♪ 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 this times square. i'm becky quick along with joe kernen and andrew ross sorkin. we will head to washington for more on the top story in a moment first u.s. equity futures are indicated higher dow futures indicated up by 15 points s&p futures up by 3 and the nasdaq futures up by 11. the dow was up 182 points yesterday. the nasdaq up by 73 points, and the s&p up by 25 points. you are looking at some rapid gains over the last week >> i remember that day

that was the katie stockton day. was that a week ago? >> may 3rd today is the 9th >> today is the 10th >> oh, yeah. i'm looking at wednesday's notes. it looks like the ten-year is at 2.975% >> we want to head over to washington where president trump made news early this morning >> i want to thank you all it's early in the morning. i think you probably broke the all-time in history television rating for 3:00 in the morning i want to congratulate -- these are three great people congratulations. >> eamon javers joins us now with more on the return of three american detainees freed from north korea this morning good morning >> good morning. it was a joyful and emotional

scene at joint base andrews outside of washington, d.c. as the president welcomed home those three detainees that you just saw in your picture there they were brought back to the united states on a boeing c-40 with specific medical facilities, but we are told by officials that their condition medically was relatively good. they were able to climb the stairs, descend the stairs by themselves, but they would have had the facilities on board to evaluate them and make sure they were doing okay. here's what we know about the three men. the three are tony kim, an accountant and professor in his time in north korea. he was imprisoned in april of 2017 kim hak-song who did agricultural work on a volunteer basis was imprisoned in may of 2017, and kim dong chul a pastor from the virginia suburbs was imprisoned in october of 2015. here's what the president said on securing their release.

>> they are really three incredible people. the fact that we were able to get them out so soon and i attribute that to a lot of things, including a certain process that is taking place now. that process is important. we'll see what happens we have a meeting scheduled in a short period of time you will hear about it soon. we have the location set, and we will see if we can do something that people did not think was going to happen for many, many years. >> you saw the secretary of state mike pompeo to the left of the president of the united states all of them involved in this diplomatic dance over when exactly a summit will take place between the united states and north korea. the current betting is that singapore might be the leading contender to be the location for that summit. probably at the end of may or early june time frame. the president said he will announce those details later this week.

in washington the release of these three detannysdetanndetan detainees is seen as a linchpin to getting that summit under way. >> ammeamon, thanks for that report let's get you caught up on some other big stories the big one is the ntsb is opening an investigation into a crash of a tesla model s two teens were killed. a third was injured when their vehicle crashed and caught fire in ft. lauderdale. the ntsb says the investigation will focus on the car's battery fire it does not expect in this case that tesla's autopilot function was any part as a factor in this ford halting production of the f-150 pickup truck after a fire knocked out production at a supplier in michigan

7,600 auto workers will be temporarily laid off. ford expects operations to be down through the end of the week. and rbs agreeing to pay 4$49 billion to settle a u.s. probe into the sale of mortgage backed securities before the financial crisis going back more than ten years analysts had estimated the justice department could fine rbs up to $12 billion. >> let's tell you about some stocks to watch. roku reporting a smaller than expected first quarter loss as revenue beat forecasts for the first time ever roku made more money from ads and licensing than it did from sales of its streaming devices that stock is up by almost 4%. south korea says that it has reached a deal with general motors to inject 4$4.3 billion into the automakers money losing korean unit. gm agreed to limit its right to sell assets or reduce a stake in

the unit for ten years and establish a new asia pacific headquarters in south korea. booking holdings reporting first quarter earnings and revenues that beat forecasts as travel bookings rose 21% the company, formerly known as priceline, issuing weaker than expected revenue guidance for the quarter. that stock is off by 6.5%. back to the markets. joining us is karen calf knew, senior market strategist at voivoi voya investment management i'm trying to figure out how to put it to you. i was thinking about what happened overnight and the geopolitical issues. do you care about any of this stuff in the market? >> trade policy will matter for companies if they're affected. what's going on with oil will matter >> is that entering into your

work right now >> if we look back to world war ii, geopolitical shocks, things that happened with the koreas have been temporary. unless they drove a complete turning point for the world, the arab oil embargo in '74, those cases have meant very little >> so what are you doing >> earnings went up a lot, but they'll keep going up. >> they'll go up but the comp also be tough. >> the comps will be tougher, but will earnings go up more and stocks less. u.s. share prices up about 12% over the last 12 months. that's not nothing we will see earnings go up more than that. >> karen, north korea may not be something that is moving markets now. the iran deal is moving markets because of the move in oil prices we saw it spike yesterday to above three-year highs that led the oil stocks higher

across the board geopolitical concerns can have some impact. >> they do but geopolitical concerns manifest themselves in earnings eventually. if you let the earnings do the worrying for you, you should be okay right now the earnings are signaling to me i shouldn't worry about what's going on geopolitically earnings are continuing to get better >> in a situation like north korea, that's the risk coming down >> risk has come down. good news, bad news, whatever. >> yes but right now we're in an era of accelerating economic growth, and things are good. investors are looking at the bad, not the good. >> talking about energy -- >> let's do oil. >> so you look at the energy sector, it trailed way behind the oil price. it's trailed way behind the earnings estimates it's not to say the oil price will go up indefinitely. this kind of rally is more

risky. it is introducing a volatile element to know where iranian crude will go, whether it's up or down, what will happen on u.s. front, where oil supplies are reaching new record highs. it's riskier those shares trailed way behind than what happened in the oil market >> we had a number of guests say, you know what more likely than not that we're towards the tail end of a boom than the beginning or the middle depending on your time horizon if you think you're going to be retiring in the next couple of years, a lot of people have said they'll take a lot off the table. >> i disagree with that. >> i bet you do, why >> because nobody is really pricing in the tax cuts and the fact that they're weaving their way through the economy, especially with the small business look at small business optimism. look at what's going on with consumers. they're getting more money feeling more confident

we're only -- i think we're mid cycle. i don't think we're near the end. the bull market. the fact it's longer than usual, i don't think that means anything it's irrelevant. we're not seeing now everything that is going to happen, everything that is going that will happen with the tax cuts. but we will start to see it. investors are like, well, i didn't see it. >> you're buying with both fists or hands >> yeah. absolutely people are saying the earnings are going up double digits, but the markets are not going up shy be worried no, laugh all the way to you'r broker this is a chance to get in earnings are doing well. and stocks are cheaper than a year ago what wouldn >> what wouldn't you touch now >> earnings and share prices have quadrupled from ten years ago. ten years ago was depressed. we have a couple more years. i don't think you should assume 2019 is a down year. markets are not looking out

several years just in case something goes wrong out there on the u.s. side outside the united states, earnings are below where they were in 2007 margins are low but rising the united states, they're high and rising evaluations are below long-term averages so to look at all global share prices and say it's the peak because earnings went up a lot in the first quarter, that's a great exaggeration >> let's leave the conversation there. karen and steve, thank you coming up, iron man is looking for his suit this morning. we'll tell you why when "squawk box" comes back. prepare for your demise, mr. billingsley! do your worst, doctor. i will. but first, a little presentation.

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which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. welcome back peyton manning could soon be spending more time in north carolina there are reports that say the quarterback is considering an offer to bid for the carolina panthers he beat them in super bowl l the potential ownership group is

led by ben navarro who runs sherman financial group. manning said he hoped to one day run an nfl team, similar to how john elway oversees the broncos as gm. >> billionaire is the new millionaire. >> a dime a dozen? >> kind of do you know this guy >> i know sherman financial. >> who wants to be a billionaire. that's got to be the show. >> yeah. get regis back the players championship tees off today one pairing in particular caught the attention of the golf world. a trio of past player champs are the marquee group. ricky fowler, phil mickelson and tiger woods. there may be a few people following that group >> yeah. >> will you be following then? the island green that's where people -- if you hit it long, the green is hard, it bounces off the back. it gives people fits

it's the 17th hole if you're winning, you know that's coming up on 17 then 18 is hard, too >> have you nailed it? >> i never played. >> never played? >> never played this one seen cheap knockoffs courses try to do something similar, but it's good >> is that on your bucket list >> yeah. there's some mets fans in here misery loves company but the reds won the -- the reds took the series from the mets. they got like eight total wins, 2 out of 3 were against the poor mets >> joe spreading joy everywhere. >> fans in cincinnati yesterday witnessed something you rarely see past little league this is how it happened. the mets were in town facing the reds, the confusion occurred in the first inning the reds earned the third out of the inning because the mets

batted out of order. >> what? >> there should be a guy in the on-deck circle that you know -- mistakes happen. the mets couldn't recover from this early snafu, which means situation normally all fouled up said thank you, the mets needed a win. this is what we needed to face the reds >> that's poor karma >> then they lost the next two what a game last night i didn't see it. >> the celtics way to go, celtics >> 21 lead changes i watched the first half i actually checked in the middle of the night to see, some other people watching -- >> you got up in the middle of the night? >> yeah, 11:00 middle of the night. everyone else had seen it. she said it was excruciating for her. >> you guys are big philadelphia

fans >> well -- >> you have to e >> there's some great companies based in philadelphia. >> congratulations to glenn hutchins, our guest host yesterday. >> yeah, i guess >> to glenn. >> great year for -- you have to be proud of the 76ers. they could have won very easily. i read all the -- what happened in the last two minutes. they were up one bounce off the rim can change the outcome >> yeah. okay we may need to assemble the avengers to solve this super crime. the lapd investigating the disappearance of the original iron man suit from the 2008 film the costume valued at $325,000 it disappeared from the prop storage warehouse in los angeles where it was being kept. can you imagine somebody having that in their closet >> oops. >> oops.

willy wonka's worst nightmare came to life yesterday in poland. a tractor trailer transporting 12 tons of liquid chocolate overturned yesterday the milk chocolate spill blocked traffic in both directions, then the hardening chocolate proved difficult to remove. >> do you think there were any kids who tried to lick it up >> no. that looks like mud. >> it doesn't look like mud. if you were driving by, you would be like, oh, my god. floor it, honey. that looks like a sewer truck spilled or something you would want to move quickly >> smells better >> in that type of quantity? >> it's got to smell better. >> chocolate has a sickening sweet smell. >> i'm betting money that somebody must have taken a

little finger. >> a little lick >> maybe >> is it ready to go >> i don't know. >> i guess you find out when you lick it. >> you see that guy stepping in it >> in royal wedding news, madame tussaudses of london unveiling -- >> also known as madame tussaudses >> i used to pronounce it wrong myself it depicts the green dress markle wore when the engagement was announced. is it french it looks like tussaudses i said geverny yesterday dunkin' donuts releasing a special doughnut in honor of the royal wedding. it's heart shaped, covered with chocolate frosting, stuffed with jelly. it's called royal love

>> do they sell dunkin' in london >> i don't know. >> good question >> american fascination. >> are they officially changing the name yet >> dunkin' >> yeah. >> i thought it was just going to be dunkin'. i thought they were dropping the donuts part. >> it's mostly coffee any way. and lego lands windsor made a replica of the royal wedding it includes the castle, horse-drawn carriage and the royals themselves. >> really getting commercialized >> nailed this coming up, you are looking to sell your house we have the statistics on the best day to list it. stick around this is really important first, as we head to break a look at yesterday's s&p 500 winners and losers once there was an organism so small

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning u.s. equity futures at this hour are not that interesting a bit flat so far today. but as has been pointed out

we're up 1,000 points in the last week. it looked a bit dicey last thursday if you remember the futures in the morning -- i do remember this i did not just do the math from the t10th to the 3rd. i remember katie stockton talking about the triangle you can see on the charts. >> i think that was a wednesday. >> i think it was thursday >> i wasn't here thursday. i was here wednesday >> you remember here being here? >> yep >> then it's -- then it must be -- >> maybe the 8th day >> wednesday, thursday, friday, monday, tuesday, wednesday 1,000 points oil prices, they are -- after a day when we knew that the markets were lower, they've gone up again >> katie must have been here

wednesday. i was flying out to omaha on thursday i was stuck in newark for hours. >> three americans held by north korea are back in the united states, they landed at andrews air force base in maryland just after 2:30 a.m they were greeted on board their plane by president trump and the first lady their release paves the way for the historic face-to-face talks between president trump and kim jong-un. the spring home buying season is under way. do you know what the best day is to list your home? diana olick has the answer may is usually the busiest

month for the housing market everything looks better in spring what is the best day of the week to list? you have about 12 more hours if you list your house on a thursday, it will sell faster than if you list on any other day of the week. that's according to refin. >> the strategy is on thursday, get the most eyes behind the house, and you could have five offers by friday >> if you list the house on a wednesday, you can get slightly more money for it. most agents i spoke to did not buy this one said it's not just thursday, but a specific time on thursday. >> the afternoon is better on thursdays all of us are listing. if you list in the morning you

end up on page two of the listings you end up further down. you wanted to be on top. >> that, i buy, because it's about being on top of the list am i right >> i agree you need to be at the top of the listings, particularly given how people are doing their own searches going through these things i always heard the spring is the best time to sell your house is that true >> spring is the busiest time. families are out in spring they want to put in the offer april and may, close in june and move in august so they don't mess with anything around school but some agents say the best time to sell is the dead of winter there's a lot less competition and buyers out in december and january are serious buyers, not just thinking about it or loo l looky-loos >> weird question, is there anything that goes along with

prices, the price in the winter versus the spring? everything looks better from curb appeal in the spring. >> absolutely and you have more competition. in today's market, when there are so few homes for sale it probably doesn't matter that much if it's spring or in the winter because you have so much demand and so little supply that everything is going for over asking you have bidding wars. all cash offers. in a regular market i would say you would do better price-wise selling in the spring. but i think all bets are off now. >> diana, stick around let's bring in danielle hale what's your theory on the best season and the best day and the best time as to when to buy? you agree with the people that speem diane fla h-- diana has been speaking to? >> yes we know the greatest number of

listings hit in may. if you're looking for options, may is when people are listing it's a good time to go out in the market and try to find a home for sale. >> having said that, this is clearly a seller's market, right? >> absolutely. a sell their prices a home well, that's in good condition, could see multiple offers. it's a tough market for buyers over 30% of buyers expect it to be a competitive home buying season >> which means what in terms of prices is it easy to get your asking price? are people coming in with multiple offers above asking price? >> in multiple offers, it's not uncommon to see above asking price. people may make other concessions to show the seller they want to close quickly they may put a lot of cash down. they might wave some contingencies. they may put a large earnest money deposit. anything they can do to get

themselves to stand out. what is the reasoning behind this why are we in a seller's market now? >> inventories hit record lows last year and continues to move lower this year. when you don't have a lot of homes for sale, a lot of buyers in the market, when you have that imbalance the only way the market can solve that is by pushing up prices. >> i would expect builders are seeing this and thinking this is a good time to start building again. when would you expect to see supply increase in significant amounts? >> we have seen builders build, but they're so far behind from so many years of not building during the recession, they're playing catch up as fast as they can. construction that continued to grow is not growing fast enough relative to demand now >> what about interest rates we've seen interest rates push higher, looking at the ten-year above 3% that's historically still low, but it will mean people are paying more for the homes they're buying >> absolutely.

we expect mortgage rates to rise close to 5% by the end of the year they're above 4.5% now that could mean the difference of about $100 a month for the typical home it's not enough to break the bank, but it will be noticeable for home buyers. >> what's happening these days, diana, i keep hearing open houses are so much less popular because people are doing so many more searches online what does that mean in terms of the impact on the real estate market and the realtors? >> for the realtors, they have to put more resources into putting things online, whether it's virtual tours, or self-guided tours online i've seen robots doing tours everybody searches online. especially when you have buyers who live far away. international buyers sometimes they're going in sight unseen and buying these homes. the sunday open house is getting less popular because so many people have already seen everything by the time they get to sunday. you also see that with realtors

saying they're getting offers thursday afternoon and friday because it's so competitive out there. >> danielle or diana, sometimes when we have people from the industry on, sometimes they like to always be positive. i may ask you something, whether this is legal. there are people out where i live, realtors that will price a house below market and then there's basically like an auction. they're not really serious that they're pricing it below and they get a lot of interest and then there's a lot of bidding. they get something way above what the initial price is. they act like they're not doing that that's definitely what they're doing. is that legal to do it that way? >> that's just a strategy. you can talk to a realtor, they will have a strategy on whether they should underprice the house. that's why they do these realtor open houses on tuesday they bring the realtors in to discuss the listing and what the

price should be. some agents say if we come in below market value, we may get a better number. >> they do it consistently and the house never goes that seems disingenuous to me. >> it's just a strategy. it's just a way of getting attention in the market. though there's so many buyers in the market, you wouldn't seem to need to draw a lot of eyes in, because there's mreplenty of eys in the market. if that's a stlat rategy they're using, it's probably working >> i've seen the opposite strategy, where that house in alpine that was 120 million or something, they cut the price and now it's in the double digits >> if we still work in englewood cliffs, and you decide to move out -- >> you're not winning him to new

jersey >> eventually you will you will a lot of people eventually see the light. trees, grass, pets >> at some point there's some oldable hoge homes later in my life, when i'm ready to pack it all in. >> danielle, diana, thank you both for joining us. >> you have fish you can't pet a fish >> we have a fish, too >> we have a fish. coming up -- >> we have some big things coming up. seriously, read these. >> what do you mean? >> a rolls royce suv >> closing the gap, visa's ceo holding a meeting today with female executives. and later, a venture capitalist turned education reformer. and in the next hour, the ceo of rolls royce unveiling the

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welcome back check out the u.s. equity futures at this hour they've been positive for most of the session it's all green s&p is up over 3 dow jones up 6 1/2 nasdaq indicated up 11 and change israel's military says it attacked dozens of iranian targets in syria earlier today in response to rockets fired at positions in the golan heights dangerous situation in hawaii we are seeing more activity from the kilauea volcano. this was an explosion triggered by rocks falling into the crater of the volcano a massive cloud of smoke, steam and gats gases could be seen r into the air

the park is still open park rangers say there's no danger for tourists at the overlooks. scientists say if there's indication of a violent steam explosion will happen, the entire park will be shut down. the volcano destroyed 36 structures, and 2,000 peopleeva. >> tough to stop lava. >> like a tourist site everybody goes and hikes around there. >> maui, too >> yep >> what? >> pronouncing some of these volcanos >> incorrectly >> that one i can say. >> kilauea this is some business meets washington news. at&t says it was contacted by robert mueller's office about michael cohen. the company provided all the

information requested by a november and december request last year. a source told cnbc that at&t paid cohen now up to $600,000 as part of a consulting contract to get insight into president trump and how he thinks and operates at&t is in the process of trying to buy time warner yesterday we thought the number was closer to 200,000. novartis paid 1.$1.2 million >> $100,000 a month. >> and got nothing out of it but raising questions about how he marketed himself i don't know if you saw the piece in the "washington post" today that said -- >> selling access. >> where he effectively said -- there was a suggestion that he was trying to sell access. an anonymous quote said he told them i'm killing it. >> david faber reported yesterday that hedge funds had all been marketed.

he had been marketing himself to hedge funds. none of them that david spoke himself to had taken to it it was interesting reading ben white. he pointed out the democrats have done this, too. jim messina started his own consulting firm called the messina group after managing obama's re-election campaign corey lewandowski has done these things what's interesting is lewandowski, messina and cohen, none of them ever registered as lobbyists. you would anticipate if you were marketing yourself as usuch, yo would have to call yourself a lobbyist >> and also if cohen may have said, hey, i think this at&t deal should have gone through. >> that didn't work, if that's what he said >> clearly didn't work on the at&t side, but whether he attempted to do that

and whether they knew, if, in fact when he was doing that, that he had them on the payroll. >> at&t says they have done this with other administrations as well any time there's a new administration coming in, apparently trying to get the mindset of the person. >> i have not seen this much outrage from the media since the clinton foundation wait, there was no -- >> there was outrage about the clinton foundation constantly. >> i'm talking about people on this -- >> at this table at this table. i was -- i still believe to this very day that the way the foundation operated was completely at odds >> they had hundreds of millions of dollars from middle east investors, russians, and -- >> not excusing any of this. >> that's real money hillary was going to be president. that's what i said they should have kept the receipts

they should get their money back on a lot of that really >> because it didn't work? >> right there's no exchange policy >> i don't understand -- i don't understand, say you were -- >> no. no k street k street >> that's why these guys are not registering as a lobbyist is a surprise >> the difference was this was the first time in history where you had the husband president, and once they're out, they don't get -- they don't command the big $500,000 an hour speeches. >> she was secretary of state. if your wife is eventually going to be president, it's like oh, my god such a great system. >> she was secretary of state while this was happening >> it was a terrible situation >> okay. >> you thought it was terrible i'm suggesting that you did think it was parency is a good g knowing who is paying what is a good thing we can say that honestly everybody agrees with that let's tell you about another

story. the founder of anbang insurance group was sentenced to 18 years in prison and fined 1$1.7 billion. he was convicted of fraud and abuse of power during a one-day trial in march today's sentencing is believed to be one of the longest given to a private business executive in china. and visa's ceo is scheduled to meet with some female executives today several of those executives are going to tell ceo alfred kelly that they are not being given enough opportunities to advance at the company this follows a survey of visa workers last year that found women senior vice presidents at the company were less satisfied thain their male counterparts. visa is creating a women's advisory group. coming up, what school could be how the american business community could reform and revolutionize the nation's education system we'll talk to a venture capitalist turned school advocate his name is ted dintersmith.

as we head to break a quick check on what's happening in the european markets stay tuned you're watching "squawk box" on cnbc i am an independent financial advisor. when i meet a new client, i start by asking questions like: did you understand all the fees you were paying? was your broker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm more freedom to act in their best interests. independence lets us do that. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com this endangered species is getting help from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done.

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the sun goes down. you run those miles, squeeze the toothpaste from the bottom and floss to set a good example. you fine tune the proposal, change the water jug so no one else has to, get home for dinner and feed the cat. you did a million things for your family today but speaking to pnc to help handle all your investments was a very important million and one. pnc. make today the day.

>> the warren buffet archive arc large collection about business, investing money and life it includes tw25 full annual meetings of berkshire hathaway, buffet@cnbc.com. >> it blew my mind when i saw it it's all there i love the idea >> this is the only place you can get this complete archive. we'd love to hear what you think about it, too. it is national teacher

appreciation week. it must be why "jeopardy" has the teacher tournament i'm just figuring it out our nest guest went 250 schools and spoke to schools about it. he is now a venture capitalist and advocate the author of the book "what school could be. ted, just looking at your interests and your passion, this is different than trying to fix the public school system this is different than the charter school versus public school debate that goes on you are talking about schools in general need to be preparing kids, even the best schools need to change how they are preparing our kids for the jobs of the future the reason i bring it up that way, we had another, it's got to be stem it's got to be stem. if you are not teaching stem, it will be tough to get a good job

in the future world. >> so many myths so many myths. you know google did a study of how important stem background was in performance at goggle tenth on the list compared to a lot of things we don't teach, collaboration, communication, leadership so i think it's over hyped stem is if somebody is passionate about stem it's a good path it's not the only path >> can you take liberal arts at a school and get a good job? >> as i did. i double majored in physics and a ph.d. in engineering and technology english and my english background was the best thing. >> civil engineering it sounds like you had some rigor in your programs >> yeah. but when i think back to those years, i wonder how much i learned. the best experience was in college when i got to do independent research, define my own pathd. >> what is your thesis here? even the really good college prep schools right now still

aren't doing what they should be doing in terms of -- you say that you know college admission is almost like a company short term it's the end, if it's the goal college admission you may be missing out on what secondary -- >> i think the long and short of it is we prepare kaidz kids for college education, not for life. we say what do kids have to be good at in adulthood, it's things like managing your own time andest, picking problems they think are important a bunch of skills that don't make it under the radar skills, personal finance schools >> don't you think the whole admissions process as crazy as it is in a very strange way is one of the great microcosms of what life has become, meaning all of the talking about managing your time to plan for the s.a.t.s and to plan for the education, to figure out how you will write the essay, physical out who you will talk to >> i'm with him. i hate that process. >> i'm not saying it's a great

process. i'm saying that to me is actually very reflective oddly enough of the way modern life is >> here's the issue. have you 4 million kids more or less leaving school, spending all their time on things like that they have no other options within they leave high school. they have no open doors other than to roll into four-year college. you start looking at how that works. the math of going into college it's brutal. for every one kid that comes out in a good situation four drop out, dead, leave, managing projects, yes, that's an importanted skill. i'd rather have them manage projects tied to the whole world. >> you don't think college is for even >> i definitely don't think it's for everyone i think -- >> that's what we are told it's hard to succeed without a college degree >> we'll observe you know it's interesting, if a kid gets totally focused, passionate about something, they can get an expert in a week or two, that's pro found.

we can learn these days. we spend k through 12 preparing kids for more costly education than other stuff they're interested in. >> you spent a year, i went to all 50 states, 200 schools in those states give us a story or two about some of the amazing things you saw, teach worries are dock it right. >> if they pick one example, it almost defeats the point it goes from a kindergarten teacher in ft. wayne that has these kids with robots they teach them to read all the way up to the naval academy, which i went in thinking it would be traditional and most think it's the higher ed institution in the country teach first we trust them can do remarkable things. but we put them in this terrible box. we micromanage them, tell them what they need to do it's often content kids don't care about. >> so this is an argument against standardized testing and against the plans that the gates foundation has put out if terms of the standards you need to have across the world.

>> i think when you ask people in adulthood, who do you value it's people that want to make the world better and neff give up those don't get drawn out in school what gets drawn out if school, can you factor it quickly without making a mistake they're not core essential skills they're distractions that feed into a testing mentally. when you start to cram that into every waking hour of a kid's day and hold teachers accountable to that i think you set yourself up for the kind of failure we've seen >> right so you haven't been watching "jeopar "jeopardy, " i figured you'd be watching it's the teachers tournament >> i dade film "most likely to succeed. we showed ted jennings losing to a robot. ted says what happens when knowing content is the no longer something to have. >> thank you, appreciate it. folks, when we come back, we will be talking roles --

home at last three americans arrive safely back in the u.s. after being detained by north korea. president trump personally greeting the three and what the move means for future talks with kim jong-un. that's straight ahead. markets on the move. the announcement the u.s. is pulling out of the iran nuclear deal helping energy stocks spike. meantime, oil now sitting at multi-year highs we will run you through what you need to watch at the opening bell making headlines that has business leaders buzzing >> we actually have a group of people that don't have people that value them, support them or not, financially ready to pay for a lawyer these guys are trapped they're voiceless. >> we will speak to the ceo

about prison, poverty fixing the prison system. as the second hour of "squawk box" begins right now. [ music playing >> live from the beating heart of business, new york. this is "squawk box" >> good morning. welcome back to "squawk box" right here on cnbc live at the nasdaq markets in time's square, along with becky kernon among the stories making held lines right now, another key reading on inflation is ahead as investors try to figure out the future course of the interest rates the april price index coming at 8:30 eastern time and expected to rise by .3 of a percent after a climb in march.

kim jong-un will set up its asia-pacific head quarters in that country all that a part of a deal that gm struck with the government to help its unit there avoid bankruptcy a few weeks ago, they agreed with a wage deal wells fargo acknowledged it pocketed fee rebates that should have gone to a tennessee public pension funds. it's just amazing, it's another it's like i don't want to say the gift that keeps on giving, that keeps taking away, that's according to "wall street journal" this morning setting correspondence between the two parties. a system setup error was responsible for the fees, not being returned to the fund the wells fargo was serving as its, ready for this serving as its trustee. so the trustee, not entrusted with the money >> okay. a couple stockss on the move, let's talk about qualcomm, launching another $10 billion buy back

they are in the process of laying off workers after a takeover bid was blocked by the white house. stock is up by 2% this morning then there is roku having a smaller loss it made more from ad fees. that stock is up by %. to washington where plump made news early this morning good mornin good morning. eamon. >> the first lady and president trump went to meet the detainees who had been returned from north korea. they were obtained by the secretary of state mike pompeo who brought the three home there you see the president and the first lady walking off the aircraft we three detainees, really an emotional scene there, as the detainees hit u.s. soil for the first time here's what we know about these

three men. tony kim is an accountant and professor in prison in april of 2017 kim hak-song did agricultural work was in prison in may of 2017 and kim dong-chul a pastor imprisoned in october of 2015. he had been in prison there quite a long time. they were forced to do labor but physically the three men seemed okay they were ability descends and ascend on their own. they were able to receive specialized medical attention and here's what the president said in the pre dawn hours this morning at joint base andrews. >> i really think he wants to do something and bring their country into the real world. i really believe that i think that we're going to have a success i think it will be a very big success. it's never been taken this far there has never been a

relationship like this we're starting for the year, i really think a lot of progress has been made. we'll see what happens >> a little bit tough to hear there as the president stood on the tarmac talking to reporters, but expressing some optimism about that summit with north korea, which we are told is coming up maybe the end of may or early june, probably singapore or other locations the president has said he is going to announce in coming days where and when that summit will be this release, guys, of the detainees was seen as sort of the last stumbling block before that sum tould could take place. the president optimistic he could make a nuclear deal with kim jong-un of north korea, de-nuclearizing the korean peninsula. so we'll see what this portends, but a happy day for the three detainees and their families, guys >> i wanted to switch gears last time and talk to you about something. let's say you were the whip on the guy na haspel confirmation for cia.

what's your count right now? because manchin is a yes i think. kain is not going to be around, to be there voting would he be there against it is it 51 right now >> i don't have a good whip count in my head i can tell you they're optimistic at the white house if they can get the votes the president has been working very hard on this he says gina haspel is the person to run the cia. john mccain signaled he is against her nomination but we have as you point out some democrats that will vote yes here so it doesn't break down on strictly partisan political lines. it comes down to this question of american torture. some democrats are frustrated with her answers yesterday >> everybody else is calling it enhansd interrogation. why do you jump to - >> those were the questions she was asked, torture was immoral >> she was a mid-level employee. john brennan was a much higher

player in that entire -- and this is before he snapped and like lost, he threw a rod or something recently i'm not sure what happened to him but back then, he got very high numbers for his confirmation to lead the cia when he was in a much more you know, making more decisions a want the whole thing, he was confirmed for obama's cia director so i don't understand. >> look, i think democrats are looking for ways to oppose this president. they're going no a mid-term election cycle where they're going to be campaign against the president of the occupation, they're looking for demarcation points, where they can say, loose, i stupid to him on this, that and the other so that's the political dynamic against which this is all taking place. >> that's what it is >> absolutely. it's political there is politics in washington. >> that was a different time and place, too, when that stuff was happening. it was coming down from nyeem had a lot or authority than she

did. so i don't know. few watch washington on a daily basis, you got to compartmentalize things you just get too cynical about things i'm surprised you hug your kid you know what i see everything you do >> what's that >> weekend >> i tweet that out as i'm walking out of the gates of the white house. just, that's it. i'm signing off. >> i feel the release, though, i feel the release of a friday afternoon for you. it's expressed in one word for you. >> unfortunately, it's thursday today, right if. >> it will come. >> which is very close to friday >> it's even better, friday is too close to monday. >> that's right. >> it is the anticipation of friday it's better sometimes. >> all better. >> may is better than summer by the time it's summer, the leaves are falling for me. >> you're such a pessimist

>> no, no, no, very optimistic i love everything, i just wish things would slow down, fought completely, because that would be bad but just - >> moving fast >> slow down you'll see, when your life is one -- >> slowing down? >> no, things are too fast it's mid-may it was just the new year >> we should say bank of america capital exchange events today in washington part of a new event series that focuses on business and politics there will be a sum on artificial intelligence. joining us is the chief of bank of america's chief technology officer and it's great to see you this morning hi, kathy. >> hiing andrew, how are you if. >> good, thank you very much we always talk about cyber security i want to start there for half a second there is a hundred things i want to get to, just help me ducho y

feel we are in a better place than we were a year ago when it comes to cyber security around the banks? >> i do, actual 4ri8 i actually think we're in a better position every day. awareness is higher the sophistication of our defense and detection efforts are egrowing every day, there are more players in the mix with a lot of expertise and the threat environment i environment s bego patterns, predictions they made every day, so i do think we're in a better place. >> one of the things we're all trying to understand is the regulatory environment, how much the government should play a role in our cyber security and in effect are we overseeing your cyber security efforts how do you think about that? >> well, i think playing a role in oversight are two different things the government has to play a roam they have been in the cyber business probably longer than

any other sector because of the heavy presence of cyber in the defense world literally for decades. so the government has to be a player they've got expertise. itative got experience and they have an ability to allow us to communicate across disciplines and within the industry. so no question they got to be there. now, we're heavily regulated as banks, oversight is significant today and the real question is quality oversight in this space requires a level of expertise and a level of deep technical understanding that i think is not always readily available to the regulatory body. >> we hear a lot from the tech giants, whether it's amazon, google or others, thinking about the payment space either trying to get into it potentially people talk about whether they, themself, want to become banks

friends, frenemees, what are they zblul after the above. it's been all of the above in the 35 years i have been in this space sadly to say it's hard for me to imagine a platform player being a bigger competition for example j.p. morgan chase, banking, though, is a relationship business and it's still to much of the decision-making that goes on by large and small clients and customers is based on human relationships, intellectual capital and a great platform doesn't necessarily mean the ability to live those things so is eight competitive dynamic? yes. we're already in a highly competitive environment and i do question the difference between a platform and real live human beings who are super smart on the things that our customers care about >> right can we talk about crypto currency, the washington, sec in washington today has made a

number of comments about crypto currency and bitcoin, critical comments warren buffet along with bill gates and charlie munger made comments and bask of america has effectively said i think that you don't really want to be in the crypto business. i think your credit cards won't operate, allow people to buy things like bitcoin. where are you on that right now? >> i think becky framed it up really well when she talked about crypto currency is an asset class and a payment vehicle. al as an asset class, that is a decision for every individual investor just like we don't allow stocks to be purchased on our credit cards, we won't allow crypto or other currency purchased on our credit cards as a payment mechanism, i think it's troubling because the foundation of the banking system is on the transparency between the sender and the receiver and crypto currency is designed to be nothing of the sort, in fact,

designed to be not transparent and the way we quote/unquote catch bad guys is by being transparent in the financial movement of money. so crypta is the antithesis of this now the under lying technology that moves crypto currency, ledger technology, extremely high potential there. not much in the way of commercial use that itself in the marketplace today, but it holds the potential to make us better, faster, cheaper. shareholders will love it. commerce and clients will too. >> we will leave the conversation there always great to see you. hope to see you soon >> thanks. when we come back, shares of energy companies rallying the u.s. will lead the iran nuclear deem the move pushing oil prices higher to a million-year high. we'll have much more on what you can expect in today's trading session in just a few minutes. up next the most expensive suv

on the market. robert frank joins us with the preview. >> becky, it's called the cullinan it's the world's biggest diamond. it has pullout chairs and we will talk to the ceo of rolls royce after this at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. some moments can change everything. you can't always predict them, but you can game plan for them. for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions

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modern news, ford is halting the f-150. production knocked out production at a ford supplier in michigan and 7600 auto workers will be temporarily laid off ford expects operations to be down through the end of this week the ntsb, in fact, is opening an investigation into a deadly crash, meanwhile, involving a tesla model s in florida two teenagers were killed a third injured in flawed. the ntsb says it's investigation will focus on a car battery in a fire it does not expect tesla's auto pilot function to be a part of what happened, but the battery stuff was long before the auto pilot, that it was stuff we used to sort of be used to.

royals royce is taking the wraps off the most expensive suv on the park. it's really a commentary, on how main stream suvs are everybody i see jaguar, maserati suvs, is this the last one >> yeah, well, that will be the question we have royals royce unveiling the sticker price, with options it will be closer to $400,000. joining sus the rolls royce ceo, thank you so much for joining us thank you for showing us the cullinan joe mentioned it feels like we are getting towards peak suv have you bentley, jaguar, fer iraq not the mention the traditional guys what will set this apart >> very easy

it is a set apart but it's a rolls royce, the rolls royce promises the best in all dimentions, that is what it will live up and will also deliver to our customer body world wild it is not only what it is known about, which is magic carpet ride, luxury, when it comes to materials. but it is also truly authentic four by four capabilities for the very first time in rolls royce. i would even say the rolls royce cullinan is the most expected car this year in the automotive industry >> people are already going crazy on social media over the table and chairs that fold out from the back tail gate. what -- how will that be used? is this for having cocktails on a sarer i serengetti or why is a

feature of this? >> i mean, it is a part of the lifestyle our customers are in a pdz this car is quite a casual car. so it's not only for watching a polo game or horse races it might also but will watch your kids playing soccer or whatever and this is the best seat in the house and that was exactly the idea or you take it off road and you just enjoy sitting in the back and seeing the beautiful landscape, just enjoying it, having a glass of champagne. it's a different lifestyle we indicator to the life styles our customers love. >> you mentioned the off road. will this open up new geographic markets for you, not just sort of brazil, india, also places like canada that want that all wheel drive, will there be countries that don't buy rolls royces that become customers because of this? >> i would say, yes, definitely

this car was meant also to be a true global car all of the world, so not only america and asian mark this car will be highly popular in the middle east and in europe and, yes, coming back to your question, there are, indeed, some customers who prefer to drive four-by-four cars and we will definitely see a complete new breed of customers also entering with cullinan into our rolls royce family we call it. >> this was your fifth year modem. last year you actually had a decline in sales you sold 3300 cars will you have an increase this year and when will it go back to that record production rate of around 4,000 cars? >> i think we have seen a decline last year for one very good reason. i can report back on what we have seen here for our first quarter this year, which was very, very successful, plus 10%

in comparison to the previous year and i'm highly optimistic we should see a much, much higher year this year. also on the back that phantom is available all over the world very popular on phantom. we have a storm on cullinan. cullinan doesn't go and come to customers until the end of this year, so definitely i will see a stormy year expaekt stormy year from motorcars and more to come in the neb years >> is that from the world's biggest diamond? >> yeah, it's the world's largest cut diamond. 3,000 carets or something like that >> right exactly. >> that is i think quite an appropriate name >> i thought it was culligan, like a water filter. >> the culligan man, no, it's the diamond in the rough >> torsten, thank you for joining us

we enjoy to having one here at the stock exchange >> for a stalegate. >> i like one bulletproof. >> that would be an awesome, you know windshield like on "homelands." >> when we come back, robert, thank you very much, marksw yess sparking a conversation in the business community about the justice system and beyond. what's more the ceo wes moore will talk about the justice system and much more you're gonna do great! thanks, dad! break a leg! aflac?! not that kind of break. oooh! that had to hurt. aflac?! not that kind of hurt.

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good morning, welcome back to "squawk box" right here on cnbc. we are live at the nasdaq market site in time's square. among the stories front and center, bank of england said weak growth during the early part of this year is likely only temporary but that it wanted to see a pick up before raising foreign costs. we will also be getting the latest read on first time claims for jobless benefits, in about an hour, congress are thinking the claims rose 4,000 to 215,000 for the week that ended last saturday claim numbers do remain near five decade lows. also, senior female execs at visa will be telling the ceo they are not being given enough opportunities to advance a company survey found me fails were less satisfied than their

male counterparts. to a large degree this conversation we have been having about women in the workplace >> right now we will talk about the broader parkles. joining us is mike ryan, chief investment strategist. also kevin miller, who's portfolio manager and chief investment officer of ceo evaluations funds. gentleman, welcome to both of you. michael, let's start with you. looking at where we stand right now the dow the a thousand points above the lows we set a week ago was than an air pocket and we are back on track or is this something that's confounding you at the levels we're at right now? >> i do think the market can go higher i think what we're seeing is the market is adjusting to the issues about trade and the fed now we have a new dynamic with the geopolitical issues first with iran and now north korea. it is the backdrop that is still very supportive macro-dynamics and also the earnings cycle. we're coming off a first quarter

earnings growth up 27%, the consensus is 17 the guidance for the balance of the year really strong we got 16% earnings growth forecast for 2018. if we're wrong, we're probably too wrong. >> kevin, what do you think that will be? earnings season was phenomenal the expectations in a lot of cases was stronger than anticipated. i was surprised to see some of the lows we saw after that news. >> i think the marks overall we have narrowed our highs and our lows we are getting to a point we expect a breakout. overya'al performance has been strong light of the fact we are adjusting to rising interest rates. the inc. i big thing we are person is e conce concerned about is how fast the fed continues to raise rates >> let's back up a second, when you expect a break to the upside what are you talking about in. >> when you see the highs and lows begin to narrow, that tends

to indicate that there is, we're getting to the point the market can move from one direction to the other. >> from a technical perspective? >> yes we anticipate the year will end up strong, having a positive year the year in the market, small caps we're seeing pick up quite a bit right now. >> what kind of a breakout are you talking in percentage terms or point terms >> i think the most conservative perspective, i would expect us to have low single digit positive year this year in the markets. >> from here >> no, for the year. >> for the whole year. yep. >> and you expect that that will be led by what >> tech. small caps, mid-caps we're starting to see them come back not tech but small mid-caps. i think you are going to see mergers and acquisitions pick up throughout the remainder of the year, primarily the effect the tax reform had

last year we didn't see mergers and acquisitions pick up as much because corporation versus all this cash. we saw a lot in dividends. you will see more mergers and acquisitions taking place, which will propel the small cap sector. >> mike you agree with the idea it's a positive year, there is breakout from here >> i do. i will not so i i say it's a breakout we will continue to see volatility the fed is in play now the question, of course, how quickly and how much do they go in our view is that they go on a measured pace about one per quarter. obviously, it's very dependent on the inflation data, higher energy price, what does that do? does it slow the economy more than it impacts inflation? that's one of the dynamics we have to anticipate. >> yesterday we saw the 830 numbers weaker than anticipated. you bring up energy prices, where are you gaining this you think inflation will be above or below expectation

>> we think inflation is setting to the 2% set. by the way, we have been tolerant of below 2% even though the fed the resetting rates. so what i do expect to see some headline inflation by energy prices driven. they talked about that already i think they will continue at that pace. as kevin pointed out this back up in rates, i think this was anticipation of the fed policy coming forward so i think the rate environment will be a bit more supportive for financial markets coming forward. >> meaning you would tell people to put more if stocks at this point? >> we do i think what you need to focus on is the returns as kevin mentioned will be far more modest than last year. but this motion about people disengageing from the market now, i think it's a very prudent strategy given the fact we sea this solid earnings growth >> you tell people, put money in >> we're encouraging people.

we want to be selective here i do think we're deeper into the cycle now. >> so last week was a good money, not necessarily this week >> first of all, you haven't seen that much of a bounce back, he'd say we selectively see where we engage this for a difference >> i talked to a deal lawyer about the media, he said yesterday he thought there was a whole slew of potential massive deals sitting on the tarmac that would normally not go but if this deal gets approved, effectively the doj loses, all of a sudden there will be deem after deal and crazy premiums in the markets and investors will be completely losing out if they're out of the game. i don't know if you buy that, it was a sort of a provocative thought. where do you stand on where you think the merger world will be and what that will do to the market >> that's a little deeper than what i would typically go with

knowing a specific deal maker. but that kind of leads back to what i was saying before that is that corporation versus an abundance of cash they're going to deploy that cash they're either going to pie more shares they're going to issue dividends or they're going to acquire, merge and acquire. weigh really see mergers and 66s picking up i think the most challenging component right now for us with our mutual funds is managing the fixed income site. as mike had indicated, i think the feds doing a great job if they continue to raise on a quarterly basis by a quarter as a posed to what we experienced back when chairman greenspan was in, where they would raise and lower by substantial apples. that's manageable. we can manage that but the stockmarket adjusting to rising interest rates. we will get to a point where people who are next whichtys to try to get yield, that i can now transition over into fixed

income because they're getting that yield there >> would you finally be would you finally embrace this market, you know you are an mna guy you love it. you love talking about it. if that happens, can i write it down you will finally embrace the current economic environment in the stockmarket? will do you that we won't talk about trains leaving the station? >> the economy -- >> i know they are but they're in sync. there is a reason that earnings are up 23% or whatever and you got repatriation i'm just in advance of this happening, when you finally get what you want, which is all this mna, will you embrace it will you take away - >> it's a crazy mna environment. >> all right okay wanted to clear that up. >> can i maybe one other thought here, by the way, our calm is not dependent on a big mna boost this year it's based as joe said, it's on the fundamental also if we happen to get a balance of mna activity that's certainly the upside.

>> it would kind of make sense that people don't know right now. because it's a vertical merger this is the first time it's ever even been yet, you know the old saying, you can't fight city hall by all indication, they should win, at&t should win, right? but would you bet on that? would you say it's better than, what would you say 70-30 they win? >> 66-40 70-30. >> it shows you, you can't fight. it's very tough to fight the government >> it looks like they're going to win. >> right that question is whatever that decision does that put the doj in a box or not? >> i think maybe they're more dangerous when they're wounded but there is a lot of money. a lot of people would probably like to do things if they thought it wasn't going to be a problem. >> money and momentum. >> and liquidity >> that also assumes a classic view of the department of justice, not a trump view of the department of justice. >> that's what i bean. >> it's personal

otherwise, all bets are off, anyways, it's a losing matter. >> kevin, guys, thank you very much coming up, business leader, veteran and ceo of robinhood foundation, he's here to discuss the american justice system in our interview yesterday, this guy just his personal tore is so amazing. we'll update you on that when we return your company is constantly evolving.

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hopefully we spoke to rapper meek mill, not everyone caught in the legal system has the new yorker that meek has had, fitting for his release. here's some of what he told us yesterday. >> i actually have resources in people who support me, who actually have a group of people who don't have people that value them or support them or not financially ready to pay for a lawyer these guys are trapped, they're voiceless, i came from being behind a wall with these people. men sitting in jail for 2030 years for crimes they did not commit because they're not financially ready to hire a

lawyer, funds themselves to get back if court. there are so many different departments. i think that can be fixed step by step. >> those department a part of a larger system. one link to poverty in america joining us with more on that is wes poor, robinhood ceo. robinhood is new york's largest poverty fighting organization. this coming monday, they're going to celebrate their 30th annual fundraising gala. wes, it's great to see you >> great to see you guys thank you. >> let me do a quick synopsis. you were born if ball more you see your dad in the wrong direction. your mom then intervened and you went to a different school military school. >> and i first handcuffed my wrists at 11-years-old >> you ends up a war hero in

afghanistan, leading paratroopers and now at robinhood. so the intervention with you was successful and our criminal justice system, i think with meek, they were trying, he was 18-years-old he had a run-in with the law they're trying to intervene tant and make sure they get them on the straight and narrow. it ends up being a part of what puts them pack in, the system itself how do we fix that >> i think about in my story the intervention was, was successful it was also exceptional. you know what i mean >> it's not going to happen for everyone >> it absolutely does not happen for everyone >> we got to physical out a way to, i don't know,ing in the system right now that, we talked with meek yesterday, the arresting officer who has got his own issues, but is an african-american cop that was in philadelphia and the judge that some people say are too strict or unfair, so it's not, it's a

simple case of racism, it's a systemic problem with the criminal justice system that start of perpetuates two americas >> i love the fact in the interview yesterday that you guys held that right? because the truth is that when you look at the change in variable, the advantaging variable oftentimes can be the color of the officer if you look at the data the data shows us that improper police interactions between community and police, if you look at the color of theosis, it's relatively static. right? the variable that doesn't change is who the person that is being improperly dell with is. so when we're watching this larger challenge that exists about this criminalization of people of color, criminalization of people living in poverty, you know, you watch how the color of the officer and the challenge of race and racism that plays into it, the impact it has not just on a white officer the impact it has on the black officers as well. >> what itself the solution?

i start thinking of these things, in the meek mills case the problem was a judge that had a little too much latitude and didn't follow the advice of not only the defenses attorneys and the prosecuting attorneys and the probation officer. usually when you hear about these things, you hear about a broader systemic problem people are brought in with mandatory sentencing guidelines that don't give judges enough discretion to break away from that >> the way we have to solve it will be two fold we have to first break the pipeline and do a better job of dealing with the reentry >> the victimless crime, drug, you can't. >> that shouldn't be a five-year sentence for something not a violent crime. it's some type of drug offense that's, have you seen this have you seen 13th this horrific thing on netflix >> yeah. >> i'm not sure i buy into the, you know, etching that i saw if i bought into etching, i don't know what i'd do if i really thought that it was all orchestrated but there is some truth. there is definitely elements of

truth in that in that it was used, you know, to selectively, you know, hurt people of color >> there is definitely truth in the database. >> white powder cocaine, one sentence, crack, there is too much evidence there to dismiss it >> i think that's right. when we're talking about breaking the pipeline, it is about how do we address dissparties and policing and that kind of thing i would argue it's deeper than that, we don't necessarily havetime people talk about a school to prison pipeline. it's not it's a poverty to prison pipeline it's about the fact that when we break every single system down, we use criminal justice as a way of dealing with it it's no not just a problem it's being used at the conclusion so when we have a brakedown in the way we think of education, husing and he housing and help a justice. we're trying to fix the justice system piece of it first or do

you fix the poverty/education piece of it first? >> i think you have to address both same tain justly and hersiy here's the reason why. they're correctled sets say people are involved in the criminal justice system. in the challenges, when they're returning back home, we're saying, welcome back home. but, by the way, we have 4.7 million people in this country on parole or probation basically on court supervision, you can't live if public house, oh, by the way, if you apply for college, you have to checka bo in college knowing that 75% of people have to check boxes for jobs >> they're not going to get hired anyway >> and by the way, if you get accepted, you are not allowed to receive federal aid or pell grants >> if truth, you never finish paying >> so every sentence essentially has become a life sentence >> right and then your kids don't get necessarily to see you you are ab sent from the next

generation it repeats itself. >> which continues to damage the larger cycle of the family we think of the fact right now within our criminal justice system one of the first visits that i look at ceo of robinhood was to go to rikers island to look at the programs that robinhood supports and funds, programs like single some and i remember going there and being very proud of the programs and the work that they do. and thinking about the fact that it's still never going to be enough because in rikers island and all these other facilities, what you essentially have a monuments to inequality and have you conclusion points for so many people and so many families and the destruction that comes along with it, that we have a system where people now fine themselves in a death spiral some when they come back home, there is no sense of connection. there is no sense of support and the criminal justice system then becomes something that is not used to rehabilitate and re-enter, which is the original

stated intent, but it actually has become something to essentially devolve. >> twa are you doing on the education side >> well, a couple things, one we have to do a better job of actually creating platforms. if you look at rikers island, one thing we don't find are honor students r50i9. we find people who essentially have been broken dun by a system we currently have a system right now in this country where it costs about $150,000 to incarcerate a juvenile if you look at how many juveniles we have inside the system and how those juveniles were dock academically and where that breakdown earlier is? >> you speak to your own story, though, what changed your mother played a huge role in it? >> yeah. >> if you are replicate that experience, how would you do it? >> i think the role that my mother and my grandmother and mentors played in my life was huge they helped me to understand that the world was bigger than what was directly in front of me for that i will always be appreciative >> what i'm saying in an environment where someone

doesn't have that support system how do you effectively construct it >> we do just that, we replicate and reconstruct it i think of the work of the senate core info vacation the rob subpoenahood funds this is in red brook, brooklyn, an area in new york city there is a 55% recidivism rate. in red hook, the numbers are larger the recidivism someone will return to prison. >> did you see that book "i got schooled"? >> i have not. >> the unlikely story of how a movie maker learned the five keys of close the education gap. there are studies done where children are learning the same thing, when you go home to the home life where it's not ideal, you can't fix the schools. so you need to fix all this other stuff or at least same stainiously. >> i understand the fact but also in the skrur of the criminal justice system the reentry process. to launch thousands of attacks. luckily security analysts and watson are on his side.

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from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. breaking overnight the three americans detained by north korea back on home soil. >> i want to just congratulate, these are three great people congratulations. >> as president trump prepares for historic talks with north korea's leader kim jong-un. is north korea still violating sanctions?

a u.s. official speaks out. inflation news, minutes away as the final hour of "squawk box" begins right now. [ music playing >> announcer: live from the most powerful city in the world -- new york this is "squawk box. >> good morning, well come back to "squawk box" here on cnbc live from the nasdaq markets set if time's square i'm joe kerrnon. along with becky quick and the points are up 30, down 30. not a whole lot of move. nasdaq is up 11 and the s&p is up around five and treasury yields back under 3% on the ten-year photo2.98 basically. breaking overnight, three americans held by north korea are back in the occupation they landed at joint base

andrews in maryland just after 2:30 a.m. and were greeted by president trump and the first lady [ cheers [ cheers ] >> welcome back. these are incredible people. >> the release of the detainees may have beens the way for historic face-to-face talks with president trump and leader kim jong-un. eli lilly announcing it will buy armo biovines i sciences for $1. billion. they say the acquisition will bolster its political portfolio. armo is an oncology company dwoopg pipeline of drugs designed to recognize and eradicate tumors >> where else is happening at this hour.

parent company comcast reportedly include a $2.5 billion dollar breakup fee to buy fox assets >> that would matchup the deal walt disney struck with fox for those assets we will talk about a lot more about a potential for a deal if and when a bid would come. i should say we're way ahead of ourselves, nonetheless, we will talk about the lands skwap rich greenfield in a couple of minutes. also, ford halting production on its most popular vehicle the f-150 pickup truck the move comes after a fire knocked out production at a supplier in michigan 700 auto workers will be temporarily laid off lot more on this story we will talk to phil lebeau to break it down for us. wells fargo announced it pocked

fee rebates that should have gone to a tennessee fund they cited the correspondence, they said a systems setup fair if are you ready, wells fargo was serving as the trustee for the pension fund >> any benefits should go to us instead of that which we are overseeing >> pretty much at&t says it was contacted by special counsel robert mueller's office about the michael cohen issue. spokesman says they provided all the information requested back in november and december of last year aid source says at&t paid cohen up to $600,000 to get insight into president trump and how he thinks and operates. at&t, of course, is in the process of trying to buy time warner for $55 billion and is in court over that bid.

minority leader nancy pelosi announcing if the democrats take over the house, you can expect a tax hike joining us is conference chair kathy rogers. it's great to see you. thank you for joining us today >> thank you >> we want to talk about nancy pelosi's comments in a oment first the breaking news overnight, three americans back on u.s. soil after being detained in north korea. what does this mean in terms of what we can expect with those talks coming up with kim jong-un? >> right it was great to see these three americans. i am relieved they are going to be reunited with their families. this is a testament to president trump and his administration and the pressure they have been putting on north korea i think it's important to remember that north korea does have a history of joining the or intering into these talks. while also striking you know more commitment to, they just continue to build their nuclear program out. i think we need to keep the pressure on them, congress has

been keeping pressure on them, too. we've increased sanctions that have contributed to getting north korea to the tavenl don't let talks fool us. they like to delay they like to make sure they have their own goals, too >> president trump, himself, was asked if this is going to be one of the biggest accomplishments of his administration. he said the big accomplishment will be if we are able de-nuclearize energy what do you think the odds are what are your hopes as we come into these historic meetings >> clearly, this has been an about-face by north korea. i am encouraged. this is president trump, his administration, their leadership the pressure they have been putting on north korea i am encouraged we are intering into these talks this is a part of getting us where we need to be. we need to go into it with eyes wide opened. >> are you the conference chair, you heard the comments that nancy pelosi has made if the

democrats take control of the house again, can you expect a tax hike what are the odds? i realize are you in a position of trying to talk up what's happening. give us your honest assessment of where things stand for november >> clearly, americans are going to have a choice this fall nancy pelosi who made it clear she is campaigning for speaker, ha has said she would lead by raising taxes. we have reduced taxes on individuals, and family, small business, we are seeing the economic growth. we are very encouraged with the numbers, lowest unemployment rates now 3.9% since 2000. business start-ups the confidence, consumer confidence, individual, families, small businesses that is what is leading to this investment we want to keep it going because this is about improving people's lives. americans are benefiting because of tax relief that we pass this congress and we are seeing it in the economy and that is our goal to keep that going >> congress woman, let's talk a

little bit about michael cohen and what we've heard over the last two days about companies who have said that they've paid money to michael cohen on the understanding that they were going to have a better understanding of what happened halloween the scenes or how to better understand the trump admin strategy i know it's not unusual practice many of these companies say they do this for every new administration that comes in but you get a closer look and it can make people feel pretty uncomfortable, what they are paying for, what kind of access and how the lobbying industry works in walk. what is your not what you've heard so far around this >> well, as members of congress we need to make sure that we are dealing the rule of the law, no one is above the law there needs to be transparency i believe it's one of the best on so americans know where the money is and there is

transparency, whether it's lobbyists or corporations that are making contribution, i think for campaign finance the key is transparency there is too many dollars right now that we do not know how they flow >> in this particular instance, though, are you disturbed the president's own lawyer is involved in this >> well, we need to get the facts. we need to make sure we understand what's happened i seen some of the allegations, but that will be our responsible now. >> you bring up a fair point that there seems to be a lot of money slashing around that is not accounted for in the current system and how rules and laws are set up at this point what would you loo tobacco see change what do you think would fix that >> i have long said we need to have transparency. as a member of congress, we have to file quarterly, you know, everybody who contributes to our campaign we do not accept corporate dollars. only individual dollars. in today's world, i think we can

file or a more regular basis or more regularly anything we can do to provide that transparency so americans know who is contributing to who. i think that will benefit all of us >> what do you think now the president announced the united states will be pulling out of the iranian nuclear deal what comes next? should we feel less safe in this environment? or is there a new sort of frame that can be put forward to try and reign in some of what iran has been doing >> well, this was a flawed deal from the very beginning. and it was not a deal that i ever supported i never felt conversation iran would not develop or move forward with a nuclear program i applaud the president for his bold leadership. this is to make shower that america is safe and secure our allies, israel i am pleased he made this decision and i encourage our

european allies to join us in getting a into the table so 'we can actually make sure that we have inspectors in place and that we have confidence that they are not moving forward in developing a nuclear program >> representative mcmorris rogers, i want to thank you for your time this morning >> good to be with you thanks. time now for a cnbc exclusive. u.n. investigators say the north koreans are still violating sanctions with covert actions. >> thank you very much, joseph this comes from the lead u.n. version who tells me north korea is still conducting prohibited activities that allows them to buy millions of barrels of oil hue griffiths is the head of the u.n. panel of experts, which his team are tasked with monitoring sanctions imposed on north korea in an effort to get them to abandon nuclear weapons program. he says his team discovered in the last weeks and month, north

korea is covering pro hibbed shipments out at sea take a look at the under surveillance photo you will see a smaller ship pulling up to a much larger ship the panels show the details the investigators say the north koreans painted over the names of the ship, changed the location number and labeled it with a false port of registry. griffiths said they are turning off their automatic identification system aisal. it's a maritime version of gps >> in every case, elicit north korean diversion, the vessels switch off the ais before they meet at sea him meaning they cannot be tracked any longer so that's an immediate risk indicator. if a vessel switches off, it's ais at sea, there is a heightened risk it is doing

something clandestined or illegal. >> versions say there is a fix insurance companies and trading companies can insert a clause in their contract which says if you turn off the ais, the contract is nul and void. we will have a lot more on power lunch later today. we will talk about one of the countries that's complying. >> the only reason to ton off your ais is so you can't be trackled which be we assume you are doing something elicit >> the gulf of aidan, you are trying to avoid somali pirates this is east asian waters further. it's a key signal when it's turned off for days at a time. >> when they're so sure, who do they report it to? how does it who, into potential talks? >> the way the u.n. panel reports, they put a report out every six months and go through where there have been violations and they report on them. if there are companies or countries involved, they get listed if that report. they're outed essentially.

and it puts international pressure on them to try to comply with the sanctions because they have been so publicly famed. >> but this is much more important time as we are heading into these talks >> sure. >> how does that kind of get run up the flag pole >> sure. so this would be a time when the u.s. is trying to do maximum pressure this is the u.n., not the u.s. what they've done, what hugh griffiths has done in the last weeks is sends out letters to the insurance companies and brokers domiciled in the u.s. saying can you put these clauses in your contracts? get back to me, they're going to update in the next report what the response was from these industries and these companies specifically >> okay. is this really widespread? how many companies >> so they think there are at least 30 ships out there they're monitoring

th they think one network in all completed there would be 12 ship-to-ship transfers worth $100 million there are many companies involved in the distribution chain. remember how we talked about the pharmaceutical chain no different they want to go to the choke points the international trading companies and the insurance brokers leveraged to the west that have to comply with sanctions or else they will be punished financially and that's why they would comply. >> your embargo is only as good as well as can be enforced >> you want the maximum pressure pressure and get them to the bargaining table can you only do that when you have maximum pressure. >> exactly zblchl can you just hang out here? >> no, i cannot. >> earlier the michael cohen story. >> i don't know what you are talking about. >> the pocket chain. was he not a pikeer, an amateur?

compared to the clinton foundation i mean this is -- i can't believe we are talking about this we needed you. if she would have been here, she would have been -- >> how ineffective he's been here's what i think, if are you the ceo of at&t. woi, i spent all that money all i got was a lousy anti-trust lawsuit. >> the money we're talking about, it's not $400 million real money you can raise >> the clinton foundation you are saying that itself a good thing? the idea is we should stop paying attention >> it's ridiculous i wish there had been more attention paid by people around here i want her to be here to gang up. >> the volume from you makes up for the lack -- >> i have to >> we spend so much time talking about the checkpoint foundation for years, all of the problems >> uttered a word about the

checkpoint thing >> question get tape after cape. >> what's the total we are talking about here one oligarch here? >> you are defending it. >> i'm not defending it. >> it's kay street >> where were you? >> i was over at the u.n.. >> ki call you >> so overwhelm. >> i know. >> i'm a wall flower >> yes >> it's just beyond the miami. coming up, is the disney-fox deal bad for consumers we will talk about that we will talk to an analyst about this richard greenfield joins us right on set next you are watching "squawk box" on cnbc ♪ ♪

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[ music playing [ music playing >> welcome back to "squawk box" this morning fox reported mixed third quarter results. fox reported adjusted earnings

per share of 53 cents, revenue reaching $7.4 billion slightly above analysts all this taking place as comcast reportedly making a bid for fox assets topping a $52 billion deal joining us for more on the changing landscape, rich green feel the changing landscape, it was reported if comcast were to pursue something like this, there will be a similar break. we were talking about this off camera how do we put the cart be every the horse for this entire situation which is to say whatever comcast is thinking about is game theory in terms of what happens with this at&t-time warner situation it's not going to be, does that deal go through? it will be how it goes through, how the language is parsed by the judge. if the department of justice is put in the corner, how president trump, frankly, may otherwise feel about this? one way or another and about how much pressure he wants to exert

on the department of justice or not. it feels there are 100 things that have to happen like is there a brick-up fee or not? >> the main thing if you go through the whole at&t-time warner case. that was the unknown late last year when you were sitting there as the murdocks the fox board, you were unsure what was going to happen you just went through a multi-week trial right. >> look. you never can predict what one human will do arc judge. >> right >> i've read 3500 pages of that transcript of that trial this looks decisive the government literally does not have a case that holds water so i think you are making now a more educated bet of what will happen in a few weeks. we will know in four-to-five weeks what that judge is going to say, if it's a decisive victory for at&t-time warner we continue to believe comcast not only will bid but it will bid imminently after that

happens. >> so let's assume they do bid and it's all cash and the breakup fee is similar, are you st view the murdocks will accept that >> well, there is two things to keep in minds. first of all, it's not up to the mur docks. >> that's what i wondered. >> critical point. in a takeover transaction few read the disney proxy it literally says in a takeover vote the murdock's vote a and b shares is one class k. murdock family have 17% of the vote. they need complete shareholder buy-in for whatever deal they take the they choose the deal on the table the shareholders determine which bid is taken if there is a huge cash bid in this environment for media, all cash bid of a huge premium with a similar breakup fee i don't think there is anyway. >> we haven't heard. >> that's been around in the past

>> but all these other people come on and say it's up to - >> they said one other element. >> which one bows to the shareholders the shareholders don't know. >> what they put to the shareholder is a big issue they can make the argument we think the value of the combination of the disney share of a fox and disney is going to and the disney shares will ultimately >> there is taxes. >> it may be, again, that's why you have to pay a huge premium we think they sister to pay a premium above the bid. which is all cash. >> the math works. >> don't you think that would be a superior bid. >> if you are comcast, big disney, putting all those regional networks with disney, espn assets, that's not good for your cable business. it's slowing it's a slow business >> comcast dame if it does dam

in it doesn't? is that legitimate or should it? i mean >> hair shouldersl shareholders frustrated brian is 38-years-old, he is thinking how to best position comcast for the future. >> they got to do it no thwart disney >> in is a huge opportunity long term to build comcast. >> is there a scenario that this gets carved up meaning there is a deal to be had either gets what he wants, brian gets what he wants >> that's funny, that's the big question, can't they split it up in there split the baby. >> there are assets eiger wants that aimagine comcast doesn't and assets that comcast wants that bob doesn't >> here's the problem. you say, brian, are you a distributor, you take sky. you take huh will you. you want to be in the

distribution business. we'll keep us, disney, we'll keep the studio and the regional sports network connected with the espn the problem with that is disney basically said the future is ott the future is international so you think they have a division that will run. that was going to house sky, all of the international assets acquired and the ott strategy. so the whole future of disney rests on getting global and ott, how do you give those assets to brian? it doesn't make sense. what makes this so intriguing is there is no way comcast will be allowed to buy sky if i'm disney without buying all of fox. the idea that disney will buy fox and comcast will be a majority owner is untenable to disney and bob i caner they have to choose. >> the next question is do you believe eiger can come back with a, i don't know if you want to call a superior bo bid a bid

that gets close enough is there that's what's interesting, disney and i caner have never been in a bidding war. then when they think marvel, pic star, lucas, these are announce and done there is no bidding war. this will be the first time disney is if an all out bidding war. they have done this multiple times before they understand battle >> so what is the discipline when it comes to bob i caner will he continue to bid it up, if we don't figure it out if he hasn't been in a situation like this before in >> i don't think it's a slam dunk regulatory wise, disney buying fox they're almost 50% of the box office they are giving them unprecedented cable verse. i would think bob has discipline and backs away, on the other hand, look, he's out on a ledge saying this transaction is critical that could be really great for the murdocks you may have an all out bidding war this summer. >> do you think representing lators would allow a comcast

deal >> most is international the vast majority is international the rsns may be the one ympbl on the one hand we talked about how the rsns is a troubled business. >> not to be a conspiracy business the love that mr. trump has for mr. rupert, murdock wants a different deal does that matter >> i presume rupert can get whatever deal he wants done.

see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated.

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zblmpbls >> welcome back to "squawk box." we are seconds away from some important breaking news, of course i'm talking about consumer price index the april read ppi certainly wasn't threatening. we still managed to touch 3% and barely hold to close there him we have more auctions today. so here we go. first let's go with initial jobless claims unchanged at the unbelievably low level of 211,000. and we've lost that two handle on continuing claims a while ago. we're now is. 1.79 million. if we look at what's coming on the market with cpi, inflation in the pipeline up .2 on the led line up .1 on core him similar to yesterday's ppi these are a little cooler up .3 and .2 expected. no revisions last month. year over year up 2.5, core up

2.1. if you look at the non-seasonally adjusted index, not much changed from last look and real average weekly earningsier over year up .4 sequentially following up .9 if you look at the hourly earningsier over year up .2 following up .3. so a little light there. how is the market received these data points? well, the dollar index is down a bit. we want to pay close attention to the 93 hands him, of course, and when it comes to store, they've improved a little bit pre opening and yields actually have dipped. these aren't ice cold, they certainly aren't on the outside, back to you. >> steve leishman is here with more reaction. different reaction >> i like the way he characterized that they're not soft

>> you put a lot of meat on the bones? you are here looking over things >> i am pouring over the do you that you see. >> do you have a spread sheet? >> not on that one i have a lot of spread sheets i do most of my work with spread sheechlts my ability to add and standby tract using excel. >> what's your quarter number? >> i haven't checked a bit >> atlanta fed was wrong last time. >> we have been outperforming on our rapid update >> no, you are right to be indig fant i should know that football before i come on this said i am a little embarrassed. >> what's your number? >> i think the second quarter is more interesting >> second quarter. >> we don't have a number for the second quarter >> they were like 4, 5 >> the way they do that is they keep calling on their head on this one the numbers we are

seeing are in the 3% range the numbers, those are forecast not tracks because there is no data as soon as data comes out, that's why i know it i'm not tracking it. >> second quarter. let's do this quickly the owners up 0.3%. there has been some hot inflation in the rental market that's how they gauge what housing prices are or costs are is through what's called owner's equivalent rent. that's been pretty >> holly apparel again 0.3%. the second of the last three months sort of on the hotter side new vehicles down 0.9% have you guys heard from phil the auto makers are having trouble with their pricing we're nearly a 1% decline month to month new vehicles down. gasoline >> it's hard to adjust >> huge incentives to keep the sales coming in. >> you had a $350,000 suv on

today. we're not seeing pricing >> the question is, is that inflationary in. >> you will see them everywhere. a big traffic jam. >> 3%, medical care up a tenth airline fairs down plus by the way, we talked about this, guys the dollar strengthening will have a dampeningesque there is a good story talking about how input costs have been rising faster than consumer costs. i don't know if we're hearing that, especially in the transportationsector the idea that transportation costs have so much of what is in the retail world today is a function or a part of the profits there, a function of free delivery and the i don't have night delivery and the one big delivery those costs are going up they're having trouble passing them along plus you got wage pressure we need to listen carefully to what companies are saying about margin pressure and if you do,

indeed, have input costs rising, but the inability to pass them along, that said, we are living through a time of extraordinarily high corporate profit mar jens we gave as a total percentage of gdp. they have been doing very well they are doing better now, because of the tax, that brings me back to my concluding thought, this distance between rising earnings and whether or not the market is going to price that in, in a multiple that's not my department anymore. so i pass it along to you. >> joining us now is scott brown. chief economist at raymond james and you hopefully were able hear most of that, scott. can you agree or disagreer or add to all those details what do you make of the current situation here >> well, it reminds me more of the view we had as the economy

continues to improve we are getting obviously close to full employment, even though inflation doesn't appear to be a major threat, it is likely the fed will continue to tap on the brakes here, raising rates a quarter percent, every quarter, really until we see more signs of stability within the labor mark or we get another major shock such as the three hurricanes we had in the third quarter of last year >> oh. >> do you have a spread sheet? can you tell me where second quarter gdp is trending now? >> i've got several spread sheechlts we don't have a whole lot of data for the second quarter yet. but i'm right around 2. %. it could be as high as 3 there is a lot of variation. we had weather e weather effects in the first quarter certainly, these numbers do bounce around. i think one of the key issues is that we are running into labor market constraints you hear this from more and more firms. facebook, for example, suggested the tightness in labor market is

restraining growth in some regions of the country and you know the whole inflation mechanism is a lot different than in the '70s and early ''80s you have a bicker union presence have you oil shocks speeding through to union wages and non-union wages followed inflation embedded in the labor mark that's not really happening at this point and again, that's really allows the fed to be very gradual in raising short-term interest rates but the fed's got to do what it's got to do i think they're going to keep tapping the brakes until we do see signs of more sustainably. right now the job growth that's been bounszing around in the first quarter, month to month, a lot of that is just weather issues but you take the average, three-month average and so on, it looks like we're still well beyond a sustainable pace in job growth again, it will slow down at some

point. balls it h because it has to. >> we appreciate the quick response >> when we return, ford is halting production in this most profitable and popular vehicle it is the f-150. this comes ahead of the shareholder meeting toy.da we will check in with phil lebeau he has all the details when we return whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly...

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welcome back, everybody, ford is holding its annual shareholders meeting after the auto maker was forced to suspend production of its most popular vehicle what this means and how long this suspension can last phil, it's great to see you. >> it depends on how quickly they get the supplier going again, becky by the way, the annual meeting is starting to begin we'll see if there are questions about this out annual impacting ford it is the bottom line here is that before the annual meeting, which is happening the focus is going to be on where is the growth and when you look at the growth for ford the question has been, what about mobility? how can i leverage where sford strong and grow mobility in the future those will likely be a few of the questions that will be put to the ceo and again the meeting has just begun we'll see if there are any questions for many of the

investors regarding ford's ability to upon advertise its mobility efforts in the future with regard to the f series. that's the immediate crimes it's a big deal from the standpoint the f series is the most popular vehicle out there in the market right now and for has dominated the pickup truck mark. all production has stopped it will be stopped through the ends of the week at least. beyond that, the company executives during the conference call we were on, they said, look, we're not sure how long this will go three plants are impacted. one in kentucky. the question becomes, can they little the length of the this shutdown they've got enough inventory, that you will not nigh difference at the dealership right away f. this stretches on a week and a half, two weeks, they haven't gotten that

supplier and these components back in the flow, then ford dealers will get nervous people will say, can i order a particular ford? will it be here? they have a couple weeks here, they do not want to have this drag on. guys, back to you. >> i'm not sure few heard the last conversation where you talk about some of the auto price, maybe not holding pace with the past that's coming down a bit that's something autonation anticipated seeing because of the rebates and sales prices that went through. any comments or thoughts on that >> i agree 1 humidity% if you see how much have risen over the last eight to nine years, we are at a point where most people will tell you. mike jackson said this before, will you see perhaps a little more incentive activity because it's such a saturated market in addition, these price versus come so far over such a steady length of time that i think

there is to a certain extent people thai saying i i am not sure at going over average, it's a little over $500 on average for a few vehicle monthly payment. >> that's a lot. >> it is >> thank you, sir. we will see you in just a little bit. when we come back, it's mother's day this week. we will bring you the story of two women who built a company to help moms around the world they have a lineup of superstar in uorters the co-president will in uorters the co-president will jos on set next.

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welcome back to "squawk box" this morning we are celebrating moms this week baby-to-baby is a non-profit helping low income families providing necessitys to children they are both co-presidents of baby-to-baby and this is is up a great idea, actually you get a lot of stuff to people who need it how did this all come about? how did this happen? both you guys have some interesting history. >> so i was a lawyer in this building and kelly was a model and worked at a head start center in harlem i grafbtated pro pro bo no work. the two of us wanted to start a non-profit, to the need of women. giving low income children gear, we asked if we could take it

over we wanted to scale it and make it a real enormous operation they agreed, handed us the keys, seven years later we've distributed 39 million items to hundreds of thousands of workers. >> so what kind of items do you get out there? it's etching, diapers, diapers are number one, after that it's strollers, car seats, cribs, we go up to age 12. it keeps going, backpacks, school supplies, uniforms. >> some is donated by big corporations you have a lot of corporate sponsors, diz incy one of them i mean, we can go through the whole list, matel, old navy, the honest company >> it started with members of the community, moms, dads, developing off things they didn't need anymore and it elevated to now we work with companies like honest and huggys and the companies you mentioned. >> so is it mostly working through big companies or mostly

still individuals who are donating >> i think most of our, as we've grown and distributed 39 million items, most of those come from big corporations, who want to do good and give back but we still have that community aspect where people in the community, moms and dads can drop off tear gently used bake essentials we'll take tell and put them in the hands of people we serve. >> if somebody has something they want to donate, how do they do it? >> they can go to our website w. have dropoffs in 22 cities we are expanding and growing every day. >> you have a lot of celebrities involved >> a lot of celebrities. yes, we're so lucky because not just, we have so many celebrity moms involved. it's one of those things, you become a mom, you see how expensive it is, how much stuff you need, just because are you a celebrity, you get sent all this stuff, it's this excess and so they wanted to donate it they want to get involved and late yesterday the host of our

shutterfly event, which is for mother's day, we had about 35 low income children and their moms come from washington heights. >> what's the one item you need themost? >> diapers >> always. >> every single time it's diapers. >> is there a diaper company not playing with you that you want to play with >> any diapers 1 out of 3 moms are struggling to get diapers they're not covered by food stamps they're required at day care they're 14% of a low income person's after tax item. it's the number one item >> we should say, father-in-law, alan >> he's watching >> and i think we had your husband on the show. >> yes, i'm following in their footstep footsteps. >> thank you guys. when we return, jim cramer

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check out the shares of macy's the retailer has been downgraded from underweight to equal weight from morgan stanley. the stock has had a 60% run up since october. it may be a valuation call it was posting weaker comparable-store sales let's get down to the new york stock exchange jim cramer joins us now. been talking about it, kicking around 1,000 points in a week. funny how it's always darkest before the dawn. last thursday we were down 400 points turned around that day, up five straight or something. what is that reflex rally >> i think to some degree people feel better about trade. it's interesting because the "wall street journal" article this morning said while they're far apart, there is some movement and things that could go right when world trade is not stymied,

and you have a conference like yesterday at wells fargo where almost every industrial said things are great, you have a great world. there's a lot of good that has been kind of bubbling. then came to the surface >> so it's thursday. what is next, do you think, for us to focus on we never know in this news cycle what affects us and what is next, do you think >> i think we still have a propensity to sell off on fridays. because we don't know what will happen over the weekend. we seem to be always concerned that china will do something missiles firing at both sides in the golan heights is negative for peace, positive for oil. and all that stuff is controlling -- i think people are saying oil is up artificially, they're looking at a couple years where it has not moved. i don't think people are sweating oil the way you would

expect >> andrew said something interesting. someone said if the at&t deal, if at&t prevails, that there are other people that will think maybe it's safe now to test the waters for m&a at least the justice department would be wounded >> on its heels. >> i think that's true the idea that you can combine and have some power that you didn't have beforehand is really -- that's what the justice department is fighting if you can combine and have more power, have better cash flow, you will see a lot of combinations a lot is on the line for this decision david has been working on it i'm working on it. it's such an important decision. i don't think the government's case is as weak as many commentators are saying. the government's case is good. thanks see you in a couple minutes. coming up on "squawk alley," ren't miss the ceo of iac, the

pant company of match group. that's at 11:00 a.m.

the sun comes up, the sun goes down. you run those miles, squeeze the toothpaste from the bottom and floss to set a good example. you fine tune the proposal, change the water jug so no one else has to, get home for dinner and feed the cat. you did a million things for your family today but speaking to pnc to help handle all your investments was a very important million and one. pnc. make today the day. hello. give me an hour in tanning room 3. cheers! that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles.

kayak. search one and done. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. quick final check on the markets. the dow is at the best levels we've seen for the morning

indicated up 72 after some data that came out at 8:30. nasdaq indicated up 25 the s&p 500 indicated up about 9. that's it for today. we hope to see you tomorrow. it's friday. >> tomorrow. >> that puts everyone in a good mood make sure you join us. "squawk on the street" is next ♪ good thursday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber more gains for stocks today in the premarket. nasdaq highest since late march. plenty ofnys today in autos, retail, nvidia tonight europe is soggy after bank of england holds rates steady oil abov