users privacy is starting a dating service perfect. facebook ceo says trust us with your love life it's wednesday, may 2, 2018. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. ♪ good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity p futures. we are in the green. big boost coming after the market close because of apple. nasdaq right now is indicated to open up by 38 points the dow futures opening up by 50 points

and the s&p up by 3 points yesterday the nasdaq ended up by 1% and the dow turned things around by the close. >> i was thinking how can the market be down 350 points when apple is reporting after the close. i was honestly thinking that you will get out apple doesn't usually disappoint it's the leading -- of all the f.a.n.g.s, it's the leader they know how to massage numbers before it comes out. >> i don't think they're massaging numbers. >> i think apple's success is much more of an operational success. >> doesn't matter. >> it is some kind of indicator -- >> i'm not saying it's the economy, it's technicals technicals for the market. the market doesn't move on the economy. the market already moved 40% before the economy was at 3% technicals, underlying strength,

leadership in the market it was the nasdaq that brought back the market yesterday. with apple going to be -- i knew that probably after the recent weakness on a point basis, the dow by definition almost -- i was watching the futures in after-hours trading. the dow was down >> there was that point where apple came into the dow. everybody was like oh, no. >> i know. >> i was talking about journey was going to be on, don't stop believing. that doesn't reflect my view of apple. i wasn't a believer, now i am. >> now you're a believer >> yes >> you're a believer, i have a second iphone, that may -- >> that may be a high sign

>> ann winblad will be on. apple keeps buying back stock. they bought back a quarter billion, now buying back another 100. >> operationally, they did well, but it's more a story of the bulk they are. >> but i think the issues around the iphone -- we'll talk to an analyst in one minute. i don't think that it signals something about the economy. it signals something about -- >> i didn't say anything about the economy, europe slowing. >> we were talking about the stock market i know you think the stock market is not related to the economy. >> no coincidentally not at the same time >> i think we all look for indicators within corporations to figure out what that says about the economy. >> like at apple >> when multiples can move, when

it can be 10 times earnings or 20 times earnings -- when katie stockton is hand on one hand, a technician, we have someone over here, i would rather talk to her. >> we will talk to apple in a moment there is an analyst we'll speak with in a moment let's show you what happened overnight in asia. you will see the nikkei was off by about -- just over a tenth of a percentage point the shanghai was flat. if you look at what's happening now in europe and the trading taking place, you will see there are green arrows across the board. mostly modest advances in italy and spain, stocks are up treasury yields, that yield on the ten-year sitting below 3%. this morning at 2.991 %. >> you think dp will not be 3% this year? >> for the full year >> yeah. >> i think it could be a

challenge. it will get there, but it will be a challenge >> okay. let's say 2.5 to 2.75, that's 30%, 40% higher than we have been why isn't the economy good enough to justify market prices. >> that's a longer story then you have a whole policy side to the story. i don't know >> you're looking for indications on whether the economy is good. apple is not showing you that. but you should assume the economy is good any way. >> a lot of people are willing to play $1,000 for a phone >> i think the economy is not why the market is weak >> no. no >> i done think the economy is the problem. >> there's also concern that the fed will start raising rates >> let's talk about our top story. kanye west -- i'm joking >> marco rubio >> apple beating earnings as we have been discussing all morning. the company selling fewer

iphones than expected but boosting its capital return program by 1$100 billion, and joining us is will power from baird. you looked through the numbers, is this a value play now is this a growth play? what is it >> it's a good question. they continue to throw off a lot of free cash flow. you can look at it from an attractive lens from that standpoint it's impressive given the sheer size the way they accelerate growth looking at 2017, earnings of $9 and change going to $11 this year, now $13 and change as we look at our numbers into 2019. there were a couple of big surprises in the quarter china was better than expected you had dire concerns on the june quarter guidance. they defied a lot of skeptics on that front and put up good guidance the real icing on the cake, joe

alluded to this with the apple music subscription, that grew over 30% year over year. that was a staggering number >> so now when you try to math out services over the next 12 months, don't know if you have it into your latest excel spread he spreadsheet what does it look like what growth do you project out >> we try to remain conservative we're not assuming they can maintain that pace, but we're looking at a number in the 20s as opposed to low to mid teens that makes a difference for the company in terms of the growth profile and the margin profile one interesting element on the call last night was the suggestion that perhaps gross margins could sort of tick up as services becomes a bigger piece of the business. for a hardware business, given their size, that would be impressive >> i saw two reactions last

night related to the buyback within the investor community, instant applause but sort of a community in silicon valley saying 1$100 billion, think about all the things you could do, buy, invest and make with 1$100 billion what would you prefer in terms of how they use that money >> i would like to see them make other investments. last time i was on i suggested they look at content in a bigger way, maybe studio investment, something that could accelerate further the services business. they're up to 270 million paid subscriptions, a new number, up 100 million year over year to us, that's a basis of subscription you can add other services on to i think it would be great if they could look at other content related investments. it's a balance you're sitting on almost 1$150

billion in net cash. they committed to buying back another 1 $00 billion of stock, they'll generate another 50 billion of cash flow it's an aggressive buyback but it gives them flexibility to pursue other initiatives >> enough money for all. >> in terms of sales for the iphone, how are you looking at that there was concern coming into the quarter, maybe a bit less concern. when you think about the phones they have and the price points for the next generation of phones this fall -- >> i phone came in slightly below our expectation in terms of units, revenue is growing double digits. that's remarkable here as i noted earlier, the june quarter guidance is better than expected, too. that implies you have to have a good iphone number

we are looking for single digit growth in units, and asp has been growing in aggregate. so it's a business growing bubble digits, which is an impressive clip in a smartphone market where we're not seeing growth >> is there opportunity for margin expansion when it comes to apple >> on the cost side they've been hit on memory costs, component costs. so i think there's the opportunity for relief as you get into the next year as i noticed earlier, the services business should be a higher gross margin business in aggregate. as that becomes a bigger spent ta -- percentage, that provides opportunity. they continue to invest aggressively in r & d, in new and existing products. we're not looking for significantmargin upside, but perhaps some upside. >> what's the 12-month outlook >> $200 target price >> what's the multiple you got

on that? >> 14 times calendar '18, which is an aggressive multiple. that's where the stock has been for a while. >> we'll leave the conversation there. always great to see you. >> thanks for having me. at facebook's developer conference yesterday, ceo mark zuckerberg said the social network is getting into the dating game. it's an effort to reengage with 200 million people on facebook who describe themselves as single zuckerberg addressed the first question on many peeps mines, privacy. >> it's going to be in the facebook app, but totally optional opt in if you want, you can make a dating profile i know a lot of you will have questions about this i want to be clear we designed this with privacy and safety in mind from the beginni inbeginni. >> so they won't be harvesting that information and selling it?

they would say directing ads towards that >> towards those people. >> based on preferences in the dating app >> that's a good question. i don't know the answer. >> i like the statement, it's for people who describe themselves as single >> it only knows what you tell it >> you are either single or not? >> well, not yot line. not online where nobody knows who you are. >> okay. i took my wedding ring off, i'm single >> the dating service, according to chris cox, will not be visible to users friends or show up on facebook feeds facebook shares rose yesterday on this news and shares of established dating service providers fell sharply match group down i guess because there's so many people on facebook >> you hear people say weeping

privacy in mind, doesn't anybody -- doesn't -- saying it without a hint of irony. >> the elephant in the room, he had to say something >> after all this -- >> you shouldn't launch it >> i'm saying that when -- after the elephant in the room is that facebook and privacy don't go hand in hand right now >> exactly he nodded at it. i don't know what that means, if they're doing that with this in mind >> yeah. like him saying it, if i was going to do it, wouldn't make me feel confident >> tell me what that means does that mean you will not be tracking this information and it will never be available to advertisers or that you can't market against it? that's not what he said. that leaves some questions open. >> and what was that awful -- call it the end of the world what is that up with four married people what is that called dolly madison? >> ashley madison. >> if i mention it quickly, i

have a problem >> three-second pause. >> dolly madison it looks like we were hacked 100 mile onpeople will million e outed. >> back to facebook, when you see that concern from competing stocks for services that already offer this if you're a betting man and you're putting your money on this, you won't look at what facebook is doing. xerox says jeff jacobson is resigning. six other board members will step down. icahn and deesen won a court order last week to temporarily block a deal merging xerox and fuji film. they alleged jacobson quickly negotiated that deal so save his job after the board told him to end talks. fuji film says xerox's new board is obligated to go through with

the deal it will appeal the court order i should have never put all my clients in fuji film and photo mat. who will not use film? who will not use film? >> what year did you put them in that >> i'm kidding you can make bad investments based on not seeing the future photo mat. blockbuster. globe records was not a long -- >> not long, but you could have done well for a couple years blockbuster, you could have tactically >> but there was a time to get out of blockbuster there's a time to get out of eastman kodak. >> get out of ge >> for every season, turn, turn. retail news, sources telling cnbc that amazon is planning for perks for prime members at whole

foods. this does include 10% off already discounted items, free delivery in certain areas and 5% cash back when members use amazon's visa rewards card it is a good thing if you have one. you don't have to use it around town just plug it into your amazon account and use it i don't understand -- any way. get 5% off everything. >>i get cash back on another card >> the cash back is probably less than 5% off >> true. >> we have one of these cards. we get 5% off of amazon. >> so you know on jeopardy last night, nailed it a four-letter word for the way friends can pay -- share restaurant bills on pay pal. >> venmo -- >> that's five letters >> yeah. >> i was going to say venmo, but that's five letters.

>> yeah. yeah okay five you're right >> you are the only person in the demo who knew the answer >> right for everybody who is watching. >> yes as we mentioned, roughly 35% of whole food shoppers are also amazon prime members less than 20% of total prime members shop at whole foods. amazon made a formal offer to buy a stake in flipkart. the bid is on par with walmart's offer, and includes a $2 billion breakup fee. last month it was said walmart would likely buy a stake in flipkart by the end of june. special counsel robert mueller has raised the possibility of issuing a subpoena for donald trump if he declines to talk to investigators in the russia probe.

he said mueller mentioned the possibility of a subpoena in meetings he had in early march >> you have used venmo >> i have. >> you know how to do it >> would you like me to venmo you some money >> does he need the app, too >> eventually you do but i can literally send you the money now, you would have to download the app to collect the money. >> i will gladly pay you tuesday for a hamburger today. >> you get a test message from me saying i september you some money. >> how do i get it >> via text. you would get a text money from me saying i sent you $20 you would click on the link, download the app i think it would open the app up you sign up for the app, you hook it up to your bank account. >> it goes right to the bank >> that's the easiest way to do it i think you can live with a paypal account

>> let's get to things that are new this morning china said president xi's top economic adviser will meet with president trump's trade delegation in beijing this week. kayla tausche has more do you sleep at all anymore? i don't see how. there's always something >> i would like to sleep, i don't think it's safe to sleep there's so much going on >> treadmill the news treadmill >> it's an exciting one to be on nonetheless. especially 24-hour cycle this week with this high-ranking delegation on the other side of the world, 12 plus hours ahead of the u.s they left last night for china they were planning to pit stop in anchorage before heading on to beijing where talks begin thursday china time. you have the secretaries of treasury and commerce, the u.s. trade representative and larry kudlow and peter navarro are divergent views on china

this group has been coy about which chinese officials it will be meeting in normal bilateral talks those are details worked out weeks in advance. there was an editorial that said the u.s. requirements are unrealistic such as asking china to reduce its trade surplus with the u.s. by 100 billion per year, though beijing has been willing to shrink the trade gap t can't be achieved by giving executive order. >> there's a big, big challenge. there's a different system over there. it's a system that has in all honesty worked well for the

chinese. it has not worked well for us. >> ambassador lighthizer was asked how much time this team would be willing to give china to come back to the china after the talks to see whether they bare fruit or whether there's an agreement that can be reached or whether the ustr will go forward with the tariffs it proposed a few weeks ago. lighthizer said we'll see, and just noted that after may 22nd they have the legal right to put those tariffs in place >> thank you thanks to kayla tausche. it's interesting do we have confidence in lighthizer we have to get nafta done in, like, two weeks supposedly >> as judd gregg pointed out yesterday, there's two sides on this team that's been sent over there. it's unclear -- who is really running it >> what we would like to accomplish >> maybe one of the positives from what you worry about with the tariffs is that it's like

nafta suddenly is like we don't want to -- let's get this done so we can focus on tariffs with europe and china maybe nafta gets done. you want nafta, right? >> i think generally >> i think it would cause too mu much, i think we need this deal in place. >> i don't want to end it. >> first deal was disaster disaster -- that's just -- you know who that sounds like. >> yeah. >> i think i'm the healthiest man to ever -- >> can we talk about that? >> what? >> if he wrote it himself. >> you didn't know that? you honestly didn't know that? >> it sounded just like hip. >> the whole thing -- but that -- >> that's what i assumed at the time, he wrote it. >> the doctor saying you're very healthy, what should i say say you're the healthiest man -- >> when i heard the initial statement, i assumed drummen

wro donald trump wrote it. >> you're supposed to be able to believe the doctor >> did you believe the weight estimates from dr. jackson he weighed 189 don't take him literally take him seriously i've been telling you this for a year don't discount it, but don't take it literally. >> this is like the world wrestling federation wrestlers, when they tell you that they weigh -- >> would you dispute i'm not the best looking person ever on "squawk box" would you dispute that >> if i say somebody else is better looking, then -- >> you're allowed to say that. >> we have to go >> that's very complicated in this environment >> let's get out of here when we come back, the cdc out with a new warning about

insect borne illnesses, at the top of the hour, senator bob corker lots to talk about with him. and next monday on "squawk box," billionaire summit three hours with warren buffett. he will be joined for an hour by charlie munger and microsoft founder bill gates is a board member with munger if you are a berkshire hathaway shareholder, we are looking for questions to ask on saturday at the berkshire hathaway annual meeting. if you want to ask a question, ask them at berkshirequestions@cnbc.com. we have questions, and they will be answered at the annual shareholder meeting.

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a growing number of americans are getting sick from insect bites. the number of illnesses from mosquito, tick and flea bites has tripled, these include diseases like zika, west nile and lyme disease people who travel overseas can bring homoskeet to -- bring home mosquito borne diseases like zika. >> don't look at me. >> it's sexually transmitted what is? >> you won't get it by him breathing on you >> zika? once you get it from the mo

skeet t mosquito, it's sexually transmitted? ♪ >> no. no >> that's wrong. that's so wrong. >> very wrong. >> you said there was lyme >> that's not person to person transmission >> zika sexually what's the other thing >> malaria or something -- >> you've been sick since you got back >> that's a sinus infection. >> who knows with you. >> you said bacteria, which is why they gave you drugs. >> it's a bacterial infection, not a virus. >> keep your distance. >> everybody is on the other side of the tv screen, they can feel safe. a british supermarket ceo was caught on camera singing "we're in the money" as his company was planning a merger.

this was while the mike was on as he waited between media interviews ♪ we're in the money the sky is funny ♪ ♪ let's send it, lend it, rolling along ♪ ♪ we're in the money >> i love that. >> i don't know whypeople got so outraged by that. >> i'm not outraged. you could see all the people waiting to be interviewed on "squawk. >> if you could hear what we say during the commercial breaks give people a break. >> you remember when dr. dre -- before the beats deal, when he was caught on camera talking about his merger >> yeah. >> before he was supposed to be talking about it >> nancy kerry kerrigan talking to mickey, saying i can't believe this this is so cheesy on the parade on the float i'm so embarrassed

>> there's so many hot mic moments. >> there are >> there are there are. he later called the choice of song unfortunate, and it was said he recently saw 42nd street and we know how those songs can stay in your head. >> he wasn't like this >> good mood, merger >> i've been walking around singing elmo songs ♪ >> budweiser's launching a limited edition beer this summer that has ties to the country's first president. it's called freedom reserve red lager, inspired by handwritten recipes from george washington's military journal written in 1757 the beer is brewed by veterans

who work at budweiser. a portion of the proceeds will go to a charity folds of honor it's available in stores may to september. >> i like the bottle and packaging. check that out >> very cool >> who owns budweiser? >> inbev. when we return, the fed set to announce its latest rate decision that's at 2:00 p.m. eastern. we'll talk about the powell era at the central bank and how to prepare your portfolio as we head to break, a look at yesterday's s&p 500's winners and losers ♪

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welcome back to "squawk box" live from the nasdaq market site in times square. >> good morning. welcome back take a look at u.s. equity futures at this hour after that better than expected number from apple. the dow looks like it will open higher by 38 points. nasdaq opening higher by 25 points s&p 500 up just marginally some stocks to watch as well, snap's first quarter, evan

spiegel's revenue missing forecasts as growth and daily active users came down after the redesign of snapchat's app upset some fans and advertisers. the company acknowledged the plan hurt results but it is sticking with this plan. shutterfly reported a narrower first quarter loss and the revenue beat forecast. the company is raising its full-year guidance to reflect the acquisition of lifetouch which does school and yearbook photos that stock up over 10 %. gilead's first quarter profit myself forecasts. shares of its hepatitis c drugs slumped nearly 60% amid increased competition. gilead is sticking by its sales outlook for the year. it's a busy day for corporate report cards we have cvs health, kraft heinz, mastercard and yum reporting before the bell. after the close, we will hear from tesla and spotify the fed is front and center today. the central bank will wrap up

its two-day meeting with a policy statement at 2:00 p.m. eastern time no jay powell news conference this time around but the markets will watch this closely. let's check the broader markets. joining us is chris retzler, and jim o'sullivan we are looking at apple earnings coming out that's strong news it's not just apple, it's amazon and google who have been incredibly strong. the f.a.n.g. stocks still hanging in there what do you do with this it's a strong leadership and hard to fight. >> we like the supply chain that's providing a lot of the components and the solutions to their products certainly facebook went through some difficult times earlier this year. but it's really -- >> profit didn't slow down there either >> not at all. the changing shifts of where ad dollars are going, going online.

they can retool their business modal little bit, which is where i think they'll be you take apple, there's been a lot of negativity around the number of iphones. >> just talking broadly about the market we've been wondering where we would get the next leadership from, because the f.a.n.g. stocks were weak now you get these earnings reports, maybe the new leadership is the same as the old leadership >> i think you're probably right on that front. they are large liquid stocks and i think where investors have been avoiding them is where we see value as well in the smaller cap less volume out there. so the f.a.n.g. names are attracting money from passive investing, but the names supplying them are also good investments. what about t >> what about the banks? a lot of banks were back in correction territory >> you have the flattening yeed

curv yield curve. the two-year and ten-year spread has been tightening. >> you think that's a valid concern? >> i think the central banks are in full control right now of the yield curve because of the amount of debt that they bought on the long end, had is not where typically they played historically they can control this exit of monetary policy. the concern is do they lose control at some point out there? is there some larger impact that tornados this kind of goldly lock goldilocks environment for the banks? >> jim, what do you think? >> in terms of the market, from the fed perspective, i think they would be happy to see the equity market cool off, flatten out for a while. they need financial conditions broadly to become less accommodative. they need the labor market to cool off they werestarting to worry about bubble-like qualities in the market a few months ago.

a bit of flattening out for a while is a good thing for the fed. >> what will we hear in the statement today? >> they have to acknowledge inflation is back to the 2% goal more or less so from that perspective it's more or less mission accomplished on the inflation side and the unemployment side >> that's a loaded term. >> i think the forward looking parts of the statement don't change significantly so the message is look at our last dot plot, we'll probably tighten again in june. the message is we come back in june >> that's not anything that surprises. >> no, i don't think there's a reason to move markets markets are pricing in a 90% probability of another hike in june unless they want to cast doubt on that, why change the message today? >> to chris's point, the bigger concern with investors is will the fed do what it typically does, which is overreach and end the growth >> it's a question of if they have to or not

if unemployment keeps falling and inflation keeps picking up, they have to keep pushing. we have to get the unemployment rate to flatten out, they don't have to tighten too much more. the question is are we so far from neutral still that they have to keep on pushing and pushing and pushing to stop the downturn in the unemployment rate they don't want to turn this into a hard landing. they want a soft landing there's no guarantees. we still have the balance sheet. how will that factor in? that in itself is a tightening mechanism? >> they're pretty much on autopilot on that right now. the message there powell is that he will continue the policy in place. that's on autopilot. they have a plan the balance sheet shrinks under certain guidelines to the extent there's decembisco on how rapidly they tighten, that comes back to the rate side >> thank you both for coming in. coming up, our guest host at the top of the hour, tennessee senator bob corker. then we will talk north korea and the iran nuclear deal

with michael hayden. later an early read on friday's jobs numbers from the adp private payroll report that comes out at 8:15 a.m. eastern. always on a wednesday before the friday when we get the numbers stay tuned, you're watching "squawk box" on cnbc

time for the executive edge. we'll start with stocks to watch. juniper networks first quarter results beat forecasts the network equipmentmaker expects revenue to top forecasts. they're benefiting from higher demand from data equipment customers. shares of yum china are slumping the fast food chain's first quarter profit topped estimates but revenue came up slightly short and same-store sales rose by 3%, led by kfc. sales of pizza hut down more than 5%. what's going on with pizza in china? mondelez reporting better than expected first quarter earnings and revenue the snack food maker was helped by strong demand for oreo cookies.

double stuff oreo cookies in particular joking after several high profile pet mix-ups and deaths, united is scaling back its animal transportation services. the new policy will brand several breeds of dogs and cats including pugs and french bulldogs the policy will put united more in line with competitors like american and delta >> this is similar to the on-flight bag requirements that they have. the bags have to be able to fit in the overhead bins any dogs you bring on have to be able to fit in the overhead bin. they are not allowing -- the big dogs are down in the cargo hold. isn't it cold and isn't the air -- >> isn't there a special part of it that is pressurized

>> yeah. >> but i thought they do a whole thing for animals. i don't know >> it's scary moving the animals. one incident and we're still talking about it it's difficult to run an airline. i din have the best experience, switching planes, making connections. >> that's no individual airline's fault. >> no. no no i'm not blaming them. united is still my home base >> which is the rjr -- the ceo who used to fly his dog separately on his own plane? coming up, apple shares rising after the company posted an earnings beat and boosted its share buyback program by 1$100 billion. dom chu will put that buyback in context for us next. and as we head to break a check of european markets right

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our top corporate story. apple posting an earnings beat and bosti iboosting its buyback program. the reason i said that is we want to introduce dom chu. it's not 7:00 yet. it is a nice day >> the sun is out, but i'm here because i love you guys. i love this show so much >> how long are you going to be here today >> i'm going to be here through at least around 11:00 a.m. this morning and then i have, you know, obligations for the rest of the afternoon >> i know you do obligations -- >> joe's trying to get your day extended >> obligations to the nice weather that we're having. it's like a magnet, is it not? >> i am trying to pay homage, so to speak, to what's going on outside. >> where are you playing >> undisclosed location, yes >> what happens there stays there. but he will -- you may have a good shot at the big prize, dom. >> well, i -- you've prepped me well i'll just say this, joe. thank you very much. >> you're welcome. and now everybody knows.

>> and now everybody knows let's talk about this buyback. like you said, that $100 billion, massive in terms of what they're going to plan to give back. but let's take a step back now we can close the history books or the books on some of this history with regard why apple is the biggest talk of the town with buybacks according to dow jones indices analyst howard silverblat, apple owns four of the top five biggest quarterly buybacks of all time just this past quarter they spent nearly $23 billion buying back their own shares. that's the number one spot number two, apple $18 billion. number three, apple again. number four, q3 2014 apple again. the only stock not apple in the top five is ibm way back in 2007 now let's look at who the biggest repurchasers of stock are at least back in 2017.

so last year now that we closed the books there, we know apple was the biggest purchaser. $32 billion. then a slew of banks for the next three all spending around that $12 billion to $15 billion mark. and then charter communications at $11.7 billion let's take a look now at the dividend side of things. that is not insignificant with regard to biggest annual dividend payments. apple is now the biggest dividend payer almost $15 billion in annual dividends. at&t at $12 billion. and verizon nearly $10 billion when we talk about the massive amounts of money they're going to return, it's important to note they've been serial repurchasers of stock and also dividend payers over time for the last few years at least. and that means that for certain income investors out there, it is a stock that perhaps has a little bit of appeal on that front as well, guys.

>> all right, dom. thank you. that's pretty amazing stats there. i guess the biggest company in the world should have the biggest buybacks, i guess. >> when you have $270 billion in cash, i guess you can do it too. >> yes people, you know, say why not do something better with it but that's a lot of money. when you're the biggest company in the world, you don't want to just blow it on trying to buy something that might work out. then you write down. a lot of companies have done that in the past >> let's say this. you guys talked about the sainsbury ceo saying i'm in the money thing. other people in apple can say that too >> that's true all right, dom have fun hit 'em straight >> he hates coming on with us, us outing him in this stuff. >> i know. all right. when we come back, our guest host for the next hour, senator bob corker we will get his take on the iranian nuclear deal, the president's tariffs, and a lot more

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the tale of two tech companies. apple in rally mode after a beat the latest market moves and what to expect is straight ahead. trade, geopolitics, and the state of the economy bob corker of tennessee is here for the hour and the song that inspired generations. ♪ don't stop believen >> jonathan cain joins us to discuss his latest project as the second hour of "squawk box" begins right now.

♪ live from the beating heart of business, new york, this is "squawk box. >> don't listen to a word he's saying welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along can joe kernen and becky quick look at the futures this hour. dow looks like it would open up about 70 points higher nasdaq up 27.5 points. s&p up a point higher. let's tell you about big headlines right now. investors climbing back on the apple bandwagon this morning beat on the iphone sales not coming in as weak as some feared they announced a $100 billion

stock buyback program and a 16% dividend increase. a lot more on those numbers and market reaction later in the program. we're also just a little over an hour away from the april adp employment report. economists there expecting an addition of 190,000 for last month. that compares to 240,000 from march. that number will be among the factors that policy makers will be considering as they conclude a two-day policy meeting the latest meeting will be out at 2:00 p.m. not expected to raise interest rates this time around mr. jerome powell, i do not believe is doing a press conference >> no press conference snap's first quarter revenue missing forecast as did growth and daily active users this comes after they upset some fans and advertisers hurt results but it is sticking with plans to keep content separate from other publishers

the network equipment maker expecting to top estimates juniper is benefitting from demand for equipment a little bit of other corporate news this morning. xerox's ceo resigning in a settlement with two of the company's largest investors. in addition, six other board members are going to step down icahn won an order to block a deal to merge xerox into a deal with fuji film to go through with the deal and it will appeal the court order >> let's bring in our guest host for the hour senator bob corker of tennessee. he is chairman of the former relation committee i was just thinking about -- in

case there's nothing -- i don't remember that. but a couple weeks would go by then it would be there's news out of washington today that we need to report we've got so much -- it's great to have you here, but i don't know where -- you've got north korea. you've got tariffs you've got iran. you've got mueller you've got tennessee and who's going to take your place down there. can we start with north korea? >> sure. >> i just want to hear -- when you first got wind that suddenly he's going to meet with north korea. i'm talking about kim jong-un. he's going to denuclearize it seemed like it came out of nowhere. do you know what really happened here is trump a genius or just the luckiest person on earth in terms of what happened? >> well, look.

this is a great opportunity. by the way, talk about surprises. rex tillerson was in africa, got a call at 2:00 in the morning from general kelly saying, hey, by the way you need to call the president this is getting red i do happen. you know, it was a shock to everybody. but look it's setting up well kim jong-un has learned a lot about public relations, obviously. and is setting it up well from his standpoint this is a great opportunity for our nation i hope it goes well. pompeo is the right guy to be secretary of state >> the tribalism we deal with every day and the narratives that are painted on what's really happening, a person out in the heartland would have no idea about what really happened. i mean, i hear from certain people that trump's the sanctions how tough they were, his -- you know, portraying himself as strong and possibly ready to do something militarily to north korea

convince kim jong-un that, look. if i want to stay in power, i could have a good, long life if i -- and i can actually do something for my people economically and come into the 21st century but there are other people that say it had nothing to do with that that it just -- after all these years, it finally just happened. what's the truth does he deserve a nobel prize? >> we'll see i mean, i think if this gets resolved, my gosh, yes it's been 25 years >> but it was due to his strategy >> there's no question that the administration has done a great job bringing people together to put pressure on north korea. no question. convincing them to do so was a great achievement by this administration so where it goes from here -- you also had sort of a left leaning president in south korea who wanted to reach out. ran on that. so you had that. more of a hawkish lead there

>> obviously we have seen moves in the past that looks like we were moving towards something. this is more than we have seen the proclamations have been more than this is a trust but verify situation. >> absolutely. i think everybody understands and john bolton in particular that we need to be very skeptical. over 25 years, this has happened numbers of times this does look more optimistic than those other times but at the end of the day, what is he really willing to do relative to his program? it has been about his survival, right? it's about him being able to die an old man in his bed. gadhafi gave his up. didn't work so well for him. he knows that. and so this is going to be a long process, but again, it's starting out on a very good note >> what are the next signs with president trump's potential meeting. >> well, obviously this is --

there's a lot of setup, a lot of precursor issues have to be dealt with before it's saet they'll probably know generally speaking what the outcome could be before the meeting begins one of the things that kim jong- jong-un's got to worry about is, he set pretty high expectations now. he's got a president that, you know, is willing to do some pretty tough things. and so, you know, you don't want to underdeliver on the other side either. i think, again, going in with a lot of caution and skepticism and knowing this is going to be a long process is where the administration is, where we need to be, where the world needs to be >> okay. so iran is watching all this >> right. >> what do they take away from all this and how does -- what's going to happen in a couple of weeks? >> i think if nothing changes -- i've talked to the president numbers of times talked to him last night i think if nothing changes, he's

definitely leaving the agreement. so there's this framework we've been working on for about a year our office went to the state department a year ago knowing where the president was to lay out these three issuissues ballistic missile testing and also this sunset clause. at the end of ten years, iran really is off and running. the people negotiated but they are off and running. so getting the germans, the uk, the french to agree to a new framework has to occur or i think he moves away. >> you talked to him last night. that's what you gleaned from it? >> we talked about another topic last night, actually >> what was the other topic? >> he was wondering how long you've been on this program. >> yeah, he knows exactly how long let me -- oh did you watch netanyahu?

>> i didn't watch it i was at -- >> what's the bottom line? >> we've known we've known. they stopped the program when we invaded iraq we've known that for some time look -- >> is he trying to -- >> i think he would love -- >> was this about a political internal move to keep himself in power? was this -- >> no, no, no. this was about influencing the administration >> our administration? >> yeah. definitely >> you think it's nothing to do with him in israel at the moment >> i think it has everything to do with may 12th you know, i've gone over there just to meet with the massad the fact they were able to get this was an incredible thing but the information and having it, it verifies what we already

knew so it wasn't new information it is new to actually have the details written in faraci. >> you've got to love the massad >> why wouldn't you? >> good and competent. i trust what they say. if they -- you know, you need -- they're over there surrounded by people that hate them. and you need -- you've got the massad -- i just think -- i don't know tariffs. as long as you're here will -- i'm ready for everything to work out. serendipitously or because there's a method to the madness. i'm not sure which it is but that's another thing we did the tariffs on china and people are like, oh, my god. then a week later president xi says a lot of this stuff we probably should, you know, adjust some of these things that we're doing. to kri to his critics, it's driving

them bonkers there's resistance there's people that absolutely want to impeach this guy people go nuts when some of these things start working out what if something doesn't work out finally? nothing at this point -- there hasn't been a single disaster blowup in terms of foreign policy or even economic policy at this point. god forbid if there is one everything has been working. >> so on the tariff issue, trade wars may be easy to win. but they're also easy to lose. >> but there's some truth to the notion they need us more than we need them. is there not >> they've got to think long the big issue is the intellectual property theft that occurs through cyber but also forcing our companies when they do business there to transfer it to a chinese partner that's got to end. that's where the focus needs to be at the end of the day, i hope all these tariffs don't happen i hope the negotiations are successful it's sort of been a roving

application, hasn't it and at the end of the day, again, i don't -- avoiding a trade war is -- would be a good thing. and i think we will. i think at the end of the day, i think we will. >> what about taking it on in the first place? >> you know -- >> did it need to be done? it's been neglected for years and years. >> probably not so much with the european union probably not so much with canada and mexico >> even though they're exempt mostly will nafta get this done >> i do. i do he's getting a lot of incoming especially from the ag parts of our country. but almost every -- >> we're going to talk about you too. are you going to miss all this you're probably going to be a cnbc kr ibtecontributor. >> we hope >> huh >> we hope >> we're offering you that position big money. high profile >> i mean, y'all are my idols.

>> i don't think you can offer him a job while he's in office >> you cannot, by the way. >> i just want to be clear on that >> i don't want to walk out of here in handcuffs. >> would we both be in trouble >> just me >> just think about it i'm not in a position to offer it anyway. i think it would be a good idea. right? wouldn't you like his analysis and insight? >> hypothetical you're throwing out. >> hypothetically. you like marsha blackburn yet? >> yeah. i've given her the maximum contribution. >> you see all the scuttlebutt about that it was lukewarm. trump watches the paralympics and says how inspiring it is and i read a huffington -- you wonder why the term fake news is around that is fake news. but "huffington post" is a pox on humanity. >> the way he said it was strange. i'm just saying. >> "huffington post" said he

watches tv eight hours a day. >> did you watch the video it was -- >> was it as bad as what obama said about the special olympics on late night? >> was that published? yes. >> no, the media totally left that lie >> senator corker is going to be here for the rest of the hour -- >> we hope coming up, former nsa and cia director michael hayden will join us. he's out with a new book on the perils great to have the senator here to be part of that as well check out futures at this hour dow up about 60, almost 61 points after some of that big apple news we'll talk about that as well. you're watching "squawk box" on cnbc

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sure. mom,what's up son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. [ chuckles ] download the xfinity my account app and set a password you can easily remember. one more way comcast is working to fit into your life, not the other way around. welcome back to "squawk box" this morning in his latest book former nsa and cia director michael hayden tackles the state of the u.s. intelligence committee general hayden joins us this morning. he is the author on the assault

of intelligence: american national security in an age of lies we thank you for joining us this morning. so much to talk about. we want to get into all sorts of things i want to start with this. you say the structures, processes, and attitudes we rely on to prevent the collapse of our democracy are now challenged, eroded, or simply gone what do you mean by that >> that comes from the first chapter. i begin by remembering my walk through wartime ser yiavo which has now been destroyed by its own citizens you'd wonder what could possess someone -- it was how much different they were but how much not different they were. i just concluded then. the veneer of civilization on which we all depend is a lot thinner and needs a lot more nurturing than we normally believe.

now, fast forward to today and what we're doing in american society. the whole core of the book is the concept of post truth. that we've moved into a post-truth era oxford dictionary word of the year on preference and emotion rather than objective data. we are an enlightened people the core of our country was based upon enlightenment values. they were enlightenment scholars we depend on the lessons of the enlightenment. which is evidence, humility and the face of complexity to make our system work. and i fear we are leaving that behind >> so explain this to me right? so in this post-truth world. and you're critical of the president for normalizing what you think of is lying. >> i've got three layers here. i got the reality i just said. i got a president who identified it, exploited it, and worsens it and now i've got a foreign nation coming through trying to take advantage of it, the

russians >> and yet, here we are we were just talking about north korea and the success that it appears that we are having how do yousquare the post trut issue world we're living in with this -- what seems like success that isn't earned based on the world that we're in. >> what i write about in the book and have my concerns but i end on a hopeful note, i have my concerns how do the fact-based organs of government -- intelligence services and state department and so on -- connect to a president that -- let me try to be fair to president trump a president who is spontaneous, instinctive, has almost a natural confidence in his own thoughts how the world works how do those organs down here which we depend on all the time connect to a president of that style? that's the struggle that's going on and what we see in korea right

now, i think might be a happy combining of the two forces. we'll see. i was -- look. the president squeezing the koreans, the economic sanctions, the diplomatic isolation check, check, check, check my guys would have been in favor of all of that the tweets last summer to a 30-something who has not lived a rich international life, you and i have trouble understanding those tweets just think of kim jong-un. i think those were dangerous i'm glad they're behind us >> you don't think someone's going to look at that and say they worked? >> i would say what worked was the diplomatic isolation, the economic sanctions, the military demonstrations >> do you scribe any blame to the media in terms of not being empirical with the truth >> so here's the problem that i have so we've got institutions pushing back and high friction points i walk through this in the book. the high friction points of the administration have been with

intelligence, law enforcement, justice, scholarship, science, and the media. what do they have in common? they're kind of evidence-based all right? on a good day, really evidence-based on a bad day, not so much. but their legitimacy is evidence and their only safe haven is we get the story right. those are the high friction points they push back now, the problem -- and this is for my tribe especially. but it applies to justice and certainly to journalism. the problem is pushing back against the most norm-busting president in american history, do these fact-based institutions violate their own norms in pushing back against the president? >> the other problem is these institutions aren't always right. >> of course >> and who has -- in terms of the tribalism i keep using, i think bill murray actually started us on that every morning we wake up and it's tribalism. so when you have the house committee finishing its report on russia, you saw what the

president and what nunes and others say about that report and you see what adam schiff and everyone in mainstream media says about the report. where's the facts there? somebody's got to be lying >> i will say one thing. when you hear that -- when you find out the president is lying about his own health records and -- >> that's not an answer to this. my only point -- >> it then shades how people think about everything else. >> people lying straight faced about that i see maxine waters lying straight faced >> is anybody telling the truth? >> people try. there i was in the room voting for the iraq weapon of mass destruction nie. we get stuff wrong you don't have to impute malignant behavior >> did comey lie >> i don't -- i don't believe so but i don't know jim comey the

way i know jim -- >> did mccabe lie? >> i don't know mccabe. >> but you saw the testimony >> i see we have two versions. right? but let me go back to a point earlier. in the american constitutional system, this is a great weirdness of the time. give me one minute to do this. in the american constitutional system, we have competing co-equal branches of government. they're supposed to push back against one another. trust me, i know when i have to go up there and testify. all right? it is the job of the congress to limit executive overreach. that is not happening. what is happening right now is that what i would view to be executive overreach is being conducted -- get this -- by the organs of the executive branch by the department of justice look at rosenstein yesterday the fbi, the intelligence community. in the weirdness of weirdness, now the president is going to the branch of government, the congress, that should be limiting his powers and enlisting his supporters in that

branch to limit what it is the agencies of his own executive are doing. that is strange. >> speak to that >> you've been -- luckily he hadn't had to say anything yet >> look, i say thesenate side is the side i'd focus on the house has just gotten out of control. both sides are out of control as it relates to this >> my only point is, you know, truth has gotten to a point where it is relative and subjective i mean, it's -- that's just the way it is. >> why is that acceptable? >> i'm not saying it's acceptable just the way it is >> i would focus on the senate intelligence committee and the way it's doing, it's conducting itself in the way i think most people -- i'm not trying to -- i am -- the house just blew it on this okay i'm sorry. it just got partisan on the front end. they didn't work together. we've got two leaders in the senate side that are working together that are trying to get it out they'll be done soon

i think we can all take stock when that happens. >> the book's through an intelligence lens. but it's not just about intelligence i talked to a lot of people i never would have talked to in my previous lives like flphilosophers all right? what we have done because we melted down our other associations, religious groups, social organizationorganization become identified with our political affiliation. when i go back to pittsburgh and say that's not right let me tell you the facts of that case, the facts don't matter i'm not arpgi ingarguing facts. i am attacking his or her personal identity because we have now attached identity to political preference >> strzok, his lover, comey, the fbi should be one of our best institutions and it's been damaged permanently by comey's tenure >> the president has den graigrd

all of it. >> if i saw what was going on at the fbi in terms of undermining a duly elected president -- >> michael hayden, thank you >> and it's sad because the fbi should be -- when we come back, we have much more from senator bob corker plus facebook getting into the dating game. details of the new service straight ahead also shares of apple popping on earnings and we'll hear what ceo tim cook had to say about that quarter. "squawk box" will be right back.

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sick of winning so much. good morning welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square among the stories front and center, mortgage applications fell 2.5% last week according to new figures from the mortgage bankers association. both new purchase applications and refinancing activity both fell during the week the average 30-year mortgage rate rose to 4.8%. that's the highest since september of 2013. cvs is out with new health earnings at this hour.

beating estimates by 7 cents profits $1.48 a share. revenue also beat forecasts. cvs issued a current quarter forecast above the current consensus. its results were boosted by growth in sales of prescription drugs. shares of molson coors are lower. estimate sales also fell short of forecasts the company pointing to weak u.s. industry conditions among other factors. okay apple's latest earnings report saw the company beat on both top and bottom lines josh lipton joins us with more on that story. >> reporter: investors had been plenty worried about iphone x demand, but tim cook saying that x remains his best seller telling me iphone x was the most popular iphone each and every week of the quarter. and that's of course on top of last quarter it was also the most popular iphone every week since its

launch another positive surprise, revenue in greater china jumping 21%. strongest growth rate there in ten quarters i did ask cook about trade tensions with china with the ceo saying i think that china and the u.s. have this unavoidable mutuality. where if china wins china can only win if the u.s. wins. i also did finally talk about this qualcomm fight that tim cook finds himself in. tim cook making it clear to me he didn't enjoy the opportunity here to engage in this fight that he thinks if there's some change in qualcomm's strategy, the two can hopefully find some negotiation. but a more conciliatory tone there from cook. >> all right thank you, josh. sticking with tech news for a minute, at facebook's developer conference yesterday ceo mark zuckerberg said the social network is getting into the dating game.

our next conversation now with senator bob corker and what he thinks of -- no. that's not -- look he was worried >> he wishes he was asked. did you wish you were at the mark zuckerberg hearing? >> no. >> no? that's not a conversation -- >> that's sort of out of my sphere >> out of your sphere? >> although i would have liked to have stared down at him it's rare i have an opportunity to do that >> if you're interested at home, the service is going to launch soon it's an effort to re-engage with the people on facebook who describe -- i like this term they describe themselves as single they may or may not be, but for the purposes of the dating site, they're single zuckerberg -- >> on friendster you used to say it's complicated >> isn't it always though? >> no. >> no, no. right. i get a set of instructions and follow them. it addresses the first question on many people's minds privacy.

>> it's going to be in the facebook app but it's totally optional it's opt in. if you want, you can make a dating profile i know a lot of you are going to have questions about this. i want to be clear that we've designed this with privacy and safety in mind from the beginning. >> facebook chief product officer chris cox also works with the nra that's weird facebook has -- >> no. different guy. trust me, different guy. very different guy >> chris cox said the dating service -- i knew -- that was a joke i do need to spell that out at times. >> yes >> i do. anyway, it wouldn't be visible to users, friends, or show up on their facebook feeds facebook shares rose yesterday on the news. and look what happened to shares of the established online dating service providers. they fell sharply. so just a quick question before we go to break so you're -- it's your wedding

you're getting -- all the guests are there. ask the husband or wife or the groom or the bride how did you guys meet. what do you want to say thousanthousannow? i met on a dating site there used to be a stigma to that would rather say i met at a bar. >> i'd rather say met on a dating site than a bar >> it used to be the opposite. if you couldn't meet someone normally you go -- >> i met you wearing my beer goggles. >> i met you at 1:00 a.m >> hey, last call. >> senator, do you have a -- where would -- you don't want to weigh in >> i had a blind date. >> blind date? that's good. >> was it a blind date >> i had a lot of blind dates. i got married late in life so yeah. >> but a blind date is what did it >> it was a setup. >> that's good that's the equivalent of online dating >> that's exactly right.

it would have been much easier to just facebook it. >> i met my wife at church >> good answer >> liar. work like we all did. >> if i've ever heard fake news, that's it. >> that is fake news i met her at -- >> was it a wednesday night or sunday morning >> i met her at habitat for humanity we were both on a service trip how's that that's a good -- >> your daughter does have a desk for you >> i'm thinking of what the best narrative is i don't think on a dating site is when we come back, journey keyboardest jonathan cain got his idea for his book when on tour he's here to tell us how one song has inspired generations that he joins. he's coming in a few minutes right now take a look at the u.s. equity futures. you'll see they're in the green. these aren't massive gains at

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♪ all right. our guest host for the hour, senator bob corker of tennessee. the chairman of the foreign relations committee and a member of the banking and budget committees senator, you have made it very clear that you're not running for election but we don't know what you're planning on doing next do you have any plans? >> let me start by saying it's been the greatest privilege of my life. i came to the senate on a mission. i told tennesseeans we were going to serve for two terms i'll miss it you gain influence over time things are coming in over the transom. you can have preliminary discussions. i spent a lifetime in business before being in the senate and we'll see. i want to do something that matters. i've been working since i was 13 you know, it's such a privilege to serve the public.

on the other hand, can i make a difference in the business world too? we'll see. but there's eight months left. we want to do everything we can to make a difference we still have a lot on our plate. but i think for me serving in a missional way to be here to be independent, to say what's on my mind, to give it all i've got was the right thing for me to leave after 12 years is the right thing too. >> i think about what's happened in 12 years. to find what's happened from our view of things it's been a pretty tumultuous few years. i wonder what the course of business is now that you're leaving? >> when i first got there, the financial crisis i got a call at 10:00 one night just joined the banking committee. i had just been in the senate for a year, year and a half. and was asked to attend the meeting with paulson and bernanke and others.

we became concerned about whether people were able to get cash out of atms seriously. played an outsized role during that time. so you go from there to today. you know, business is thriving right now. but, look. i believe in america i do this is still the best place to do business. we've got the best innovation. we've got challenges, but what an awesome country and great business people we have. >> what do you want to do in the next eight months? is there anything on your -- not your bucket list, but a target to say before i step off the stage i want to get "x" done >> food aid reform make sure our slavery efforts around the world are implanted hopefully we'll be successful. we got all kinds of minor issues that are major to the world but,

you know, we got issues in venezuela. we've got issues, you know, the iran deal. we deal with those things every day. the great thing about my job, i'm a lawmaker and i don't like laws i'm more of an executive kind of person we can make a difference on the phone or meeting with people by influencing things and there's a lot of that we want to do over the next eight months >> what's your best guess? speaking of the next eight months, what's your next guess for the house and senate i could see adding to senate seats. some of these guys are vulnerable west virginia, for example >> i was out at milken this week i was with kevin mccarthy. i believe he thinks they're going to maintain control. i think that's dicey i was with pelosi after the macron speech. she really believes they're going to be in control i think the house we could lose. the senate, i just don't soo it. i don't see us losing.

>> lose some seats >> we could. there are some vulnerable democrats. people that are good friends of mine but are in tough states but i don't see it losing it it would take a real blue wave to lose the senate >> you're 60/40 on the house doesn't matter >> doesn't matter. kevin mccarthy is the best guy to tell you. i'm not a politician >> you can't tell from mccarthy. we know what he's going to say again, i wonder what the real truth is >> i believe that they think they can have a seven-point differential and still win because of gerrymandering and all the things occurring now >> senator, i want to thank you so much. it's always a pleasure seeing you. but to be able to spend the hour with you wait, never mind you're not leaving yet it's 7:45. >> we got a big next guest are you a journey fan? >> a what fan? >> hang on

coming up, he's the one who inspired the title for "don't stop believin'," keyboardist jonathan cain joins us after the break. and programming note on monday a billionaire summit we will bring you three hours with warren buffett. he's going to be joined by berkshire vice chair charlie munger and bill gates. that's on monday srtg tainat 6:00 a.m. eastern time back in a moment it took guts to start my business. but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps!

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♪ our next guest, he kicks off a tour with def leopard. let's join in jonathan cain. his new book is called "don't stop believin': the man, the band, and the song that inspired generations. that is not selling it short this is a song i grew up loving.

the resurgence it saw when "the sopranos" chose it to end. brought it back. i didn't know the story behind it that lyric came from your father >> it came from my dad in the book i go pretty into detail about a dark moment in my life where -- am i doing the right thing starving in hollywood? you know, just rejection and promise rejection. you know, finally asking my dad should i come home and give this dream up you know he always prophesized over me that i was to be destined for greatness in music he said, no. don't stop believin', john i had a spiral notebook and wrote down that phrase it was my mantra for all those years. you know, of i better not stop believin'. my dad will be mad >> go ahead. >> in the book i just, you know, take it to how it got into the journey camp >> and you didn't use that for

years. >> five years it sat in a notebook we had made the "escape" album we were one song shy steve perry said do you have any ideas. look at home you have the magic boo k the lyric book i looked in the back and i saw that phrase. don't stop believin' steve would sing that. but i was afraid of the "e" vowel very much. i said i'll make it quick. >> what do you mean he doesn't like it? >> he was very particular about what he liked to sing. his vowels, he was just really amazing when it came to knowing instinctively what sounded good. and the believin' just happening quickly. so i thought we're good. i brought the chorus in and the rest is history. >> that's amazing. this book kind of details your entire journey for how all of

this came. it starts at a pretty rough patch. >> yes, it does. yeah in the beginning, there was the fire you know and what was interesting in those times, it was a perfect neighborhood an ethically mixed neighborhood. we have all kinds of different, you know, italians, polish, german, catholics. 6,000 of us living in this pa pari parish i had a delicatessen that lived downstairs that would give me candy. perfect life for a kid, you know then all of a sudden our school catches on fire. and 92 children perished that day and three nuns it rocked us it changed everything. you know, the neighborhood but we all grew up that day. we all had to face evil right in the eye. >> how did you get to the point of actually writing this book? it was through telling stories to one of your band members, right? >> i started years ago i got inspired by steven king's little tiny book called "on

writing. he said everyone has a book in them and, you know, i have a book you know and i would tell my stories on the bus -- long bus rides on the road my friend ross the bass player said you ought to write a book after reading steven king's book, i started on my journey and thought about how difficult it was i got some editors to help me. and so i wrote this book probably eight times over and over again but when i stood on the rock and roll hall of fame stage and, you know, looked at all those fans, i knew how my book was going to begin. it was going to be right there and it all came crystal clear that night it was crazy. >> you're getting back on that bus again. because you're signing up for a big tour this summer >> yeah. we have a big giant tour it's, like, 14 trucks and i don't know how many buses.

we leased a plane this time. it's easier on our old bodies, you know, than rolling around on a bus. but, yeah, we're real excited. we're going to play for about 3 million people some stadiums. the guys in def leopard are terrific. >> we want to thank you for joining us today congratulations on the book. >> "sopranos" didn't hurt either >> or "glee. shllnd the studio is in you know that. everybody wants to do business there. >> next time talk to us about investing. you know what they say about the early bird... he gets the best deal on the perfect hotel by using tripadvisor! that's because tripadvisor lets you start your trip on the right foot... by comparing prices from over 200 booking sites to find the

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we want to thank senator bob corker for hanging out with us for the hour it's ban great hour. come on back if you have that -- there's a job offer. >> that's right. unspoken we are going to be talking whdiupngeah reca en we come back. nobody's putting their money into equities. they're not investing in commodities or fixed income. what people areally putting their money into is what they hope to get out of life. but helping them get there requires a real refusal to settle for average. because when you approach investing with a tireless desire to beat the status quo, something wonderful can happen. those people might just get what they wanted out of life. or maybe even more. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients

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an apple a day -- >> we had all-time record revenue from apple music, icloud, apple pay, and more. >> shares of the tech giant higher this morning after an earnings beat and announcing an eye-popping $100 billion stock buyback. breaking news. a read on the private sector the adp employment report minutes away we'll bring you the numbers and reaction plus what went wrong with kanye west and nike? >> mark parker wouldn't get on the phone with me. >> what he rapper said about his relationship with the athletic retailer the final hour of "squawk box" begins right now live from the most powerful city in the world, new york, this is "squawk box.

>> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen with becky quick and andrew ross sorkin the futures right now, haven't checked. figure the dow must be doing a little better. not so much. only up 19 points even though apple is going to be good for 40 or 50 points the naz sdaq is strong though. up 25. the 10-year is actually $22.98% right now. and apple earnings better than expected tech giant did sell fewer iphones than expected. apple ceo tim cook told cnbc that the newest model of the iphone, the $1,000 iphone x has

been a, in his words, a huge success. joining us now is ed lee editing manager of recode. there were a few things here what was the buyback going to be >> $100 billion. the dividend was bumped up 16% normally they bump it up 10% >> there was a contribution that everyone was looking at. which was good >> that's good it's like over $9 billion for the quarter. jumped 30% better margins it's also more predictable, right? instead of worrying about shipments and supply chain and trying to estimate what that's going to mean for their top line, the services business is more predictable >> what is services? cloud, music >> it's cloud, music, essentially their media business >> it's the money that we all pay on a subscription basis. >> on a subscription basis they're producing eight tv shows, original shows. i think that's something to look out for. it's still unclear how we're going to access that right? are they going to charge me the

way netflix does >> do you think it's going to get added initially? >> that was my initial thought but reporting it out, not netly going to bundle up >> ecosystem is alive and well though >> yeah. >> people were looking -- ready to look at the iphone business any company in the world would kill for the iphone business exactly the way it is right now. >> the way it is right now but expectation is always high for apple. >> when you're that big, it's hard to put up growth numbers. but, how much cash did that generate >> i think that number is relatively low they're saving more more later that's one other thing if you think about start-ups like uber valued at 70-plus billion dollars, it couldn't exist without that platform. that's what we need to look for

next that's the real innovation next from apple is to figure out how we can own the ecosystem more. >> if you just did a total global -- the world population and penetration of who has an iphone, it's de minimis. it's small but the number of people who are in a position to afford an iphone, how much is left to penetrate those? there's got to be another -- hundreds of -- >> they're home grown players. >> i said that -- no but i see green. it's like i said that earlier. >> also in china, it means the government can see it. if they want to. >> green probably means that green or blue. >> or red.

>> but if you want to do business in china, show them your cards. >> thank god we don't have to worry about that in this country. just china >> yeah. i can look at your phone >> exactly becky's got two iphones now. she finally got rid of -- did you smash it with a hammer the blackberry >> no. it just died couldn't be fixed because nobody in our i.t. department has worked with a blackberry in forever. dinosaur stuff >> now you don't have a keyboard >> i just stopped e-mailing. i'm not going to respond to anybody anywhere >> ed, i want them to fix siri i don't need a keyboard. but siri comes up -- nobody would say what she comes up with >> the rare occasions i get voice mails, it translates it. it works just enough i don't have to listen to it i'm like, this is a lifesaver. it's getting better. they're improving it the more you talk to it, the better it'll get. >> so they bought a quarter

billion in stock it'll be stuff to get back to that maybe the momentum is with amazon or google >> again, they're different sort of businesses in some ways by the fact that we're all in the same sort of field around it i think they both have a shot. i don't think one takes it away from the other i think they get there pretty quickly. >> we're walking around with something ten times more powerful than this that you download movies on through thin air. the world is crazy it happened in ten years >> and you've engaged. >> i know what venmo is it, dude i know what venmo is i got it on "jeopardy" last night. >> learning about technology >> so you can pay andrew when you lose bets. >> if that were to ever happen

not likely hasn't happened yet. anyway, thanks, ed vc firm cairo helps with urban housing and health care for seniors. cera is aiming to try and disrupt the elderly health care system joining us right now is our guest for the hour the ceo >> it's great to see you guys again. >> let's talk about cera how does it work >> just quick backstop i mean, founder we made a commitment to putting capital behind companies that can help our communities with the biggest problems last month when we raunched rhino, we were looking to make houses affordable. since then we've doubled the number of houses and places available without deposits one of the big challenges that's been keeping us up is our parents and grandparents as they're getting older can't

afford health care how do we make that more affordable >> in terms of home aides? >> at some point everyone needs help right now your options are you end up leaving your home going into a nursing home spending tens of thousands of dollars for a terrible experience. or pay even more to have somebody come to your home what we've announced today is a new product called cera flex >> why have -- why do you think you've cracked the code on this? >> the way home care works today, if you need somebody for your parents, you're paying somebody to sit at the house for a minimum of four to five hours typically. you're spending up to $1500 a week it's kind of like back in the day when you had uber. you would have a black car stay with you all day even though most of the time you don't need that help. by using basic technology, we made it so you can now pay 75% less, have somebody come check

on your parents three times a day, and on demand 24 hours a day have somebody there within 15 minutes >> this is like ride sharing where that home health care worker is dealing with nine or ten families >> typically three to four families yeah in the neighborhood you can share a care worker across the families and share the cost. so all of a sudden, millions more families can afford top quality care rather than paying hours and hours of a care worker sitting at home. >> obviously this is only for seniors who are relatively independent. not somebody who's going to need constant care or somebody who might accidentally turn on a stove. this only applies to certain levels >> we have end to end type care. right? so you have people that just need help around the house all the way to people dealing with early or late stage dementia, mobility issues. the amount of care we provide is the fixed three visits a day actually changes based on that >> i mean, i'm just looking at this because you say you pay

care workers 50% more than competitors. but it could be up to 75% cheaper for the families who are actually paying for those. >> i mean, the folks who need live-in care, we're still able to provide a better price for them just because of the way we're using technology to match and schedule i mean, this market is so -- >> i don't understand. if somebody is facing alzheimer's, they probably can't be by themselves ever. >> you have live-in care the problem is you have 8,000 mom and pop shops managing this in london alone. most of the cost is the overhead for the people running the business not even the worker. but using tech to schedule and manage, even for the live-in patients we're dropping costs by up to 20%. my partner helped develop this so when we look at what the biggest needs are, we have 42 million seniors in the u.s 7 million of that here alone are in urgent need of help at home >> i understand how this would

work in theory in a big city where you have a lot of high density and people around. does it work outside of urban areas? >> yeah. so for these workers, there's -- you don't need more than two or three families in a given region for us to be able to have this work and so it's just having someone on call, on demand that you can have ready to go visit people. and just based on that, three families, we can provide that care up to 75% less. it's not like uber where you have a hundred rides a day in order to utilize the patient >> in terms of growing the business, which markets are available? which aren't i believe that we actually had a guest on -- his name is escaping me -- who's doing this in california quite successfully. >> there's a couple different folks trying to touch this space. maybe a company called honor >> yes, honor. >> very cool what they're doing as well. i think the challenge has been that the model has been all about paying for hourly care this is the first shift into on demand cutting the costs which i think is the bigger issue here >> okay. coming up -- we're going to

continue that conversation, but when we come back, breaking economic news. the april adp numbers. back in a moment your company is constantly evolving.

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welcome back to "squawk box. live shot of the capitol right there. we're actually going to go back to d.c. right now. steve leisman is in washington getting ready for the fed meeting, i think, but also the adp report and he's got the numbers. >> 204,000, andrew the adp private payroll company saying that private payrolls in the country rose by 204,000. that's against an estimate for adp of 190,000 just a touch hotter. they revised down that also hot number for the prior month down 13,000 to 228,000 that was a big miss. the government in the overall report reported just 103,000 so let's take a look at where this is relative to the estimate for friday remember, we come out wednesday with the adp payroll number and that tries to guess what the government reported on friday.

that's 195,000 not a big differential there i don't expect the forecast to change folks, those are strong numbers relative to where they had been. services up by 160,000 and we can drill further down in detail by looking at what size business and again, not a huge trend there. really spread out among the size of the businesses. small business under 50 employees, raising by 62,000 medium size which is 500 to 499 employees up 88,000. and there it is by sector. again, good what we call diffusion in the business here education/health services up 39,000 look at construction up 27,000 manufacturing, that's a good number for manufacturing up by 10,000 and real quickly, guys, before this number going in speaking of the fed meeting, we were at a

90% chance of a hike coming in june no chance today really and then a 70% chance september. and the december contract for that, three hikes for now and four for the year, trading up from the contract high of 42%. andrew >> steve, why don't you stick around because we actually have the guy in studio who i think knows these numbers. i don't know >> yeah. >> he might even have given you the numbers. mark zandi's here from moody's analytics. >> good to be with you >> how did this happen >> this is the way we've been doing this since the beginning of time. steve does a great job of getting those numbers right. >> he gets them right? >> yeah. >> where does he get them from >> he does get them from me, yeah but he does -- he's a great communicator he gets it across nicely if you'd ask me to do that, it'd take a half hour >> you want to give us your highlight of these numbers >> anything over 200k is fantastic growth right? and if you're at a 5%, 6%, 7%

unemployment rate, there's nothing but good news. 4.1% unemployment rate, 200k means you're going into the threes and it's going to be a problem. >> this is surprising to you, the job growth that it's still happening. you thought awhile ago it was going to be hard to keep these numbers up you thought it was going to be hard to do was it about the participation rate or was it something else? why is it still possible >> surprise maybe. i didn't know exactly when it will slow. but it will slow the unemployment rate is continuing to decline at this rate of job growth >> is there anyone 25 to 54 that can come back into the workforce to keep it going >> sure. >> there is? >> there is. but it's not enough. >> it's not just the baby boomer demo situation with the participation rate there are some people that

were -- >> i do believe that >> that's a good thing, right? >> a lot of these people are in area where is there isn't a lot of opportunity >> some people working part-time. some people working two jobs some people would like to make more money there may be ways to keep going with this. >> but the arithmetic isn't there. we'd produce 80,000 jobs per month, if it were flat, right? that's the number of people coming into the workforce every month. so to get to 200k -- >> leisman still works two jobs. he moonlights as a musician. >> you want to jump back in? >> as you know, joe, i'm making tens and tens and tens of dollars. >> tens of dozens of dollars, yeah but you do have two jobs, steve. >> it is a second job. but one job is a whole lot of fun. >> right

with the mud rakers. >> one of those jobs is a whole lot of fun i'm going to ask you the same question you asked mark but i'm going like this. i'm angry at mark. mark, you keep telling me month after month that these numbers cannot sustain. >> he denied that. he's a denier. >> they can't. >> that one of two things has to happen the unemployment rate has to come down or wages have to come up i really think where we are, mark, is -- look i've known you for two decades, i think, mark. at some point, we have to say that the pool of available workers is somehow, some way bigger than we thought that the run rate of this economy and the number of jobs that it can and should be producing is somehow bigger than that you're not the only one -- i'm not done yet, mark i'm anon a rant here we keep doing 200, 200, 200. we go 4.1 unemployment rate. and wages are like this with a little bit of upward trend

now you can talk i'm sorry. >> yeah. i mean, i would say if the unemployment rate stops declining in a consistent way, then you're right. i'm missing something. that there are a lot of -- >> but it stopped declining already. >> it's a few months no, no a few months come on. it's been a few months >> five months >> yeah. so let's reconvene in three or four, five months see where the unemployment is. he's a prediction for you. the unemployment rate is going into thearithmetic >> when? >> in the next few months. >> but threes is -- we've already done -- if i go back and use the numbers, we've done, i don't know, a million jobs let's call it this and the unemployment time over that period has not come down. >> that's because the participation rate has increased. there are some people coming back in. but there are not enough of them at this current pace of job

growth let me get one other factoid out there for you. the u.s. economy in its entire history has been in the threes three times in history three times. and it's never ended well. one was in the late '90s, one in the '60s, and early '50s so we're going into territory that's going to be risky it's going to be tough to navigate the plane and land it when in the threes >> thanks, steve thanks for holding it -- i tried and he just brushed me off >> you tried then we got to keep going after it >> we got another month. >> i've got to unpack these numbers here >> is it pain snfl can you sit >> yeah. good question. sounds better than a fact. >> okay. >> sounds more real than a fact. right? >> stuff you can treat that. check out shares of apple. premarket up look at that up $7 for apple.

that'll help the dow and snap, shares of that moving in the other direction that's pretty close to an all-time low just about 20 cents away we'll talk all things tech with investor ann winblad she is coming up next.

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♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. and among the stories that are front and center today, mastercard will be reporting earnings just one of many companies doing that mastercard reported quarter profit of $1.50 a share beating estimates by 25 cents. revenue also topping the forecast on wall street as customer spending rose by 14% over a year earlier. that stock is up by 4.25%. the u.s. economy adding 204,000 new private sector jobs in april according to the latest adp report that was above the consensus as

well the forecast had been for 190,000. and the fed set to issue its latest interest rate decision and policy statement that will be hitting at 2:00 p.m. eastern time at the conclusion of its two-day meeting. the central bank is expected to leave rates unchanged this time around obviously the markets will be watching closely kanye west speaking out about his business relationship with nike and the company's ceo mark parker. remember the rapper designed a shoe for the athletic apparel retailer nike. the two cut ties before kanye partnered with adidas. in the interview, kanye said he loved, emphasizing the past tense. you've got to see it >> i can call the ceo of adidas directly i have his cell phone. mark parker wouldn't get on the phone with me. i feel like who i have the most

respect for. i have expect for everybody at nike too these guys, mark parker, i got to speak out as a parent and apologize to this man for ever speaking ill on his name and his company. because he gave me that shot when we did the original yeezy at nike. >> few weeks ago, kanye west tweeted a screen shot of nike shoes and implied they looked similar to a pair of yeezys. we have now reached out to nike for comment about all of that. he also, of course, in that interview talks about the opioids, the liposuction it's fascinating it's -- honestly, it was two hours of the most riveting -- it was -- i'm not even a big kanye anything >> should get kanye on here. >> i should give out my -- you can call me directly, kanye. i want to be part of his campaign 2024 >> you and trump, right. >> no, no.

>> afterward keep america great is the slogan in 2024 when kanye runs. my kids have told me i need to listen that he's a genius and i need to listen to it >> he also got into trouble for comments about slavery yesterday. got in a lot of trouble about some of those comments >> he's got a hit out on him from the crips because he said something about trump that the thought police -- it wasn't universally horrible the crips. like snoop dogg's -- i mean, it's scary he had to add to his bodyguard contingent >> he had a whole conversation about the business of bodyguards in that interview. having to have personal security because he also talks about kim kardashian remember she had that issue in paris. i'm telling you, they go through everything >> this poor country singer from canada didn't even vote, shania twain said she might have voted for donald trump, she had to

apologize. >> because guess what. there are a lot of people in the world that are not sitting in your chair >> i know that but you think that's normal? >> do i think it's normal? the world is a polarized place >> all right at least you're not adding to it anyway, let me talk about snap's first quarter revenue. this comes after the redesign of the snapchat app that's hard to say that upset some long-time fans and advertisers. the company acknowledged the redesign hurt results, but it's sticking with plans to keep contents separate from other publishers separately evercore's diclemen e diclemente -- he loves it. downgrading cutting the price target diclemente setting up pressures to the liex kes of instagram all right. shares of apple are higher this morning in premarket

you can see right after the company reported those results late yesterday, you can see the spike right there. back to $175 it won't be an all-time high but it's getting close beat expectations. $100 billion stock buyback program. joining us now is ann winblad. she's a founding partner of hummer winblad ventures. it's more of a value stock now, isn't it, ann? but you look at services and the growth there it's got some growth components as well. there's something for everyone, i think. >> yeah. i think it was an impressive earnings report. the services are really an important area because they're a high gross margin area and tim cook hinted at more additional services in the pipeline although was not specific what those would be >> you know, the question that we always bring up with you, we're still talking about it who gets to a trillion first apple's buying back a lot of stock. so that makes it, you know, that

reduces the market cap do you still have a fweeeling i could be one of the other fang stocks that get there first? or is it a real horse race here? >> well, right now it's a horse race but i am betting on amazon they're -- they are fueling their earnings with the cloud. they're moving faster into the computing era with the amazon echo and they have all the rest of the business commerce. so i think amazon has a really big chance to be number one. >> we've seen great tech companies get disrupted and even displaced and we don't even talk about them anymore the behemoths of the past. some day, will that be apple is there a way we're not all going to have iphones ten years from now will there be a new iphone ten years from now we'll all be using? i know nobody knows the future,

but in your view >> my job is to look at the future every day we look at reports not so much what companies did in the past but what they'll do in the future. there is some clarity coming into focus here on how the home will be looking. google focused on the nest in their earnings amazon's adding thousands more people to their amazon echo division in boston so we really are seeing the surround sound of computing move to around us not jooer nigovernight. but that could have an impact. right now they own our hand. but when we move to more ambient competing, that will be the first big challenge for apple. >> ann, when you think about the $100 billion buyback, immediately i start to think about masason at softbank and his vision fund.

i thought to myself, could they have taken that $100 billion and invested it almost in a vc-like manner like masa and create more value that way than necessarily the buyback. how do you think about that? >> i think they can do both. apple still sitting on a horde of cash. they are an inquisitive company. they buy up new technologies as much as others. they are doing that as well. they are one of the rich companies like microsoft like google. like amazon. that can afford to be active acquirers. >> ann, there are so many other social media networks. we talk so often about facebook leading the pack, of course. but we just mentioned what we heard from snap too. and some concerns about instagram competing with snap.

how do you look at a company like snap? >> well, i've never been a big snap fan i'm not a snap user. we've talked about that before so i don't really understand snap i think if you look at advertising platforms which is how snap intends to make its money. it doesn't really have a services business. the advertising platforms you've got number one, google, number two facebook and rapidly growing number three amazon i don't know how snap enters the big player picture here. >> would you say the same of twitter? >> yes i think twitter is a niche player i do think they're a more solid company than snap. they've certainly gotten a lot more air play with our current government but i don't think that they are the equivalent of the quality company of google, amazon, or

facebook solid but not great. >> i'm seeing the future a little bit it's going to be my home, my car. i'm hoping that i think we need to buy into the people that set it up too. like at geek squad or something. as a matter of fact, to do bill gates' house, someone's going to have to show me how just to work the curtains i don't know that's one area. what about consumer banking, finance? is there a way -- everybody wants to get into that too i can't imagine that's not going to be a big growth industry for tech >> it already is a big growth industry for tech. certainly the amount of money that's gone into the category we call fin tech almost approaches the amount of money that's gone into artificial intelligence and that is, you know, how do we decide how to pay for them with virtual currencies certainly with my amazon echo by way of this stuff getting easy

to plug in and come on so help is on the way for you. but i don't have to really walk to a checkout counter. i can just tell my -- tell alexa, you know, buy more whatever for me. alexa reminds me, hey, you haven't purchased much of this do you need any more i do think that, you know, how we interact and the role that banking might have in the future is really rapidly changing we've seen goldman move towards more consumer oriented businesses and that is a company you think of as the least consumer oriented. i can deposit my checks just by scanning them on my iphone so that is rapidly changing. and everybody's having a new part in that equation of how commerce and currency works. >> ann, do you think that amazon's going to win the smart home or do you think google home

still has a chance or even siri home or whatever? >> yeah. you know, there's not much siri home yet and certainly there was no siri home in that earnings call google appears to be doubling down you can see by their spend on advertising for the nest certainly with amazon's recent acquisitions and also their investment in the amazon echo. and their tie to commerce makes amazon in the first place here in the home. my home is both nest and amazon. i can't quite get the two connected yet. i think it'll be right now a tight race between amazon and google and certainly google's bringing nest much more forward in their business including that revenue for the public markets >> so ann, with all -- you know, your entire home is listening to every word you utter

do you watch what you say now? i thought i -- the other day i can't remember what it was we all looked at each other like, if alexa was listening, she would report me. it might not have been me. but she'll report me immediately. and i'll probably -- >> it probably was you >> might have been me. do you worry about that? or is everybody saying things so they'd have to -- you know, it'd be tough to find the person to actually turn in >> well, i have my alexa turned that i have to awaken it by saying alexa there is a switch for that >> sure. yeah, yeah this dating service is going to be fine like facebook says your privacy is fine >> no. obviously all data is valuable to these companies every word that comes out of my mouth. i mean, google has much more data on me than facebook when i do any data searches there.

everything i've ever done. you know, i do think about it. but, again, like most consumers, i get a lot of high value. so i'm focused on the value versus the fear of these devices. >> okay. and always interesting and great to have you. we need -- i need help with the future i need help with the present >> help will be on the way i'll send help >> send help for me to -- i see a geek squad -- i want to go long whatever it's called. >> that's best buy that's why best buy stock is doing well >> yes i think they're coming over today, believe it or not for a high five or something or other. thanks, ann. appreciate it. >> you're welcome. coming up when we return, dr. oz is in the house you may know him from his talk show one thing you may not know, he's sissing into the wearables bune he'll join us to explain next.

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welcome back to "squawk box. our next guest and our guest host this morning have teamed up in wearable tech a new product called ibeat, a smart watch to regulate the wearer and alert authorities and doctors if there's a risk. joining us now is dr. oz dr. oz is here >> good morning. >> and ankur's still here.

both you guys are in this business together. you've brought this thing. so what is this? >> the reason we care about oxygen levels. you wear the watch, it looks nice hopefully you see commercials that -- you ever see those commercials that say i've fallen and can't get up if you're awake and hit the button, you'll have your life saved. a lot of people are not awake when they hit the ground, they're dead already or dying. so this is a watch it looks like a watch. i don't know if you can see it looks like a regular watch everyone can do what they want but if you collapse, you don't have to press this button. it'll do it. it'll start calling 911. >> how will it know? >> because it's measuring on the bottom of the watch -- there are little sensors here. you can see that it's using technology to look at oxygen content in the blood. >> it knows if you hit dangerous levels >> for example, if your heart

stops. within three seconds, there's no oxygen in your blood passing through the wrist. it will call 911 >> is this hooked up to wi-fi or cell >> it's all cell the people out there walking the street, when they collapse they're not in their home wi-fi and need to reach out. here's the part that's more important. people can do this right now this is an app we have called heart hero already has a million people signed up. if you know cpr, you sign up if that guy behind you collapses, in new york city the save rate for cardiac arrest is under 10%. and the reason is nobody knows who has cpr to help somebody if you can run out there because you know cpr and do easy maneuvers to save someone's life or the guy in 5b has a problem, you run downstairs and save their butt the beautiful part about this is we crowd source life saving ideas. when you collapse, anybody in your vicinity is notified you went down hard, they can all coalesce, help you out until the

ambulance gets there do cpr until 911 comes >> the question is, i'm wearing an iwatch or an apple watch, rather what is in that that's not in here and why don't these guys just do what you're doing? >> two big issues. this battery is going to last you at least half a week and a charger system is a very elegant -- let me turn this off so it doesn't call 911 >> it's thicker than the apple watch. >> it is thicker but it'll last you so much longer when you do have to charge it, you put an attachment on here. when it's sleeping, it will charge it. you don't want to take it off. that's the first big difference. you say i don't want bells and whistles it's there to save your life >> this isn't telling you your steps and all that >> this is a life-saving technology there is a possibility you could have regulatory issues apple doesn't want to be in the space of having to get government approval when it offers updates to its software

which i don't blame them from. so far this isn't required either but it could we want to be in a clean, narrow lane to save people's lives. and the businesses that we're looking to compete in, all of them are half a billion or greater revenue. and more than 10% businesses there's a lot of people who want this it's not a thing about your neck it's a cool looking device we think a lot of people will wear this who are older but not panicked about dropping dead. >> this is subscription business. >> yes. >> and the competitive market you're looking at for the seniors and elderly people primarily two-thirds over the age of 55 or at risk of heart failure. >> two-thirds or at risk. >> what does that mean >> number one cause of death is cardiac arrest and stroke. many people don't die, thankfully, have cardic issues

we know people who drop dead from a problem i could be saved from i'll give you the real numbers if you have a save rate of under 10% in this city and across the country, and we can double it, it's a lot of lives you can change. >> you were talking about measurements your blood oxygen levels go to zero if you collapse will it catch if your blood oxygen levels -- >> the technology is basically looking at blood flow and oxygen he use it and hopefully it's one of the ways beneficial a lot of people say an ekg is a spot check walking around. when you go down hard, there's no way to double check and call 9-1-1. >> but blood oxygen levels can go down for all kinds of illnesses. >> it'll notify you to check if you're okay. and that way it gives you safety. >> there's a lot of folks like me who have been pulled into

this web i like the idea of big seismic ideas. the company you mentioned earlier, this is a truck drivers the second biggest profession probably in america. pro benefits and they don't get training to do a better job. we can save so much money. and i got back from the cat van the holy father had ethics and medicine we don't need technologies like this to save everybody when you can take technologies that allow everyone to save money, everybody gets the benefit. a watch like this, if you're walking along and you drop, poor or rich, you can do cpr because you're an off duty firemen go in there and save your life. >> thank you great to see you. >> all right when we return, in you know anybody --

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down to the new york stocks exchange jim cramer joins us now. it's a value growth hybrid now how do we view apple that was so good, wasn't it? >> yeah. look, i mean, obviously the

revenue stream service is in hypergrowth. this is becoming, i'm sure becky will be able to talk about this. this is the ultimately consumer products company 99% satisfaction it has a raiser blade model that is fantastic unfortunately it's covered by analysts who don't understand that they understand hardware until it's brought into the fold of a consumer goods analyst where we get an 18 or 19 even ham strung by people who think it's a dumb terminal business. it's not it's a business that a guy like dr. oz will be able to use with a health care component that will cost $10 a month. and that'll be even more service. they have 1.3 billion people who will take it it's a total change in one day. >> andrew thinks me and you both need the watch, jim. >> i have the watch. >> not you. >> much calmer than i am thank you, jim. >> the watch tells me it doesn't matter who i voted for that's the best thing about it. >> yeah. it apologizes for me

either way. >> you might have thought -- don't admit it demand the best. demand a cfa charterholder. cfa institute. let's measure up. but as it grew bigger and bigger,ness. it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. what's in your wallet?

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we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital. let's always put investors' needs above our own. as investment management professionals, let's measure up. cfa institute. sell in may and go away? not so fast. the period from may to october underperforming the second half of the year, it doesn't pay to go away. i want to thank our guest host this morning. got a cool new watch and other

new companies. and keep an eye on it. >> thank you. >> thank you. >> okay, guys. a quick check on the markets before we go looking at the dow, by the way, up on the apple news in a big way. >> when did we split >> it's been gradually declining. >> who is in tomorrow? >> who is in tomorrow? good question. you are. make sure you join us tomorrow so you can see joseph kernis "squawk on the street" begins right now. ♪ welcome to "squawk on the street." i apple up 4%. it's fed day rate decision at 2:00 p.m. tesla earnings tonight europe is back to work pmi is down for a fourth straight month o