good morning, it's 8:00 a.m. at t mobile headquarters in washington and 11:00 a.m. on wall street. "squawk alley" is live.

>> good morning. i'm carl quintanilla with morgan brennan and jon fortt. david faber will sit down with david solomon in a few minutes, an interview you don't want to miss. >> does that mean he is definitively the next ceo of goldman sachs? >> no, nothing is definitive it shows my expectation that he be the person. he's the fourth coo i've had, so -- but i tell you -- >> first t-mobile agreeing to

buy arrival sprint as the u.s. wireless market shifts from four major players to three "squawk on the street" to talk about the tie-up. >> early innovation cycle of 5g. we are behind china, which we can cannot allow 2.5 to build nationwide 5g service. ctia says that the leadership in 5g can bring 3 million jobs, 275 billion of investment and 500 billion of economic value but we're behind and, by the way, what we also hope to do is get dumb and dumber and get comcast and others to step up their investment we expect they'll invest an extra 20 billion and we're going to invest 40 billion in the next three years. >> anti-trust policy got interesting when we were thinking about amazon and the

ways disinflation alters anti-trust policy. now it's about a national cause that 5g has become. >> if they don't like the feds, at&t, time warner, there's no way that they should even look at this. but wireless is unique it's one of the few industries where consumers really feel pricing on one hand. almost everybody has a phone at this point but at the same time it's one of the few industries where it's nationally competitive these players have nationwide networks so, can we afford to go from four to three? i imagine we're going to hear a lot of different opinions on that. >> really spinning this as job creation, tens of thousands of jobs, also investigating here in u.s. infrastructure and really sort of playing to what we've heard under this trump administration about kind of making america great again and,

of course, evoking china which you, john, have been covering at mobile world congress and this race between u.s. and china for 5g. >> they all seem like side arguments to me. is this transaction good for the consumer or is it not? i mean, is it good for the economy? is it good for 5g and inf infrastructu infrastructure certainly there's the sense that lots of different people are looking and factoring lots of different things into these decisions. >> let's go down to david faber in beverly hills, sitting down with goldman sachs hey, david. >> hey, carl thanks that's right we're back here with david solomon. we talked to him a year ago. things have changed a bit. good to have you here. >> thanks, david. >> sole ceo and many think the heir apparent. do you agree >> i'm extremely focused on my

current job, being the president of goldman sachs, working with our team, spending time out here seeing clients and focused on the business lloyd is running the firm. >> investors do like to know in terms of some sense succession he said nothing is definitive although he did go on to say and talk about a period of culturization and getting used to sort of the role, the new role for you is that true do you think it will take some time you've been doing this job, haven't you? >> first of all our board is running a very orderly process one of the big responsibilities any board has, around succession of goldman sachs we have a very deep team broad bench. over the course of 15 months i've had a chance to spend more time on areas of the firm where i hadn't had as much exposure

over the course of the last ten years while i was running the banking business look, i think that process is an ongoing process. the board and lloyd's decision as to how that succession will play out at the moment, very focused on our businesses and helping lloyd lead the organization. >> of course but you areclearl the heir apparent but no timeline is what we're hearing lloyd did not share one last week and you're not going to share one here and there isn't one to be shared >> the board has its process and succession will occur when it's the right time. >> is it the board or lloyd who decides? >> there's a process and the process will move forward. >> okay. and in the meantime, you had to take on your former co-coos responsibilities has that been harder has there been more to do? >> one of the great things about the firm, we have such a broad group of people in leadership

positions that help lloyd and myself, when it was lloyd, harvey and me run the organization there's no question when you go through a transition like that there's a short period of time where everybody has to pick up a little bit but it's gone very, very smoothly lots of room for people to step up in the organization and that process, i think, has worked perfectly. >> if i were to say to you you're ceo tomorrow, do you think you're ready to do the job? >> if the board thinks i'm ready to do the job i'm ready to do the job. >> what do you think, david? >> i'm the president of goldman sachs, and i'm focused on that job and doing it the best i can. >> i'll move on now. >> thank you. >> let's talk about the current environment. things seem okay m & a was pretty hot. >> good monday morning. >> yeah. >> you had the two ceos on this morning. >> this deal itself is subject to what is going to be great regulatory scrutiny.

deals these days, david, seem to take forever does that figure into the thinking of ceos and boards when they embark on these deals >> sure. if i step back for a moment to your first question, do we think that deal making generally will continue we've got an environment where co conference is pretty high correlated growth is continuing at a reasonable pace there's a good amount of activity that's building one thing you've seen that's evident in the fact that we see more deal activity, these things take time. these discussions go on for a long time and confidence doesn't change quickly looking at the indicators that we can see, i expect to see a

relatively robust deal making environment continue throughout the year unless there is something more abrupt in markets that would change that base in confidence that exists today the second part of your question, it's complicated and evolving and deals are taking longer if you look at risk spreads over the course of last month, much wider, 15% from 9.10%. that's reflected of uncertainty. a lot of these transactions makes sense. big consolidations because industry lines are blurring, really important for people to maintain their competitive position boards and ceos have to balance strategically, what do whoa need to do in an ever increasingly demanding environment versus the fact that it's harder to get this stuff down. >> three people spend as many times as you do, talking to

management teams and/or boards what level of confidence do you sense right now, generally speaking, sort of across corporate america or, frankly, for that matter, across europe and asia as well >> confidence is relatively high we're talking about global growth and the fact that you have this correlated global growth around the world. generally speaking, people's businesses are performing well the fact that we have a relatively, you know, robust growth environment is making people feel good about the fact that they have to be front footed and in the context of that, it's leading people to think about what do i want to do strategically. that's also encouraged by the fact that technology continues to push at and scale is just so important in so many of these businesses that it forces more consolidation. confidence, i think, is relatively strong. but the competitive dynamic around technological change and advancement is forcing people to be proactively strategic and thinking how they want to

position their platforms. >> when you were talking about confidence, you mentioned unless something were to occur that we're not necessarily prepared for. is there one thing you are particularly concerned with? it's funny, talking to a number of participants here, the budget deficit, the ability to continue to refinance or ever-growing deficit comes up sometimes is there one issue you worry about? >> there are lots of things you can worry about. lloyd says this a lot. we're not in the business of predicting we're more in the business of contingency planning certainly, the rising rates, looming deficits, how that will affect markets is something we're watching closely that doesn't mean it has to all happen with a negative or abrupt process, but at the moment it's going relatively smoothly. there's risks there. >> do you have contingency plans in place >> we always do. you always have to be thinking

about risk management. everybody's predictions right now are the great changes here in the u.s. are going to be more gradual and more predictable over the last couple of years. go back and look at the last eight to ten cycles, generally they're not predictable and sentiment changes and rates move much quicker you have to be nimble and thoughtful it's a time, given we're later in the cycle, to be cautious at the same point you can't sit on the sidelines, you have to participate. just be thoughtful of what if. >> what was widely considered to be a pretty good quarter stock price didn't react very well, though were you disappointed? >> look, we're very excited about the quarter. we felt great about the quarter. look across our portfolio businesses and all of our businesses performed very well candidly, when you're running a company and have a number of different businesses, i talk to ceos who say repeatedly i look for quarters where our businesses are always

performing. >> why did the stock react >> we're focused on our clients, running our business, executing our strategy and growth plan it's the same advice i give ceos all the time you can't look at the stock price day-to-day you have a strategy. you're focus on what's important. if you focus on that, the stock price will follow. you can't watch it every day that's what i tell every ceo. >> do you tell that to -- so it wasn't a concern to people because we were talking about it on air, jim and i, for example it was a strong number and it was noticeable -- >> we felt good about our performance. ore relative to the competitors. we're focused on delivering, back at it with our clients and our business we know what we do well over time for our clients we run our businesses well our stock prices do fine. >> we're spending a good amount of time now talking about goldman sachs and the consumer there are still people who sort

of -- really, come on. the smaller lending. is this going to be a real business you guys are talking about $5 billion in incremental revenue by, what, 20 -- what year? '21, '22 >> the growth plan we laid out for $5 billion of additional revenue covers all our businesses consumer component is a billion of that and, look, we're very, very excited about it. we're very excited about the opportunity. we have the advantage of having a lot of experience to conduct businesses, clients, customers, et cetera. we don't have the legacy history of having huge credit card business, these big platforms. we've been able to take out a white sheet of paper, what are things that consumers would like to be better, help them solve issues, and design something that meets their needs and we're excited about it

we made this acquisition, allowing consumers to attach and manage their financial wellness. it has over a million users on its platform we look at markets, we're excited, $30 billion in loans and $20 billion deposits that have come on the platform. that's an outstanding start. we're focused on building it out and risk management also, which would be a natural part of t it's a big opportunity for the firm. >> somebody who may very well take the ceo role at some point in the future, what differentiates goldman sachs from your competitors? >> the thing i love when i'm out talking to clients, i talk about how much they enjoy working with our people and the quality of our people, solving our customers problems

if we continue to focus on our business, make sure we've got great people outfocused on clients, help clients execute in markets, transaction in the corporate world. >> clients not counter parties, right? client. >> center of everything we do. >> david, thank you. >> appreciate it. >> appreciate everything you do. i look forward to future interviews as well david solomon, future ceo of goldman sachs. >> thank you, david faber. more on the anti-trust concerns, potential takeover of sprint father of net utli iwineratys th us next.

amazon toppe mr. elliot, what's your wifi password?

wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too.

so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. t-mobile and sprint, $26 billion. this deal would bring together the u.s.'s third and fourth largest mobile providers take a listen to what marcelo claure said this morning. >> we think this is good for america. we think this is good for consumers. we made it very clear, we're going to lower prices. best product, best prices. how many mergers do you know that are making commitments that we're going to add tens of thousands of jobs in the first three years? this say growth story and the synergies of this deal are worth

more than each company on a stand-alien basis. >> bill george, former ceo and chairman of medtronic as well as a cnbc contributor tim, let me start with you there are four major wireless carriers in the u.s. as you, yourself, noted in "the new york times" op-ed six months ago, only two dominant is it better to have four with two barely hanging on or three all dominant competing with each other? >> the trouble with this merger, these two companies have been improving how effective four s they, themselves have been going at it so strongly and lowered prices for people but four is a lot better than three in this case. >> they like to point out they're taking customers from the big ones, not from each other. >> that's true but they're both competing to be the lower end, cheaper prices sprint has gone way down in its prices lately. any time you have just three players, they don't really have the same, i think, pressure to

try to win the lower-end consumers. >> and, bill, your take? if the feds don't like at&t time warner, they should absolutely hate one like this it's unique. the wireless market, it's all national all these players are competing for almost every customer in the u.s. is there a way this works in your mind? >> i think there is, jon, with all due respect to my colleague. there's two or three weak players here sprint u.s. base, t-mobile, technology and capabilities of the germans. and by coming together i think it will give verizon and at&t a run for their money. they need it frankly, we need more competition, service, offerings in pricing they've got a virtual duopoly at the top of the market. i would like to see these companies come together. i hope the anti-trust people approve it

never underestimate the owner of sofbank and the owner of sprint and marcelo claure i think they can build up with t-mobile i would love to see a third tough competitor i don't think either one of them is much of a competitor. it will change the game and we need that competition. >> bill, given the fact that over the past years we've heard that not interested of conceding control, are you surprised by how this deal is being structured >> yes, i am massimo is an amazing guy, $98 billion fund other hand, sprint is loaded up with dead. i thi i don't think he will be totally falling into the background. i think he has given up control, which is muunusual for him.

i am surprised i think it's the right thing to do in this case. kudos to him for making a difference and if marcelo is right, they're going to add jobs i'm a little skeptical about that if they're really going to add jobs, all power to them. >> tim >> i think the optics are better of t-mobile buying print it is the company that the justice department, in some ways, created. they blocked a merger, if you remember, between at&t, leaving t-mobile as a competitor still given the success that the justice department had blocking four to three before i think it's an uphill battle for these guys in front of the justice department all the models suggests the rational thing for companies to do is raise prices once they got down to three. i think it will be hard for the justice department not to block this. >> do you think 5g policy has been well crafted?

if so, when will it be >> no, but it's not the american style to say we have this one thing, other than going to the moon like this is the thing we have to have and we'll subsidize it like crazy. >> that's a good analog. russia, sputnik this is all rolling in to one -- same story, bilateral race to some tech achievement that the u.s. argues we're behind on. >> the u.s. should be cautious about that kind of thing the thing about the '80s where japan was racing to super computers and america went to personal computers and that turned out to be the right thing. so one big industrial goal, they often -- we need to be the biggest steel producer in the world. that's a very chinese kind of national planning kind of approach i don't think it has worked for america in the past. >> bill, what kind of conditions should the feds look on putting on something like this if they do allow it? >> that's a tough question

i think they have to avoid any monopolistic tendencies. i don't think they can put conditions on them not raising prices i do think they can put conditions on them, their commitment to go forward and, by the way, i think he made my point technology, 5g, it costs a lot of money and you need funding. i don't think sprint has the funds to keep up with at&t and verizon as a stand-alone i think it's a must-do deal for survival i don't see them being strong if they don't do this i advocate for it, for that reason. >> tim, we're talking about this perspective merger it's the day of closing arguments for time warner, at&t perspective merger how much does the result of that set a precedent for a deal for this to move forward >> i don't think they do in a legal sense. one is vertical, the other horizontal it may make the justice department less gun shy.

on the other hand, it would be -- to block this deal would be easier for justice. three companies, a lot of incentives to raise prices and i think it's a lot easier for justice to block this deal than at&t maybe they chose the wrong one to go after. >> this is a day and time where not everything seems to make sense. we'll see how it works out. tim, bill, thanks so much. >> thank you. >> take a look at shares of mcdonald's today best day for the stock in just over a year. surging this morning after posting a beat on earnings in revenue, 2.98% in u.s. comps we're up to 166. dow is up about 150, thanks to mcdonald's more "squawk alley" after this no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time,

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and sweev 3 billion pounds in cash as a result of that deal. that moves comes as uk grossers are trying to ward off competition from other german chains, which are gaining share in britain now meantime, deutsch telecom in an all stock deal in terms of that transaction. they would hold a 42% stake in that company earnings front wpp is up sharply. after the advertising giant posted better than expected quarterly results and raised the product of assets sales.

first time since he stepped down amid allegations, he, of course, denies those allegations reduced expectations of a bank of england rate hike in may. morgan, a lot of stuff going on, especially in the uk today back over to you. >> dom chu, thank you for that european equities are outperforming u.s. equities. let's get over to sue herera now with an update. >> good morning, everybody here is what's happening at this hour the white house says dr. ronny jackson remains assigned to the white house but not addressing reports that the navy rear admiral won't be returning to the job of president trump's personal physician he withdrew his nomination for

secretary of veterans affairs last week. secretary of state mike pompeo holding a news conference in jordan along with his counterpart. >> with respect to the two-state solution, the parties will ultimately make the decision about what the right resolution is we certainly are open to a two-party solution that's a likely outcome. we certainly believe that the israelis and palestinians need to have political engagement we urge the palestinians to return to that political dialogue. >> south korea says it will begin taking down anti-north korea broadcast speakers placed at the border, part of a declaration that promised to cease all hostile activities between the north and the south. lots of developments on that front. that's the news update this hour we go back downtown to "squawk alley. jon, back down to you. >> thank you, sue. after four years of getting close, t-mobile finally agreeing

to buy sprint in a $26 million merger what it means for verizon and at&t that's next. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

t-mobile announcing plans to buy sprint this morning.

earlier on post nine they talked about the deal, sprint investment and what consumers can expect from the potential merger take a listen. >> 5g is coming. by the way, with all the hype united states has had around at&t, verizon, we are behind it's the early innovation cycle of 5g. we are behind china. this is not something we can allow. this will be the first company, because of our 600 megaherz 2.5 to build a wide coverage 5g service. ctia says the leadership in 5g can bring 3 million jobs, 275 billion of investment and 500 billion of economic value. but we're behind and, by the way, what we also hope to do is get dumb and dumber and get comcast and others to step up their investment and we expect they'll invest an extra 20

billion and we're going to invest 40 million. that's the story that washington wants to hear. it's about super charging the carriers it's about jobs. this job will get approved because it's good for the united states. >> what is the intention there from you in terms of your commitment to retaining that stake in this company? will it be years or when you see the opportunity to put up a win in terms of the investment and the return from it over these years, will you start selling stock? >> we're committed we have a lock on the stock for four years we did that on purpose this was the original vision to put t-mobile and sprint together you follow the vision, all the investments we're doing. this company really powerful, world's best 5g network. different portfolio companies we have, but combining it with a new company. we're in it for the long term and basically roll all of our

equity it's a significant equity. $25 billion of investment. we expect this to grow we put the faith in the hands of john and mike. we're in it for a very long term this will be the primary investments of softbank. >> john, i need to have a commitment from you right now that there will be more people working for these, when you combine, for these two companies, there will be more people, more spending and my bill goes lower. i'm still not hearing from you that these will all occur. >> hi. my name is john i would like to commit to you, jim, more people will be employed from day one than both companies combined competitive price for people like you will go way down and we'll invest $40 billion in this new company in the next three years and drive the innovation that this country needs and drive others to come forward. >> we're going to save that tape. >> we are taking a look at how stock reese acting to the news

t-mobile down 6%, sprint down a little more than 13. >> coming up, boeing ceo dennis mollenberg on the blow-out earnings report, and where the owant is seeing its next leg of we are back in a moment. your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today.

i'm scott wapner, big beats, little reward, that's how one

company is describing it plus, one analysts makes a big call on under armour he will join us live. unusual dose of activity, j john and pete both joining us. see you in just a bit, morgan. >> looking forward to it thanks >> phil lebeau just now spoke with dennis muilenberg phil >> thank you, morgan we talked about where boeing stands, next leg of growth after the meeting he talked about the upward pressure this company is seeing when it comes to its most popular plane, the 737. here is what he had to say about production rates. >> we're still seeing upward market pressure beyond that. our skyline is sold out at that level for many years in the future we're evaluating that upward pressure right now the key for us is to do this in incremental steps that manage

our risks while bringing our entire supply chain with us. upward pressure is the general trend and we have the capacity to go higher if we need to. >> it also has the capacity to increase cargo plane production, 767, 747 and, for the first time in three years, boeing is seeing strength in that market. >> the return of the market, growth of that 7.7 percent year to date gives us good, long-term prospects. the 777 freighter as well as the 747, we think we're very well positioned for that growth trend. we'll continue to evaluate our options but see fundamental strength in the 767 line right now, for commercial freighters and as we move into tanker production. >> and, as you take a look at shares of boeing over the last year, yes, shares have had a nice move. where is the next leg of growth for boeing

with the company's fledgeling services business. >> where we can find strategic acquisitions that compliment organic investment and services, that's a top priority. targeted vertical depth in areas like avionics. we're also making longer term strategic plays on things like investments in artificial intelligence, robotics and automation those tend to be more partnership models than all of acquisitions those are focus areas we see strategic acquisitions or partnerships can really compliment our organic portfolio. >> the bottom line coming off of blowout earnings for the first quarter, boeing and its ceo optimistic that this company still has plenty of growth left. morgan, back to you. >> phil, great stuff thank you for bringing us that a quick question for you

we have trump administration officials traveling to china amid the rising trade tensions did he have anything to say about china as a market? it's been such a huge growth opportunity for the company. >> right no, nothing today. that question did come up last week during the earnings call. their feeling is that they have a lot of orders, as many of the company does, when it comes to china. that's not going to evaporate overnight. while there may be some tensions there, they're confident that the business will remain strong and they can work their way through these negotiations taking place. >> on a big day for m & a, those strategics are driving the discussion today phil lebeau. when we come back, super agent rock nation's kim miale will join us as she became the first female agent to have a player picked in the top ten nfl draft. mr. elliot, what's your wifi password?

wifi? wifi's ordinary. basic. do i look basic?

nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. nfl draft is completed, as you know the story behind the scenes was just as interesting. joining us at post nine, kim maile, whose client was picked number two overall by the giants, making her the first female nfl agent to represent a player picked that high in the draft. she's also represented other top ten nfl draft selections

good to have you here. good morning. >> thank you very much. >> lot is being made over the gender players association says 5% of the agents in the business are female is that about right? >> that sounds about right. >> really? >> yes. >> how do -- do you want this to be considered special or would you rather it be gender blind? >> i want it to be special insofar as there are young women out there who dream about being in the sports business, whether it's in nfl or other leagues, as an agent, on the team side, whatever it may be, who may feel like it's not attainable to the extent i can show that it is possible, that's an amazing thing for me. >> are there chang challenge chn a female agent >> like anything else in life, there are advantages and disadvantages. i am one of a few. if you can distinguish yourself in any way, that's great so by virtue of the fact that i'm a woman amongst a sea of male agents, it is an advantage. at the same time, i do deal with

preconceived notions and derogatory things are said. >> with that in mind, what would your tips be to young women watching this and saying i want to get into sports management? >> be resilient. don't let failed o didn't try hard enough stick with it. >> i also want to ask about dez bryant, who you also rep there's been so much about where he's going to land, at this point, whether he's going to land anytime soon after the draft. what's this environment like for a player like that who has been on the radar from when he was a rookie, still considered a long player, but just not landing as quickly as a lot of people would expect >> he could be with a team right now. dez's choice at this point to take the process very slowly and be methodical about it for him, it's going to a place that's the right fit, that's prima primary. it's not about the money we're just helping him through the process. this is a brand-new role for

him. he had been a cowboy for eight years so he's just taking his time as he makes a decision. >> so many things about the nfl that we talk about at this desk. mostly ratings and the calcavecchias there. but also clock management, officiating, kneeling. how much do you think has smoothed out this season, if anything >> i think everyone is excited to get back to football. this was one of the most exciting drafts there had been in a long time so i think that teams and fan bases are invigorated by the draft and the new players on the team so i'm hopeful they have turned the page and it will be a great year >> you think kneeling cost some viewership if so, does something special needs to be said to the viewer to get them to watch again >> i think it probably did, in all likelihood, and the players have expressed why it was important for them, and i'm hope fell the fan base accepted that, and they have worked internally now, organizations and players, to come up with a way to handle it that makes sense going

forward from a business standpoint and for the players >> with the advent of streaming, be it twitter and amazon and this switch to ott, how do you see that playing out for nfl rights in the future and how do you think that effects contract negotiation? >> i think that, you know, the league is getting stronger and creating more streams of revenue. that's great for the players it should mean more money and bigger contracts for players ultimately, and also broadening the fan base, which trickles down to the players. that's always a positive >> what's your thinking on social media you don't seem to be a big tweeter. players can get in trouble on social media, and they can also get popular on social media. what's your take on it from an agent's perspective, somebody whose job is trying to help athletes navigate the world themselves >> it's essentially we be part of the process for players because brands and teams look at a player's social media following. what are they posting, how are they engaging with fans?

it drives brand deals for sure at the same time, it can hurt players. >> what about agents >> it does help agents as well but you need to be careful because everything you say and do is under a microscope at that point, so it can hurt you as much as it can help you. >> coming into a new york market, especially when you're young, it's hard enough for some experienced athletes in different sports, as we have seen lately. but what do you tell the client who's going to play in new york that you wouldn't say if they were going to jacksonville >> expectations are sky high here everything you do is magnified because you're in the biggest media market in the world. so just be very cognizant of that with a guy like saquon, it's not an issue at all. >> roc nation, you could, i assume, branch out into other things besides sports. >> i love what i do. i can't see myself doing anything else. >> you have your hands full this year, that's for sure. great seeing you please come back >> thank you so much

>> kim miale joining us from roc nation >> coming up, jeff babezos's space company successfully launching its rocket over the weekend. more on what thiamines for the race to space, next. stay with us ♪ ♪ my ambition? helping people get what they want, understanding we're not in this alone, and teaching my kids that no ambition's out of reach. ambitions live everywhere. synchrony helps make them happen with data, insights, financing and technologies. ♪ ♪ synchrony. what are you working forward to?

we have a new addition to the squawk family. our stage manger brian and his wife welcomed a baby boy weighing 7.3 pounds. mom and baby are resting up and doing well, and our whole team sends our congratulations to them gorgeous picture >> absolutely. >> beautiful baby. >> yesterday, jeff bezos' space company, blue origin, came closer to realizing its space tourism vision its highestench flight it was the eighth over all, and this involved a rocket that was previously flown once before it reached an altitude of 66 miles. just past the edge of space, and the spacecraft carried research payloads for nasa and other customers as well as the mannequin sky walker after launch, the capsule and booster, which landed

vertically, separated. the capsule returned with help from parachutes and launching rockets. when i spoke with bob smith, he said he hopes to begin manned flights before the year is out, but blue origin will ultimately do it when it's ready and it's sure it's completely safe to do so the test really brings the company closer to carrying paying passengers, space tourists, into low space >> mannequin sky walker. ha, ha, ha i see where they're going with that where does this put bezos versus musk in the space race you know, one will argue, well, my reusable rocket is better than yours does this move bezos any further ahead in the trash talk category >> i think both have been harnessing reusability technology this specific piece of blue origin's future business, the new shepherd, it's suborbital, it puts it more specifically in competition with a company like

virgin in terms of space tourism and suborbital flights for paying passengers. in general, blue origin as we're seeing is moving closer and closer to becoming a bigger and bigger threat to everybody else in this new space race right now. this is one more piece of that >> musk still has bragging rights is what you're saying >> when it comes to orbital rockets, yes >> we'll see how much bragging rights he has when tesla reports wednesday night. dow was up 187 we're about 50 now s&p has gone red hard to find any particular catalyst there is a headline out of israel that netanyahu is going to give a speech tonight, local time, that some say will expose intelligence on the iranian nuclear program. oil did seem to pop a bit, and vix cracks 16. but we'll seehow much of that lasts and whether the selling pressure continues into the afternoon. >> apple is going to be a big deal >> oh, yes >> that iphone number is what everybody is wondering about a lot of speculation about it. some targets have been shifted

around depending on what the guidance is and if there's any, i don't know, inventory related color on what might be coming, the stock is likely to move. >> not only that, but shareholder returns. expectation on what is announced on that front. >> crazy numbers thrown around by various media organizations let's get to the judge and the half >> welcome to "the halftime report." i'm scott wapner our top trade this hour begins with a simple question if earnings have been so good, why have stocks done so little and what can jump start the rally once again with us for the hour today, joe terranova, jim lethenthol, jon najarian and aaron brown is here we do begin with the market. stocks higher as we kick off the last big week of earning season. a season that's been quite strong, with 72% of companies beating on eps, but erin, i come to you help me figure this out.