jokes. in fact jim jong-un signed the

guest book at the truce village in the dmz writing new history begins now what everyone was waiting for was a joint declaration from the two gentlemen, which would include some statement of peace for potentially ending the korean war because these two countries have been technically still at war until today that joint statement came out just a couple minutes ago saying that there will not be any war on the korean peninsula. we are declaring that complete denuclearization will be achieved. north korea and south korea will end the korean war, and we would like to change the total order on the korean peninsula. this is all sounding very good i think it's worth noting that we have seen these joint declarations before. because since 2000 this country has had two summits, both of

them ended in joint declarations of peace, and then nothing came of it. so we don't know whether or not this will be different, because we don't know the intentions of kim jong-un. if he's serious about peace. history has told us in the past that north korea has not necessarily wanted to make good on their promises. the other issue here at play is that president moon jae-in's hands are tied because a lot of people here see him as limited because this will depend on the potential meet between kim and president trump. >> we just saw live video right now of -- i assume that's kim jong-un. it's hard to know who's in this fleet of cars. whom ever it is, they drove across a strip of grass. as i understand it, there's so much ill will between these two nations, there is not a paved road connecting the countries.

is that true >> i don't know if there's a paved road between the two countries. i would think there should be, because he did drive through earlier today we did see his mercedes-benz being accompanied by several jogging security guards when he earlier went back to north korea for lunch but i think what is also very important is that we are seeing this historic moment where these two countries are coming together these two leaders are making exceptions to be seen as making history here >> yes i believe -- i don't think you can see it, eunice i believe we saw kim jong-un's sister come out of the car she's greeting her brother now what we had seen is that they drove across what looked to be a strip of grass, a lawn, and then

went off a curb to get down on to the pavement. that's kim jong-un's sister meeting with president moon jae-in and his wife. >> she will be joining the delegation that will be having dinner with the south korean president. she is one of 26 people in that delegation that includes several -- her, but also several security people on the north side as well as the south side what is also interesting is the absence of economic people only one business person on the south korean side who is joining the delegation for the dinner tonight. i think that also is an indication of where the south korean president's head is at. he has been saying

denuclearization is the most important thing. he said peace and denucle denuclearization is the most important thing. in the past the focus has been giving economic benefits, aid or other perks to the north koreans up front and not getting a lot for it so there's been criticism of past policy, called the sunshine policy of south korea, and now moon jae-in is much more cautious about this approach >> we'll come back to you. i have a feeling this will play big in china as well let's bring in nicholas burns, former u.s. ambassador to nato, as well as a scnbc ontributor. there's really no way to overstate the historic nature of this meeting, is there >> symbolically, brian, it's very important we have not seen this type of series of moves by the north and

south in a very, very long time. it's welcomed to see a reduction of tensions on the korean peninsula. it's welcomed to see they're establishing a relationship of trust between the south koreans and the north koreans, but i have to tell you a lot of skepticism that this can lead to the complete denuclearization of north korea. that's the key question that the trump administration will focus on >> this meeting came about fairly rapidly a couple months ago we had you on talking about missile threats, threats of war from kim jong-un. now they have this meeting, showing live video of kim jong-un, his sister and the leader of south korea meeting. what do you believe kim jong-un's ultimate goal is here? he must have something in mind >> i think he wants to see his country removed from isolation respect given.

he wants relief from sanctions and to be accepted on an equal basis as a legitimate country. he wants all that. i don't think he wants to denuclearize his country, to give up all the nuclear weapons, his entire nuclear apparatus, that's the key to this process moving forward i don't want to rain too much on the parade these are extraordinary shots you're showing on cnbc it's a big moment in international politics it's far better than we were six months ago when we were on the verbal of a conflict, but there's a long road ahead. it could take years to get to a final agreement. >> you have to have a first step i do wonder, this did come about fairly rapidly, you have to have that first step. i wonder what the next step will be if, indeed, these talks continue, we leave today feeling good what needs to happen next?

>> you have the two koreas meeting. the next step is for south korea to report back to the united states, to president trump, and secretary of state mike pompeo about whether they think kim is serious in establishing a timetable to dismantle his nuclear apparatus, to take some early steps to do that, to actually dismantle part of his nuclear apparatus as a sign of good faith i think the united states and south korea are not even sure what the extent of that apparatus is where are all the nuclear facilities you almost have to have an inventory established first to decide on the pace of denuclearization of course then president trump will have to decide at what point does he meet, the end of may, june, further down the line where that meeting will take place. people speculate it might be in singapore, not where the two

korean delegations are meeting today. a long road, but i must say a very powerful day of symbolism on the korean peninsula. >> it's truly remarkable for the last year plus we would ask geopolitical and macro market guests on cnbc what is the greatest go yo plieopolitict to the world in said if they did not put north korea aggression to the top it would be near the top has the threat been reduced by this meeting >> i think the threat of a war tween the united states and north korea is significantly reduced now. i don't know if that's going to be permanent, but significantly reduced over where it was five or six months ago. this all started on january 1st with kim jong-un's new year's message, then a promise of a meeting with president trump, then mike pompeo's secret trip

to pyongyang we can be assured there's very little chance of a conflict now. we're in a diplomatic phase. this cis where we should be. and i think president trump and his team deserves some credit here they have take an series of steps that a lot of people didn't pay off at least at this point we are in a far better place than at the end of 2017. >> we seem to have come years away from months ago where president trump was calling kim jong-un rocket man, trading barbs back and forth now we have this meeting in south korea. appreciate it. just to show viewers, you can see the "wall street journal," front page here, we have the handshake between moon jae-in and kim jong-un. it's not just a political story

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just made in the past 12 hours. and crypto up big this week. we'll find out why when "worldwide exchange" rolls on. ♪ welcome back happy friday, as we call it on this schedule, tomorrow we don't have to set the alarm day. i'm brian sullivan, thanks for watching we're halfway through the 5:00 hour stock futures are mixed. nasdaq is up nicely. amazon is up big, microsoft up a couple percent could be a big day for big tech. let's check on the bond market stock moves today maybe more than the bond market ten-year yield, 2.97%. and we are entering the summer driving season, also known as summer, pay attention to oil

prices wti crude down 30 cents. gas prices 30 cents higher than this time last year. amazon posting a big beat just as they announced a $20 price hike on prime membership prime membership going from $99 a year to $119 a year. joining us to talk about the macro economy is chris rupkey from mufg union bank you're not an amazon economist, are you? i'm kidding. the reason i asked but amazon is because with 80 million prime users or whatever in the united states, is that price hike enough -- is what amazon did enough to shift the needle on how the fed views inflation? >> probably not. don't forget the forces of inflation --

>> go aod and evil? >> it's not just a red hot economy that will set off inflation or the fact that the unemployment rate is low and companies have to offer us more in wages to attract more workers. it's really medical care costs that are holding down inflation right now. medical care services. so it's going to take a lot. the economy will have to run very, very fast to get inflation like wildfire. >> we have gotten to a point where we have seen the iphone price hike that some people cite these witt companies that are so b big. >> to move the needle, on

monday, core inflation will go from 1.6 to 1.9, it will only go to 2, 2.1, 2.2 at the max in the next couple of years it's just not as much as you think. we're not back to the good old days where the bond market sold off, people thought the fed was seriously behind the curve there's too much inflation >> those are the good old days >> the market was more cyclical. bond market was moving economists were in demand everywhere on wall street. now it's like rates go up a little to maybe 3.5% at the end of next year, ten-year yields, what kind of forecast is that? where is the dynamism? it's not there >> we've gone from big jumps to small steps. gdp coming out, how is the overall macro u.s. economy doing now? most of the data seems good, but

the stock market has fluttered on this peak earnings idea how do you see the overall economic outlook >> the economy is doing well most people think it's fiscal stimulus and greater government spending plans from congress that they announced a couple months ago so the idea now is -- even the fed grudgingly has moved the forecast from gdp from 22.0 something to 2.7% this year, 2.4% next year, then 2.0% in 2020 so the collision comes in how sustainable is this growth the administration, the famous one-page trump memo from the treasury says gdp will be 3% >> this is a president who is not going to be happy if we finish this year and people like us on cnbc can't say we averaged more than 3% growth for the u.s. economy.

>> i know. but he can -- >> is there something the government can do to goose it? this is not a president who likes to lose or be wrong. >> no, but he wanted to -- originally the campaign promise was the double gdp, which meant 4 %, 4.0 now that's been dumbed down to 3.0. as long as it's 2.5% plus -- >> is that enough to sustain what we care about, job growth and maybe wage growth? >> i think he'll get credit for that wages, don't mention those those are coming out this morning. >> yeah. that's why i mentioned them. >> this wage number at 8:30 this morning, it shows there's more inflation than the other one we'll get next friday with the payroll jobs report. >> which one do you watch? >> the one in my paycheck. the higher number. >> is the number today more

important than next week we like to talk about the monthly payroll number like it's a huge thing it hasn't moved the market the last couple of years i wonder if today's wage number will show worrisome inflation. >> it is the first quarter a lot of times in the first quarter you get a boost from wall street. >> bonuses kicking in. we also, by the way, quickly before we go, we had in the first quarter a large number of big companies announce one-time 1,000, $2,000 bonuses on the back of the tax plan i have to imagine if the numbers come in good, bears will say, it's just the one-time bonuses the bulls will say everything is great. there is that weird factor in the quarter. >> we'll see maybe it could be a stronger number maybe 0.8% which would push wages above 3% which would be a good reading >> many people saw more money in

their paycheck after the tax cut. it will be an interesting quarter. you always have a home here. >> thank you coming up, more on the big breaking news out of the korean peninsula and a crypto comeback. bitcoin up another 6% right now. we'll talk about prices and whether the rally can hold. sometimes you have do what you have to do why pantless on the a urpgto is trending it's pg, don't worry back after this.

the top trending stories contessa brewer is back. tell us what is buzzing, trending, what's viral now >> if you love trading equities, you will love this story because you love roller coasters you might love this brand-new fastest, tallest, longest, hybrid coaster in the world. steel vengeance is a steel track on top of a wooden frame rising more than 200 feet in the air. it's opened in cedar point in ohio it has barrel rolls, twisted snake dives. what is that >> i don't know. a thing that goes like this. boasts top speeds of 74 miles per hour the fastest of any wooden coaster with nearly 30 seconds of air time. the most of any roller coaster -- what does that mean

air time it jumps >> how much time you're in the air. >> why are you in the air, you are connected at all times looks great, up near sandusky. >> what's your favorite roller coaster? >> i would say el toro in six flags, that's because i'm a homer. the new joker is good. i would say -- i would say the green monster at universal in florida. "a," because universal owns us >> the hulk. >> the way it takes off is so unique you know what i'm talking about? >> i do. >> here's a story that you will love >> most coasters go like this this one goes like this. >> if you have wondered about the dna submitted for geen to g

studies may be used, the golden state killer was found because of genealogy not even directly linked to him, but due to an ancestor he was nabbed because someone swabbed their cheek and sent it in for dna >> it's an amazing story they caught the guy, thank goodness i will say privacy advocates, this will open up a new avenue of privacy discussions, because it's hard enough to get your own dna, to use a relative's dna, i promise you, there will be many legal battles to come. pga golfer justin rose stripped down to his underwear his ball landed on the edge of a

water hazard instead of taking the penalty, he took off his shoots, pants, socks, and look at that he got it on to the green >> this is a family show >> it's like he's wearing those hybrid -- >> he's a boxer brief man. >> either that or his shirt is long it's boxer briefs. >> you know what, that's in louisiana. >> there could be snakes -- there could be gators. >> i was thinking if you're doing this shot, i would be more worried about doing it that close to the water in louisiana. >> kind of a baller to do that >> come on love that. dipping in the benz with the spoiler. we could do this all day >> yeah. let's stick to the world of sports where the nfl hosted the first round of the draft last night. commissioner roger goodell announcing the first pick.

>> baker mayfield, quarterback, oklahoma >> it is baker mayfield. >> all right the browns went 0-16 last year they'll need plenty of help from maker -- they needed help for a long time. if you're counting at home, two big numbers sticking out one, this is the fifth quarterback taken in the first round by the browns the past 20 years. that's a lot two, if baker mayfield starts this year, he will become the 24th starting quarterback for the cleveland browns since tom brady began quarterbacking for the patriots final score, browns 24, patriots 1. the nfl draft will continue tonight. coming up, more on the breaking news out of the korean peninsula and bitcoin up big this week. we'll get brian kelly's take on the big move back after this. evagen helps yon

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breaking news, an historic summit between the leaders of north korea and south korea. the two leaders agreeing to pursue a peace deal. the leaders making a joint statement earlier this hour. earlier i said that was kim jong-un's sister, that is his wife rarely seen in public. on the rare occasions he

travels, he doesn't usually travel with her. that's the first time ever that a north korean leader stepped foot in south korea. let's step away from that and check out what's happening with the cryptos. most of them are higher. bitcoin, 99,330. joining us is brian kelly. it's been a big week for all the cryptos. how come >> it's been great we had a tremendous selloff, we were close to 20,000 for bitcoin back in december there's a couple reasons for the selloff that are now dissipating. you had a lot of tax selling for here in the u.s. and in japan. you had regulatory overhang or uncertainty about what was going on globally. that's tending to lift that was kind of a negative

sentiment. what's happened through the last couple of weeks, we got through tax day, then finally the other thing we have now is you have a sentiment shift. goldman sachs hiring a crypto trader, and barclays talking about trading. >> i want to -- some viewers may be wondering why i said it's up 6%, other graphics say it's up 1% some of these exchanges they price off midnight, others a 24-hour rolling basis. that's why we sometimes see discrepancies in price coinbase, coindesk, you will still get that arbitrage in pricing, will you not? >> yeah. we still don't have a standardized closing time in bitcoin. it depends on the exchange a 6:00 p.m. close here in the

u.s. is different than in japan and korea. so when you look at bitcoin prices or any crypto prices, you look at the percentage, sometimes that can be a little bit misleading but nonetheless, look at the numbers. 9300-ish is where we are on bitcoin. >> brian kelly, appreciate you getting up early for us. we'll hear more about it tonight at 5:00 eastern. thank you very much. >> thank you on deck, powering your portfolio, get this, utilities, you might think they're boring, but making money is exciting is this the best way right now with everything going on to make money? and a mega pay date. the insane amount of money jeff bezos made in the past 12 hours. your morning rbi if you're feeling good about yose y w'turlfouon be once you hear this.

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trying to help you make money. yao y could utilities be the best place to make money right now? what's hot and what's not in utilities, dom chu has what's going on >> we all know as interest rates rise, utility stocks don't become as attractive because those heftier dividend returns don't look as good as other things when you look at how the specter spdr for utilities has performed over the past decade, it's been a massive move on the left-hand side of the screen, you can see where the financial crisis and when it started. you're talking about a $25-ish stock. you can see where it is now. it's doubling from where it was

before look at the relative evaluation. now we will overlay where the price attorneys ratio has been over the course of the past ten years. yes, it has been going higher. now we're at 16 times earnings let's look at the average pe ratio on a trailing 12-month basis during that time the reason why some experts are saying utilities maybe shouldn't be given up for dead because we're trading at the average price per earnings ratio >> dom, stick around david burke is here. the average price attorneys ratio, but by some metric 18 times earnings for a utility seems a little rich. are you worried at all about the valuation? >> not particularly. they're fad lo long-term historical returns are

better than some people might reali realize. look at nextier energy through the ten-year period ending through december 31st of last year, the total return on that stock, it outperformed 63% of the stocks in the s&p 500 many of these utilities have delivered stellar returns to shareholders >> how many people out there should be investing in utilities just generally speaking? what type of demo are we talking about? >> i think for conservative investors, with emphases on income and modest cap appreciation, for defensive conservative investors, we think they make -- there's a compelling case to be made for them on a longer-term basis. what is appealing is not only consistency of earnings but of the dividend growth and attractive yields. together that's an attractive combination. >> there was a deal or proposed

deal, a utility deal that's not getting a lot of attention, but could that change the valuation or the market if this deal goes through? >> not particularly. it represents an ongoing consolidation that has been going on for years typically every year there's one or two utility deals announced if i could add a point to dom's pierce, there is a perception that interest rates are the death nail for utilities that's not really the case over the past 24 years, electrics have outperformed -- >> oh. david burks -- didn't mean to cut you off like that. >> i'm sorry >> we'll get you back on again soon >> thank you >> that's one way to end the interview. time for your morning rbi. amazon reporting blowout earnings last night. the stock is up 7% this morning.

that move overnight adds 8 zoinion to the net worth of jeff bes 12 hours. jeff bezos just made a million a minute while you were sleeping

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good morning the leaders of north korea and south korea planting a tree as they pledge to declare an end to the korean war dow down 60. we'll bring you a live report from seoul. tech stocks rise before the opening bell we'll break down reports from amazon, intel and microsoft straight ahead and we'll get you ready for reports from two dow components. still a couple laggards.

and the first look at economic growth in the first quarter. and it's friday. really, bring it on. april 27, 2018, "squawk box" begins right now ♪ live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and mike santoli. let's look at the u.s. equity futures. a mixed picture. dow futures down by 43 points. s&p up by 3.5. look at this, the nasdaq up by 90 points after th