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 above 71

we begin with the stealth rally in tech. nasdaq is up four straight days, and 6% for the year. facebook, amazon, netflix seeing 10% gains for the last month >> and a presidential greeting for three americans freed from north korea, and israel launching missiles on iranian targets in syria. and ford pulling the plug on production of its most profitable model, the f-150 pickup first up, tech has been flying under the radar. the sector is in the midst of a five-session win streak for a first time in a couple months. nasdaq outperforming the s&p and the dow by a wide margin, 6% for the year doubled its year-to-date gains since the beginning of the month. why? >> i'll tell you we had a series of very, very compelling stories about

e-commerce that people are hearing, away from amazon. this seems like the quarter where you're getting a tremendous amount of what i would say is internet of things that's working the cloud is -- we keep hearing from companies over and over again that cloud adoption this quart ser ser is so aggressive. healthcare, banking, retail. a lot of these companies are reacting to it each one of these guys has a great story. facebook, what was that? >> the thing with -- what? with the privacy issue >> new haven -- >> yeah. >> they put it aside since they got the investigators. they monitored right-wing prop ga propaganda it's like the cloud lifted the cloud lifted i like that. >> i like that, too. yesterday you were sitting here

saying surprise that the market was poised to open higher. >> i did a lot of work on oil. >> continued concerns about trade with china though we get different reports. >> the "journal" had the story we're all looking for. they basically said they're not that far apart >> the day before wilbur ross indicated that they were >> i think there was a sense jed at the wells fargo conference of industrials that it is just a great time, april has been very strong when i saw 3%, that had been level to sell. did not trigger selling. gave you bank buying oil is so thin this market, no one is trusting it will it be like july of 2000 where it went to 147 intraday on july 11th? could. >> 147 >> this is my work >> i know. that's your work product there >> we should compare our spiral notebooks of information >> i have pads

lots of pads >> legal pads? final exams, guys. this is my generals. >> jim to your broader point, claims of 21, co1, core ppi -- >> yesterday talk about railcar volumes talking about being up 7% year over year last week. do you know how amazing that is? >> i don't, actually tell me. how amazing is it? >> they have wood, it's got coal, chemicals, most things are made of plastic, david >> baltics had a nice run here >> baltic is surging >> the "journal" has a piece today about freight and how it's hurting sysco, tyson, and how they're unable to pass that

along. >> truck shortage, driver shortage i had xpo logistics on, brad jacobs, put together probably the next fedex last mile there is a sense you have to pay truckers more. there is a shortage. he said the last two months got lighter. we are trying to cobble together a system right now of last-mile warehouses trying to cobble together a system where amazon can get the stuff to you and amazon is using every truck. >> i believe that. >> amazon keeps coming up. it's a $3 billion company, a flea, a gnat, a may fly. >> it is >> amazon comes up in every conversation you have across the board.

we have talked about this. we will continue to. >> the macy's downgrade, veiled implications, amazon. i did not go to amazon on mother's day >> i left an open cart now that i realize it on amazon i didn't close my order on amazon i needed a couple things >> david, everyone will hack you. >> nothing interesting they will find i promise that nothing. i had a cart hacked in thailand yesterday. >> a card or -- >> credit card big charge in thailand for me. >> no kidding. what did they get, do you know >> no, but maybe they have a new card because someone in thailand hackedny krmy credit card >> did they cut the card off immediately? >> immediately >> at least they're working on it >> we have to move on. this is all interesting, but futures are extending their

gains after the release of data showing consumer prices up by less than expected 0.2, as geopolitics is in the mix. you probably know the president greeted three american detainees freed from north korea back on home soil. israel striking some iranian targets in syria in response to rocket fire. merkel saying today that europe can no longer rely upon the u.s. to protect it. >> i think people underestimate the desire of the president to make sure they pay their fair share with nato. i think this president has been saying, come on, we have not -- we have by far, whether it is in korea or europe, we have been bearing the lion's share, woe won't be the world's police person, why don't you call general dynamics and northrup and call lockheed martin that's who you will use.

by the way, i've been up to the golan with the israeli military. you can see 36 miles to damascus that notion of missiles being traded there, that's a good reason if you're short oil to cover. i was at the golan scary area not that scary >> we have to move on. >> do they have wineries what about the prospect of war >> that's where i'm going. october of '73, with the syrian tanks across the border. it's not a good things this has been a peaceful area since the armistice of 1974. if you're short oil, you're thinking what will i do? is it like when the nigerians took out exxon, shell, serve ron? no but if it was like that, oil

could go to 80 that's the worry >> you're saying this is likely, not likely >> you just need one event need mexico to have a new forecast venezuela is pretty much offline. >> venezuela is offline. none of the drillers are willing to go there. even baker hughes and ge company. did you hear my analysis get hammered saying retail people -- retail people using numbers that are in expes of what even was -- 50% higher than jeff immelt's tenure he tends not to mention jeff immelt, who is the chairman of athena health. athena the goddess of losses

>> that's who we usually think of >> plenty of news in the aud to sector ford announcing they're temporarily halting production of the f-150 after a fire at a supplier phil lebeau watching that. good morning >> it's a busy morning in the auto beat. the investor comment section of the ford annual meeting, a virtual meeting, basically people can ask questions over the internet, that's just about to begin we will talk more about that in a bit. let's bring people up to speed on where they stand with the f-series and where production is being halted they stopped production last night. all f-150 production is down none of that is taking place right now. at least through the end of the week because of a fire at a supplier's facility.

they're not getting key components from that supplier. what does this mean for the bottom line? will dealerships have fewer f-series out on the lot? not right away ford has an 84-day supply of the f series at dealer lots and in shipments to dealers now they're fine for a week and a half, couple weeks, but if this stretches out, if they can't get that supplier and those key components back into production, we will see some nervous dealers and a greater impact for ford. in terms of impact near-term there will be one. they talked about that last night. looking at shares of ford. the company did reaffirm its full-year guidance reaffirming full-year guidance what happens in the second quarter remains to be seen given the fact we don't know how long production will be shut down the annual meeting is going on now. we're just getting to the point where we will hear from investors and shareholders jim hackett talked about the

neat to develop sticky revenue in the future and when it comes to mobility. so getting you to pay when you go from your office to your home to your car. ford wants a chunk of that revenue. they believe they will have different business plans that can tap into that revenue when they start rolling out these mobility plans over the next 5, 7 years. >> as an aside, phil, on this cpi number, used cars and trucks down 1/6. >> the biggest drop in nine years. this is the return of those leased vehicles? >> yes that's not going to end any time soon that's likely to continued at least for three, four more years. we talked about this we talked about this at length you and i, carl, jimt brought th this up. when they talked about leases a lot three, four years ago, the big leases were three, four years. and now that's coming home to

roost. >> phil, great to have you ten years ago we had a spike in oil that took gasoline prices to $4.10. can you give me an approximation of how much more a car can run on than back in 2008 i'm trying to put into context the idea that a spike in gasoline is not as bad for the economy as it was back then because our cars are so much more fuel efficient. >> you are correct i with have to check on the point where they're supposed to be in their cafe standards, but most vehicles are 4 to 6 miles per gallon better today than they were back in 2009/2010. one reason why is they have done a great job in the industry of stripping out weight from these vehicles that's why they're far more fuel efficient. the point where you are to worry about gas prices, closer to $5 a

gallon >> those are the cars being made now, not necessarily the cars own the n owned now, right >> phil is the best. >> phil, thanks. when we come back, the latest on fox, disney and our parent, comcast, after fox gets a lift on quarterly results. match parent, iac, with an earnings beat. we'll talk to the ceo who has been talking tough about facebook another look at the premarket. got news on costco jim mentions the downgrade of macy's and more when we come back with more in a minute mom you called?

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this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. 21st century fox off the highs of the morning company reports a quarterly revenue beat, despite not having the super bowl last night lachlan murdoch was asked if the disney fox transaction is the only one he'll consider >> we won't engage in speculation around this.

>> we won't engage in speculation around this. we are committed to our agreement with disney and are working to bring it to a closing. in addition our directors are aware of their fiduciary duties. that brings us to some other news regarding comcast >> fox needs the shareholder vote that's part of the key consideration that comcast has in the public discussion of its intent to potentially bid, if judge leon, the judge in the doj versus at&t/time warner case if the government wins, none of this happens time warner won't be able to be sold to anybody. >> no. comcast will come for sky, same june time period when fox firms up its bid for sky a lot going on in the early to mid-june time period we reported on the details so far of comcast's intent. they could go up as much as 100

billion in debt on the balance sheet. >> that's a lot. >> i know. it's a strong cash flow business, but it's a lot i said yet about the fact that they will offer deal protections. that includes a reverse break free we'll have to wait and see disney stock was pressured yesterday despite what were strong earnings because of the continued reporting that we and others have done on comcast's intent here. comcast found a bottom briefly we'll see whether that continues. it didn't go down yesterday. >> fox is the beneficiary -- >> you're calling it a bottom? >> i'm not calling a bottom. they found a bottom yesterday. could be a brief bottom. everyone still running away from all of these companies that have anything to do with providing video to the customer at home. >> amc networks firmer >> say again >> amc networks firmer

>> a little firmer >> take it where you can get it. >> jeffries yesterday said the market is focusing on game theory rather than fundamentals. >> yes >> there's a lot in the way of this potentially compelling story down the road. >> i think june will be incredible >> regardless, you'll have a fight. disney won't back off on sky or on this. >> right >> then you'll have an endless regulatory review. we'll talk about this deal 18 months from now >> and roku confirms your -- they had great numbers >> we are talking to anthony wood later today >> are you >> yes he'll be on 11:00 a.m. we'll get cramer's mad dash, count down to the opening bell the dow is up five straight. longest win streak since february i was a c130 mechanic in the corps,

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♪ ♪ >> we had a little workout let's get a little mad dash in here as people yell and scream in our ears.

>> kimberly greenberger, sane woman at morgan stanley takes macy's to a sell she had a hold on it as it took that historic run. she's talking about the negative store comps, declining return on investment and says the stock has run too much i disagree i think jeff has reinvented macy's i think it's an exciting place to shop. the bloomingdale's fifth floor, the shoe floor, has cost me a fortune. and i think in general gannnett is being underrated here this is about saying he won't do real estate. that's done. i disagree i think he made the stores exciting he has energized the company this does not get any of the mojo, doesn't have the mojo -- remember, mojo was steve easterbrook, i adopted that. >> they say stock is up 61%.

is it 61% more exciting to shop there? >> interesting no but they got rid of the plastic hangers i hated. they were spending money buying back stock what does gannnett do? he buys the debt back. >> listen, i can remember when that yield was above 8%, 9%. that was a great buy then. >> he said we have the cash flow i don't know what the deal is. >> they didn't cut it. >> now people don't realize, she doesn't realize, it's exciting macy's is exciting bloomingdale's is fabulous fabulous >> fab >> it's mother's day on sunday >> mother's day. >> we have an opening bell i have to go shop. we have the biggest ipo of the year coming up and we'll talk to the company's ceo. ♪

feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. 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. anna and a little nervous. into retirement... but not so much about what market volatility may do to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife. you're watching "squawk on the street" live from the financial capital of the world the opening bell in about 90

seconds. busy morning as we watched the president greet those american detainees overnight. bank of england holds rate steady oil above 71 nvidia tonight, jim, added 18 billion in market cap in the last five sessions what you're looking for from nvidia is data center. their new chips, they run much cooler and they're much bigger the second thing is gaming, we saw the numbers from ea, but crypto no. just go to my twitter file, you know what i meaeamean data center, data center, data center >> let's get to the opening bell and the s&p at the bottom of the board. at the big board, it is financial services company qh

equitable services. >> i have groupon tonight. there was a period where there were too many deals. we want enough to see it, but not too many where it's overwhelmed. >> they had to put people on the balconies here i theheard 300 guests coming in and there was some talk that it may take a while to open today >> okay. what can i say, there's some animal spirits

>> rising 20% to pay for the xl deal remember that deal >> i liked that deal aig insurance up today underwriting stronger. aig a stock that killed a huge number of hedge funds. >> it did price below the range. it's funny this and at&t pulled that latin american business ipo. they couldn't get what they were looking for. >> how badly would at&t's cash flow be hurt if the justice department prevails in the decision involving time warner have you seen at&t's stock have you seen the yields have you looked at that? >> of course i have. >> down about 9% as you know, i've said there are some time warner holders

at this point we don't care if the deal goes through or not it's not worth -- it declined a good deal in value in terms of where time warner was originally where the deal was struck. >> that's amazing. jeff bukus, who is a great american, is sweating this out >> they have to have plan "b" at time warner. they probably got plan "c" as well if the judge rules against it, you can rule out potentially selling the company to comcast or to any others apple is not stepping up >> no, definitely not stepping up not here, not now. >> we'll see at&t, it would be helpful, as direct was helpful in terms of the cash flow it brought in to maintain that dividend right now they're trading high

rpu subs for the lower rpu directv now subs not a great trade, but they are doing it >> disney call yesterday, it was so good. disney spending a lot of money on technology. nobody wants to hear that. i like to hear it. i like the bamtech deal, and then the elephant in the room, comcast which you mentioned repeat repeatedly >> comcast up, fox sup, dis up,e is up. everything up right now, three minutes into trading >> bernstein did ask whether parks and studios s is is peake >> that's wrong. i'm enraged -- people have bee calling it tops in pricing at the theme parks since they opened in florida. since disney world opened. it's been -- it has to be peaking. are you kidding me the numbers, the people going. the excitement >> the pricing >> china

>> that counts for comcast as well >> universal even better >> theme parks are incredible. when they bought nbc -- >> it was like a buy >> yeah. that's great we have these theme parks, then harry potter and a huge business >> totally agree what gets me angry is that waiting for some analyst to come out and sayavengers, and it's like half over. >> back to nvidia real quick a new record high here the number two leader for the month on the mdx jenson wong talked earlier about engine growth. >> our core growth drivers come from video games from novembprofessional graphic

visualization, and in several years our autonomous vehicle business >> a piece out of ubs yesterday looking at beneficiaries of autonomous revenue beneficiaries over the next, say, ten years, gm, google, waymo, nvidia. >> google and waymo with their own chips. nvidia is the one -- everyone thinks that nvidia is able to process the most which they are. nvidia has heard the call. the call is the amazons of the world, the googles, they demand no footprint they want ten times the power, and one-tenth the heat you know who is trying to do that jensen huang he understands this is about minimize heat, maximize power.

even his biggest competitors you' offline, what do they say? he's a genius. >> when the history of the end of our species is written, is it the line coming from him originally will it begin with his innovation and genius that leads to the end of our species as a result of the -- >> like skynet >> yeah. yeah >> it's coming >> did you listen to the google assistant pretending to be human saying um and ah where have you been? >> it's like 2047 now they're saying >> i'll be back. >> you don't care. >> i don't jensen huang is defying -- he has more going for him than anyone when you hear him and read his speeches, you have to read them over and over and over again because they're so far over our heads. he's the einstein of our era

>> he's seen down roads well bro other people i'm taking you further down that road and saying hopefully the best we can hope for is that we'll be treated like zoo animals. costco comps, take out gas and currency, 7.3, 7.9 in the u.s. >> it was 3 last year. >> compare that to lb which is warning on the quarter any see the low side of 15 to 20 cents. >> victoria secret better have a good mother's day. >> the costco -- >> double digits >> e-commerce, 43. >> costco, they finally got -- as soon as they turned on the jets of e-commerce, they have figured it out the stock is down. people anticipated it. costco and home depot are pulling away

home depot, this is a huge weekend for home depot this is christmas. >> for the planting season >> yes, frank blake, the previous ceo, he understood this is it. this is their time you hurt me on that thing, the skynet >> why am i hurting you? i'm trying to alert you. >> it's not happening. >> your consciousness may be uploaded to the cloud because it's so interesting. nobody will care about mine. i want to get to xerox another letter from icahn. it's really nasty. they thought they would have control of the board, they don't. they say that xerox's board misled shareholders. though never actively shop the company and they are concerned about their own compensation, liability and reputations. that's wrapping it up for you. the big picture is this

incredible fight continues it may be to the detriment of all sides. we talked about the fact that the overall market has xerox is a part of is not growing if you're fuji -- that deal is dead there's no way they'll do that 51% ownership deal with fuji that deal is dead. can you get fuji back to the table? given the noise, hatred, vitriol, it won't happen so you're out there in nowhere land until everybody calms down. did want to share that and alibaba was the largest ipo we've seen and ant financial, which owns alipay, this was reported by the "journal" that they would raise 9 billion. it's 10 billion.

it's the last private raise ant financial will do. it will be allocated tomorrow. they got a bunch of bank there's there. morgan stanley, deutsche and why is that important? alibaba will own 33% of ant financial. they went from getting a dividend to owning 33% that will close probably sometime in the second half of the year ant financial nearing that $10 billion raise. that will value the company at 1$150 billion >> man >> the last one they're expected to do before they go public, ant financial. >> geez. that's exciting. that stock has been creeping up every day. so hot the rest of the market has not been that good >> this listing in hong kong, people are -- >> dual list >> yes and altaba which owns 15% of alibaba. what they'll do with it eventually to figure out a way

to monetize. >> exciting times over there when you talk a lot to data center people, alibaba comes up constantly it will be a world collision walmart with flipkart wants to get into that worlds collide >> dow is up almost 100 points here let's get to bob pisani. >> the news has been better since the jobs report a while ago. we saw this today with the cpi subdued inflation. that's a key story for the bulls. they're regaining control of the narrative. look at sectors. think it doesn't matter that rates moved down home builders are leading. semiconductor s up energy up. consumer staples are up. industrials are up utilities are leading because we had rates moving down a bit.

we had home builders up. banks are lagging today. that's a key story overall the broad market is moving off of its lows. we talked about that series of lower highs, lower growth. here's the story the big debate is global growth, was it expanding or slowing? as of now u.s. economic news has been better. expanding is winning has inflation contained or picked up? ppi, cpi, the argument is inflation is contained bulls winning on that. earnings growth, is it healthy or peaking earnings is a bonus argument as long as you get record growth. so the bulls are regaining some control over the narrative as a result, look at what's going on the s&p has broken this down trend we've been talking about for weeks now of lower highs now it's breaking out. it's not just the s&p. if you look at the russell 2000,

it has been breaking out there it goes. we're only 1% from an historic high in the russell 2000 even the mid caps, those are the airline stocks, the classics, that's the mid cap index breaking out of these down trends this is noticed by the overall market smaller sectors, semiconductors, leadership groups fell down in march and april. smh is breaking out of that down trend. some key sectors like banking. semiconductor index breaking out. kbe better today the issue for stocks, we're not out of the woods because you're starting to move off of the down trend doesn't mean we're in an enormous uptrend. big issue is buying enthusiasm is muted big down days this year, all have been on volume days, all down days. buying is muted on upside days like today we need to see more enthusiasm

seasonally we have weak trends, sell in may, particularly the midterm elections. sideways may be the most reasonable thing we can expect in the next couple of months axa is behind me we're waiting for that to open the pricing disappointing on this this is a big insurance operation for axa. $20, we were talking 24 to 27. at $25 this would have been the biggest ipo, 3.5 billion since alibaba. it didn'thappen. maybe it would be unexpected for that to happen in that kind of way here their principle competitors have not performed well if you look at metlife or lincoln national, principle financial, other companies that are in this space, generally to the down side. a couple problems, rates are low, it's difficult to get good returns. they need to figure outl out liabilities and match them

we had the situation with annuities. a lot of these companies have long-term annuities. people are living longer the that's an issue for these companies. people will ask is this going to be an indication that we'll have trouble with ipos? i don't think so this is a particular instance. we had 66 deals this year. $22 billion. is that a little or a lot? that's good. on average they get about $40 billion a year after four months, we're more than halfway through the average return about 16% most of that comes on the first day. those are good returns we'll talk more about the big names later on today the dow is up nearly 100 points. we have gone more than 1,000 points in a little more than a week guys >> thank you, bob pisani let's get to rick santelli at the bond pits in chicago hey, rick. >> it's very fascinating if you look at the data, none of it was shocking. but the fact that foot off the

gas pedal with regard to ppi and especially cpi today had outsized ramifications in the marketplace. and the landscape was fertile. two-day of two years, backed away from a real stretch and traded up to 2.53. 24-hour tens, because we have a new guy on the block after the auction yesterday, tens gave up some ground. but the key here is this next chart. this is an april 1st chart of ten-year note yields not all 3% handles have been created equally in the minds of investors. yes, we did get a 3% close, but -- but we didn't take out the 3.03 that you see there, the current high yield close for the year that in many traders minds is the most important issue between where the market is now backing away and any type of surge in yields that can get it closer to 3.25, 3.37, 3.38

all the big resistance level we had mr. carney and bank of england not do anything with respect to rates wasn't shocking with regard to the notion that he wouldn't take action but it did have a big move in the marketplace. look at the pound versus dollar. getting mixed in with our 8:30 a.m. eastern data. pound moving lower one week shows it's significant, but not really because it's just a lot of statastic type trade. we are still hovering at the lowest levels against the greenback since early january. the euro versus the dollar is the most predominant force with the valuation of the dollar index, that's also having a bounce year-to-date it's now still holding at the lowest levels against greenback since late december finally let's get to that dollar index. one-week chart shows we lost a lot of important ground. intraday at 93.40, now at 92.60. we lost three quarters, 7/8

cents from the intraday areas. many traders think the big level is to maintain this 2.50 to 2.60 on a closing basis bonds at 1:00 eastern, we wanted to pay attention to that carl, jim, david, back to you. >> rick, see you in a bit. later on, roku's anthony wood, the video streaming service climbing on its latest results. we'll talk to former cisco ceo john chambers about technology regulation dow up 86 to start this busy thursday morning once there was an organism so small

no one thought much of it at all. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.

. biggest ipo of the year. 137 million shares raising nearly $3 billion. we'll talk to the ceo later on this morning we'll get trading with jim in a minu te mr. elliot, what's your wifi password?

wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. time for stop trading. >> they ask a $10 billion buyback. they have litigation against apple. they have worries with nxp to me they are ready for bad news they can buy all they want they have a good balance sheet

i would say i've not been a huge fan of the stock, but it's come down an awful lot. a lot of good things happening >> what do you make that subdued inflation is the new narrative that this whole period has been a consolidation and upward trend. >> it is rather shocking how little inflation there is in the system we keep hearing about freight, but freight seems to be one discreet thing about getting something to another place and as brad jacobs told me, that was gigantic they are solving a lot of freight bottlenecks. there's freight because the railroad lines are up 7% that's been an issue >> how about tonight >> i've got groupon, which had a very good quarter.

boy, this group has been horrendous let's see if they can try to put some bottom in here. >> save some for tonight you always do. when we come back, as we said, year's biggest ipo we'll talk to the ceo with the dow up 111

good morning, welcome back to "squawk on the street." dow is up about 100 points here. nasdaq highest since late march as the dow looks for its longest win streak since november. our road map is going to begin with three americans et et held in north korea are back on u.s. soil the president doing something unexpected we have details and talk to a form eer ambassador to nato. ford is suspending production of the best-selling pickup truck following a major

supply disruption. >> and it is the biggest ipo of the year getting ready to make its public debut. we'll speak to the company's ceo. >> markets doing okay here helped by a couple things. claims came in very strong we were locking for 215. cpi, year on year, taking the three monoannualized number. got some relief in the price of used cars. the biggest drop in about nine years. perhaps the can rely on subdued inflation. >> there's been a lot of hand ringing. those kwiequiets who are fearfu that cob assumer price inflation. kind of benign that's the headline. let's talk more about the market impact and the economic data

ubs floor director and brian bellsky. welcome. is that the take away here that more on this idea that the data is good, the earnings are good and inflation looks kind of okay >> we have had a lot of people pointing to commodity prices in what we're seeing. inflation is about to really break out and there are no particular signs of it in the data that we're seeing so it is a little bit of a gold lox thingoldilocks thing rather than a stampede of coverage so you broke out a little bit yesterday. today you got up above the moving average in the s&p at 2705 so things are coming together rather well. >> what explains the partial

breakout >> i think it's one of these things where investors are beginning to learn how to invest again. i'm honored to be here with art that has a perspective that most people miss. we're missing perspective. you mentioned goldilocks let's talk about the three bears. they are out there talking about peak earnings. talking about end of cycle behavior they are out there talking about inflation. we have not seen any of those three things on a factual evidence so i still believe that most investors are so macrothey are trying to play the former playbook where they have forgotten how to fundamentally invest we're heading into a 1950s market even the mid-90s when we saw fundamentals lead, we're going to be in a year where earnings are up more than prices and we believe the majority of the investors do not understand that concept. >> there's inflation, it's just not being passed along

crb is saying much different things than the cpi. >> and i think that's it some of it is being absorbed by corporations and others. some of it is simply delayed you're getting upward pressure on things like drivers' wages in trucking yet it's being suppressed. you donwon't see that for a cou months i think brian is right people are shrinking back from ghosts and goblins that they really can't see >> is that what the trade worries were ghosts and goblins >> if you take a lock at how tariffs work relative to revenues, they are pretty correlate d. high 90s so if the tariffs increase, the revenues with respect to aluminum and steel go up the commodity thing is overblown. if you think about the fundamentals of commodities, the energy space, we have

geopolitical pressures pushing the oil price up if you look at return on assets and return on equity and earnings throughout the cash flow, they are benign. everything we look at at a fundamental basis with respect to energy both in the u.s. and canada screams to be more neutral. we would be more cautious here >> i was just asking david what happened in the 1950s with the market, which is what you say we're returning to are you talking about return of the stock pickers versus the global macrotrends that drive everything >> the best examples are people are so convinced we're in a scarce market. we're trying to chase whatever we're calling them this week if you do the work, the majority of stocks are outperforming. and we think that value is is the place to be for the next five to ten years. more importantly, we think dividend growth, that's why fundamental stock picking tells you to be more value, and high quality, which brings you to two things financials and technology.

so financials particulin partice think investors have been renting the sector instead of owning the sector. we think people are way underexposed financially >> technology has growth rate too. pretty significant growth rate you get a lot of momentum players. >> i'm glad you brought that up. if you look at where multiples were in the late '90s, talk about a 44 multiple. we're at mid-20s really. however, the other thing is from a dividend growth perspective, we're seeing 60% dividend growth in terms of relative to 2000 these companies have cash flow, they are maturing and giving it back to investors. >> it's nothing like a late night. when very few had business sense. >> what about the geopolitical risks and tensions in this market on one hand things appear to be improving in north korea and yet iran tensions overnight

between israel and iranian forces in syria, how does the market process it all? is it through the prism of oil prices >> i think oil prices are somewhat reflective of it. but paf part of this had to do with inventory. so it's some nuts and bolts. i would keep an eye on the middle east. i get the feeling as you watch that the chinese are very involved in making sure that this thing comes off >> thank you very much >> getting some breaking news out of facebook. you might have seen at the bottom of your screen. >> big news here on that russian manipulation the house intelligence committee have released all of the content. that's advertising, events,

content that was created by the russia's internet research energy for facebook. so 3,519 pieces of information that have now been released. representative adam schiff saying talking about this the investigation into russia saying there's no question that russia sought to weaponize to drive a wedge between americans in an attempt to sway the election they did this it by creating fake pages to devisive connen tept to join rallies and protests now these 3500 different events, ads, different pieces of content, some were created by americans in response to the russian internet research agency facebook responding to the revelation and the release of all of these different pieces of

content saying, we gave these ads to congress to better understand the extent of russian interference in the presidential election in the run up to the the election, we were focused on the kinds of sicyber security attacs typically used by nation states. they say they were slow to spot this type of information operations interference. since then we made important changes to prevent bad actors from using misinformation to undermine the democratic process. they say this will never be a solved problem because we're up against well-funded adversaries making steady progress and list ten changes that they have made including ads and updated targeting. this is a big deal to see the information and the content created by the russians. >> thank you for that. when we come back, ford is is

halting production of its most profitable and popular pickup. we have details on that. it's the largest ipo of the year financial services company set to make its public debut we'll speak to their ceo a big show ahead don't go away. at ally, we offer low-cost trades and high-yield savings. but if that's not enough, we offer innovative investing tools to prepare you for the future. looks like you hooked it. and if that's not enough, we'll help your kid prepare for the future. don't hook it kid.

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phil has been watching that today. >> the annual meeting just wrapped up and let's take a look at shares of ford again because it has to do with the f-150. that issue was not discussed at the annual meeting, which was a vir yule meeting today when they announced the stoppage of ford production did reaffirm its full year's earnings guidance and the ceo defended his turn around plan saying, looks, it's coming around. you have to have a little faith and a little patience. here's ford chairman bill ford refined to a question from an investor about what it will take to get ford shares moving. >> we want to get the stock moving jim announced some really pretty far reaching actions really in the last quarter that we have in mind it was very clear in terms of the costs we're taking out

we're going to invest in our higher margin products they can get fitter. and we have more actions to come that will show that. >> that is long-term near term the focus at ford is what it will take to get f series production rolling again. it's completely. stopped. stop theed late last night and stopped the next couple days they have 84 days of inventory for the f series it's not like you're going to see a drop off at the bip dealership you're not dpoing to see the trucks at the dealership you'll see them there. there's an opportunity for ford's competitors to potentially pick up a little ground in terms of market share. when it comes to full -size pickups, ford has dominated this market but gm has been nipping at their heels. especially expanding into

mid--size pickup trucks. ram and toyota as well the f series, they don't have the parts. it's going to take awhile for them to figure out how to get those key components flowing again. it's not like they can flip a switch and go to another supplier they have to figure that out that will mean working with that supplier as well as with the rest of the ford team. guys, back to you. >> speaking of fires, different kind of fire one involving a battery. why the ntsb is looking into this model s crash in florida. >> this was a crash that happened on tuesday. two 18-year-olds were killed when it hit a barrier. there was a fire afterwards. the ntsb late yesterday announced it will be investigating this crash here's the important part. in announcing the investigation, the ntsb said it will be focusing on the post-crash fire. it is not currently focused on whether or not this vehicle was in auto pilot mode, which has been the focus of so many other

probes with the ntsb as well as people saying, what's going on with auto pilot. as you look at shares of tesla, can't stress this enough that's not a focus of this ntsb investigation. >> phil, a lot going on. we didn't even get to south korea, but maybe next time thanks >> you bet when we come back, congress releasing 3500 russian facebook ads. what could it mean for the future of tech regulation. john chaim chambers is with us on that. and the largest ipo of the year. axa about to make their debut here when it does, we'll talk to the quk t seeo. "sawonhetrt" will be right back with the dow up 80 points

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largest ipo of the year about to make its public debut we'll talk to the ceo as it begins trading price is at $20. so keep your eye on that >> not the best open

at least not what they hoped for. call it the stealth rally. it's led by the big names such as apple, facebook, amazon the ipo market is hot as well. which wasn't a great year for technology ipos. john chambers is here with us. he runs his own venture firm nice to see you. nice to have you ear >> it's a pleasure to be back with you >> it's nice to have you in person your concern about the level of innovation here in the united states versus a sur gent china and other countries more focused on it. why? we're silicon valley >> exactly i was 128 boston at one point in time it used to be the silicon valley

of the world no it's no longer on the radar map in terms of start ups. what i'm doing in my new focus is focused on innovation, focused on job creation. america used to be number one in innovation in 2013 today we're number 11. we used to lead the world in terms of startups. they are at a 40-year low. france, on the other hand, have gone from 143 being funded to 743 in just four years under macron's leadership. you see the number of dropping from 61% of the world's numbers to 41% so our trends are going the other way. we need to make this a nation of policy all job creation will come from start ups. big companies you're talking about will not have a head count. we're going to destroy a lot of jobs with artificial intelligence >> i don't understand why this is happening the rest of the world may be

getting aggressive so the the percentage may be going down why else the presence of these giants such as apple, facebook, google and others that almost in a sense prevent further innovation >> i actually don't think so i think we very much control our destiny here we're the only country in the world that not only does not have a digittization program, but we don't have a start up program. so i'll be with president macron next week. we'll talk about start ups and the ambassador can you imagine the u.s. having to be the ambassador for american high-tech that's what macron has done. when he goes to india, he was kind enough to bring me with him on his presidential delegation to immediate with mode they are thinking out of box they are dreaming what's possible they are moving with the speed we're not. go back to the numbers start ups used to be the worst place to do business we'd go this to meet our wife or

husband, but the last thing you'd do is start business there. they are up six fold in four years. our issue is there's no entitlement. the u.s. has to move faster. i'm going to be try to be a role model for that and they span the game of tech automation and how this becomes normal things from drone security all the way down to solving world hunger with crickets, which i just happen to have a couple. i'm counting on you big time i can can tell your excitement all the way to electricity being capable at the edge of a network. decentralization, so will electricity. so i have the honor to be in everything from drones to open transparent government to security to solving world hunger with crickets being our next form of protein. >> there's a trillion in dry powder so there's money waiting but there's cases worked on this

geographic problem in the distribution of capital. can it be done privately or does it have to run through the white house or the administration? >> two separate questions. can it be done privately, the answer is yes. we need a policy for each state. that's what macron is doing in france in all six territories. that's what mode is doing in india in all 29 states we need a policy to become the start up nation. don't take our leadership for granted noths a given. we're falling behind at a rapid rate innovation will come from start ups. companies will innovate, but not at the speed needed. the big companies will not add jobs in total. if we don't get the start up inching back to where it was, you all saw it, it was 706 ipos. we had a decade of 34% gdp growth we created millions of jobs. 24% increase in average household income i'm trying to be a model tr

that my start ups are in arizona and texas and georgia and hopefully west virginia ask new york and i think you're going to see the same thing on a global basis. so i think steve is right, the government needs to help more. >> the key thing from government, make it simple to start a start up and easy to go public it's unbelievably difficult to do that in this country. >> you might have thought this is a president that is a businessman. he campaigned on helping american business, deregulating business, making it easier to do business and yet he also attacks one of the biggest innovators in the world, jeff bezos, on twitter. does president trump get it? >> i think if you really watch many of the things that are going on in this country, we still control our own destiny. i would encourage our leadership both the democrats and republicans to make this a start up nation again. it's one of the few areas we can come together on i was just meeting with nancy pelosi and chuck schumer and

they all agree we need to be a start up nation again. let's make a top priority. if france can do it, why not america? i'd love to play a role in that. >> don't tax cuts make it easier >> you make it more favorable. but what you're saying is my parents were doctors you have to treat the whole patient. you can't treat silos. you have to make it the best place in the world to do innovation evident to encourage innovation and make it simple to do venture capital and start companies. that requires knocking down the silos. that's what other countries are doing at a faster pace than we are. >> we have the greatest universities with -- we have the actual capital market system and free markets. we have the rule of law. we still have billions in vc money sitting this it. what are we missing? >> nobody on this set -- i have done all of the above.

we are like frogs as a country the water is boiling around us because it weighs so much the frogs don't hop out of the water. same thing is happening to our start up community we are not being aggressive. we are not dreaming big enough we are not encouraging people to do start ups we are not making it easy to do. the other countries are moving at a faster pace it can raise the total so i'm going to try to do this with 14 companies on maymy way to 20. i'm trying to change the world and give back at the same time and make some money. >> can all this be done given what's happened to college tuition costs, the lack of long-term education reform you know the stats on people who either don't go to college or unprepared to even apply to go to college out of high school. >> when you really think about it, the future of the country is dependent upon start ups for start ups to work you have to change the education system, which we all know is broken. you have to change the university systems when i pop into class in france and start to tell them what

artificial intelligence are, they are already teaching that class. we have to do our universities are still the best in the world. but i think this is a priority let's become a start up nation again. not number 11 in innovation, but number 1 let's make it happen i'm excited we can do it >> finally, you mention ai a number of times. you're one of the pioneers in terms of the growth of technology in this country where do you come down on the debate about ai. we have it a lot at this desk. do you think it's going to human extinction or in private hands in particular it's more dangerous than having the government somehow put in some safeguards no, i think it's the reverse ai is going to do with automation in total when the internet did before. it would completely help our economy. it will help us live long er and solve many of the health issues

and make it easier to do business but at the same time, artificial intelligence takes off, we have to create more new jobs for what it would displace because we will destroy 30 to 40% of the jobs two of the companies i'm involved with will surprise you. it does artificial intelligence. there's a stealth company that i was involved in new york they do ai for transforming the service industry they went from a million in sales last year to well over 50 million in orders this year. so it's exploding. and one thing that got announced today, it became a director on bloom energy and with kr, who you know well, the ability to think about trends where the electrical industry is set up for a transition, intelligence is going to move to the edge, what bloom does is give the u.s. a chance to lead in clean energy

you miss solar this could be the company that leads on energy distributed at a reasonable price and secure from hackers, if you will >> always appreciate your stopping by. >> are you going to try these? >> 11 grams of protein salt and vinegar >> i'll try one. >> you'll love it. >> he did it >> crunchy >> sea salt and vinegar. >> you want to get outside your comfort zone >> you're going to have one? >> he's got a bunch of them. >> they smell. >> good to be with you it was a lot of fun. >> crickets and frogs. that's how you get your energy >> exactly >> while they are munching away, back at hq looking at the rally

in technology we were just talking about. >> you may have forgotten but a tu years back we shared some insects at some point here maybe give them a chance i just want to kael your attention to what's happening with apple shares. in the past few moments, we hit another record high. worth about $927 billion but we are going to stick to that technology trade. the tech stocks have been the tip of the spear when it comes to the biggest moves in the sectors. it is right now the best performing sector during that timeframe over the past one week a 5% gain. the spider tech fund is up a similar amount so the upside has come from apple. you have microdevices posting gains of 10 to 12% in that one

hv week span smh on pace for six straight days worth of gains. a big catalyst will come this afternoon. a volatile trade expected. options could be pricing a 6% move on the heels of that report back to you. >> thank you a lot to get to today. let's get a news update. >> good morning, carl. good morning, everyone here's what's happening at this hour we begin with the israeli military saying it attacked dozens of iranian targets in neighboring syria in response to an iranian rocket barrage on israeli positions. this was the most serious military confrontation between them to date and israel's biggest strike in syria since the 1973 war iranian media reporting that the syrian army intercepted tens of missiles and downed two of their fighters in that attack. a war monitoring group saying

the strikes killed 23 people including 5 stooern soyrian sols a dam burst killing 27 people and forcing thousands from their homes 40 people have been rescued from the mud, but many are feared to still be trapped before this incident, at least 132 people died since march from seasonal floods. a 104-year-old australian scientist ended his life in switzerland. that's according to a right to die group. he said his life had been a rather poor quality recently and he was happy to end it that's the news update this hour i'll send it back down to you. when we come back, the former ambassador to nato on the current geopolitical climate sglrchlg sglrchlg it's the largest ipo of the year still awaiting axa

"squawk on the street" is back after this fire fighting is a very dangerous profession.

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that puts ourselves in harm's way, and to have a partner that is so skilled at what they do is indispensable, and i couldn't ask for a better partner. president trump notching a foreign policy win with an earl morning homecoming for three americans held prisoner in north korea. israel launching strikes in syria in response to missile attacks. for more on the geopolitical risks to watch and how investors should process all of it, we're joined by former ambassador to nato nick burns. >> good morning. >> certainly hopeful images that we saw with those prisoners freed from north korea. does it give you hope the fact that that situation is moving toward diplomacy and diplomacy this iran as well? >> it gives us hope on north korea. this was a real victory for

president trump to convince the north koreans to release these three innocent americans a good homecoming for them early this morning and i think given mike pompeo's trip, it looks like there's going to be a summit meeting for sure between president trump and kim jong-un probably in singapore, probably in the latter part of this month and certainly a positive for markets, but also for global stability that will be on a diplomatic path here, very little chance of war right now or conflict with north korea >> i just wanted to point out, sorry for the noise, ambassador. axa did open for trade this is one of the biggest ipos we have seen in awhile this is the subsidiary of axa, which is the french insurance giant. let's check in with bob. what can you tell us about the

open >> 19. 5 this is the biggest ipo of the year remember the price earnings talked about here. 24 to 27 at 25 it would have been the biggest ipo since alibaba. people are saying is this a sign of weakness in the ipo market? i don't think so this is a very particular story. the company is is buying excel, so they are a seller in the market number two, low rates have been a problem for insurance companies. the street knows that. and many of these insurance companies, including axa and metlife, they are all involved in selling retirement programs particularly annuities people are living a lot longer so they have legacy annuity programs that are costing a lot more money for these insurance companies in general, not just this company, but in general for companies that sell is these products than they used to people are living longer and that's big story so the ipo business so far is very healthy and raised $22

billion on average it will raise about $40 billion. we're ahead of the game. 66 companies a little more than usual. i don't think this slight move to the downside is going to be interrupting a pretty strong ipo year that we have been having. back to you. >> bob, thank you very much for the update we continue to watch that opening action biggest ipo of 2018. we'll be speaking with the ceo momentarily after the stock opened want to go back to ambassador nick burns now on geopolitics. sorry for the interruption you were just talking about north korea. but i also wanted to get your take on iran because we saw the hostilities overnight. israel responding to some rocket attacks from iranian forces in syria. how intense could this get at this point could it spread beyond the region with the u.s. involvem t involvement? >> this is a very tense situation. the iranians have been moving

revolutionary guard forces up to within sight of the goal they have been provoking the israelis the iranians fired a barrage of missiles last evening. you saw this extraordinary response very tough by the israelis going after command and control positions in syria itself. and the israelis mean business here they are going to defend their position against the iranians in the middle east. it could continue to be hot. i don't think there's a probability of a full scale war. but certainly conflicts across the border, missile strikes, we should expect more of that to happen >> ambassador, as we're talking to president, tweeting that the anticipated meeting between kim and myself, he says, will take place in zing important on june 12th we'll both try to make it a very special moment for world peace how do you characterize the level of skepticism the u.s. has going into this knowing that they have murdered and starved d

and control their state media and a second question, how does the decision on the iran nuclear deal inform the way we will approach north korea >> i think certainly the trump administration is indeed rightly skeptical of the north koreans because they know that both president clinton and george bush tried diplomacy to be bu burned by the north koreanens. they didn't fulfill their expectations i do think it's positive to be turning to diplomacy he's right to give this a chance will kim jong-un agree to et denuclearization in a short time line, probably not you saw the chinese with the meeting the other day. they talked about a slower process. but this is is positive. it takes the thet of war at least for the short-term off the books right now on north korea i think president trump hopes that by taking the u.s. out of the iran deal it will be a

message to kim jong-un that kim jong-un is dealing with strong american president i fear it could possibly have the reverse impact kim jong-un might now mistrust whether or not the united states could make a deal and hold to a deal so i think it could work both ways that iran connection to north korea. >> ambassador, what are your expectations in regard to iran there doesn't seem to be a plan b at this point. we have withdrawn, but it's unclear what comes next. what do you expect >> it's unclear. president trump has not really signalled exactly what he's going to do. i think the big question for the market and for european companies is will the united states insist that every european country doing business in most sectors with iran decea and desist the trump administration has not been specific about that i think lock for intense lobbying by the eu and european

governments for the trump administration to make exceptions for european companies that have gone into the iranian market since 2015. a lot of confusion i think across the atlantic on that very important issue for companies in europe >> it's not just europe. it's also china, which is one of the biggest buyers of iranian oil, which also is a linkage with the north korea story does the partnership with china that the u.s. has forged in bringing north korea to the table increase the odds that i china will help the u.s. on iran as well? >> i think that's a key question that you have asked. it pertains to china, japan, india, all of the major customers of iranian oil is the trump administration going to insist that all of them cease and desist or because we we need china on north korea and we'll need china before and after this summit meeting with kim jong-un. will the trump administration

decide to make major exceptions. that's the thing that tinvestor and companies will be looking for in the next week to ten days >> it would be hard to imagine china and european countries side i siding with iran over the united states, but i guess we'll see what happens ambassador nick burn s, thank you very much for weighing in today. >> thank you >> former ambassador to nato >> got that trade. trading not too far from the price of 20. we're going to talk to the ceo in a few moments when "squawk on the street" comes right back dow is close to session highs up 143.

hitting an all time high ahead of earnings. find out how much higher the stock could go more "squawk on the street" right after this

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axa making their market debut here under the ticker eqh in the largest ipo of the year so far we're joined by their president and ceo mark pearson, who is with us here congratulations. >> thank you very much >> we talked for a long time about the challenges for insurers how does today change that, if at all >> we're quite used to operating in low rates for a couple years. our business is about helping people retire with dignity, helping them protect their families and helping them invest wisely we have been doing that for 159 years now. so we're used to all types of markets, interest rates high or low. >> the use of these proceeds, where do they go >> this is part of a parent company. the proceeds go to axa to help with strategic reposition. >> you did raise a lot less than you had hoped for. are you disappointed with that >> i think markets go up and down and pricing is set by

markets. we can't control that. what we know we have to do is run our business well, develop good solutions for clients and get good service over the long-term the markets will recognize it. >> some frustration appears to be with the takeover is that what you're finding in meetings >> no, my job today really is is to really celebrate a wonderful day for us as axa holdings a great new york based institution. has been around 159 years and here to celebrate our listing. so it's an exciting day. >> so your underwriters targeted a price that was higher than was actually hit what are the concerns that perhaps need to be address ed with the investor base in terms of their concerns about your underlying growth rate and your ability to compete in this market, even though you have been here. >> i think overall the amount of interest, as you said in the introduction, one of the highest

ipos this year and in our sector the largest ipo since back in 2002 i think the initial pricing, as you know, is affected by the market and the sentiment towards the sector but we know we're in for the long-term. that's our business. and i'm sure the value will be reflected as we continue to drive it >> does being a public company change the way you continue to run the business >> fundamentally what doesn't change is helping people retire with dignity that's the core of our business. obviously, we'll get greater visibility as a listed company we'll be much more on a level play iing field with other u.s. players. so i think that's good for us. and as you have seen today a great deal of excitement amongst the staff. so a great deal of energy is put into the company i think the core mission stays the same >> you definitely brought a lot of friends >> yes, we did >> a very large crowd. how do you see the rate environment changing

>> as i said earlier, we're used to operating in low interest rates. i think we see them changing over the longer term that's how we position the business bu challenging or an opportunity? >> huge opportunity for us if you look at the aging population in the u.s. and the shift from two towards five provision of pensions, a huge opportunity. something like 10,000 people reach age 65 a day in the u.s. and there is still a big retirement gap that is a huge tailwind for our business. >> we've seen other situations, long-term care, people living longer, has created big problems for insurers that didn't expect

that, didn't see that 20, 30 years ago. >> we don't write any of that but we do provide provision for people's retirement. it's about helping them save with tax-deferred accumulation and then helping them buy fixed income annuities but we aren't in the long-term care business. >> you are a player in annuities. >> yes number three player, about a $19 billion a year market. and we see demand over the long term being very, very positive, in line with those demographics. there has been noise quarter to quarter, but the long-term is very favorable for us. >> hope you'll come back often. >> thank you very much it's been a great day for us thank you very much. >> thanks for coming by. axahe axaequitable holdings eqh.

>> jon fortt joins us to see what's coming up on "squawk alley. jon? >> we have a big day roku will be witus h this is my headquarte. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture.

>>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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might be the most important basis points you'll ever hear me talk about ten-yield notes closed at 3%, high from the year is 303. here is the setup. as we came in and established the first closing high yield of the year at 2.95, what happened since then, the lowest yield we had was 2.73 in early april. that's significant, because the lowest after the newest high still held the 2017 high of 2.63 as we move forward on the 25th, we made our 3.03 since then we've been in a real

narrow range most analysts that talk about interest rates talk about all 3% handles the same nothing could be further from the truth. look at this 3.03 as a hurdle, as a small mountain. in order to cross into the territory of higher rates, traders have a very quantifiable risk parameter they'll continue to use 3.03, closing high of the year, as resistance and they're only going to flip their positions in a large way once we start to trade above it. some will jump the gun intra-day but most are technicians that believe it's predicated on a closing basis. those three basis points you see today brought the market back into the mid 290s. they've popped up. there seems to be little doubt among the traders i deal with, through the technicians that follow the markets, that we are going to breach that veil of 3.03 how long it's taken gives rise

to a big notion that a big event is needed to clear that zone, a big event like a breakthrough on nafta, breakthrough on china, big employment report. whatever it is, we haven't seen it yet but one thing is for sure. pay attention to those three basis points carl, back to you. >> rick, thank you very much rick santelli. big show ahead on "squawk alley" this morning we'll talk to the ceos of roku and iac. dow is on track for its highest close since march 21st

good morning it's 8:00 a.m. at roku headquarters in los gatos, california it's 11:00 a.m. on wall street and "squawk alley" is live ♪ it's so sad to think about th good times you and i ♪ ♪ cause baby now we've got bad blood you know we used to be mad love so take a look what you've done cause baby now we've got bad blood ♪ ♪ now we've got problems and i don't think we can solve 'e