♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we're live at the nasdaq market site in times square i'm melissa lee, along with joe kernen and mike santoli. let's check on u.s. equity futures. yesterday we did finish in the green, so the dow saw nine straight up days in ten sessions we are looking to open lower by 11 points on the dow down by 2 points on the s&p 500. the nasdaq looking to lose 21 at the open russell 2000 is the real star in yesterday's session, hitting a fresh record high. let's look at the action overnight in asia. stellar earnings out of tencent. didn't help the hang seng. third straight day of declines there. nikkei managing to finishhighe by a half percent.

over in europe what is going on in italy continues to be in focus. we are seeing green arrows across the board with the backs up by dax up by a third of a percent treasury yields, we're looking at levels we have not seen since 2011 we hit 3.1% in yesterday's session. we are holding there firmly. 3.104. the two-year at 2.594. >> hold me i'm squared. hold me. 3.1. it's been a while, 3.1 >> six years and ten months it's been took a while to get used to the idea >> 3.1, 3.0. ford planning to restart restriction of its f series pickup truck it was halted forever more than

a week after a fire broke out at ford supplier in michigan. the company lost production on an estimated 70,000 to 80,000 f-150s the truck is the most profitable vehicle for ford we will get an update this morning when ford president joe hinriches joins us at 7:30 a.m. eastern. and a judge is calling a time out -- is this -- >> i think this is the original time out >> okay. this seems like it has been between children a time ou in the feud between the boards of cbs and national amusements, that's the company owned by the redstone family. the judge is set to issue a ruling today on the request to prevent shari redstone from interfering with a special board

meeting that cbs directors are setting for today. that meeting will consider taking away shari's control of the company. the redstones were seeking to merge cbs and viacom much more from michael nathanson, he will join us at 8:00. a lot of times we have craig moffet, sometimes we have michael nathanson. i think they do different things >> they do yeah >> okay. >> stocks to watch, cisco's third quarter earnings beat forecasts. cisco's fourth quarter outlook fell in the middle of the range of analysts estimates. cisco's ceo, chuck robbins, will be on "squawk on the street" at 9:00 a.m

take two interactive's fourth quarter revenue missed forecasts. the sales outlook for the current quarter and full-year are also well below estimates. that stock is down by 1.6% jack in the box had earnings beat forecasts but revenues missed the fast food chain posted a small decline in same-store sales and expects sales to be flat t up about 1% this quarter. google's youtube announcing it will launch its own music streaming service and use your history to gather play lists the ad supported version will be free but music premium will have zero ads and cost $9.99 a month. joining us is chris retzler and brian pane >> that's mike santoli,

actually >> that's why it's good -- it's good that the technical director is not somewhere trading, because we would have just bought a billion dollars worth of cdos or shorted them. instead -- >> there's a difference. >> we got to see -- where is the real ryan pane >> i'm happy to switch >> there's no reason not to take a shot about him he's fine. how do you maintain that thing >> or is there no maintenance? >> i have special beard trimmers >> i think i asked you that already. >> beard oils these days >> i'm interested in the millennial beard thing, santoli. i'm surprised you have never tried that >> i'm not a millennial for one thing. >> okay. >> of course a perfect day to have you on. russell 2000, record high. is this a broader statement about the u.s. economy >> look, u.s. economy is doing very well. small caps have been

underperforming in past years. a lot of money flowing in to the passive etfs, just going to the large cap companies, which are still doing well we think there's a catch up for small cap companies. i just met with about 20 ceos. they're excited about what they're seeing they're still investing. yes, there's headline risk, political risk, but they're executing ona artheir business plans. that's a good thing for the economy and opportunities for investment you have to pick your opportunities to deploy capital. we're coming into the summer months typically volume comes down. liquidity is harder. you see more exaggerated prices, but that's an opportunity to deploy capital when nobody wants to buy them. >> do you see the record in the russell 2000 as well if you pair that with the spread between the ten-year and the german bund, the widest in about three decades, you get this message that the u.s. may be the best place to be in terms of

growth do you agree or are you finding opportunities elsewhere? >> opportunities are global, many markets in the world are growing faster and cheaper china is the obvious one if you don't have emerging market exposure in your portfolio, you're missing the boat >> you're not concerned about the recent china data which has questions about their growth >> even if it's slower, 5% versus 6%, that's still almost -- more than double what the u.s. grows at on an annual basi basis. >> this week has been an interesting example of the mood. one day we're panicked because the pen-yeten-year is going up the next day the focus is the consumer looks strong. macy's numbers were great. housing starts are okay. industrial production is okay. we're looking at the good news but also the cautionary

implications of that good news where does that settle out >> i don't think there's a huge commitment from investors. we got through earnings season they were great for the first quarter, but also had a lot of headlines that made cfos more concerned. so guidance i don't think was as exuberant as in past years again, we're into the summer months things are slower. so why would i wanted to be fully exposed? i like my cash position. i can redeploy that. >> what is your cash position now? >> it's more significant than in the past i can't disclose exactly >> more significant than in how many years >> last three years. i think nafta gets resolved at some point the issues with china will get resolved it's a negotiation it's a deal. i don't think the american public is used to seeing this notion in the he negotiation in the headlines

there may be some pain along the way, that's the volatility where you make investments long-term we're excited about it the summer will be an interesting period to put money to work. >> do you have a big cash position you are waiting for an opportunity to deploy or are you -- >> i'm a raging bull right now >> i feel for like every bullish point out there, there's a counter point. >> that's the beauty most people have not embraced this bull market you have 9 trillion sitting in cash now i think that melt up in january, there's a good chance you'll see another like that. i think earnings will keep coming in stronger and stronger. at some point you have to capitulate on that cash. i say be early, don't be late. what are you early in. >> just invest globally. you want to own small caps they look great here large caps, emerging markets, they all look fantastic. >> appreciate it

>> thank you >> mac's back. >> he was ill. >> he wasn't ill he was off for two weeks you know who is on today gene simmons >> yeah. >> he's the ceo of a pot company. suddenly mac is back i don't know mac, welcome back. >> i don't think he's bringing any goodies. >> do you remember how to do this we already took a shot of this santoli when it was supposed to be -- are you -- did you forget how to do your job he doesn't like this thanks, earl his real name is earl. did you know that? >> are you serious >> yeah. >> i had no idea are you making this up >> what's your real name >> earl. >> wow kayla is like, come on

japan is threatening to slap tariffs on us now. the trump administration will host the trade delegation from china there's been new reports of a rift in the white house trade team that's the lead for kayla tausche who joins us with the latest trade turmoil good morning >> good morning. we have the dome disappearing in the shot behind me, which just confirms it's not a green screen for you. >> right unless you have different green screens. you know, different -- directors can do a lot of cool stuff that's real, sorry i believe you. >> as for the china talks, they kick off in earnest at treasury today where secretary steven

mnuchin will lead a cabinet-level delegation which will include the commerce secretary and the trade representative senior administration officials will be involved in talks, but it's unclear what role peter navorro will play in the talks but that v nav voorro did say l he would attend after a blow u in front of the chinese using expletives on a trade trip a few weeks ago. the senate finance chair, orrin hatch, who opposes tariffs, says he thinks the u.s. has no choice but to go ahead with them. >> they're talking about it i suspect it will happen i'm not sure we have any guarantee by china that they'll be fair to us.

>> weighs and means chair kevin brady asked abou prospects for a deal, and liu hu said he is optimistic, but some say he is managing his expectations >> two weeks ago we thought we would be wrapping up a nafta negotiation this week to be voted on later on in the year, only to discover now that that process has slowed considerably and maybe we won't get there by the end of the year. >> since the large deadlines like nafta have proven elusive for the white house, administration officials express a short-term truce may be the more likely outcome but they describe these talks this week as open-ended. >> you have any color on that navarro/mnuchin thing? i'm not surprised. are you? navarro, we've had him on. we knew him before he was the new navarro. he has some very strong views on

this i'm not surprised that more conventional views might butt heads. >> the anecdote that i described is the one i heard about, is during a lengthy diatribe by the chinese about their international relationships and trade practices and their economy and history, that navarro got restless and said i don't need a bleeping history lesson that was paraphrased by a source i spoke to about this. i'm told the treasury secretary was stunned. that the chinese were stunned. and that may be contributing to the idea that navarro may not play a central role in the talks this week, even though he was telling some associates last night that he would participate. there are reports that mnuchin views navarro as an impediment to any deal that would potentially be reached last summer and in october navarro and lighthizer

specifically sought to block deals that ross and mnuchin brought to the table so certainly there are some issues between the two camps i think it depends on what they're trying to get out of the talks and how quickly they're trying to wrap them up >> all this other stuff swirling around down there for you. qatar, michael -- i'm so confused i'm trying to follow the match nati machinations tariffs, let's talk about tariffs, stick with that do you understand the rest of this stuff >> there's a lot to keep track of we joke that it's like drinking from a fire hose >> and some files are missing according to a whistle-blower? >> yeah, a lot to keep track of. >> thanks. we'll check back

coming up, get ready for retail earnings. we'll tell you what to expect when walmart and jcpenney report in the next hour both of those stocks got a pop yesterday after macy's beat the street predictions that story next. whoever came up with the term "small business," never owned a business. there's nothing small about it. are your hours small? what about your reputation, is that small? when you own your own thing, it's huge. your partnerships, even bigger. with dell small business technology advisors you'll get the one-on-one partnership you need to grow your business. because the only one who decides how big your business can be, is you. the dell vostro 15 laptop, with 7th gen intel® core™ processors.

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hawaii's kilauea volcano has spewed ash 12,000 feet into the air triggers a code red alert. residents on the ground are preparing for what could be the volcano's most destructive eruption yet. shares of ten havencent suri hong kong overnight. the chinese technology firm posted revenue of $11.5 billion, a rise of 48% as its gaming business continues to boom.

kroger inking a major delivery deal with a uk supermarket chain. kroger struck a deal to use its grocery delivery technology. kroger will also take a 5% stake in the company shares of loxo -- you can't do a roman -- lx, is that 60? there's no "0" is there? >> i don't think 0 is a roman numeral. >> shares of loxo oncology are higher after the company released data showing its experimental cancer drug shrunk tumors in about 70% of patients regardless of where the cancer originated. >> this is part of the asco data dump meg tirrell will have information on that. a lot of movers overnight. coming up, new financial disclosure forms give us a glimpse inside trump inc we'll get an update.

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>> you just ruined it for those people should have been a spoiler alert. >> never mind. never mind >> avert your eyes >> that was yesterday. >> yeah. that was yesterday >> we're down. we're red. in the red a bit i think we were most of yesterday. we're down about 27 on the dow jones. down did 25 on the nasdaq. down 4 on the s&p 500. >> president trump's financial disclosure form showed he reimbursed lawyer michael cohen for money paid to stormy daniels. robert frank has a look at trump inc. >> lots of stuff in here beyond that payment in his financial disclosure form filed yesterday. he declared total assets of 1.4 billion, liabilities of 500

million, and revenue from his companies of around 453 million. one of the top performers was his hotel in washington, d.c., that had $40 million in revenue during its first full-year of operation. he earned at least one million from his operations in india with four current projects, more than $1 million from the philippines, a half million from panama all those from his fees. in toronto the hotel was up. that could be because of a payment to take his name off that hotel mar-a-lago's revenues were actually down about 15% to 25 million. that after many charity groups canceled fund-raising events there last year. doral fell also to $75 million. his courses in bedminster and d.c., west palm beach also declining slightly other courses like west chester

in philadelphia were up slightly he doesn't have other income like $11 million from miss universe, or his modeling agency melania's income earned between $100,000 and 1 million for photo licenses she's doing better >> he gets paid to take the name off of his own properties? because of a licensing agreement. >> a contractual agreement they had to keep the name but the hotel with 40 million, that was a big number. i think that's the thing that will get some attention. all the agencies and political groups, $15 million spent by agencies and political groups in that hotel over the last -- well, since it opened. interesting. >> has varied and sundry businesses all over the place. >> i stopped counting the number of llcs on that form yesterday at around 220. >> a big story the other day

about someone giving a loan -- i think it was a government giving a loan, this was for a theme park that included a golf course >> right >> but i red through it all, it's like, god, if you have not extracted yourself from those different businesses, it didn't seem like it necessarily -- >> yeah. the nature of global finance, lending, partnerships today, that's a project in indonesia, when he started it did not involve the chinese government, now it is financing an adjacent theme park >> they're providing a loan which would help get the theme park built and that would mean the trump golf course on the property gets built, but the way the headline read -- >> it sounded like china -- >> it sounded like he decided to let zte to stay in business so he could have the project in indonesia done we have to sift through all this >> interesting, anything other

thap the than the d.c. hotel seems to have suffered, but the d.c. hotel in washington, d.c., there's a reason it's called a lobby wall because of all the lobbyists in there >> when you go there, wear that suit they'll know you're somebody not that you're not somebody >> sounded like an insult. >> thanks, robert. >> thank you. walmart's expected to roll out -- that suit did not come from walmart this follows macies whi macy's surprised the street susan anderson joins us from b. riley fbr. let's start with how macy's managed to outperform. did you go through that and

figure out where -- was it management was it inventory was it the consumer? >> in general we've seen clean inventories starting in the back half of last year, which carried into the first quarter of this year while investors were concerned about the weather and it being much colder this spring, the clean inventory helped quite a bit. also the rationalization we've seen in the space, we saw almost double the number of store closures in 2017 than we saw in 2016 that's starting to benefit the players that remain. as we move also into more of a fashion cycle, i think that's starting to help these mall-based players >> so, do you need multi channel -- the weird thing is seeing the resurgence of a best buy or the internet based companies opening brick-and-mortar do you have to be all things to

all people is that really the answer in retail >> yes that's the answer. the good news is the brick-and-mortar retailers are catching up to the pure play online retailers such as amazon. they have implemented significant amounts of technology into the omni channel strategy most of them are growing online sales also double digits and having that brick-and-mortar presence, which is key when attracting the consumer. >> when you look at what is going on on a macro level, rising interest rates, especially short-term borrowing costs, rising gas prices, are these things you look at as helping the walmarts of the world or hurting the wall mar c walmart consumer >> we have not seen these rising commodity costs help the walmart consumer we're in a healthy macro environment and it's helping retail sales out there if we see significant increases in inflation, such as oil

flowing more so into gas prices you could see pressure on the lower consumer or the consumer driving further out to walmart >> walmart specifically, how is this set up into the numbers the stock is down almost 20% since late january is the market wary about the investment cycle, they're doing a lot of spending overseas is it the grocery component? where does that shake out. >> i don't cover walmart specific specifically, but there were concerns about the online service and that slowing and the investments they had to make that will be key this quarter, the way we look at things we look at companies that had to sell into walmart, they were rationalizing their inventory. it looks clean now does that inventory remain

clean, if so, the companies selling into walmart should be fine >> you have some picks that are not necessarily -- not macy's, kohl's or nordstroms you like american eagle, chico's and carter's where do you go to a carter's? >> in outlet malls >> children's place, and l brands if people wanted a nice basket of retail, those are well positioned in the current environment in your view >> yeah. particularly carter's and children's place we saw the t will benefit from 0 million in children's apparel sales that will be up for grabs. both companies have sold off this year over concerns of toys "r" us but also the weather.

so it's a great buying opportunity for both of these now. >> okay. overall, so the malls are not going away, but it better be a nice mall. that's also something? >> correct the "a" malls are fine but definite lit "c" malls, they continue to struggle some of the "b" malls. the good news for retailers is they're getting significant rent reductions which is helping them down that will be a tailwind over the next several years >> but not everybody will be sitting on -- i have been buying some stuff online. i finally figured that out >> like what >> i bought some -- tmi. ear plugs. >> you started this conversation you had to know i would ask. >> i went to dick's to get ear plugs for my son for swimming. susan, there was nothing there

no envin toinventory. i don't know it was winter. there were all the hooks where they were supposed to be, but there weren't any. so i was driven to getting it online it came immediately. it was a very good experience. if anybody has not tried it, online ordering -- >> it's war it's happenihere it these days >> it works great. that's why the omni channel retailers, even a dick's sporting goods, if you did want it that day, lots of time you can check online and check to see if it's in the store so you don't waste a trip it will be important to have that retail presence, just not as big as it used to be. >> susan, thanks >> okay. some squawk booze news, green bay wisconsin ranks as the

nation's drunkest city the site 24/7 wall street conducted the survey it the site tabulated the number of adult 30 and over who reported binge and heavy drinking in 350 metro areas. the top four spots were all towns in wisconsin officials in green bay are questioning the site's methodology. >> milwaukee, a lot of brewers in milwaukee it's cold usually. >> they might be more honest about it. >> exactly i don't think people would admit -- >> let's say the packers are not at home. what else do you do? >> it's a small town, eight sundays a year, a lot of people show up there. >> i didn't look at the list did you look at it

who is last? salt lake city or something? i don't know listen up, salad lovers, you can go back to enjoying romaine lettuce. the centers for disease control says it is finally safe to buy and eat romaine again. the outbreak of e. coli was linked back to lettuce out of yuma the growing season has ended, so there's no romaine remains in the grocery store. >> back street is back >> this is big i woke up to this and thought it's going to be a good day. >> the backstreet boys have released a new single complete with a music video it's called "don't go breaking my heart" it dropped at

midnight across all platforms. >> sounds familiar that song no >> the title >> the title sounds familiar i think this has been done could have been more original than that. that was like an elton john song or something >> some kind of duet thing i'm glad you're here yesterday with the best in show. coming up, conquering cancer a flood of new research was released last night. meg tirrell will have the stock movers after the break. and then steve eisman, the big short made his famous during the housing crisis he will tell us which banks he's betting on today stay tuned y'roue watching "squawk box" on cnbc your company is constantly evolving.

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welcome back u.s. equity futures are red across the board at this hour. nothing that significant at least not yet.

down 23 on the dow 23 on the nasdaq 3 on the s&p. a flood of cancer research was released last night ahead of the world's biggest cancer conference meg tirrell has a look at that information and some stocks that are keying off of that data. >> we had quite a few biotech movers last night and this morning, two weeks before the american clinical oncology meeting, data sets were released to investors can look at the data early this is the world's biggest cancer research conference happening the first week of june more than 39,000 attendees will be heading there, and two weeks before the meeting 5,000 data sets were released some stories in the stock moves speak to the themes we'll see at the meetin show you two that are working on things. one is jounce therapeutics, and the other is nektar. jounce had some early data some analysts calling the response rates modest as of

right now. but that data is early that stock is down more than 30%. nektar will also developing a drog with odrug with optivo it has a combination wit bristol-myers may have disappointed some folks. analysts are coming out and defending that over to targeted therapies, looking at two stocks moving in different directions loxo oncology and blueprint medicines. these companies are both targeting the same mutation, they're looking at different cancers that all have the same genetic mutation loxo had an update last night that investors are happy with. we will see more data at asco and analysts suggested that data looks even better. >> so ketruda and some others that operate by ramping up t cells, i guess, right? >> yeah. >> so we know that they're indicated for certain cancers, but they might work ones is there dat on the different

indications for these? is there data coming on that >> lots of data. these started in melanoma. that's where they showed these amazing response rates >> it's a good thing, if you're going start, a freckle and you're dead. >> now it's moving into more cancer the biggest market is nonsmall cell lung cancer >> a tough one >> but seeing great data there expanding into more and more cancers. so we'll see a lot of these studies. when you look at the numbers of immunotherapy trials going on, they're mind boggling. hundreds of clinical trials figuring out how best to use these drugs. >> you are headed out there? >> yes >> when? soon >> the first week of june. >> okay. but they release this stuff now? >> they do they release early data in the form of abstracts, then often there's more mature data that gets updated at the conference

it's a weird system. this is not the most updated data now there will be more in two weeks. >> sign a lot of autographs when you're there >> i do. >> you do, right it's meg tirrell who covers this >> i would imagine so. she's a celebrity. >> how long will you be there? the whole week >> i usually go friday night so i could be there for the stuff over the weekend there's a lot of cool stuff happening. it's fun it's very interesting. >> it is very interesting. we're all wishing them luck, god's speed. >> yeah. >> work hard >> it's amazing you're in these rooms with oncologists, doctors who use these drugs, seeing them respond when they see the big graphs put up on stage and seeing the response rates. sometimes people applaud and the questions you hear >> it would be grade if we were on the cusp of -- remember people before -- before penicill penicillin, before antibiotics people were looking forward to the day polio, when it would be

gone it's eradicated. maybe we're on the cusp of that in the next -- we've been too optimistic in the past, but maybe we're on the cusp of something with cancer. >> immunotherapies are changing the way we think about cancer. >> we know so much basic sigh quenciencscience, it it to the bedside. >> accelerate it >> tell them that for me >> i'll tell them joe kernen wants you to go faster >> they'll really start working. >> sarcasm is the domain of losers, right? that's why i never engage in it. let's go thank you to meg tirrell we'll miss you we'll see you from there >> yeah. it's not for two weeks >> we'll see you in between, i'm sure coming up, cutting the cost of healthcare, we'll talk to the ceo of a startup that wants to use ridesharing services to reduce expensive and often unnecessary ambulance trips.

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. let's talk health care

towns and cities are cutting back on medical transportation leaving parents with the pitch our next guest thinks it lies with alternative ambulances. mark, welcome to the show. >> hi, good morning. thanks for having me >> so you are focused on a service which is sort of like a ride-sharing service except the business or health care facility actually calls and orders the ambulance on behalf of the patients >> that's right. so the model is we work with multiple types of organizations that can provide ride services for patients regardless of ground mobility. so we work with and partner with ride sharing, particularly we work with lyft we have a national partnership with them. we continue that discussion, that availability of resources and introduce wheelchair providers, each non-ambulance providers to provide that larger full spectrum services ordering

the rides. >> if you have a partnership with lyft, why doesn't lyft just do this business themselves or uber for that matter >> that's a great point. there has been a lot of, frankly, opportunity in this space with uber looking at different angles and your partnership with lyft, we actually serve as a doconduit f organizations to take their needs and marry it with the lyft network and complement the needs of a health care organization, providing that accessible reflects stability to the more advanced ride services that can't go by traditional or ride-share provider. >> so do you actually own your own fleet or do you use lyft vehicles and then provide whatever else needs to be in that vehicle >> yes that's exactly right so our modem, we actually serve as a conduit between the orderer and the delivery of that service. so we connect that ride access to the provider, lyft, for example the wheelchair and stretch providers.

we don't operate but we work with those agencies the, perts in that space to provide those services >> longer term, where do you see this business going? i'm sorry, mark the more you talk about it, the more i think lyft can do it on their own? >> yes, this is a really hot item right now certainly the market segment is significant. it's reported as a $13 billion segment, but there is so much opportunity going on right now, particularly on the legislative front. we have the medicaid start and health care organizations to show how they can improve quality for patients transportation is a major barrier for patients 20 to 25% of all medical appointments are missed or delayed because of a transportation issue what is it that we do? yeah, we serve as that connector, really that coordination effort for those organizations to get the rides for patients the market is only getting bigger and, in fact the size of our business from january to today,

we've doubled in size. >> what's the added service that you are providing? >> yeah, that's great. so there is really a couple angleles one, there is so much information behind the data. so a lot of organizations are trying to figure out, okay, for rides that are ordered what can we navigate from a data perspective to improve all outcomes the second proponent of our mod sell we can work with health plans that might cover the cost of the transportation service, so that financial burden may not necessarily remain on the patients or the health care organization it may be funded by, say a patient's insurer. >> mark, interesting to hear about your billions. thanks for your time >> thank you >> it is time now for a royal wedding update the bride to be meghan markle out with this statement.

sadly, my father will not be attending our wedding. i've always cared for my father and hope he can be given the space he needs to focus on his health i'd like to thank everyone who has offered generous messages of spoemplt please know how much harry and i look forward to sharing our special day with you on saturday. mark him's father came under fir for orchestrating a photo shoot with the paparazzi and i think now is an appropriate time to, you know, we do have deal or no deal coming back on cnbc with howie mandel and she used to be on that show so there is never a bad time for a promo from me. because there is no i in team as you know >> there is a me in team. >> i know i always say that. anyway, coming up, retail reports are on deck. we are expecting quarterly numbers from wal-mart at the top of the hour and j.c. penney at

7:30 bullish calls from the man that predicted the housing crisis, famous in the movie "the big short. steve eisman close to steve lshn.eima he will be on, too, calls on financial straight ahead [ music playing there's nothing small about your business. with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

cashing in on wal-mart the retailer ready to report the numbers are straight ahead up and running ford gets back on track with the f-150. we'll hear from ford executive

joe heinriks >> walker and ent tremendouspreneur gene simmons talks to us about his latest venture, business and more the second hour of "squawk box" begins right now [ music playing ♪ they call me dr. love >> announcer: live from the beating heart of business -- new york this is "squawk box" >> good morning, welcome back to "squawk box. here on cnbc, we are live at the nasdaq markets in time's square. i'm melissa lee. becky and andrew are out today taking a look, the dow is losing 31 points, s&p down about 4, nasdaq down by about 27. keep in mind the price of brent, we saw it hit 80 just about an hour ago we'll see how that weighs on this session here making headline a notable

milestone in the markets this morning, brent touching 80 since the first time november, 2014 n. cisco systems likely to weigh on the dow when the marks open. cisco is lower in pre-market trade. they reported the latest quarter above estimates. >> that teams seems to be result of a tepid first quarter. the labor weekly initial report will be back in about 90 minutes time economists are looking for an increase of 4,000 to last week to a toll of 15,000. >> that would still leave claims near five decades low. wal smart out right now. >> i like the revenue number the nation's largest retail reporting 2 krnts above estimates, revenue when you are wal-mart if you get beat, you are beat by billions, which is amazing, revenue also beat the

street i think 122, 122.7 billion and the still was 120.5 billion. comp store sales up better than expected 2.1%. nobody i don't think does 120 billion. i tried to find anybody. >> that's half a trillion dollars. >> half a trillion dollars a year there is nobody else apple does pretty well >> it would have to be foric son. amazon would be half of that >> amazon is half of that exxon is two-thirds of that but nobody is close. yeah, anyway, kate rogers joins us she has some comments from the company's cfo. he's just saying we're bad, i think. i mean, we're bad, we're big, we're manly. >> he didn't sigh that >> he didn't quite say, yeah we do 120 nobody else does. 'way, what does he say >> i'll let you say. that wal-mart beat on the

quarter. telling cnbc in recent weeks the company has made quote a number of announcements of strategic moves we believe will strengthen our position around the world. q1 is why we're able do that we are in great position and that includes to continue to expand in india. e-commerce topped 33% sales growth, attributing acceleration in the new wal-mart site, they also have new brands in e-commerce, including a partnership with lord and taylor out this spring. i asked about price competition, whole foods, prime members and big said quote our markets are competitive and we have been investing of the few years we are constantly monitoring price gaps we will continue to do what's right for our customers and will be thoughtful about pricing going forward. >> it's been moving around

i think now it's up a little down a little again. it's right around the -- where it closed. i guess they had i think 50% more 122 is pretty amazing, still, isn't it and a guy that founded the company, he's gone now, but i mean he got to see it. but how do you do that it's incredible. anyway >> yeah, down about a half a percent right now. it ran up yesterday on the macy's pops. we had a lot of retailers. it will be interesting to see how this plays out let's bring in the ceo for more reaction on the numbers here a pretty strong quarter overall. what did you make of snit. >> i think if they had a little stronger koch, you'd see more action on the stock price. i thought the e-commerce would

exceed 30% they're pretty well where they should b. this is fabulous, as well as expected so you don't get as much pop out of it when peoplety it will come that when. when are you up 33% on e-commerce, are you suddenly proving you can be competitive with the boys at amazon and they're turning earnings with this, not just upline. >> for a few years, you know the investment case for wal-mart was, well, basically the family is buying back stock it was very kind of slow and steady and basically kind of a cash shepparding type thing. now, of course, being aggressive about e-commerce and on the channel an i don't have seas it seems like the mark has to adjust to this a bit and think is this the new wal-mart are we going to get this payoff down the road or is it these are the table scapes for playing in retail right now >> these to the table scapes they spent $16 billion buck, when you think about that a

company losing a billion-and-a-half dollars aer 82, they spent $16 million buckens on it. amazon could have also made that acquisition and they would have been pretty much locked out of india if they were wal-mart somerset they have to do theis t play the game. that doesn't mean roic is going up, return of investment is going up you have to continue to fight this battle. on the other hand, when you get back 33% growth. people should pay attention to that we've paid amazon for one heck of a long time now. i think this is a two-horse race, i think it's a three-horse race, amazon and ali baba and wal-mart i do think we're going to see this sort of set him out to maybe a little lower return business going forward, but the good news is on wal-mart's case,

both sides are true. they can still buy back stock. they can still do whatever they want to do, because they're so well capitalized and they make a lot of money unlike amazon, is the reason >> but the amazon investor is different the amazon investor is willing to take that trough. the wal-mart investor may not be that's just the fact of the matter right, jan the amazon investor is willing to endure a lot more pain so we're seeing amazon world trade center aggressive whole foods, 10% off products, that will rom out more broadly later on we have kroger taking a stake in ocata. they will be more aggressive here so this notion of price investments, which is just discount a fancy word for discounting a promotions, i mean, how is this the wal-mart you want to be invested in >> it is, it's the wal-mart i want to be invested in i think the future belongs to wal-mart on that discounting side, the reinvestment side, you have to

remember, wal-mart dramatically lowered their tax rate they didn't affect amazon. it does affect amazon, they're giving money back to you as a silicon seouler is high. it puts enormous pressure on the retail system. if are you are macy's, kohl's the people competing with you who aren't are going to suffer as you give it back to the consumer that's also going to put pressure on all of the online businesses that don't have money. they have the ability to do that i'm a big fan of wal-mart here i think they have done a fabulous job 30% e-commerce is all you can ask for. when you bring it to the bottom line and put these in, it's pretty impressive. >> thank you >> millions to change it it's getting close to half a trillion in revenue. half a trillion, jan >> it's a lot more than the 26 stores when i stocked shelves

for them >> you did that? >> store 26, missouri, i was there. >> are you kidding, awesome. anyway, we get a check on the market, bond yields in focus this morning the ten year -- where are you? futures at this hour are all red, but just fractionally him anyway, stay tuned you are watching "squawk box" on cnbc ♪ you can be sure ♪ that it will only get better ♪ you and me together ♪ through the days and nights. ♪ i don't worry 'cause ♪ everything's gonna be all right. ♪ ♪ no one, no one, no one ♪ can get in the way of what i'm feeling. ♪

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talk about the broader markets at this hour joining us kevin mcguiness president of incomes at randall james, richard earnstein, ceo, advises us as well as a cnbc contributor. if you try to find him in the phone book, you never will because there will be about 80,000 >> like jim smith. >> right still doesn't end, actually officially taken my -- anyway, 3.1 on the ten-year. do you have an upside? what do you think? near term? >> 3% is psychological right? 306 was technical. from there, the next real resistance is 312, 318, 325.

'we're really in some open water with a ten-year-old bias to move higher i don't see a lot of things keeping it dipping back before 3% in the near term unless there is some geopolitical risk. it is on a definite trend. although it won't be linear. we will find buyers along the way. >> we shouldn't be surprised tocake wake up and see 3 and a quarter the housing wasn't great the other day. that was weather related i can't imagine this is 3 and a quarter. you can ask me, the highest. i think there were 15 or 16% mortgage rates what is it now >> we had 21% fed bonds when i got in the business. nobody wanted to buy 15% ten years. they wanted to buy 13% three years. >> they wanted triple tax free triple a, unbelievable does that worry you? does that scare you? >> oh, not at all.

no, i mean, look, this is we're in a late cycle environments, they're always characterized by rising inflation what have people not been ready for, people think we're in a period of disinflation or inflation. it troughed two years ago, since june of '16. so this has been going on now two years. look at the returns of bonds versus commodities over two years. can you see what's helped by inflation. what's helped by inflation the beauty of this cycle it will be long and drawn out. i think we can see rising rates, copy for much longer than people could ever imagine >> with rising stock prices? >> with rising stock prices because the nominal economy is getting stronger nominal not real >> do you think we've turned around enough and consolidated that big gain since the election we're up eight out of nine sessions do we go back and test the lows

of the correction? >> i'm the worst short term you can find >> still buy the dip >> i think you do. profits in the united states look like they will get a second wind throughout this year into next year. >> you talk about europe, are you talking japan, it's a whole different story, profits are lien leading the world it's a whole different story in the united states, things look pretty good >> so looking at our ten year, i still can't -- the german bond, i don't understand, who -- you have to put your money some. where you want the return of your money not on your money but still -- >> so currency has been the problem in a sense of why isn't the money flooding into the ten-84 treasury on the basis of yield. so this is where the stronger dollar may play a factor on this, if it is going beyond where it is, that will attract a seller, a boones and a buyer of ten years and maybe even further out the curve.

this is spot on. the key to this is that i'm the last of the bond bulls with maybe lacicy hunt. but -- laci hunt at this point economic growth steady inflation without gaps and upsizes and surprises, it's hard to defend the yield structure where we are in it's not going up so, but the dollar is the key. the financings will take yields higher anyway. the budget deficits will grow. it's a matter of if the dollar you know gets stronger than it is here, we will see a lot >> solo elsewhere in the world, that's not a wait that will keep treasury yields from ultimately rising to levels you think and continue to have that disparity in rates >> as long as the dhar remains weaker that's the key to the foreign interests, both exiting and entering the marketplace on an actual yield basis, there is no better place in the world. if you want a currency hedge it, it's a little better than break

even now it's not so attractive that the money is flying in >> gentleman, thanks richard effen and j.j. gibbons. >> absolutely zblc >> the gumshoe town. >> not a horrible. not bad, not china town. >> it's good to see you. >> thank you coming up, croaker making news this morning through a partnership with supermarket company okato. "squawk box" will be right back. you're gonna do great! thanks, dad! break a leg! aflac?! not that kind of break. oooh! that had to hurt.

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welcome back to "squawk box. kroger striking an exclusive deal with london-base kato

kroger will take a roughly 5% stake in the company the cfo joins us now on set away from -- i've never seen you outside of the queen city. >> they let me out every once in a while. >> they did. >> every once in a while, they let me out >> it's improving. it's a pretty province official pla tial -- provincial place >> a sports town >> xavier is there >> this is -- kroger coming in my dad worked there like 40 years ago something. moving into the future moving into the future finally you have been for years now. >> absolutely. >> this is the next step, though >> absolutely. >> how does it who >> at kroger job one is what does our customer want i was at the bmo conference yesterday, every question is about this competitor, this

competitor our dialogue is all about the customer, understanding what the customer wants to provide nit a way you can make money with your shareholders we feel this move with okato is an extent in oway. their capability it's just not online, they have capabilities to pep help us supply piece picked items as well it's not justan online part of our business >> like so many entities, you have some, i think of the elephant in the room with you is wal-mart, not necessarily amazon where wal-mart probably thinks of amazon as the big competitor. but you are still trying to compete with wal-mart. has it gotten any easier >> we look at our customer owning at 8451 which was the outgrowth of the usa partnership we have, we know our customers as well as anyone.

we have 9 million commerce and have that data, how they shop, how they respond to ads. what interests them what doesn't interest them. we use that information to offer them a little more at a better value every day. again we think this relationship we announced this morning is just going to increase our ability to react to how the customer wants to shop as they go forward >> part of this announcement is going to be the billing of three automated distribution centers in the united states an 20 over potentially the next few years, are you building it? are you making that investment is okata doing that? if i'm a croaker shareholder i think spend, spend, spend and for what return? >> i won't go into the specifics of the return, but ocado the bay way way we model this i they call a shed over the course of the five-year growth period and with fairly a conservative assumptions. it's a very attractive return. we had our board approved this transaction yesterday based on

those returns. relative to how the transaction will be over the next three -- testify the next year, we'll identify the first three sites then up to 20 sites over the next couple years of where they were built they take a couple years to find the site, get the permits. they have to get the robots built. so it takes bit of time for them to get up and running. the structure today is we'll invest in the land and building and finishing the shell. they finish out the inside of the shed we will look at given the current u.s. tax law with deduction of equipment and things like that it may be mored a van teenage scombrus from us to actually own some of the equipment and take advantage of how -- these sheds will employ about 600 folks each across the country so it's not fully robotic. there are job creations out of this so we're very excited about the opportunities. this isn't just about where we have storage today this allows to us go in with this type of an offer nook places where we don't have stores and service commerce across the entire country.

>> you mentioned what the customer wants is the focus. are you able to really capture, deploy, act tonda that from what the customer wants that's been the selling point and whole foods and the rest of it >> we absolutely do. we do that through the entire spectrum of what we do when we negotiate pricing from vendors, we know their item has a big brand affinity to the customer or if that particular item in this category sells based on the price of the shell. we use that information on how we price product, how we negotiate with vendors we have, we've had a loyalty card for over 20 years we have 20 years of data at any point in time, there's 60 million households that have our loyalty card, there is over 35 million that get used in any month. over 9 million transactions a day that buy some food product it's more than that if you have people that pick up fume or buy

prescription or nothing else we have a deep pool. what's most interesting when we different them an offer, it's not like some retailers. we know what they've done. we know what they've actually bought if relation to their own offering that they're given so we can close the loop that way >> so you talked a little about the tax reform helped kroger and it, shareholders will be helped as well you think >> so it will say it was about $400 million in cash this year we announced in march a third of that will follow the bottom line a third of that we're investing back in our associates with an industry leading, in fact, probably one of the best offerings of any taen company in america, where we offer our associates up to $35 million a year up to 21,000 over the span of their career with kroger. as long as you have been with us six months or whole time you get that beven that benefit >> we will go to break and maybe

if it's really interesting, i'll tell people afterwards or maybe not thanks, mike. coming up, stay tuned. a flying machine? impossible! a personal' computer?! ha! smart neighborhoods running on a microgrid. a stadium powered with solar. a hospital that doesn't lose power. amazing. i like it. never gonna happen.

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good morning, welcome back to "squawk box" here on cnbc we are live at the nasdaq markets in time's square wal-mart the retailer reporting earnings of a buck 14 a share. 2 cents above stills revenue and comp store sales topping forecasts. meantime, a judge is set to issue a ruling in an ongoing dispute against shareholder sherry redstone. they are asking for a them temporary restraining order to stop with a special board meeting. at that meeting, cbs would consider demoetding the national amusements ford announcing a restart on the production of the f-150 pickup tomorrow phil le beau joins us with a

special guest. >> we have the headquarters in michigan, you restart f-150 production and monday in kansas city and louisville. this has been a scramble of over the last week-and-a-half, has it mot? >> well, we put all our people into action once we heard about the fire our team is good at reacting to these black swann events we're proud of the work they've done it's been a herculean effort we are ready to go as you said tomorrow in dearborn and monday in kentucky and kansas city. >> when it's all said and done, joe, how many units did you lose in terms of production i know you will make it up over the next couple of months, how much did you lose over the last two weeks? >> we are not giving out that number because we haven't gotten it all figured out we roughly build 2,000 f-150s a

week you can do the math there. we look to make that up over the next six-to-seven months >> when you look at this i know you are taking a 12 to 15 cent hit in the second quarter. you reaffirmed your full-year guidance some will look at this and say shouldn't there have been a redundancy plan in place in the auto industry, we seen this a knob of times is that a realistic expectation or is this simply the manufacturering event, when you have an event there is a redundancy plan that can be hit in the flip of a switch? >> yeah. it's a great question. we have back up dyes we have certain dyes in case something happens to certain dye, we can move the second set of dyes anywhere but there isn't much magnesium capacity set up in north america. it's capital intensive lot of these capital intensive products, axles, bolsters for

the front engine compartment, pretty isolated to some of the different plants to the key thing, of course, to have contingency plans to get into place if something like these happen those don't happen very often. have you the back-up dyes. you can't have back-up facility, it's not efficient or capital responsible. >> joe, i know we talked to some of your dealers, they said, look, we had plenty of inventory in stock it's not as though we were losing sales or people can't find an f-150 to buy around the country. if you look at where we are right now with the f-series, as we head into the summer season we now see oil topping $80 a barrel prices at the much, getting close to $3 a gallon, when do you get a little worried about the rise in gas prices >> well, you know, vehicles are so much different than ten years ago. customers are still buying the

vehicles they want because they can get the fuel efficiency of an suv or a truck. that's where people are going. we watch it carefully. i think we have a ways to go before it affects consumers and their buying habits. we are watching it there are other things positive for the economy. certainly the job creation and the unemployment is great. even though interest rates has been rising, they're still relatively low we're seeing a lot of growth in housing and oil, which does support truck sales. we're feeling good about the year >> joe henriqudricks, joining us from dearborn headquarters they will be getting f-150 restarting in dearborn tomorrow andon monday at the plant in kansas city and the super duty in louisville, couple. >> phil, thank you the house is expected to pho to

the senate the new threshold will be $250 billion in assets up next steve, portrayed in "the big short" by sfeefb pharrell. -- steve pharrell. the u.s. is well capitalized now? >> the u.s. banks are better capitalized than they have been in husseini yawn's lifetime. which ones do you lie? >> there are two categories the large cap banks the citis, the bank of americas of the world that will benefit from changes in the vocal rule. probably eventually an easier stress test and the region also. i think we're potentially on the cusp of the an mna wave in banks. >> regional to regional? >> the large banks will not be able to buy thing the rest of our lives.

>> why do you think the banks over all have sort of been hostage? the fundamental bull case for banks, there are numerous reasons why the share should go higher in the long run, why are they being held hostage by the yield curve? >> i think it's a mistake, people are taking out a playbook focusing on the yield curve is flattened. the fact that their earnings depend more on the short ends of the curve and even more important aspect is the deregulation if the bets unfold. >> i was going to say, if u.s. banks being in a better capitalized than anybody can remember you have concerns about non-u.s. banks if europe and canada is there a scenario where these get tough for those banks, where u.s. banks are unscathed is it about the market -- >> canada has the situation the canadian banks have had a credit psych until 25 years >> that country has ridden the commodity yets super cycle

better than any country other than australia >> real estate >> enormous real estate boom now for the first time you are getting real evidence the housing market in canada, buying is down 30%, prices are down double digit my expectation, it's not a calamity they will have a cycle they haven't had one >> that will cause the banks to devalue. >> i think what the 21 trillion a year now i guess >> something like that >> rates are going up a little slowly, but they're going up we've done nothing about entitlements i don't hear the eword mentioned. do you see this becomes the next big short or do we have time >> i'm not at what i would like to call a debtist fetishist. >> we can handle this. >> you can get two experts on this panel

they can argue about the deficit until we are all bored to death. by point about the deficit is the people who have argued the deficit is a problem have been making that architect for 30 years. during that 30 years, the price of that risk has only gone down, which is interest rates. so to the people who say the deficit is a problem, my only question is why now? i haven't heard any good argue as to why we should be so focused on it today, it's not something i'm particularly concerned about. >> and what will help us deal with it is probably just innovation and technology and productivity and etching else, i guess, right we are moving forward -- >> if u.s. growth accelerates and people won't be talking about the deficit too much in a year they just won't. >> so we don't know what the -- we don't know what the absolute number is where it becomes a problem. i just worry about the unfunded liability. >> put it this way, the u.s. debt to gdp is something like

110 to 120%. it will go higher. japan is at 240. whose rates are lower? so i'm fought saying the deficit is not a problem my argument is just that the situation a lot more complicated than the people who leak to talk about it make you believe. that's my only point >> i want to talk about deutsche bank it's a short for you it's been sort of a problem child in the banking industry for years. when did you put the short on? how does this story unfold in your view? >> the short is about two-to-three-years-old stifel nicolaus has a very simple problem it doesn't make money and that's a pretty shocking statement at this point ten years after the crisis you know the business model, the company used to be low return assets, enormous lever annual, 50 to 60 times levered today the return assets, is almost zero. and the leverage is lower. it's a bit late in the game to try and solve the problem. you know, prior managements were

awful. and maybe this management team can do something but i haven't said anything yet that tells me about it. >> what happens to deutsche? i mean, how much worse does it get? >> i think deutsche five years from now will be a significantly smaller company. that's my guess. but you know they may withdraw completely from the u.s. that's possible. this will be smaller but i think eventually the company will have to raise capital the immediate risk of deutsche is they get downgraded by the industry. >> we will be very careful here. >> what? >> i'm between you two but crypto currencies. >> would you short bitcoin there are certain tools available these days >> let me just say, i don't want the get into too much trouble. >> i know it's unbelievable. >> i am not an expert in crypto currency >> from her? >> i am not an expert in crypto currency, but i have my doubts about it my doubts center around the fact

that what's the social utility of crypto currency i'm not talking blockchain blockchain as a technology i think has real value but currency markets are the most liquid, most efficient markets probably of any markets that exist >> but there are markets where they aren't liquid and efficient. emerging markets for instance where there is tremendous inflation, countries in affect >> so you are talking on a couple of countries. >> a couple countries. like whole continents. >> my problem with crypto currency i think the social utility is at least in developing countries extremely small. the only way to figure out the usage of it, it's good for speculation and money laundering and what i really can't figure out sui know in the united states we have massive regulations about money laundering the boompanks have to comply wih rules from here to my apartment. there are banks in this country

today that aren't on certain restrictions, because they cannot fully comply with regulations. >> do you think about this and say, oh, this is an opportunity to short this thing? air has to come out of this? >> i know almost nothing in currency the reason i'm not invest income bitcoin or shorting bitcoin to me it's like arguing how many angels dance on the head of a pin? i don't have no idea how to value it and i don't think nobody else does eater >> we will have you back with more you saw him >> i seen him. >> gene simmons is here. >> excellent thanks >> him dock up, kiss founding member gene simmons joins us to discuss his new venture the upcoming world tour that guy right there is like a groupie on the right. he is like, go wt d,haa fan, boy, down, boy, anyway [ music playing

back stage, oh, okay

sorry. can a cord unity holding, none other than rockstar hall of fame gene simmons, kiss front man, is here >> thank you, it's good to see you. i want you guys, see what i did there i want to you guy, really good stuff the masses need to be informed really we don't know what the dow is or anything like that >> it helps. >> you need to launch this and the chat shows in the morning. >> i think that's probably good advice focus on this show, though >> this show more than the other shows. so, i like, so we got money back that's cola and you will sell shoes, right in. >> i own the money global for 28 years. the one with the dollar sign and the bag around it. we have a soda line that's

available and over 1,000711 stores that owe -- 1 thousand 711 stores. it will be on everything thank you. look up to my face that's the dot-com good job i'll give you ten bucks later. >> someone said will you promote just about anything, if it's on you? >> that's not accurate i was going to say that's not true everybody says all sorts of things, those a semantic i'm not ain't man anti-semantics another big words like gymnasium. if i don't feel it, have an emotional connection, i don't e won't get near it. it doesn't need to be a part of my lifestyle you should get a menu of life. pick what you want from it you don't want to go to a restaurant like i'm not a find of suction

cups and tentacles so i won't even go to that >> people say cannabis the symbol is gene invictus, right >> it is gene on the tsr, tsx, rather, i had in ug to do with it number one, invictus is almost right >> yes, so it's medical. you have never been a big drug guy, each though you are a rockstar, drug and alcohol you didn't shoot nitture life? >> i never got high and drunk. i never rolled anything, smoked anything zplu had a change of heart. this medically it helps people that's your reason >> i would loo tobacco admit i was judgmental, ar gant ar ro gant and uninformed, i was throwing out the baby with the bath water i was subjected to the cheech and chongitis disease which is

the low end. champagne is booze you don't want to calm it booze. there is a difference between that and the wino on the corner. cannabis i find out through doing research and stuff, i urged people to ignore everything i say find out yourself. i was astonished to find out the medicinal value. the little 6-year-old girl suffering from epilepsy and rubbing a cannabis-based product on her within two weeks, she cured or minimized it i think all of us need to understand more about this, specifically the legislators who don't have a clue what they're talking about when they pass ledges london attacks. even recreationally, i have no problem with that. you've got cigarettes which might give you cancer. it says so right there you are a moron. in canada, they even have photos of cancerous growths and people still buy. that's legal but cannabis isn't you are killing me

>> exactly boy, where to go from here you over your lifetime, i mean, i did some research. when you came up with kiss, i don't know if you had been in some other bands that some of them had been sort of okay the concept for kiss eventually generated i think in your view $3 billion worth of ancillary revenue. >> with a b. >> is that a real number to you? >> oh, sure, i'm wondering where all those billions are in my pocket when somebody says the idea of growths and price of gods and by the time it gets into your pocket the government doesn't take 50% or other numbers are. so i'm looking for a job. >> you will get it we had one year a famous artist paul stanley >> he was the best partner you could ever hope to have. >> he says it will be the tour the biggest ever >> i don't know if that was out yet. >> i want to be on that tour >> are you going to be how big will it be >> about this billing, starting

from my mouth. >> a world wide tour >> and i'll be wearing more makeup and high heels than yen one on the stage see what i did, kiss will tour, do all kind of fun stuff we have a ball this is nothing better >> i got so many things you would like to talk about you were born in israel, i think. you have been a big supporter of israel for years and years and years. i just wonder what happened last week with the embassy in jerusalem? we had joe lieberman on who also thinks that was just recognizing what we have been trying to do >> let's state fact as i'm aware and as all of you are, because you are well educated. you read the "wall street journal. ad knaussium this president, president trump who i've known a little here and there is not the one who passed the legislation. this legislation to recognize

jerusalem as the capital for the embassy and so on was passed a few mr. presidents ago and congress agreed, congress and a few presidents ago, that was supposed to happen so this president was simply following what has already been agreed on by congress and other presidents so this idea that he's taking charge and doing all this kind of stuff that's politics. at the end of the day, this will infuriate certain segments of society there. but hamas and the martyrs brigade so on and so forth doesn't infuriate the world body so i have some issues. both sides need to stop the hatred and this stuff and sit down, have a cup of coffee by the way, i am from there, so maybe you think i have a vested interest i don't. at the end of the day when aliens land on this planet, they're going to look at us, they're all human beings and all these dipss we have, so you are in jerusalem, muslim, christians, greek orthodox, jew,

walk alongside each other, everybody is fine. nobody is killing each other go to the other side of the wall, people of the same religion are killing each other. speaking of walls the pope is a wonderful human being and i'm a big fan of his and he came out against a hypothetical wall between america and its neighbor, said that was a bad idea except for the fact, ladies and gentlemen, that the vatican has a big wall around it for the same reason. they want to find out who is coming in there. you can't just walk in there and so, there you have it. your headline for tomorrow gene simmons says the pope was wrong. >> so you will -- i'm not going to ask you on camera about back stage passes did the producer actually brooch that subject up when you were talk >> back stage. >> it's a family show, isn't it? >> actually, it's cable i think if you want to really make, no, we got to go anyway. come back, because we have more to cover more to talk about

>> we are all fortunate. let's just not ignore the idea that the rest of the world can be in chaos and we live in america and america is a good idea teach your children to say that. >> gene, thanks, great having you here today i'm looking forwartoacd bk stage passes coming up, stocks to watch stay tuned ed friends. ed 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. it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪

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coming up, former senator joe lieberman on the dismantzling of the nuclear

deem here's our guests right after this break "squawk box" will beig bk. rhtac

a world of worry a brewing trade war, unrest in the middle east.

the iran nuclear deal. the north korea deal unknown joe lieberman is here with a look at what is keeping investors up at night. an lest michael nathanson met with the powerful names in the industry and joins us with his shocking discoveries. a fresh read on jobs in america as the final hour of "squawk box" begins right now. [ music playing nouce live from the most powerful city in the world -- new york this is "squawk box" >> good morning, welcome back to "squawk box" here at cnbc live from the nasdaq market site in time's square. i'm joe kernon. the dow is down 4, the s&p the nasdaq down 25 treasury yields hit 3.1% on the

ten year earlier 3.1 still right now on the ten year, the highest level we saw in six years, seven years, rounding up >> july of 2011. almost seven years wal-mart beat the street topping estimates. shares are trading lower in the pre mark now they're trooid trading slightly higher. in other retail news, j.c. penny's quarterly loss is 1 cent smaller than expected. revenue and koch sales stores are short. the four-year outlook is down 13 and a third percent. in tech news, iss is calling on shareholders to withhold support from five facebook directors, the includes ceo mark zuckerberg they seem to remove the response to problems, including election interference, harassment and

privacy issues ford will restart production with f-150 pickup trucks tomorrow at the dearborn, michigan plant ford's president on "squawk box" earlier this morning >> we're ready to go tomorrow as you said in dearborn we roughly build about 15,000 f-150s a week. can you do the math there. we're looking forward to picking up over the next six months. in washington news the trump administration will host a trade delegation from china today. secretary steven mnuchin will lead the commerce secretary and the trade representative yesterday china's vice premier and 14 officials visited capitol hill for listening sessions with congressional trade counterparts in another news out of washington, former secretary of

state rex tillerson is warning of the growing crisis in ethics and integrity in the u.s. during a commencement address at a virginia military institute in lexingson. le says they have to deal with leaders to conceal the truth. >> >> if our leaders conceal the truth or we become accepting of alternative reality nos longer grounded in fact, we as american citizens are on a pathway to relinquishing our freedom. >> some of tillerson's remarks appear aimed at president trump despite not mentioning his former boss by name. >> following the usx from the iran nuke deal in the opening of the u.s. baem embassy in jurnlgs amid escalating things, joe lieberman is going to tell us why now and we already had a

little conversation, senator, are you the chairman united against nuclear iran and a friend of mine and i've always, i don't know, i remember when you became an independent that there were some reasons. have you moved right of there? does an independent do it for you right now? >> what happened to the democratic party do you look around and say what plan is this >> i'm still registered as a democrat. >> you said that >> i really am an independent. i'm spending a lot of time on organizations. they united against nuclear iran and another no labels where we try to enjournlg u courage labels of congress to finally get together for our constituents >> don't hold your breath, though. >> we have a little progress >> you must be under assault yet, because if you are totally behind the move of the embassy to jerusalem, number one

i think you are totally behind trump pulling out of the iran deal >> i am, in both cases let me make a larger point based on what you just said, our politics have become what they weren't when i got involved. which is the parties used to bring together people with differing opinions and helped them to work and the people in the other party to get things done today the parties are like warb trike tribes few remember one tribe and dare to support the leader of the other twieb i tribe. what is the difference what if you happen and continuing with the tribal metaphor, i happen to agree with president trump on these two decisions you cite pulling out of the nuclear agreement with iran and moving our embassy to jerusalem and israel >> when you read the media coverage of it, when you pim your hair out?

>> unfortunately, a lot of the media coverage contributes to this tribal division of our country. you start to poll both members of parties not people in congress that i have such different points of view i think some of it again if one party stakes the lead on something, members of the other party oppose it and members feel they have to support it, whether they really support it or not. talk about truthfulness, that itself not being honest to themselves we always believe that if you are straight with the public here, there are disagreements, but you work them out and you get something done that's how the country got to be as great as we are >> what do you think, senator the path forward is with iran in terms of sanctions and how the president plans on approaching this issue >> i think so far president trump, the administration has done well the key point was to me, briefly, this was always a

bad deal i worked a long time with a lot of members of both parties in congress to put those economic sanctions on iran. they were intended to pressure iran to give up its nuclear weapons program and to stop supporting terrorism and aggression in the middle east and we gave away all that pressure on iran for just pretty much a pause in their nuclear program and what turned out to be an acceleration in their behavior, bad behavior so i think president trump is ready to pull out and what we're seeing now is to the strength of the american economy if the president chooses to build from that sense, here's what i mean. this is not leading from behind. a lot of people said oh my god, the skies will fall the europeans will leave us the reality is we're the strongest economy in the world whatever the political elites in

europe are trying to do to save the iran nuclear deal, their businesses are speaking with their feet, their wallets, in other words in the last week or so, total, mersing, siemens, have all said they will pull out of iran, basically president trump sticks to what he said, which i hope and pray he will, they've got a simple choice to make, do i do business in the 400 and something billion dollar iranian economy or the 19 or 20 trillion dollar economy in the american financial system? the answer to that is simple, they will pull out of iran and do business with america >> how does the internal strength of the u.s. economy relative to everywhere else in the world bear on this posture of we need to get better trade deals because we have been victimized by the world economy?

>> yeah. so i think that, it's a really good point i think we are operating now from economic strength in america. so the president does have leverage and trying to re-negotiate some of our trade agreements, but please don't let it go to a trade war because that could hurt our economy. it could hurt the global commitment it could hurt trading partners like china. but we're all interdependent we all help each other grow. president kennedy's old wonderful phrase a rising tied raises all boerkts which was about the american economy is today very much true about the global economy so i guess what i'm saying is we got the strength economically in america to negotiate tough but don't let it run away and create a trade war. >> we have encountered plucks before, we fought wars based on

things and i don't want to be naive that these times are unprecedented. but i don't remember social media and being able to be in an echo chamber of cable news where all i listen to are my own opinions i'm just oneering i hope it's not a national tragedy that brings us toke as a country. how does it finally resolve itself the people that are in the resistance are not financial to accept this guy as president there is probably 45% or 40% hard core in that up group if mueller shuts down his investigation without anything, i don't know what they're going to do, move to canada. will it finally resolve itself >> first i want to say i do believe, i read history about this we have had political division before we had a civil war in the 19th century, but politically in terms of our system, i think the division today is unprecedented. really, we've never had it

before >> it doesn't help neither discuss social media >> no, it doesn't. actually it fans the flames. there is a story to be told here part of it is the interest of special interests, money and politics, part of it is the parties pulling people apart because they're always thinking ability how do i win the next election in the old days, we used to figure how can i tell my constituents what i've done for them that's the way to win an election today it seems to be i'm going to go back and say i tried to do it for you, but it's those bulls in the other party that pro hibbed me from doing so it's amazing that the country the economy, particularly, is dock as well as it is and honestly it's a tribute to the private sector and the individual entrepreneurship, innovation, hard work by a lot of people. >> you still are registered as a democrat you are saying these things, it's a disconnect.

>> i must be praying for a return to the good old days. >> private sector solution, really in. >> how do you explain snit >> don't let anyone tell you they create the jobs >> government is so dysfunction am, it's one thing if they were doing something, you might say oh, that might have contributed. but the economy is so good, growth up, unemployment down, kind of amazing, but there is a lot of big problems that are not being solved and in a way i wonder, one that worries me is the national debt. over 20 trillion dollars >> there are some bipartisan issues, education, skills gap and we want a safety net for people that want a safety net. >> and that only works if people of both parties in congress get together and make it work and it's not a question of giving up on your principles, basically the question is, not to demand 100% of what you want on every

issue. we're big countries. is 30 million represented by 535 members of congress. very different people. you are only going to get something done if you say, hey, if i get 50% of what i i want out of this bill, we're doing pretty well the country is doing well, that itself most important thing. >> so, at this point you are going to focus on no labels and i'm glad you are here today to talk about this. >> i continue to believe with all the threats in the world, nuclearized rad dal eastern is the greatest threat to us, to world stability. so and they're having economic troubles now they're in a dive really >> and hope springs eternal like an arab spring happening in iran >> well, it does, there is a lot of opposition there. there are actually protests going on against the government almost every day, most are not big enough as they were just in

december of last year to get the media attention. people are shouting something in the streets and had posters in iran in december, don't, stop giving our money to syria, keep it here for us we feed it i mean, they've got a generation of well educated ironians who can't find a job and that's the raw material for a revolution. so we are going to hope and pray that this regime will end. i'd like to think they were changed. i don't see any sign of it. >> what do you think mccain said when he was asked you? >> i was touched by it i was vetted in other words, he said to me in the spring of 2008, i want to vet you for vice president i said, are you kidding me he says, i'm not kidding you i said, you know, i got elected as an independent a couple years ago, but i'm still a registered democrat god bless him.

he says, that's the point. he said, i'd like to make a statement that we really need a bipartisan government. >> he picked - >> i never thought it could happen i think people in the party as he says in the book convinced him it would divide the republican party but you know he's a hero in so many ways in war and at peace. and the very fact that he thought about something like this tells you a lot about who he is. forget that it was me. i mean, we're just great friends and we keep in touch, so, you know, he's okay. god bless him. he is fighting something, but he's a great fighter and i keep in touch with him. >> thanks for being here today, senator. >> great to see you. good discussion. have a good day. >> you too >>. coming up, we dock to michael nathanson the bidding war for fox and this year's tv lineups from theig b networks, stay tuned you are watching "squawk box" on cnbc

glmpblths

with moffett nathanson summit ended up they heard from media giants like comcast

michael, welcome to the show >> thanks, good morning. >> what happens with cbs >> cbs and viacom, right >> we are going many ways. we will see what happens with the court today. we will have maybe it's an independent company or a position where it's leads and the company gets forced into via com. literally the judge said he's never seen anything like this we are sitting here waiting for the penalties from the court to see what the next steps are. >> the fact we're at this moment, on one side, the cbs side, on whatever terms a merger is unacceptable to us right now. is that a legitimate stance? in other words, would it be so terrible we don't have the valuation, all the rest of it >> i had to view the decision to break the into two is a bad decision it's a bad decision for via com and national amusements. right.

cbs will arguably show and say the past few years, we have been fievenl we navigated this with a very clear playbook the problem is you have to convince that side it's worth adding criia com's assets it's not a good answer we argued the national amusement part you have cost savings and via com protected by cbs now this week we had via com in our conference i think it's clear to me the timing was a mistake you should have waited for via com to prove itself. buy backish as an improvement plan, it will show it's growing, maybe via com's equity will go up everyone stacks, if it's not in its way, we'll leave the timing wag kind of weird she should have waited after last year trying a couple more years, give each side more time

to drive value an put it together so i think the time sock me is the bigger problem here. >> so how do investors invest in this situation you stay away from both or say the better bet is on cbs or viaco im >> we are neutral. less move adds to a big contributor as a value of cbs. all of a sudden less leaves. >> that will hurt the stock. via com with emergency guests. people are kind of wondering, if it will be a take under. right. so what's the price for a my asset i think is worth more than 3, 2 today it's pretty much killed both stocks and made her job much harder putting it together meanwhile, another court will decide at&t, time warner, so disney, fox, all these things moving around, what does the landscape look like? >> we said this is deal hell it's an impossible time for me

you wait for merger deals to work itself out. we are assuming the at&t time warner deal gets done. at&t runs time warner differently. so you will see more discounts on hbo, more bundles on district tv now, that's one out-- owe bundles on directv now that's one outcome >> what happens now? >> it's a bloody battle. >> eiger when he says we're not doing anything, they already said it's us, that's not going to hold up >> i think they have to bid to our comcast bid. i expect disney to get that deal the pitch is the disney regulatory process will be quicker an easier than the comcast gets processled. each though you may have time warner twix as your president. this is a horizontal deal. >> comcast should have done it either way this makes them pay up and hurts

them more? >> this is the last piece in the puzzle >> it's hurt comcast's stock, though, it worth it? >> this is about family feud, where investors look at these family owned companies i don't think brian roberts is really worrying about the near term i think the fact that it's an individual company, there is very little shareholders can do to push back there is not a less move embedded if comcast who may have a different point of view. it's one view. but i think if you are him few want to get bigger media, this is the last piece there is nothing else. >> if they don't get stocks and walk away, do they do something else by, i don't know, access, for instance >> my point of frame is comcast. we like more than to buy back stocks with with i they're not going to do, if you look at the chess board, there is not much less of scale in this world of sky and fox get taken out. there's just not >> strategically, let's say they want to boost international

presence, would they be interested in the liberty uk assets, which they may or may not be up for sale >> it's interesting that sky was the path they took, which is more of a satellite play than to buy a broad bandz cable company, that's interesting the answer were there is not a priority relative to sky and sky gives them content in a brand something that's unifying europe does that make sense >> yes so, if you expect june 12th to be favorable for at&t, then when, so, comcast will make official the bid that they sort of talk about. right? then can, you know the argument is that rupert gets to do whatever he wants, at the expense of his shareholders. that's not true, you don't think? >> no, the irony here. for years they come on an tell you fox the stock you love, there is a huge discount for value. murdock created this discount the way that the deal struck

with disney, murdock only votes 17% of the equity. you know he has voting control, close to it. the deal is he can't block a deal because he's committed to doing the equity so on the fox side, it's pretty much going to be the best deal wins but the path to the best deal has to account for the regulatory framework the risk to regulatory i think what disney will argue even if we get the same dollar price the regulatory path for us >> even after at&t prevails? >> i think the argument is -- twix at&t does it creates a comcast-like business. what comcast fox does creates a super power we've never seen you take two studios and add them toke. you take a television studio, add them together. i think the argument from disney side will be look -- >> disney would have more concentration? studios than comcast >> they don't have a distribution, they don't have both homes >> okay.

go ahead >> that's the argument if i was the disney side, look, if nbc and fox got together, that's fine, but adding the distribution element in america is a change of - >> and i caner will pay whatever it takes, you think? because he did for pixar he acts like he is frugal. >> here's you know the story on my side, when i first started disney the first thing to do is buy pixar for a lot. we wrote a note saying it's crazy, ebxpensivexpensive, we w marvel what is he doing all the content at marvel is sitting at fox or sony, they're having the best run i've seen. i think he's proven when he looks at a content asset he's the benefit of the doubt in the media side like, okay, he's got a vision. let's see that vision. i think that is why, disney stock was actually rocking and rolling. it was like $110 bucks

all of a sudden it's back to 104. but i this i the media side of the investor base sees bob's vision, says, okay, i'm coupled with that investigation. >> it's great. >> great times >> yeah. >> r50i9 >> thank you ony,inesg up, breaking the ecom mut away, here's a look at equity futures, which is great for this session ♪ you and me together ♪ through the days and nights. ♪ i don't worry ♪ 'cause everything's ♪ gonna be all right. ♪ no one, no one, no one ♪ can get in the way ♪ of what i feel for you. your company is and the decisions you make have far reaching implications. the right relationship with a corporate bank

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welcome back to "squawk box," rick santelli on the floor of the live cme group we have initial continuing claims initial claims moved up 11,000 from a very low 211 to a still very low 222,000 but it is up 11, nonetheless and continuing claims, unbelievably low levels. they moved from 1.79 to 1.307. so just shy of 1.71 million. of course, we have a philly fed number i believe that's supposed to be coming out i don't see it on any of the services rolling across any of the screens, so while i'll dance a little bit i think there is another big piece of news on the yield curve. the 30 year, bond yields, broke on through to the other side it was the only maturity that hadn't taken out recent cycle highs. it did, it took out the 3.22%.

high yield closed for 2018 it's going to be very important now it's done an inter-day, to see as all the other maturitys have, the entire curve are gun spots and even italy today, didn't give back some of those wild increases in their yields even though they moved higher today was small. dollar index up small, holding some very sizable and technically significant recent gains. mellissa lee, i don't see philly, so it's back to you. >> let us know when you get that, rick, thank you, steve leishman is here with a look at an important question the question, how hot is too hot >> i can't help with philly either yeah the question a lot of people are asking about the federal reserve is analogous, how hot is too hot when it comes to inflation >> the fed said its 2% metric target, it will tolerate inflation above 2% for a while

what is unclear is how much tolerance? how high, how long here are the number, since april, 2012, headline pce averaged 1.28% remember those numbers, we will come back to them. let's see what fed official versus said about tolerating high inflation jerome powell the fed chairman said at times it may be above 2% our inflation objective is symmetric. he declared, charles evans says 2.5% in an environment where expectations come down longer term, it would be contained. i don't think that's a problem for our symmetric definition randy calls, says a deviation from our target of a few tenths of a percent annual point, one i expect to fade does not cause me great concern. let's put it together seem there is not a lot of tolerance, but what will it really take if the fed meant what it said when we ran the numbers, guys.

take a look here to average 2% inflation the fed for about six years headline inflation running 2.7% for about six years run core inflation at 2.4%. do you guys think they would ever let that happen >> no. >> i do not. i think the idea that the fed is symmetric is probably what would you call eight fib, would you say it's - >> if i let that happen, you mean they literally don't hike anymore or they remain slow? >> they let it run, don't clatch down if they hit a 2.3, 2.4 level, there is a bias towards lower inflation. i don't think it's symmetric when the rubber hits the road, they would not tolerate the kind of inflation that would -- >> philly does that. >> let's take a look >> yeah. >> but, that's a good point in terms of how do you perceive that is it the planned course of rate

hikes? let it go? or let it go meaning -- hands off? >> obviously >> it's a strong philly fed. 34.4 according to our, to anne, our producer back there and the estimate i see is 20.5, so that's a big number is there twa are they more worried about, tell me again. >> they're more worried about -- >> either way. >> they don't have the tolerant. i don't think they have the tolerance they say they have for being truly symmetric. they are more likely to hike they prefer lower inflation and will not be actually symmetric. >> it goes back to vol kerr. what he had to deal w. it ignores japan for 20 years i can argue either way, if you get too dogmatic either way. >> i think we have those arguments about hawks or doves i think the argument happens inside of sort of a circle of, if you are an american central banker, you are tough on inflation.

i think the market knows that. i think the treasury market knows that i think the tolerance in this country, it's a cultural tolerance. >> north american. >> north america for high inflation. >> not south >> that's a worthwhile point if you are a north american central banker the to him rance in this country culturally for high inflation just isn't there. so i think if we run up to the '03 bohn 3, 2.4 level the fed could accelerate those rate hikes. >> i forgot about the actual i had one zimbabwe and 100 trillion dollar -- >> i lived in russia i when to the work in the morning a snickers bar was 25 rooup rubles i came home it was 50 rubles. >> that day. >> 100,000 was the denomination. >> if i was smarter, i'm not as smart as you maybe you didn't need snit. >> it was packaged food, i could rely on not getting me sick.

so i eat more than i should have. >> you are interested in this. >> i'd love to there is a smart guest coming up here >> really in all right great. let's talk more aren't the inflation threat joining us is megan green, chief economist at man jaurks liulife management wasn't it the depression, it wasn't inflation, how can you say i'd rather have hyper inflation or i'm more worried about hyper inflation than deflation, they're two sides of the coin almost, it has to be just right >> i think it depends on what your recent experience has been. i think the fed right now think it's much harder to put it up and get 'out of deflation thantacher down on deflation i think they're not so concerned about actual deflation than when inflation expectations are grounded and it's worth see

figure policy works with long variable lag i agree with you, they're not going to let inflation at 2.7% for six years running because they're worried about what that would do to inflation expectations, which are kind of path dependent so nay would feel they have to hike into that expectation, increased accordingly and then they would ends up having the hike behind the curve and couple tip us into a recession. so i think that's the real concern. also, i think it's worth putting the fed into some kind of international perspective, which you've done, so it isn't a north american thing relative to other central banks, the fed isn't nearly concerned about hyper inflames it's not nearly as grounded into their economic orthodoxy as it is in other parts of the world >> people are pointing out to me the fed was pretty aggressive to stop deflation to get back there. look what they did look at how many bonds >> qe infinity we stayed at zero for eight

years, basically >> right you could say it wasn't nearly as aggressive as it needed to be early on enough in the sense that how long, you never got back to its target and it very reluctantly went down can i just ask megan can you put numbers on that? how high is too high how shot too hot how long will it let it run above 2% >> so as it gets worth placing out what the definition of inflation is the fed is looking at something different for what the markets are looking alt, so quirky ce is what you need to consider for fed policy it tends to be lower than core cpi or headline cpi. they're looking at core pe above 2.5% would cause the fed to think they need to start hiking a little more aggressively it's also worth noting the fed like every other major central bang knows that a recession is coming we can be sure of that, when, it's debatable but in the face of the recession

on average central banks cut rates by 500 basis points. we don't have anywhere near the room to do that this time around they are keen to get rates up as much as they possibly can now, so that they have room to go ahead and cut them in the next reception. it's an argument i hate. it's a bit circular the fed and most other western central banks sub scribe to it so i think if they had an excuse to hike more aggressively, that i would certainly use it to try to get rates up. they've got room in the next down turn. >> how do we know inflation hasn't changed in terms of what's real and what's not you look at technology and how amazon or you look at participation rate and no one is going to get a raise because there is all these people that are coming back. we don't have the same wage component in inflation, where it could get out of hand. maybe 3% is fine these days. i don't see how they can use the same inflation gain as your father's inflation, or my

inflation gauge in this. >> you are right there is huge problems with measurement of inflation it doesn't go into new technologies or services we trouble measuring it for good those measures problems have been there it's in the last years we had low inflation. a piece of it is measurement, certainly, that's only a piece of it. i think to figure out what's real, you have to look at wage growth we don't have a whole lot of it. there are a whole bunch of reasons that aren't going to change that have cause thad i think. >> et will it go to 3. >> i would add, joe, there is a good school of thought out there the inflation numbers are consistently overstated and does not do a good job of measuring the technological change we should have marty feld stein on -- feldstein on they're excellent economists they argue the inflation numbers are overstated >> i think the fed has some of that right now

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youtube announcing it will launch its own youtube screening next week. it will generalize personal play lists. the ads will be free, an ad-free version will cost $9.99 a month. coming up, we will introduce you to a company helping people getting ahead at work. pleuralsight is on the nasdaq today. first the ceo will join us live. stay tuned.

online learning platform pleuralsight, today the ipo pricing up $15 per share it was oversubscribed more than 20 times aaron, great to have with you us >> thanks. great to be here. >> this is cloud based it's a learning platform so who is the end user of this >> our end user is enterprise customers all around the world, in the end, technology is moving faster than these companies can learn it >> that creates a skills gap around the world that holds them back from potential and the cloud based platform, we make it easy for them to keep up with that pace of change an thrive in the digital age. >> they would buy your service >> they would sub scribe for

recurring revenue. they get access offered by industry expert authors all over the world 13 of them to date and that gives them access to these experts they've never had before >> and so, these companies they need this vaenl to here pl-- av get to their employees do they need credentials, to keep up with the i.t. stuff? what's the range of courses? >> a little of both, really. it's that ongoing tech space the tech spa is is moving so quickly. an average software developer has to replace every two years they need to constantly learn to succeed. we provide pleural sight iq. it's iris quotient it's like a s.a.t. supreme court. it's a 300

that's becoming a new credential in this space. >> is this a performance valuation process or to make sure they can do their job >> it's really the latter a measure of capably in that particular skill. >> if a technology specialist has to replace their skill, it's tough to keep your courses, you have 300 courses you said? >> no, 6,700 >> up to date. because theoretically, you have to replace those courses at least every couple years >> that's right. that's why we need an army of expert author, 1,300 authors constantly producing new content to keep one that peace of change that's what makes our value problem situation so unique. no one moves as quickly as us to provide that still i skill training >> you say author, these people are out there in the world creating this content? er >> authors, they're really authorities on these

we give them ashls way to make more money and monetize on their expertise in ways that have never been possible before last year they made 2 million dollars. water other open source web technology, security, data. >> i feel like i'm not sharing my expertise can i sign up to help people with the -- >> i thought you want to take the course >> i can find a spot for you. >> i can do a high-performance pascal actually, i'm still doing coball >> not that long ago coball was the only language and now there are 250. >> i was a software developer. my co-founder and i were both teachers in the classroom and that's what allowed us to see this opportunity to move from the classroom. >> you have malala as your keynote speaker which is awesome, which is great.

>> anyway, good luck have fun it's a big day there may be confetti for you. >> there's a big box out there in times square. >> we're excited. >> thank you guys so much. >> when we return, jim cramer live from the new york stock exchange here are the futures right now we're coming right back.

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let's get down to the new york stock exchange and check in with jim cramer on these walmart numbers. jim, i'm sure you looked through them and are ready to talk about the key highlights for you >> well, to me we saw the stock drop dramatically when they didn't do very accelerated revenue growth in e-commerce well, this time they reversed it they went right back to where they were not that long ago and that's very positive people are feeling different about the flip card, too, and feel that what they did was not overpay so much and has become india's amazon so i feel that a lot of people are reassessing why they sold walmart. the numbers were fine. the actual numbers doesn't mean nearly as much as the e-commerce number and also i like this number and it's been a long time since i've been able to say that and they did close in an

underperforming stance i think they'll start getting credit for moves people didn't like. >> we're getting resistance on the 10-year, but you know what if we're worried about another round number we have a long ways to go before we get to three and a half, i think. do any of the stops along the way derail anything, do you think? >> well, i think we're in an actual bear market in every single housing stock we're in the bear market in the consumer product stocks. these stocks, some of these are down hideously you can't believe the market's even up so we have to be aware that there's damage going on underneath in this market that'sen credible and not talked about. >> you have to look for the interest rate stuff. >> okay, jim we'll talk more at 9:00. coming up on "squawk on the street," i know it's coming up, and i don't need to read this, cisco ceo chuck robbins will be here stay tuned we'll be right back. about quan. it's about quality.

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where are all the babies the nba of u.s. births hit the lowest level since 1987 and 3.9 million babies were born last year and that's down 2% from 2016.

experts thought the post-recession baby low was ending when the birthrate moved higher in 2014 and we now know that's not true. the birthrate has dropped every year since then. there was one group of women and those age 40 to 44 what is the millennial cutoff? what is the millennial cutoff? is it 34 >> i think it's before 1990 essentially. it's obvious why there are no babies hey, honey, no i'm on facebook. >> not even on facebook. >> it's expeerencial >> i blame everything on -- >> am i bringing them in no, i'm not. our demos are not going to improve. >> you're really good with the 60 and up crowd. >> yeah, i am. 80 and up.

>> yeah. are you going to do this make sure you join us tomorrow "squawk on the street" is coming up next. ♪ ♪ >> history was made 226 years ago today when a pact was signed under the buttonwood tree and the agreement would create what is now the new york stock exchange good thursday morning i'm carl quintanilla with jim cramer, david faber at the new york stock exchange, happy birthday they'll join outside company's earnings futures are red and europe's doing a little bit