>> good morning, it's 8:00 a.m. in san jose, it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ get down get down ♪ ♪ get down get down ♪ ♪ get down get down ♪ ♪ get down get down ♪ ♪ get down get down ♪ ♪ get down get down ♪ ♪

good to us morning i'm carl quintanilla with morgan brennan and jon fort oracle's ceo, mark hurd will join us for a big interview. apple to report earnings and mark zuckerberg's facebook address starts in less than two hours. dow is down 279. not a whole lot working today. fears going into apple's quarter, even though there's been a lot of speculation about potential shareholder returns. tonight will be interesting. >> tons of fears and there's not a lot of pattern to go by. they've got everything from the 6s through the 10. there's all this chatter about a slowdown in iphone sales first thing i'm going to look at is average selling price and what's going on with the

inventory? the sense that they're building up or drawing down you can't look at that iphone number and think it's the whole story. >> capital returns and what the company could say about that and they've talked about going to a net cash neutral position over time you look at what's positive in the dow, it's tech names, intel, microsoft. everything is negative it's speaking to that whole old adage. selling may go away right now. >> let's get to the collision conference in new orleans, where our aditi roy is sitting down with oracle's mark hurd. hi, aditi. >> hi there. mark hurd joins us, ceo of oracle great to have you with us. >> great to be here. >> since yothat release, your stock is down. some are worried that it's not going to the cloud early enough. some investors are selling

stocks how do you respond to those critics? >> it's about growing revenue. that's important particularly on ecosystems ecosystem early in the year i made a statement that we would grow at double digits in the revenue for the full year. that, for us, is all of our applications business. that will happen and our tech ecosystem which, for us, is database, middleware, all that part of our company, has been gaining a little bit of share. we feel good about our performance, relative, certainly, to the market and certainly that's translated for us in big earnings performance. our earnings year to date -- i don't have a number, aditi, off the top of my head but it's 12 months earning per share performance. we feel good about the performance. >> want to drill down on your sass business. in your q4 earnings, that part of the business was growing -- >> q3. >> -- yeah

last earnings, you touted your q4 cloud earnings to be a 20% growth rate. what accounts for that deceleration >> most of what we have is in our sass business, we have several different sass businesses, net suite that we acquired a year ago that has given us top line growth as we lap that, our fusion business, which is really our core strategic erp, htm, sales cloud, et cetera, is growing 60% plus we have our industry verticals that grow about 0% plus and required sass businesses that don't grow much, frankly we have no business that grows exactly the way our sass number does there's a collection of those four the strategic part of our business, net suite, fusion, really growinging at fantastic rates. we are gaining material, material amounts of market share in back office, if you will.

>> our jon fortt has a question back in our studios. jon? >> hi, mark. good morning how are you? >> hi, jon. >> you were just digging into some of the sass numbers and different growth rates for different types of businesses can you give some color and insight into how the cycles for those might move differently some analysts on the street are used to the old model of oracle where there was a big q4 push. that shifted as you guys have moved toward cloud and subscription as you got those different types of businesses, the fusion, hcm, you've got net suite what kinds of different cycles might those be on so people might be able to understand the fluctuations in this sass growth rate >> ei think that's a good point,

jon. even beyond sass i would go into the entire applications business sass is a significant driver of the growth in that business. taking material amount of market share, oracle is, in the marketplace, and you're right, the model is very different when you -- in sass, that growth rate continues and builds so, you get a revenue number of a dollar, a growth rate. you have some renewals and the revenue number just grows every single quarter as opposed to the previous business model we had, which was, if you will, license centric in the way it performed. important thing for us, long run, jon, is the ability for us to grow. back office operations, we came in second. be it a close second but frankly the two leading suppliers of back office applications didn't even have 50% of the market.

>> obviously we volunteer oracle to be that leader. we just got such a fantastic lead now, more references than we've ever had before. more big logo wins we're excited about our position. >> when should we expect this to even out is there a point where we do get more predictability? >> we had -- some of it is predictability within a relatively small number than you're used to we've had some people fret over 3 million or 4 million in the context of $1.2, $1.3 billion number more strategically, what market position do we achieve do we truly achieve that leadership position i'm describing there are two big things at oracle one, our applications business to your point driven by sass, driven by fusion, driven by net

suite and fusion together, a back office position for oracle. second, the fact that we've introduced the first autonomous database in the world. and that database changes the game for customers of -- any database customer in the world those two things position oracle to be different than anybody else in the marketplace. >> mark, morgan brennan here great to speak with you this morning. thanks for taking the time. >> oh, thanks. thanks for having me. >> i want to get your thoughts on the opportunity to bring government into the 21st century and all the potential i.t. contracts that could be out there, starting with the winner takes all pentagon competition for jedi we're expected to get final request for proposal for that this month coming into that, there's been a lot of talk out there that your rival, amazon, that the terms of this competition could skew in favor of them. i know your fellow ceo has

commented on this for weeks. how close do you expect this competition to be and how do you see it setting the stage for future government contracts? >> that's a great question we'll have more to say on it later, certainly, as the rfp gets closer to being released. importantly, what's really important about the situation today is that you have to remember there are hundreds and hundreds and thousands of applications, specifically in the context of this rfp, dod it will be very important about how you deal with that install base and how you move that install base into the future typically the best people to do that have modernized all that install base we think we can add an incredible amount of value to that process and as i said we'll have a lot more to say in the coming weeks about the rfp. >> mark, i want to toss you another one about data privacy and the use of database.

you're into an era of database in the past, people would buy oracle database and you couldn't be responsible with what they do with it. in this age of post-cambridge analytica where people are worried about how their information is being harvested, are there rules about how people operating within the oracle cloud need to treat customer data, communicate with peopl about how their data is going to be used? >> it's both, jon. i know you know this so well it's not just privacy. it's privacy and security. one of the key issues -- i know you know this so well but you hear this term in the tech industry that i know not all viewers will understand. patching how do you patch a database?

in the world of an autonomous database, that doesn't get better it gets eliminated for the customer in the cloud that's done for the customer done with, frankly, ai, artificial intelligence. it's tuned it's everything. from a privacy perspective in our cloud, those databases literally can be encrypted so that now even us, when we have a customer's files, we don't have their data we just have encrypted files that we're managing. you know have both the level of encryption, incredible amount of security, automated patching all of this stuff, jon, i could go into details that nobody wants me to right now. all of this is the automation of the database environment that is

going forward. we're the ones with the most robust database in the world and features that nobody else in the world has, frankly in some cases, even started working on this is going to be the new generation, the next generation, if you will, of database technologies they'll be more secure and certainly more private than you've seen them before. >> china trade tensions, a lot has been said about it your co-ceo has a seat at the table, being on the president's council. what's your thoughts on these trade tariffs and how it affects your company >> we're a global company in the bigger context of things obviously trade -- we're interested in trading and selling in various markets and i think we'll leave it at that our ability to be in the

marketplace, the ability to compete. the company was founded by larry ellison who started on basically building the best technology in the world. that's still at the core of our company today, to be the best at building technology. we want to deploy that technology all across the world. and that means for us the opportunity of getting the marketplace and compete with anybody, no matter where they are in the world. >> mark hurd, ceo of oracle. thanks for joining us. >> thank you. >> guys, back to you. >> thank you, aditi. >> when we return, two big names in tech. what to expect from apple's earnings and facebook's developer conference y om $14,000 to five whone drug is getting a steep price cut. more "squawk alley" after this so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

you'll only pay $4.95. 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.

mr. elliot, what's your wiwifi?ssword? 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. welcome back to "squawk alley" the dow is down, flirting with session lows all day today. mike santoli is back with us there is a lot to watch. what do you think is important >> the dollar that's tha keeps rallying up .75% right now we got slightly soft economic data this morning, not usually seminole numbers but you got slightly softer numbers and yields don't come down they're kind of sitting up there. that's the story we've been in for a while.

there's not that fail safe effect of when the economy looks like it may be starting to slow slightly, yields rally, bonds rally and yields go down if you had to isolate that we've been selling these weak rallies. open strong. sell throughout the day. traders have not been penalized for sitting it out and not putting money at risk, even when the earnings are good and that pattern is there good illustration today that apple is up, it's an anti-bellwether sometimes because it does its own thing. it took its pain before, went down below 10% now it's rallying. it doesn't get a big lift. i think we're not getting any help from the secondary sectors. >> with may day, volume not our friend. >> most of the world is closed it's been that way for a while, thou though all these rallies have been halting, unimpressive. i will say again, though, the

market is comfortable in this zone the low of last week,i think, was 2610 on the s&p. the vix was at 16. it's a business feel even though the market can't get out of its own way. >> the dollar has been strengthening. that's sort of a key narrative here today there's been focus on inflation. when you look at the manufacturing numbers, data there this morning, sub index rose to the highest level since april 11 you have these two almost conflicting narratives, worries about inflation. you get the stronger dollar which should, at least in theory, put a cap on commodity prices. >> if both those things are related to the fact that the fed will be more on track to do more, that brings those two things together. this has not been a fed that's been looking for excuses to go slower and it's not getting those excuses even if it were looking for them i don't think it's an alarmist move it's here we are, stuck again.

and slightly below the flatline for the year earning season sometimes is not one story. it's just very bifurcated right now. we didn't have the rally going into it. we're kind of churning at lower levels than we're used to in the past several quarters. >> no doubt about that got that right thank you, mike. mike santoli it's going to be apple, set to report after the bell as the street does try to gauge demand for the iphone and iphone 10, trading higher on a down market. for more on, we're join bid the co-founder and former ceo of every note good morning, guys good to see you both. >> good morning. >> walter, we're in this mode where people are doubting the wisdom of launching $1,000 phone late in the so-called innovation

cycle. how much are these fears around the cycle justified? >> we'll see tonight when earnings come out, especially when we look at the average price for phone. $700, $600 it seems pretty clear there hasn't been the wild demand for the thousand dollar phone. plus, apple has a larger array of phones out there on the market than it has had in years. and that's something that the company used to not do it used to keep the product line simplified and you see that android phones keep creeping up and now suddenly are ahead of apple and market share here. those are very bad signs for the iphone market. i think where apple is going to do well is in its services, selling streaming music, selling apps somehow its innovation cycle hasn't been so good recently. >> phil, it seems to me that the

real question here is what is the lifetime value of an iphone user in the era of the elongated replacement cycle? is apple managing to sell that iphone user enough stuff to drive revenue, to drive profit if they're not buying a phone to every three years if, they're stretching out to every three or four years are services filling in the gap? phil, what do you think? >> i think it's a poor timeframe to judge the technology and development cycle. iphone x has a lot of pretty new technologies that start out at a high price point because it's the first time they've appeared in the phone and it will take a couple of years to work their way down into more accessible phones but they're fundamentally more important for the exact reason you said. it will make services much stickier, make apple sell more accessories over time. i think this might be a

short-term pause because they have this very high-end phone that is not selling as well as people expect high-end phones to sell i'm very optimistic about the medium and long-term prospects. >> you're referring to things like facial recognition? what beyond animated emojis are people going to want in the years to come? >> facial recognition is a big deal and animated emojis are a big deal not because you can make an animated emoji of yourself, but because that's possible. there's a lot of stuff that will power the next generation of services, which apple rolled out in the 10. >> not much we can do until the print tonight. fa developer conference is set to kick off in 90 minutes. we'll hear suckerburg's key note address coming on the heels of

his two days of testimony in front of congress next month phil, walter, stay tuned with us for that julia boorstin joins us. >> mark zuckerberg takes the stage in front of the thousands of developers here and many more watching around the world, will have to explain what facebook's newly restricted access will mean to them limits the amount of information developers will receive about users and cut off access when people stop using their app. they need facebook's approval to access more detailed information. the way facebook did it was disappointing, as developers, we had very little warning and we have no idea if access will ever be restored. today continues an apology store, rolling out television ads saying facebook will do more to protect its users little suspect timing.

just yesterday what's app co-founder and ceo announcing he's leaving facebook, reportedly after clashing over strategy and use of data today, we expect zucker burg to be followed by other top executives, including heads of messaging, vp of hardware, andrew bosworth. he says the company will make its biggest ar/vr news today we expect to hear more about the $200 oscar headset the pressure is on for zuckerberg it's not lightening up at all. lawmakers said zuckerberg will face a summons next time he enters uk territory if he does not voluntary testify before parliament guys, back over to you. >> interesting thank you, julia julia boorstin meanwhile, walter, i want to ask you about koum

barclay says wenormally wouldn't publish a note on an executive departure but we think jan koum's departure has potentially significant implications hinting we might see more monetization out of what's app do you think that's true >> absolutely. that's why koum and his co-founder have left they were against advertising. there's a much larger -- this is a huge story all of facebook and its ecosystem have depended on one thing. monetizing and targeting them for advertisers. if you're doing a service and people are getting the service for free, they're paying for it in some other way. that's by the gathering of the data with such pushback they have to stop the developers from doing things like cambridge analytica did. we saw this years ago when they cut off zigna at the knees when

it was developing and this whole business model is very shaky now, to have a business model that is totally dependent on microtargeting the users with advertising and especially when people from what's app and others are pulling out and when developers are saying, hey, we can't build on this platform anymore because facebook is keeping all of that data they're doing the microtargeting the reason we were in on this game, we thought we were going to share that data and you're not going to be allowed to do that in this age where there's been such pushback. >> a lot of questions about the business model around what's app but also i imagine it will stoke questions around corporate governance and makeup of the board at facebook. koum is leaving. he was a pretty staunch advocate of privacy, adding encryption to what's app in 2016 and speaking out about how data was used,

harnessed and targeted ads on the site what does it mean from a board perspective to see someone like this leave >> i think that's right. >> well, i think -- >> there's a big shift. >> go ahead, phil. >> i think there's a big shift happening right now in people's understanding of what privacy is for the past several years, there were lots of privacy advocates. it was easy to dismiss privacy as being something that your parents are concerned about because they don't want to see embarrassing photos or something. over the past year, people have understood that privacy isn't about embarrassment. it's about very serious consequences that could happen to you and to the country and to society when all of this information is available so people like jan, very active privacy advocates are finding new strength i completely agree this is the beginning of the end for the microtargeted business model it will be fascinated to see how the entire industry shakes out. >> we'll be watching f8 this

afternoon and apple tonight. appreciate your time and help very much, phil and walter you can watch zuckerberg's key note around 1:00 p.m. eastern time look out for that. let's get to dominic chu for a quick market flash here. dom? >> dow down 268. u.s. gypsum, usg up 4% on the heels of an announcement by usg it will now engage in negotiations with a german company that does the same thing it does, which is create drywall. they are now going to be open toward talking to knauf, a german company that makes drywall, about a potential merger that particular announcement by usg has sent those shares to a 10 1/2-year high at this point you may recall the interesting part about this, not just the drywall but that berkshire hathaway owns stock in usg

he has said he is open to selling his one-third stake in that company to knauf if they get a deal done. back over to you. >> dominic chu we should note that warren buffett will be sitting down and joining our own becky quick on monday that will be must watch tv meantime, a deal with express scripts to cut the price to a $14,000 cholesterol drug by more than half. meg terrelltirrell joins us now. >> huge blockbusters when first approved in 2015 given that millions of americans have high cholesterol. they dramatically lowered cholesterol even beyond statins like lipitor they could be used so broadly they would overwhelm the market. they've been commercial flops.

many say the reason, their price tag. many insurers were tying doctors up in red tape, refusing to pay for the drugs or hitting customers with high co-pays at the pharmacy counter so a deal was struck with express scripts, to arrange a 70% discount at its lower end. it comes in the form of the rebate the sticker price of the drug won't change we asked about that this morning. he said the reason not to just lower the price, they needed to strike a bargain. >> if we gave a fair price that we would get access so it would be easy for the doctors to get the prescription approved and we get affordability. patients could actually afford the co-pay and to get access and affordability is something we had to bargain for if we just lowered the price, we would have nothing to bargain with. >> the new deal will exclude j

amgen's drug it is in negotiations to pay higher for its drug to increase access they hope to strike more deals like this today. the price war not necessarily going over super well on the street morgan, back over to you. >> meg, thank you. meg tirrell at hq. how bill gates almost ended up in trump's white house. the position he was offered and why he declined later this hour. stay with us

good morning once again, everyone i'm sue herera here is your cnbc update this hour 8 migrans have now been allowed into the u.s. for processing it's not clear if or when they will actually be granted

permission to formally enter the country. australian cardinal george pell must stand trial on charges that he sexually abused multiple victims decades ago. pell is the most senior vatican official to be charged following a probe of sexual abuse within the church the cardinal denies the allegations. youngest daughter of korean air chairman appearing for questioning, following allegations of assault she allegedly hurlded a cup of water at an ad agency meeting at an official last month and nashville based gibson brand files for bankruptcy, providing guitars to those as elvis presley, bb king and many other greats i will send it back to you, carl. >> sue, thank you very much.

most european markets, as you may know, are closed for the holiday. the pound fell sharply as uk factory growth hits a 17-month low. on the earnings front, higher oil prices help bp with its best quarterly results in four years. >> more on what to expect from hot e and various differen ipne models might mean to the quarter. stay with us

apple earnings are today after the bell investors looking for any evidence of an iphone slowdown the stock is up today but still down for the year, trading near correction levels. brian white, global head of internet and software at kresby. thank you for being here sell for a pretty penny. if those did okay this quarter might not be as bad as some would expect just looking at iphone x demand, right >> you're right. one thing, to put this all in perspective there's gloom and doom in the apple supply chain we put an apple monitor out and flagged this before all the semi conductor guys came out. this casts an ominous cloud over this company heading into earnings you have to put it into

perspective. this decline we saw in the apple supply chain is the worst we've seen in terms of apple monitor we saw the best in the september quarter out of apple monitor it's simply reversing. >> could it be that apple's planning is different given the number of phones that they have on offer right now maybe where the ten did blow out numbers, stockpiled some components and now there's a shift? >> it's reasonable you have a lot of different skews. timing launched rather than mid to late september like typical that apple supply chain to ramp to a record in the september quarter but you didn't have the iphone x on the mark it was actually very remarkable. so you're going to pull that back as you get into the march quarter. smart phone globally has been sluggish for sure. i think this is a phenomenon we have to think about. >> is the idea that their supply

chain east of ushs got to the point that the market doesn't yet understand remember we had this conversation last quarter. how did they do that so fast right? >> they had -- there were certain components that were in shortage as they ramped down but others that weren't. they were able to ramp that up even before the full iphone was out there. i'll give you an example honhai does the assembly, not the components you can see that lag. >> the other big thing everybody seems to be focused on is what the capital return situation is going to be. >> right. >> i've seen some pretty extraordinary numbers out there announced in shareholder returns today. what are your expects and could this be a sell event given how high expectations are? >> for sure we think apple -- tim cook will open to that apple vault, crack that door a little

wider and we talked about $4, $500 billion up from $300 billion. they might push it out a couple of years remember, this can go up over time i think it will be a nice boost for sure given the repatriation you talked about it. i still think this stock -- we have a $235 price target if it retraces that low 2013 to 20 2015, that low to high to 2016, we could see something about 230 if it did something similar. there's nice upside for apple for sure. >> the most important number you'll be watching in this report >> i think services is important. we're looking for 20% growth, 8.5 billion in revenue, 10% in sales. that's an important number we want to make sure nothing crazy. >> we'll be watching those

thanks. >> thanks, jon. >> whyil bl gates turned down the president after the break. your letting go thing. your sorry not sorry thing. your out with the old in with the new, onto bigger and better thing. get the live tv you love. no bulky hardware. no satellite. no annual contract. try directv now for $10/mo for 3 months. more for your thing. that's our thing. visit directvnow dot com

i'm melissa lee in for scott wapner getting in ahead of the big report, do you want to buy apple? and pete njarian finding one bearish part of the market what options traders say are

about to drop. half time begins at noon back to you, carl. >> thank you very much let's get to rick santelli. >> one moving part i'm concentrating on the most is the dollar index we could make a lot of fundamental reasons why the dollar's rally is long overdue let's stick with the technicals, especially considering the landscape we're in, first day of a two-day fed meeting. that isn't necessarily essential at this point. most likely a rather stencilled approach he would like to raise rates when he can. maybe it's three, maybe it's four in the end, the yield curve and how markets respond will have an input, no matter how much silence there is on that dynamic. it's been a wild couple of days for the dollar index you see a lot of sideways

activity we went from 91 1/2 to 92.62, today's high the important part happened at 4:00 in the morning eastern when, unchanged right here at 92.12, once we popped through, boy, this thing really did get some legs. the fact of the matter is that it's hovering around 92.45-ish we want to see if it closes above that line. this is significant. i can't stress, sometimes things are a bit simple when they first begin a process. clearing sentiment is one of those times. we open the chart a little bit more back to 2014 as you look at this chart we're trying to ascertain where it will stop and it certainly seems as though, if you look at the 90 to 95 area, some recent highs, we had a key bottom around 92.62. it would seem to me on a very macroview, 95 could be in the picture. there will be a lot of stops along the way as the market hits

some of these levels the look at the chart and the congestion at this area most likely will draw this up let's clear the white board for a second on interest rates, they always seem to get an upward drift all along the curve as you go in fed meetings and, of course, employment reports this is no exception why should you care? because in this instance, in particular, there may be a real buying opportunity for rates if, obviously, we don't get any change in policy or a rather exciting employment number morgan, back to you. >> rick santelli in chicago, thank you. >> up next, david faber with a big investor head of ontario teachers pension fund, ron mach from los angeles. we are back in a moment. 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. i'm david faber at the conference joined by ron mott, the president and ceo of the ontario teachers pension plan. about 189 billion canadian i am aware that you guys do things differently i'm not sure how many other people are, in that you've gotten rid of the middle man for the most part. you do direct investing in all sorts of different areas why are you happy with that approach, and why haven't others adopted it >> first of all, we haven't really gotten rid of the middle man because at the end of the day, we have partnerships all over the world so when we go into china or south america, we know what we

don't know and so it's important that we work with our partners but we've been doing this now for 27 years we built up the internal capacity and while we work with partners and private equity funds and many different groups around the world, the reality is that a lot of it is direct now. our private equity investments are direct, our infrastructure is direct, and for us, that active management has been very critical to our return profile >> you'll be on a panel shortly on the future of asset management what do you tell people when they say, all right, is the future what you're doing and no longer just distributing my assets across a group of asset managers who decide what to do with the honey >> first, our base costs are about 27 basis points on $189 billion. i think it's pretty important that when we started active management, it's not active management in stock picking. it's in the world of privates.

real estate infrastructure, private equity, and when we acquire an asset or we get involved in a company, the active management occurs there over a five, 10, 15 year timeframe. that's been something that's very successful for us and we have built up our teams we have 100 people in private equities, about 50 in infrastructure spread around the world. that model has contributed substantially to the return profile. >> actually, you know, i want to ask about one of those ownership positions in particular. which is maceridge i think you own about 17% of the company's equity you decided to step off the board. some people believe, ontario teachers wants to own the company. is that it case? >> our ownership piece we have today is there for investment purposes and we plan on continuing to hold that piece that we have right now. >> and not expand beyond that. so those who would believe

perhaps that because, again, you do own entire companies, don't you, that you might want to make a bid for it that's not correct >> where we think it's important, we will own entire companies. in this particular case, we're a 13d filer and i'll refer you to the filing >> back to the future of asset management, robotics, automation, those are two things you're discussing on your panel. what role does a.i. or robotics have in asset management >> well, the asset management panel is about the future of asset management and clearly, with analytics and the whole changing world of technology, it is going to impact different parts of the asset management business in different ways in our case, deep insights are possible when we are looking at data, when we're about to

acquire companies or frankly, when we're managing companies. we want to drive ebitda growth, and to be able to look at things differently than we normally would, that could play a very serious role for us going forward. case in point, retail. retail versus online there's many new things that have come up in the world of a.i. that can contribute -- data analysis effectively is what it is that can seriously contribute to whether or not things are shifting on you and how they're shifting on you. we're leaning very heavy into that direction >> it's not necessarily replacing people with computers as much as it is investing in the area so people can analyze data that better informs them. >> better decisions, better data analysis different kinds of data that previously we wouldn't have had the ability to look at and correlate. and so it is changing. it is going to impact the way that we invest as we roll

forward. >> ron, as always, we appreciate the brief time you spend with us thank you. >> david, thank you. >> you're welcome. ron mock, the ceo of ontario teachers pension plan. back to you. >> all right, david, thanks very much david faber at the milken institute conference w wn82 we're back in a minute

welcome back to "squawk alley. not a good use of my time, that's what microsoft founder bill gates told president trump after being offered the role of science adviser during their meeting at the white house last month. the comment came after gates suggested trump appoint somebody as the head of the science and technology policy. a position that's open you can catch gates along with warren buffett and charlie monger live from omaha on "squawk alley. a little awkward the gates foundation just six months ago, committed $300 million to help farmers adjust to climate change. it's been good for him the trump administration, not as big on stressing climate change as an issue. gates as science adviser might have seemed a bit odd. >> getting clarity on what we might hear at f-8. mark zuckerberg with a facebook

post saying they're developing a new privacy control called clear history. in essence, a way to clear your cookies as you would an ordinary search but through facebook once we roll out the update, he says, you'll see the information about the apps and websites you have interacted with and you can clear this information from your account. so stay tuned for that >> let's get to the judge and the half >> obviously, i'm not the judge. welcome to "the halftime report." i'm melissa lee in today for the judge. stocks are dropping. the dow is down by 1.25% we're sitting at session lows right now. a fall on the small caps by about a half aper isn't. s&p also sitting at session lows down 18 points the nasdaq down about a quarter percent. with us, jim, josh, stephanie, and sira strx. the tech sector is leading the market ahead of apple's earnings after the bell on a relative