the big reveal happens at 6:40 eastern. it is tuesday, may 22, 2018. "squawk box" begins now. live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. check out the u.s. equity futures. yesterday a big upday for the markets. dow up by 300 points the s&p futures up by 5.5 points this morning, the nasdaq up 31 the dow up about 51.

if you look at what happened overnight in asia, the gains they had seen initially on the news petered away. there was some -- the shanghai just relatively flat hang seng was up by 0.60%. and in japan the nikkei down by 0.2% some of those gains fading away that the trade war could be back on at any moment in europe, in some of the early trading, you can see that markets are mixed. the cac in france is weaker. the dax is slightly higher ftse up by 0.10% stocks are stronger in italy and in spain looking at treasury yields, the ten-year yielding 3.073% breaking news, trade news out of china overnight the country's finance minister says it will cut import tariffs

on some vehicles from 25% to 15%. tariffs on auto parts will be cut to 6%. those cuts will take effect july 1st. check out the shares of automakers all of this after what we heard from steve mnuchin over the weekend and yesterday on "squawk" about how the trade negotiations went better than some anticipated the united states and china nearing a deal to remove a u.s. sales ban on zte zte will make major changes in management, board seats and possibly pay large fines we asked mr. mnuchin yesterday about zte, he was noncommittal he did not explain this was on the table. i think he said this was in enforcement action it's hard to be an enforcement action and be a chip in this

>> if management gets washed out, if some of the board members get washed out, you could make the argument you don't want to punish the entire company, including people who didn't do anything wrong >> i think it's a hard line given the national security issues around zte and our government said over and over again that this company has -- is actually -- >> the actions zte took were horrific with some things they were doing in terms of trading, doing business with north korea. >> you have to love when the commentary from certain sectors can be what are we doing with china? we're starting a trade war, this is insane. when you back off on something, it's like it was toothless all along. both ways. >> you made the point yesterday with the treasury secretary -- >> now it's too lax. was too tough, now too lax >> the bigger security issue may be north korea and making sure we have china in on those

negotiations >> there's three issues with zte, the iran issue, sanctions on iran that they break. the sanctions to north korea that they break, can management solve that can fines involve that sure that's how we dealt with that with some u.s. companies but then you have to go to the national security issue of this company and the fact we have not wanted this company to do business in the united states and sell these phones to our own military people because of our own security concerns. >> that might continue >> that might continue and then should an enforcement action become a negotiating chip >> it's hard to remove any issues off the table when you work on broader issues with north korea. >> if this is about north korea. we'll see. >> wonder what happens with iran you saw what happened with pompeo unbelievable

the scuttlebutt today, it's a good bet that america will win, but our allies over there are furious in europe. where was the piece i saw, europe hates trump, they'll hate him more after this. should we be tough on iran or not? >> none of us liked this deal initially. >> i heard people saying not only do we want iran to comply with certain things, we want them to be perfect we want them to not be iran anymore. >> change your stripes, tiger. >> and it's all supposedly a trojan horse for regime change >> that's the concern that we've build up ourselves >> he was tough on them. they do two things based on the teal we made we added like 12 more things that we -- they can't even scratch themselves in the rear i think that was number 11 for some stuff did you see the list of things

across the board everything the one criticism -- it was hundreds of billions of dollars that we gave them. instead of using it to help the economy, they used it to fund some of their adventures with hezbollah. >> again, you're shocked >> yeah. i don't know haspel, what do you think? is that okay you all right with that? >> i got to think about it earnings a lot we have quarterly results out from toll brothers the home builder earning 72 cents per share, short of the 76 cents analysts were expecting. revenues coming in better than expected >> by big changes coming to the new york stock exchange. for the first time in its 226-year history, the stock exchange will have a new leader, stacey cunningham. she will replace the current

president, thomas farley, who will work with lobe, right >> will work with lobe on a spac >> this is the way to make money versus being a -- >> no. i was thinking about this. >> you don't think that's what it's about >> if you have a 4$400 million spac, i assume -- i have not looked at the terms, typically they collect 10% to 20% of the overall price tag. so let's say it's 10%. 40 million to manage this thing. you never know if the spac will work or not. $48 million to play with how much are you giving to the manager of the spac versus third point? how much of this will be done on the back of third point versus the back of tom farley >> you think about these things,

no one is better at knowing things like this you tell me, how much? 25%? >> 10? 25%, yeah. >> you know what happened at the new york stock exchange? >> what happened at the new york stock exchange >> eliot spitzer >> grasso. >> 1$100 million >> the 100 million -- >> i know. spitzer ruined t bit, but he got his. we'll see. the camera goes off and i know everything camera is on, you say nothing. >> he said 10. >> 10 is good. >> he made 5 last year >> 10 is good. could be a triple. >> yeah. >> right >> yeah. >> it's fine look at that one if the camera picks up that

one -- >> stop. let's talk about stocks to watch. >> just so everyone knows, joe is very studious >> get a shot of that. >> he's telling me everything that's wrong with me >> you have a hair there >> right there >> we'll try to make it go down. >> i should have waited. >> much better >> thanks. >> now you see what happens. >> we all have mirrors >> let's tell but some stocks to watch. sony is buying a controlling stake in emi music the deal gives sony access to 2 million songs from the likes of queen, pharrell williams and other big artists. it makes it the world's biggest music publisher. two pieces of news on adobe. the company announcing an $8 billion stock buyback program. separately adobe is buying e-commerce firm magento for $1.7

billion. it's a cloud-based e-commerce service company used by corporations like coca-cola, warner brothers music and canon. >> our writers get bored sometimes. >> and check out shares of shopify. the e-commerce platform slipping on that adobe deal news. shopify down 2.25% >> let's get to eamon javers in d.c. i think his hair is in place >> at least you can fix the things about you i'm stuck. >> yeah. bhafrnlgts wi >> what will i do? i need an injection or something. >> eamon, help us. >> don't show that close up of me they just showed of you i'm not ready for that

>> remember that one time you had that mohawk? >> yes that's when the breeze comes the other way. the hair does a pyramid thing. >> i tried to help you, too. >> you tried to help me? >> tried to help you fix your mohawk unless you wanted it >> that was help, okay got it that's what that was >> okay. go on. >> so shifting gears, talking about this statement that the white house released yesterday we had this rather extraordinary meeting between the president and the department of justice, the fbi and the director of national intelligence at the white house yesterday. at the president's direction over the weekend the president was frustrated with the idea that the fbi may have used an informant or a source to gther information on his company during the campaign in 2016. the president saying that's out of bounds legally as a tactic for the fbi to have used

wanted to get to the bottom of that called in rod rosenstein of the department of justice who is heading up the investigation into the trump campaign and also the director of the fbi and director of national intelligence to the white house to direct them to take some action on this we got a statement explaining what agreement the president had gotten to. they said ultimately the inspector general at the department of justice was going to now be given direction to expand his investigation that was looking into irregularities regarding the trump campaign so the inspector general would look at this to find out if anything was appropriate the white house saying that step was taken as a result of the meeting yesterday. though the inspector general had been ordered to do that the day before by rod rosenstein himself in a bid to head off the president's concerns the other thing we learned yesterday in the wake of the meeting was that the fbi and

he chief of staff john kelly would be conducting a meeting with the director of national intelligence, department of justice and congressional leaders to review highly classified and other information that congressional leaders had been asking for during the course of the year it's not clear what the word review means there whether that's a direct order from the president to turn over classified information to those congressional leaders. there had been a spat between congress and the department of justice over access to information surrounding this whole affair, whether or not they would be able to get that information. it looks like as of now they'll be able to review that information. we'll have to see what that means. the president today meeting with the leader of south korea, president moon we'll talk about that later during the course of the day the whole north korea issue hanging over that meeting today. a lot of high stakes in washington >> eamon javers, thank you becky is trying to find a picture of that. i don't think she was here for

that you distorted it a little. >> you knew it when i said it, you knew what i was talking about. >> i knew it if your hair is standing straight up in gale force winds, you know it. because we work outdoors, joe. you guys have that nice studio >> i remember a producer got in my ear one time saying your hair is blowing that's because i'm standing outside. >> eamon, before you go, i wanted you to weigh in on the zte issue. i don't know if you heard our conversation before about this idea that it's a negotiating chip this is in the "wall street journal" this morning, at least online a quote from a person familiar with the matter, i imagine from the white house. the quote says the white house was meticulous in affirming the

case is a law enforcement matter and not a bargaining chip in negotiations does that make any sense whatsoever >> it's even a bargaining chip or it's not and they just came to a deal on it. we know president xi jinping asked president trump to intervene on zte the president issued that tweet saying too many jobs were lost in china as a result of u.s. action here. larry kudlow yesterday said he didn't think zte would get off scott free, so emphasizing the point that there would be repercussions for zte. it does appear there are some repercussions here, but much less stringent repercussions than what was in place before. clearly the united states backing down on the issue of zte, which has been considered a national security threat to the united states over the course of the past several months. >> i think we have went into our files.

i think we found that. >> what is that? >> you mean -- it's like a snapchat -- >> snapchat. >> how did they do that? >> that's wild >> i have no idea. if i move my classes up -- it's like a cone head thing >> eamon what if you want to -- >> this is fun >> what if you want to go to network news -- >> it will never happen. right there, i killed my chance. all this stuff lives on the internet forever >> put your nose up there. >> my career has peaked here >> appreciate it very helpful >> eamon, thank you for playing. >> vying a fwie aagra for the h. joining us is paul hickey.

>> everybody is fixing their hair on set here joan go gene goldman is -- earlier i messaged we had gotten out of this range where we were lower highs, lower lows. i think it was one of your notes. that's positive. we got back to 25,000. we have been able to -- when you get lower lows, you test the correction, each high gets challenged at a lower point. that's a bad sign. >> so you're testing 200 day every bounce off the 200 day we saw a lower rally, a rebound >> that's a bad sign >> until you can break that trend it's a bad sign. >> and we did. >> about ten days ago we broke that trend the late-day selling we've seen at the end of the day throughout 2018, we've seen that's still there a bit, but it's abated a

lot. we're not quite seeing that strong selling pressure that we've been seeing, late-day selling is a negative, indicates distribution over accumulation >> that's watching the action in the market what about the underlying fundament fundamentals >> earnings season was incredible especially for this late in the i cal. expectations were high we saw the second best beat rate on earnings and revenues of this entire bull market guidance was strong. about 5% of companies raised guidance, which was the highest since the early quarters of the bull market. to see that kind of confidence this late in the cycle is strong the only draw back is earnings season is over we have to focus on other

things. >> rates going up. dollar going up. oil going up at the same time the dollar is going up that could be good >> actually looking back, it's not common for that to happen. >> not uncommon or common? >> not common for oil and the dollar to rally at the same time when you look back historically, it's been positive for the market you've seen the s&p 500 higher a year later every time. bonds have been weak, you only see that combination six times since 1986 s&p was higher 5 out of 6 times. >> and we love oil >> you do. >> we love oil west texas crude at 72.50, opec's target is 80ish >> are we happy about that earnings will rise for corporations on the s&p, oil companies in the s&p for us, it's not a demand issue.

global growth is growing yes, gas season is picking up. supply is key. you have issues with iran, venezuela, you also have people thinking we can use fracking to get more oil fracking has gotten too expensive with labor costs, input costs. there's limited pipeline capacity so we think supply is coming down dramatically. opec cut production and it's worked >> like when rates go up for good reasons, for a strong economy. if oil is going up because of a strong global economy that doesn't mean equities or that we have a tax on the consumer we shouldn't look at it in a negative way >> we haven't felt the full effect of the tax reform we are in unprecedented -- >> i feel like i'm feeling it every paycheck we are at an unprecedented time where you have monetary policy

increasing, the fed raising rates, and fiscal policy stimulating the economy. this will be okay for the economy. >> people don't understand what i'm saying i went to zero on the deductions you have to. you don't write off the state anymore. can't do agent fees. >> people are so sick of hearing about that >> i know they rshare, but peop are saying the high end went down but if you go from 4 dependents to zero -- >> he's got some -- he figured si something out. >> we're in a unique position of being w2 employees nobody cares about this. thank you both for coming in. when we come back, a new study that could change the way you think about breakfast. that's next. then it's a big day at cnbc.

it's time to find out who made our sixth annual list of game changing private equity startups the 2018 disruptor 50 list will be revealed at 6:40. we'll be right back. mom you called?

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♪ >> that's going to be good wash s washington capitals and tampa bay, 3-3. >> ben white told me that this morning. >> did you talk to him >> no. here's some news that might make your breakfast choice easier there's been a lot of back and forth about whether eggs are good or bad for you because of cholesterol. now a new study published today by the bmj journal heart claims an egg a day may reduce your cardiovascular risk cut and the risk of stroke by 26%.

the study followed 461,000 adults in china for nine years those who eat an egg a day were 11% less likely to develop heart disease. everything that you ever think you know about anything, take it all with -- i don't know if i would say a grain of salt. i don't know if that's good or bad. >> a grain is okay >> is mindy grossman, is that weight watchers? >> yes >> when she told me an egg is zero, that's all i needed. >> chickens, too >> the atkins diet, some egg companies went from 4 to $80 a share, there was an egg craze. cholesterol and things like that, a lot of it is family related. heredity >> eggs are also excellent protein, great for not having carbs in the morning when i was on my pregnancy diet

for diabetes, i was eating eggs because of zero carbs. >> tom hanks on castaway, if you could pick one thing -- >> an egg? >> yeah. >> how boring a little salt on the egg. >> yeah. and pepper >> the other thing that's good for you, blueberries >> thank you >> you want an egg >> thank you the smell is a problem for people >> yes for the rest of us you're having eggs and blueberries on your island >> yeah. >> the united states postal service is releasing its first ever scratch and sniff stamps. the frozen treats line of stamps will be released on june 20th. it features scented water color illustration of frozen treats. this is one i might be in for. >> i have to tell you -- >> cute.

>> every parent will want them the kids will love the stamps. this could be a good deal for them people may not actually use them people will give the stamps as stickers that could be a whole ancillary business for the post office >> that would work >> when we come back, exclusive new data from a survey of 400 american ceos. we will get a read on the economy, plans for growth and their biggest fears for the future of their companies next as we head to break, a look at yesterday's s&p 500 winners and losers

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good morning welcome back to "squawk box" on cnbc look at u.s. equity futures at this hour. we have some green arrows across the board, 54 points up on the dow. nasdaq looking to open higher as well s&p 500 up about 6 points. maybe a bit more wind at the back after this china trade deal

is that what's going on here also that news on zte crossing earlier as well. kpmg releasing a report sharing the outlook of 400 u.s. ceos surveyed on the economy, growth plans and their future work force joining us now to share the findings is lynn dowdy, chairman and ceo of kpmg u.s. great to see you >> great to see you. >> this is different than the quarterly outlooks you talk about, or the annual ones. this is looking three years down the road that's a hard way to look that far out. these are things ceos are planning now >> right when you look out three years to see the optimism that we're seeing today and the domestic growth they're expecting and growth in their own companies has soared this year that's clearly a result of tax reform and seeing the benefits of that as well as just this

cycle of growth opportunities. it's coming aross in tcross in e survey >> 48% are confident in u.s. economic growth. how does that match up with the past >> there was optimism, but not to this degree in their own growth prospects they are citing technology as an opportunity to go into new areas, new service areas, to grow when looking at growth, it was evenly distributed around m&a activity as well as organic growth, but also looking at opportunities to do more alliances. and when we asked about which what geographies are you most interested in growing, where you see the most opportunity, it wasn't domestically, it was more global growth. emerging markets in particular >> is that because they think

they're more competitive now or because they have more money to put to work? >> they clearly have more money to put to work they were also looking at areas like central and south america where they are seeing a growing middle class and moving away from the more historic industries into some new areas in those emerging markets, brazil in particular what did the ceos say about their outlook for headcount, how many people they expect to hire. >> the vast majority were saying the headcount over the next three years will increase. when we asked about what areas are you looking to hire, where do you see the greatest needs within your company, again it was technology areas like disruptive technologies, also cyber cyber cyber expertise. this year cybermoved back to the number one risk that ceos see

for organizations. what are they doing? is that why they expect growth in the cyber area? >> absolutely. they see this as the highest risk that they're facing, but also feel -- 77% say they feel confident in their ability to respond. so they feel like they're ready to respond but they also said it's not a matter of if this happens. if a cyberattack happens, but when but they feel like they're ready to respond >> 77% say that, 23% say they're not ready to response? that's shocking. almost a quarter of them don't think they're prepared >> i think that they're seeing opportunities that this thing is a moving target. you can't be completely there. they feel like they've done the desktop exercise to be ready to respond. but there's still a lot of work

around how do you prevent sort of those negative impacts, how do you prevent attacks from happening in the first place lots of activity lots of area for increasing talent >> you mentioned disruption. that's something we'll talk about in a moment with the 50 big disruptors, our list of companies, our sixth annual one here how do they feel they are prepared for disruption? >> in the results they talked about how they're using disruption to transform organizations. they see it as opportunity they also see it as a risk they're doing more in the experimentati experimentation. last year when we talked about artificial intelligence and how they were using it, it was more the pilot phases now they are actually implementing this in key areas of their business. it's not enterprise wide, but it's clearly more pervasive than a year ago >> we talked about risks of

trade. that story changed over the weekend where it looks like the tensions with china have come down a bit nafta is still out there what do the ceos say about the potential for trade disruption >> that's a pop risk i host a call with lead directors of fortune 100 companies. our last call, this predominated the topic of the call because of the uncertainty. i think the implications for business creates a little bit of hesitancy now. >> hesitancy for what? to commit capital? >> to commit capital, though you continue to see where 36% in this survey said that they -- that m&a is a top area for them, and actually we're seeing that in the marketplace now >> lynn, thank you for your time today. good to see you. >> good to see you >> coming up, cnbc unveiling the

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the wait is officially over. cnbc is unveiling its sixth annual disruptor 50 list right now. joe, you ready >> top ten >> becky >> drum roll >> jewulia boorstin has the big

reveal >> this year nearly 1,000 companies were nominated for the disruptor 50 making this year's list more competitive than ever. it's also the highest valued ever the 50 companies are worth more than 358 billion here are the top ten number ten, coin base. its digital wallets are cryptocurrency infrastructure. when bitcoin soared in december, it picked up 700,000 new users in a week. number nine, rent the one way. millions of women are buying less clothing and paying a subscription fee instead >> education disruptor udacity moves up to number eight >> 23 and me picks up to number

seven. then the ridesharing giants, singapore's grab, number six lyft is five didi is four, and uber is number two. their combined valuation is more than 1$140 billion they're investing in autonomous cars as they transform how people move around the world jumping back to number three, airbnb last year's top disruptor continues to innovate offering more experiences and expanding corporate partnerships to convince business travelers to ditch hotels number one, spacex rocketing to the top of the disruptor 50 list after nine successful missions so far in 2018 alone it's delivered on the promise of reusable rocket boosters, and the stunning tests bring spacex closer to mars >> other thens will say we can

do bigger and better which is great. we want a new space race >> the entire disruptor 50 list is on cnbc.com/disruptor i will have an interview with anthony noto coming up later today. >> do we know how well or badly investors would have done on the past lists >> based on the ipos of the disruptor 50s, investors would have done well based on the first five years of the list, there's been 25 ipos one of those companies has been purchased and is now private of those 24 companies, you can see names you're familiar with

the companies based on the time when we first named them on the list, i guarantee you, they would have had a good return on investment for viewers definitely companies to watch. often these companies are the next big ipos. >> thank you, julia. clearly she's in the wrong business >> she said i guarantee you you will do well you never hear that with people. >> you can't invest in these >> you said you guarantee you would have done well just -- just telling you, don't use the "g" word >> i don't have the calculations, but i would say of the 25 companies that have gone public from the moment that we first named them on the list, from those valuations until now, the value has increased. i'm saying based on past performance. >> exactly past performance is no guarantee of future performance. that's always in every

prospectus too bad, too >> coming up at 8:40, the founder of luminar will join us, austin russell he makes the sensors that make autonomous driving possible. >> we have all these companies send in a picture of your ceo. any of them with the scruffy beard, we put on the disruptor list any of them who do not have the beard do not have it going on. >> not true. >> look, i mean -- it's ubiquitous, is it not? >> when you're doing that well, you can do whatever you want >> dress the part. when we come back, volcanic eruptions in hawaii beginning to disrupt the tourist trade there. we'll talked about the economic impact on the state of hawaii next and right now as we head to break a quick check of what's happening in the european markets this morning relatively flat. france is slightly weaker. the dax in gmatherny, e ftse in

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vk volcanic eruptions are disrupting travel in hawaii. seema mody has more on this story. i'd guess people aren't booking

to go there. >> that's the first part norwegian cruise lines skipping a visit to jilo. that's after another also decided to squip a visit to the big island's port which is 40 miles away from the national park closed as the situation on the ground intensifies and the closure of the park is costing the island about $170 million. that's according to the national park service a handful of smaller boutiques near the island have closed. the big operators like hilton and hyatt say it's business as usual. though suntrust analyst patrick scholes says it is not known as a heavy tourism spot like other places like oahu and maui. it may spark some travelers to

anywhere near the volcano and has the opportunity to impact tourism. but hawaii's governor issued a statement last night saying, quote, travel is safe to the hawaiian islands he also said there is no threat of a tsunami air quality is being closely studied and is of most concern in the immediate area inside where the volcanic activity is taking place now, tourism is the largest single source of private capital for hawaii accounting for nearly a quarter of hawaii's gdp. tourism also makes up 30% of private sector jobs in 2017. so it's a big economic contributor. that's the big concern that this volcanic eruptions as it intensifies on the ground, there will be some economic damage there. >> seema, i don't know about the governor's statement the tsunami? that is making it sound worse.

>> we're not sure what the situation will entail if it gets larger but right now the travel authority as well as the governor himself who has been trying to ensure citizens and foreign travelers as well that the situation on the ground is somewhat confined. it's on the eastern part of hawaii's big island. and that, you know, things at this point are for the most part okay for travelers as long as you're not very close to the volcanic eruptions themselves. >> i would have bought all of that before i read about the guy who was standing on his balcony i guess over the weekend and some of the volcanic splatter, the lava platter hit him i didn't think anybody was close enough to get hit by this stuff. >> who knew, right getting worse and worse. >> it's rainy over there anyway. right? that's -- i've been there. it's very -- >> that's hawaii's big island port a huge destination for the cruises. >> the side where the golf courses i know are should be fine

they should be fine over there had some interesting shots of guys playing with plumes of smoke. >> i saw that. >> i saw that as well. a lot of visuals there that's what the big hotel operators, even real estate investment trusts that have properties or the ones that do have properties on the island are saying they're very far away from where the volcano is. >> big place >> there is a lot of seismic activity, right? i guess that's why the risk of tsunami is there do you think people are constantly feeling, like, little quakes and stuff is that -- >> at this point, it doesn't seem to be the case. but that, of course, is the big concern. you're seeing plumes of ash, boulders being shot into the air. so the concern is, you know, how far this is reaching >> some the size of refrigerators. seema, thank you all right. coming up, fda commissioner scott gottlieb is naming and shaming. talking about pharma companies putting up barriers to lower

drug prices. >> love this >> like, redundant which ones -- and you would expect that. as a shareholder you probably -- but anyway, he joins us with a list of companies straight ahead. later the house is going to vote on bank regulations. we'll talk to committee chairman jeb hensarling who backed it before he calm back and dn'idt back jeb hensarling "squawk box" will be right back. s target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. anyone can get you ready, holiday inn express gets you the readiest.

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futures in the green as the dow holds that 25,000 level after china cut tariffs on some cars and autoparts

we'll find out what's driving the market straight ahead. bank regulations in focus. a big vote today on the senate banking bill financial services chairman jeb hensarling is going to join us find out if he's on board with the senate's plan. and an epic announcement for fortnite fans. ♪ the game that has taken over homes around the world now looking to move into the e-sports arena details ahead. as the second hour of "squawk box" starts right now. ♪ live from the beating heart of business, new york, this is "squawk box. >> good morning, everybody welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe

kernen and andrew ross sorkin. the futures this morning, we are building on yesterday's gains. yesterday the dow was up by about 300 points today another 53 points. s&p up by 5.5 and the nasdaq up by 36. more signs this morning of easing train tensions with china. chinese officials announcing a cut in import tariffs for cars and car parts as part of an effort to open china's markets analysts say the biggest beneficiaries may be luxury car makers and the u.s. and china are getting closer to a deal that would remove a ban on u.s. companies doing business with zte. that's according to reuters. sources say that the deal is likely to be finalized when commerce secretary wilbur ross visits beijing next week the new york stock exchange is getting its first female leader in its history stacy kcunningham will replace thomas farley.

that announcement comes moments ago. farley is headed to a company aiming to raise money and buy technology firms >> know something about that, i guess. few stocks on the move this morning. watching shares of tesla today ceo elon musk admitting that a braking flaw exists with the model 3 but in a tweet late yesterday he said it can be fixed with a firmware update that will be rolled out in a few days his comments come after consumer reports announced that the model 3 failed to secure its recommendation citing issues with braking and distance control. >> it was a big issue. >> how long it took to brake >> how long it took to brake and how long it took to stop the number of feet it took was much longer -- >> 152 in particular the stopping distance of 152 feet from a speed of 60 miles an hour. slower than comparable models. and was even slower than the

full size f-150 pickup truck two reports did praise the model 3's agile handling >> the weird thing is tesla has been in spats with consumer reports when they dinged them or not given reviews they thought were worthy. but tesla's response in this was incredibly childish. basically they said the testing conditions are different all the time we found different things in our test by the way, we could fix it at any point if we wanted to if we sent out an update on the software >> i got to go back and look i thought they were saying they weren't having -- that tesla did not have this experience. >> that is what they're saying >> that this particular vehicle they were testing was not the same as what they'd seen before. >> they said it was not the test results they'd seen, but it was a fairly childish response to some of these issues also the idea we could change these with software updates going out. >> i would say it's remarkable

you could change a vehicle -- the vehicle you can change the vehicle after the fact is amazing. >> then do it. i don't know seems to me like you are putting alpha and beta versions on the road instead of fixes it and making it the right the first time >> kind of are with the model 3. toll brothers, earnings 72 cents a share. that was below the 76 cents that analysts were expecting. revenue, though, was better than expected stocks not doing anything, but we want to tell you about it anyway i got to tell you, by the way, when i drove that model 3 a week or two ago, i twiactually found -- because it has regenerative braking collecting energy when you brake. so basically any time your foot's not on the gas, it is slowing down even more than i would want it to i actually had the opposite problem. i felt there was too much braking.

but that's just me in the meantime, want to get caught up on the markets at this hour joining us now is gabriela santos and a chief u.s. equities strategist at deutsche bank is here i'll pick it up. front page this morning. stocks rise on trade hopes, blue chips climb almost 300 points. here's where the question is going to come in but optimism on china and u.s. could fade so my question is, is that part of it right? we know what happened yesterday. that's clear but could that optimism fade on the u.s. -- chi/china issue >> trade thoughts have been hanging over investors for a few months i don't think anyone thinks this is permanently done with for the year but it is a positive at least for now tensions seem to be easing we can focus back on solid earnings, solid growth and perhaps leave it to another day to come back to the issue. >> the question is how do you

trade around that idea if you think it's going to come back to haunt us later >> what i would argue is, you know, this looks very much like a muddle through approach. we've got some, you know, important sort of dates coming up in the calendar and i would argue very much like a muddle through approach is probably priced into the market. yes, the market was up yesterday. i wouldn't say that's sort of like a big number. yes, the futures up a little bit this morning i would argue earnings season is over we have now a good idea of what the trade up and down is going to do. the focus as gabriella said, going to shift to other things >> you said there were dates coming up. what's on your calendar? >> i meant dates as far as the midterm election and the like. there's only so much time there is to do whatever the plan is to do before things get on hold so i think we've got a flavor of the kind of things that will come out

i would argue the focus shifts now to the macro data. and i would argue the macro data this week is key we had a pullback in the equity markets starting early in february you expected a pullback. there were a lot of reasons for why we got a pullback. but after the pullback, growth slowed i would argue best indicator, most important indicator of growth in the u.s. is the isms you know, we had two months of slowing. so the key question is what happens to the isms now? was that a precursor of much further slowing? you know, was that it? and maybe the decline was the reason why the ism slowed. so the regional manufacturing indices are pointing strongly up that's what i would keep my eye on this week. >> this is your competitor goldman sachs, this is the headline the fiscal outlook for the u.s. is, quote, not good. and then goes on to say how that's going to ultimately impact the economy do you buy that?

>> we care about it in the long run rather than the short run. we think a lot about when the next recession comes along, how much really stick lmulus are wel to provide the economy, how quickly we can price back when interest rates are already so low. but we don't consider it kind of an immediate risk in terms of, you know, a reason to panic or a reason to change allocations at this point in time >> what are you telling people to do? >> so we're still having quite a constructive view in terms of risk this -- >> we need to stop the word. i'm removing the word constructive because i don't know what constructive means anymore >> it means positive but acknowledging that there could be downside risk right? we don't want to give off the impression that everything's perfect. because it's not but when we look around the world despite the slowdown we did get around the world in the first quarter, we do expect that to bounce back that should be a positive

situation. >> what about oil prices i was pumping my own gas this weekend. >> so i would argue that oil prices are very, very expensive here you know, i think they're being driven by what we all think they're being driven by. concerns of supply coming from iran and what's happening in venezuela. but, you know, median term -- >> why is that not doing more damage to the arket? >> so we're not really at sort of any kind of levels that, you know, it should be doing damage to the market. in fact, it should be helping the market the energy stocks have been doing very well. >> really only the last three years we've had this strange epiphany that if oil prices go down -- originally thought if oil prices go down -- >> the consumer will do well which didn't have an impact. >> right. >> but does it have an impact on the way up >> i don't think it has a big or important impact on the consumer i don't think it has a big or

important impact it has arguably some redistributive impact in favor of commodities and industrials and the like but in the grander scheme of things i would argue oil prices are 20% too expensive. so really not there yet. >> we're going to leave the conversation there thank you. when we come back, fda commissioner dr. scott gottlieb will join us he is calling out companies that he says are making it harder for generic drugs to hit the market. he's got the names and his plan to bring down drug prices. that's next. and later, house financial services chair, jeb hensarling talking banking regulations and whether or not he'll support the bill being voted on today. stay ted u e tching "squawk box" here on cnbc

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sure. mom,what's up son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. [ chuckles ] download the xfinity my account app and set a password you can easily remember. one more way comcast is working to fit into your life, not the other way around. the fda fighting to get more generic medications on the market to offset drug prices fda commissioner dr. scott gottlieb is calling out the pharma companies that are blocking out the competition

dr. gottlieb joins us right now. it's always great to see you >> thanks for having me. >> before we talk about the names of the companies that are doing this, let's talk about the practice itself. what's happening here and what does it mean for drug prices >> what happens in some cases is that the generic companies in order to come to market they need to do certain studies to compare their generic drugs to the branded drug to prove they're the same they need between 1500 and 5,000 doses of the branded company's drug to to the study they try to buy the doses but some companies provide tactics to frustrate the ability of the generic companies to access the drugs. sometimes they'll put in place certain restrictions in the agreements they strike with pharmacies or pbms, other intermediaries where they say they can't sell the drugs to the generic companies. we think that's anti-competitive it frustrates a fundamental obligation we have which is to do these studies as a step

before we approve generic drugs to consumers. >> is there ever a legitimate reason for companies banning sales of a drug? >> is the branded companies sometimes say the restrictions we put on the use of drugs in the marketplace to ensure they're used safely, some drugs that have very unusual with them like the risk of causing birth defects will put in place a risk mitigation plan in the market. to restrict how the drug is used by physicians or put in place certain requirements like people have to undergo certain testing. the branded companies will say since we've put these conditions on the use of the drug, they can't just sell the drug to anyone they have to make sure that whoever they sell the drug to is going to adhere to those restrictions and will in those cases offer a letter to the generic companies saying we've reviewed your protocol and your protocol is going to ensure you adhere to the restrictions on the drug then they'll bring that back to the branded company saying the

fda thinks our study is fine sell us the drug >> so you're not talking about legal ways they do it where they do an extended release and then they advertise, spend millions of dollars saying you got to have blah blah blah xl instead of the generic -- you're not even talking about that. they're going to keep doing that huh? >> we don't see that as much anymore. that's a little different where branded companies would basically create a new formulation of their branded drugs which switches physicians over to that drug and pull the old one. >> so scott, the idea of doing this, this is something congress has talked about trying to change and force these companies to do it how come that didn't work? >> congress has legislation that would create some hammers on the branded companies if they -- if they're thought to be preventing these kinds of sales we think there are things we can do administratively, steps to take to also address this. but congress' legislation seeks

to do some different things. >> we're looking rie ining righa list of the companies. celgene, pfizer, valeant, gilead you say these are the ones that do it the most >> the requests we get from generic companies asking us why they can't get access to the doses they need and whornt there's a restriction in place that we've put in place that's preventing that. so we get those requests we've got 150 in all we provide a transparency around which drugs we're getting requests around. and we also provided the instances in which we're asked to affirmatively send a letter to the branded company saying it's okay to sell to this generic company. they're not going to violate the regulations we've put in place on the safe use of that product. >> have you heard back from any of these companies that have been named and i guess the

process to be shamed to changing practices? >> well, look. this isn't meant to objectify people this is meant to provide transparency around the market that's frustrating a fundamental obligation we have to balance access with innovation we have heard back from some of them i haven't personally i know some of my folks have i don't know which ones. >> and i guess just in terms of what happens next with this, your hope is this will just open things up, that companies will stop doing this and you can more quickly get these tests going through. >> we're going to keep this updated, i think i know we're going to keep it updated. i hope this hopefully provides another reason why companies that might be taking steps proactive affirmative steps to restrict these sales think this isn't necessarily the best interest of the overall marketplace. i mean, we have to -- we have a system that pays market-based returns on innovation. i think that's the system we need to have to reward the capital it takes to develop a

new drug but it also -- there's an expectation that you'll have vigorous generic competition once the intellectual property has lapsed that's where we have to work harder we are seeing these monopolies be extended. >> i read recently some of these proposals like this to try and ensure generic drug access will save the government about $308 billion over ten years i guess that's in the amount it would save from medicare and medicaid spending money on these drugs? >> that's right. the savings that are scored by the congressional budget are accrued to government programs and that's the ascribed to the bill you talked about before congress. >> scott, in general while you're naming these companies and talking about these practices, you don't have reason to believe that these are bad companies overall. i mean, they're doing what they are trying to do to ensure they can continue to make money off of their own patents

but these are practices you say are a step too far >> that's right. and these are lawful practices we've allowed these to go on there's no laws that i know of that prevent companies from doing this i mean, i said they're anticompetitive in the sense we think they frustrate, you know, an obligation we have. but the ftc hasn't stepped in to take action against these companies. and, you know, the companies are doing very innovative public health minded work look at what's happening in africa right now with the vaccine network pioneered. you know, that was merck really put some commercial interest there to develop a vaccine that's going to change the scores of humanity so there's a lot of innovative stuff going on and those need to be funded. >> all right commissioner gottlieb, want to thank you for your time today. good to see you. >> thanks a lot. coming up, an epic change to

e-sports gaming company epic wanting to pay $100 million into fortnite competitions details after the break. then later, as memorial day approaches, a new film offers a first-hand account from military veteran who is served and then returned from war. best selling author sebastian ginger will beer he to discuss his new film "squawk box" will be right back. whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows...

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♪ the fortnite craze now hitting the world of esports epic games announcing it will provide $100 million to fund prize pools for fortnite tournaments during its first year of competition. the company says it's getting behind competitive play in a big way. plans to reveal more details in the coming weeks just how big is this before now, the biggest esports prize pool was for dota 2 which paid out $32 million. >> what? >> i got to learn how to play that i got to learn how to get into it and, you know, have the --

>> you have to know about it >> nobody plays it we're trying to figure out how to get it. we're trying >> you >> not me. >> joe kernen. what's your user name? >> no. not me my son yeah >> in the meantime, we will find out when we return whether or not jeb hensarling has joined the fortnite -- no we're going to discuss banking regulations. as we head to a break, take a look at u.s. equity futures at this hour. dow up 53 points back in a moment at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally.

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♪ good morning welcome to "squawk box" here own cnbc we're live at the nasdaq market site in times square shares of kohl's higher in premarket trading. reported 64 cents per share. well above consensus beating forecast in same store

sales. kohl's also earning full year forecast as well mark zuckerberg is in brussels today going to be answering questions over how facebook collects and distributes user data. a lot of people in washington and silicon valley going to be watching that on how he may react and what they may mean for them when and if they testify over there as well amazon has hired a former nbc executive to help run its television production unit vernon sanders oversaw shows like "friday night lights" and "30 rock" at nbc he'll be joining them. today the house votes on the senate banking bill. the bill will roll back some hefty banking rules. the biggest rewrite of financial regulation since dodd/frank. last time that financial services chairman jeb hensarling was on the program, he said he will not vote in favor of the bill in its current form he's with us now to tell us if that has changed

the bill has not changed, but your vote has changed. is that fair to say, mr. chairman >> number one, just to state for the record i never said i would vote against it. what i said was we weren't going to vote on it until we had a pathway forward for a lot of our strong pro-growth bipartisan bills. we now have a path forward we have a commitment from the senate they will bring those bills up and bring thuem up for vote i went from saying let's not get it done to let's get it done i'm happy over half of the bills in this particular package of pro-growth banking bills started in the house if you look very carefully, probably about three-yaquarterso the provisions came from the house. that's what we've been doing for the last seven or eight months breaking our omnibus choice act into component parts and seeing what we could get strong bipartisan votes for so once we got a commitment for this trailing package of votes,

i asked the speaker and the leader to move this bill they are i was with the president yesterday in the oval office he's anxious to sign it. we're going to vote on it this afternoon. i'm confident we're going to pass it. frankly the most pro growth banking bills in probably a generation will be passed today. >> we've heard the expression you don't want to be against, you know, the enemy -- or as perfect as the enemy or whatever right? >> something like that, yeah >> you know. you know what i mean anyway, this -- it's also -- there's always so much spin coming out from all sides. it's nice to just try and really get to the crux of what's happening. tell me if i'm wrong you would have liked even the bill to be even more pro-growth. >> of course >> and that's what you were talking about last time. but there are moderates that you weren't necessarily going to get on board if you changed it too much where it became -- where

there is not enough regulation in their view. and i'm leading to something also, be nice to get a win for the gop and for the president. because i'm just looking at some of these numbers for the midterms and you're leaving at the end of the year anyway, so i mean, that's part of it, right get a win before you go out? at least have a bill that gets passed >> well, indeed. so i love to make speeches, but i like making law en better. and so you have to get something on the president's desk. i've been here for almost 16 years. i have yet to be able to vote on the bill that i myself wanted. it always has to be negotiated with 535 others which this bill has. and so this is going to still be very important for our regional banks, for our community banks, and our credit unions. it's going to help unlock more mortgage credit. and the bottom line is that we

have seen a slowdown from our traditional 3% economic growth and tax reform was a huge part of it. but tax reform alone can't get the job done you have to have regulatory reform from just a group of rules on the financial system. thus is an important part of that i would have liked a more robust bill i wish the bill did 10% of what elizabeth warren and sherrod brown claims it does it doesn't but it's still an important piece of legislation i'm glad i could play a small role in it. >> so this roll call report out today. 19 changes in the landscape for the midterms and they're all democratic the advantage went to the dems on this. and in terms of this website, now 68 seats -- republican seats are rated as vulnerable. and just ten democratic seats

rated as vulnerable. last time was april 2010 there were 68 vulnerable democratic house seats and 11 republicans. and republicans gained 63 seats. i think you can only afford to lose 23. are you still optimistic that you'll get this victory? you've got tax reform. will voters put republicans back in the majority in the house >> i haven't seen the poll that you're alluding to >> roll call roll call. >> i've heard of the publication. i don't read it every day. here's what i do know. i know the president's enjoying all-time favorability ratings. still upside down. but history is in the right direction. of what we call the generic ballot test has collapsed nicely in favor of the republican party. as one time we were 13 points down i think now in most polls i'm seeing about a 3% to 4% deficit. the economy's headed in the

right direction. thankfully i think we're going to avoid any kind of a global trade in eruption. something i've been nervous about. frankly, the passage of this bill will be helpful to a sector of our financial markets as well so i'm optimistic about the future and again, the trend lines are in the right direction and last i like, with the exception of the texas runoffs which are being held today, otherwise the election is held in november >> you're not even going to have a corker moment are you? get close to when you're leaving and decide, no -- >> joe, it's a little late for that given they have the runoff today for my seat. so it's a little too late. >> last chance >> it's beyond last chance, becky. it is beyond last chance >> and by the way, you don't look very upset about that either, jeb. >> well, you know, it's been a great ride i still have some legislation i want to get done, but it's time as i've said before to work less

hard, make more money, and spend more time with my family i look forward to that come january. in the meantime, there's still a lot of pro-growth economic legislation we can pass here so that's why today is important. >> what happened with the farm bill >> one, i'm not a fan of the program itself i say that as somebody who grew up working on farm dad was a farmer grand dad was a farmer i don't like that portion of the bill what i do like is being able to take people out of poverty and dependence and give them life of independence that's one of the most important reforms of welfare contained in it so there was a lot of good there was a lot of bad which members like me had to think through. i think most importantly, though, people have become impatient on the unrelated issue or very slightly related issue of immigration members of all sides of political spectrum know that

something has to be done and the process has moved too slowly i think you saw some of that i think they'll get both of these done in june our leadership announced and i hope they will separate the welfare reform from what i believe is frankly welfare for a lot of farmers and i don't believe in that program. and i say that as a fifth generation farmer. >> there's been a lot written that paul ryan is losing control of trying to manage this party it's been a difficult party to try to control now that he's a lame duck speaker, does he have the ability to keep all these people together or not? what do you think? >> i'm a lame duck chairman. if i follow that logic, i'd have to resign my chairmanship when we're about to vote today on the most pro-growth banking bill

since 1999 the speaker job has always been herding cats i know no better cat herder than paul ryan. i don't know if anybody else within the house republican conference that commandsas muc respect and affection as he does i know no one smarter. you can't wax eloquent about it. it was a setback it was a setback on friday it's not the first tomb we had a setback. we had a setback on the health care bill. came back a few weeks later and he got it voted in i have full confidence in speaker paul ryan. >> you're from texas, right? i'm sure andrew has a question for you, mr. chairman. >> unrelated to texas. i wanted him to -- >> i would like to ask him about guns >> i was going to ask him about guns in texas in a moment. but i want him to weigh in on the zte issue from this morning? >> i'm sorry the news on >> the news on zte >> i guess i haven't heard the news >> then maybe we'll pass on the

question but this morning it appears that a deal has been struck between the trump administration and china that would allow zte to continue to do business in the united states. there's been obviously a big debate about whether that should be a chess piece in this whole grand bargain or whether the enforcement actions the congress had taken should stand in this case it looks like it was used as a negotiating piece. >> well, i typically don't try to duck your questions, but i don't know the details about this i haven't seen any release from the right house or read the details. but again, we have to be serious about our sanctions. but i understand that this has to be put into the context of our trade relationship and it has to be put into the context of trying to bring a long standing peace and security to the peninsula i would have to see the detalil

of this before i comment. >> do you want to make a statement on the shooting that took place in your state >> listen, i'm a father. when i'm home, i -- well, my 16-year-old now drives herself to school. but i drive my 14-year-old to school there's no worse fear you have as a parent than dropping your kids off at school in the morning and them not being there in the afternoon as a society we have to say enough's enough. but we have to docomprehensive with the exception of trampling on the constitution, everything has to be on the table everything has to be on the table. i think anybody who has kids like me who go to school, again, it is your worst fear as a parent so clearly access to guns by those who are mentally unstable, for those who have criminal records. you know, the question of hardening our schools. the questions of mental health the questions of our nix data

base which fortunately we passed legislation here recently to strengthen that. enough's enough. that's all i can say as i think about my own children. >> i have two other questions. one related to the financial services industry which is as you know a number of banks including bank of america and citigroup have tried to distance themselves from financing gun manufacturers. it appears there's been some retribution by some republican who is have approached them to say, look. we're not going to be very helpful to you if you continue to pursue this line. do you agree with that >> well, i don't know precisely what was said to whom when, so i'll just simply give you my thoughts i believe that private institutions ought to be able to have their own culture and so to some extent, my major question is why are they doing what they're doing are they responding to shareholders are they responding to customers? or as was happening in operation

choke point, were they responding to regulators who were acting in an authority? i remain a strong supporter of the second amendment i grew up hunting with my father and my brother my son and i, we go shooting ourselves. it's an important part and it is in the fabric of our constitution so again, if the bank wants to choose to do that, customers are free to leave. but my question is, you know, is somebody in the regulatory apparatus, do they have their thumb on the scales that is heavily suggesting that certain banks take this? but anybody who believes in the second amendment is free not to do business with citi and free not to do business with b of a there are plenty of other banks out there that respect the second amendment >> "the new york times" wrote a piece. anti-gun backlash from school

shooting, not in texas probably not in texas. they point out, in texas you're going to hear that you need to harden the schools and you need to arm the teachers. you're not going to hear something that you might have heard somewhere else i don't know i guess because people wear "closing bel cowboy hats. kind of echo the things that you said but it does point out you get different opinions in different areas of the country in florida, for example, where they went after the elected representatives for not passing gun control laws whereas your -- it's totally different in texas. and "the times" are disappointed in texas you're not going to get that response. >> well, we're disappointed in "the new york times" so we'll both lose sleep i suppose. but it remains one constitution for the entire nation.

again, law-abiding citizens ought to be able to keep and bear arms. it's keeping them out of the hands of those who have criminal records, who have mental illness and so many of them are still slipping through the cracks. i think obviously there is a serious question about children being able to access their children's uns when everybody could put their guns into a proper gun safe who own them sop there's another issue there that needs to be examined. i'm glad the administration is examining bump stocks. automatic guns are illegal and so devices that functionally turn semiautomatic guns into automatic guns have to be examined i don't know why they're still allowed. >> congressman, one final question related to that and you mentioned it this idea of holding parents responsible for those who have guns in their home in texas there is a negligent storage law. the law is on the books. it only covers, by the way, people to the age of 16.

the suspect in this case was 17 years old. but in terms of the penalties typically assigned to parents under this law, they're very minimal. parents are not held to the same type of account that those children who then take those guns and use them. do you think that law should be changed? >> well, i'm not in the habit of telling the state legislature how to conduct their business, because frankly i don't appreciate it when they tell me how to conduct my business but i think it is a valid issue. and i surely believe that our governor and lieutenant governor legislature are capable of revisiting that. but the concept of, again, negligently keeping firearms is one that i think has to be examined by all jurisdictions. do we want to talk about pro-growth banking again >> no. we're done yeah we got through that and we'll

see the votes today. >> we'll see the votes today and hopefully get it signed later this week or at least the president's most enthusiastic about it and again, just proud that we'll have the greatest pro-growth banking bill -- but there's a lot more to be done. >> thanks. we'll see you begin before -- and like i said, you know, still think about it maybe the australian ambassadorship is -- i think that's open again. senator corker didn't want that. >> i always wanted to go dive the great barrier reef, so maybe that's in the cards. >> while you still can >> thank you when we come back, author, film maker, and war correspondent sebastian junger joins us to discuss his new documentary which debuts this weekend. it is called "going to war" and he's here to talk about it before we go, take a look at the futures this morning up even after the gain yesterday. dow looks like it would open by

about 51 points this morning nasdaq up by 27. "squawk box" will be right back. anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox!

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welcome back to "squawk box. as memorial day approaches, a new film offers a first hand account for military veteran who is serve in and return from war. i want to bring in sebastian jung junger he is the best selling author and we're thrilled to have him here he is featured in the new pbs documentary "going to war. thank you for being here how'd you get involved in this project? >> pbs approached me i'd written a lot about war, written documentaries about war and they approached me an amazing author and friend of mine asked if we'd be part of it >> what do you think the state -- the state of vets is in america right now? >> i mean, the state of vets is -- vets are in a tough place. i think they're reflective of where the nation's at. the nation is fractured and divided. st so veterans coming back from

the tight cohesive experience of combat to a nation that's sort of in social disarray like we are, i think it's extremely hard >> robert wilke is planned to be nominated. is he the right guy for this job? >> i don't know anything about him personally i hope he is the vets deserve it. >> is there somebody you think would be better? >> i don't know. i don't -- that's not a way that i've looked at the problem i looked at what happens to people in combat or even in units that aren't in combat but are deployed i don't know about the bureaucratic end of it well. >> what does happen? >> two things. if you're in the 10% of soldiers in combat, you're potentially traumatized by violence. as a journalist, i've been around a lot of violence it definitely effects you.

you have this platorelationship your platoon and unit. once you're comunl experience, it's the way humans have lived for years. put us in our an scestral past when you do that whether you've been in combat or not, they have a hard time readjusting. >> we have several big corporations, jpmorgan comes to mind, who have really tried to go and find veterans and find places for them in their corporations not just because they're trying to do social outreach or do what is the right thing they say these make the best employs. these are people who have learned incredible teamwork skills and that translates through. what can you say to that >> i think that's a great

requested. -- idea. we're wired to work in small groups if corporations take advantage of that predisposition, they're doing well by themselves and by the veterans again, the larger problem is everyone's got to go home at the oend end of the work day where do you go home to? if you go home to a close knit community, it's better >> i was going to ask reque, yot about your own ptsd. do you still struggle with that? >> no. most times it works out over time you can experience the symptoms of trauma without having to struggle with ptsd it's a reaction to trauma which is healthy for 80% of people, within a year

it's resolved. >> it's an important film and we all look forward to seeing it. >> thank you very much >> thank you coming up, tom donahue he is esenpridt and ceo. "squawk box" will be right back.

welcome back to "squawk box. when we come back, tom donohue, president and ceo of the u.s. chamber of commerce, he's going to talk china trade and the state of american business with

us check out the futures right now. we are in the green. quk"etnsn ut 50 points "saw rur ijust a moment

new this morning, china says it will slash tariffs on some

cars and car parts a first on cnbc interview with chamber of commerce's tom donohue is straight ahead. an upbeat quarter for retailer kohl's and the stock is soaring on the news. plus the wait is over. cnbc out with the rankings of the most disrupting prooit companies in the world your look inside number one on the list, spacex the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box. >> good morning. welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin the futures this morning up. so far up 5 on the s&p and

nasdaq 27.5 or so. we've seen the treasuries 10-year get above 3.1% we have moderated a little back to 3.078% right now. check out shares of kohl's this morning reported a profit of 64 cents per share well above estimate of 50 cents revenue beating forecast and same store sales rose more than expected kohl's also raising full year earnings forecast. take a look at that stock now up close to 6% this morning new this morning, china's finance minister said it will cut tariffs on some vehicles to 15%. tariffs on automotive parts would fall to 6% those cuts will take effect on july 1st take a look at shares of automakers this morning on that news you're going to see at this point, they're up across the board. biggest gainer being bmw up 2.3% and volkswagen up by 1.25%

fiat up by 2.6%. bmw reacting to this news. a spokesperson saying we highly welcome the government's announcement it's a good signal china will continue to open up. this will boost the market to a more dynamic level meantime, ford told cnbc it also welcomes china's announcement. let's get kayla tausche in washington for more on the trade negotiations, we turn to her >> good morning. what you mentioned is part of this deal between the u.s. and china. the contours of which are starting to come into view with that announcement overnight that they will be cutting tariffs to 15%. secretary ross according to a commerce official will be heading back to china in early june following a stop in paris next week at the oecd forum to final ize export deals the journal reports the u.s.

would reverse a sales ban for chinese phone giant zte. that's something that nec director larry kudlow touted on cnbc yesterday >> they're not going to get off scot-free. if there are any changes in the remedy and that's up to the recommendations of secretary ross if there are, they're going to include very significant finds, very severe compliance measures, a new board of directors, a new management team. and i've said that before. >> u.s. hawkishness toward china doesn't appear to be fading especially with the involvement of national security adviser john bolton in trade talks trade is, quote, an important component of the president's overall strategic approach to china. there are it's natural that bolton would play a role in frames that approach the banking committee would vote on a bill that would put new

restrictions on chinese investment into the u.s. it has the support of the treasury and the pentagon and is expected to pass >> before you go real quick, and maybe i'm being too much of a p pollyanna about this, but on zte, doesn't the chinese government control zte so whether you replace the board or you replace management or you -- isn't this just window dressing because ultimately the control of the company is at a higher level and all of the terrible things they did including breaking the sanctions in iran and north korea and everything else are a function of the government, not necessarily the management itself? >> well, that would seem to be the case, andrew that's one reason why you heard kudlow say there will still be fines and enforcement actions. that the rule of law won't go away but they feel there could be potential management changes that would change those. it appears to be ripped from the playbook of rusal which you'll remember the russian commodities company that had issues with

exports because of the involvement of a sanctioned individual in its majority shareholder base by making some changes there, they were able to sidestep some of those sanctions and restore order to the global supply chain. even though the situation is entirely different for zte until we know the exact details of what they're proposing, it's tough to know. >> okay. >> kayla, thank you very much. kayla tausche. joining us right now is tom donohue the president and kre rks -- ceo of the chamber of commerce thank you for being here. >> thank you glad to be here. >> you are just back from china yourself i know you were leading talks there between nations and policy leaders as well. you're coming back to this news that things look like they are in a better position when it comes to trade what are your thoughts having

been there and seen what the headlines are today? >> when we were there, we spent a good deal of time talking about the question of tariffs. the balance of trade and more significantly the systemic changes that we're encouraging china to make that would open markets for american companies coming back, it's good to see that these discussions are underway that the u.s. government has put aside the tariffs for a quiet period while the secretary of commerce goes to negotiations. and i think this morning's news that the tariffs on american cars going into china has been reduced is a positive step forward. >> how significant is that move? watching some of the import tariffs drop from 25% to 15% and then imports on car parts. dropping to 6% when's the last time we saw such

a significant move >> well, i think -- well, it's significant. the question is how many cars are we going to export there in relation to these reduced tariffs? i think it's very significant because it indicates that the chinese are continuing their effort to find ways to make a deal with the u.s. it's one step. of course there will be more steps because they're not going to give them all away before the secretary of commerce gets to china. and i spent a lot of time talking to the senior leaders of china about this they're very concerned to maintain a private -- a positive relationship and a private communication with the white house. my bottom line is we're moving in the right direction, but we must keep our eye on the systemic issues and remind the chinese that we need to begin on

an orderly basis to do what mr. xi, the president of china said he wanted to do was to continue to open markets over the years ahead. >> it's not just opening markets. you have a wide constituency at the chamber of commerce. you have some members most interested in getting access of those markets and do it without high tariffs coming down but others are concerned about intellectual property protections. and that's an issue that doesn't seem to have really had any solution at this point how do you see that working out? >> well, that's my fault when i was saying we need to make the systemic changes, what i was actually talking about was the threat of intellectual property, the requirement that companies that do business there give up their technology to the chinese. problems in having access to

markets. little progress made recently. it appears with the financial companies. but you hit it right on the head those are the critical issues that we have to resolve. or, you know, increasing our exports is fine. but we're certainly not going to be able to take real advantage of it and have a balanced playing field if we don't take care of the systemic issues. >> how will we measure progress? versus being able to look directly and say tariffs have come down in these areas and we can access the markets in other places how do you measure if we are winning or succeeding? >> i think the way you measure -- the way you measure progress starts with what the deal is. if you are able to say on these three issues we will do the following over this period of time and you can then measure the following over this period of time

what are they doing to protect intellectual property. how are they reducing the demand to give up their intellectual property and their technology. you could make a plan, they could make a commitment. if it had a schedule on it, we could measure it >> tom, i want to thank you for joining us today always a pleasure to see you >> look forward to seeing you again soon thank you. >> thank you coming up, all morning we've been rolling out the 2018 cnbc disrupter list and spacex has made the cut every year since the list's inception. and morgan brennan has an exclusive look inside elon musk's space company >> it's number one on this year's cnbc disrupter list spac spacex we'll tell you what makes isth company and its rocket factory so cutting edge coming up. but the market was up nearly twice as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy?

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cnbc taking the wraps off its 2018 disrupter list. and number one is spacex

morgan brennan has a look inside the spacex rocket morning. good morning, morgan good morgan. >> good morgan, joe. so spacex is a six-time cnbc disrupter. i sat down with the ceo to talk about the technology and the business model that puts spacex at the top of this list for the second time. >> elon founded the company. for us to do great things in space and ultimately plan a settlement and put people on mars that's really the way we think of ourselves >> spacex president and ceo says it doesn't see itself as a disrupter. but the world does >> i think we're a little higher than that. maybe almost $28 billion >> since last year, the company has successfully reflown 11 rocket boosters previously sent to space in february, it made history when its falcon became the

largest privately launched >> and the falcons have landed >> then it made history again when two of its booster returned to earth that ability to reuse hardware enabled spacex to cut down costs. longer term, both you and elon have expressed this vision to see rocket launches that are as regular as airliner flieg er fl. when does that happen? >> the market has to grow a bit. we launched 18 times this year we'll launch just under 30 we're doing probably 60% of the launches across the globe. so in order to launch every day, you have to have a lot more launches and i think once we're flying people, that could actually be realized >> spacex expects to begin carrying astronauts from nasa to the international space station as soon as december. and development of an even more powerful rocket called the bfr

is according to shotwell on track to send museuhumans to ma 2024 there is more coming online in the next few years whether it be boeing's sls, et cetera how do you maintain to keep that lead >> we love composition, by the way. i think when you start brushing off competition, then you are on the path to death. so it's important to have competition kind of biting at you to keep you sharp and moving quickly. to keep you thinking about future products. we're going to discuss how the company was able to rebound from their problems so dramatically also strong investor interest. the emerging broadband satellite business that's underway and how this company works with

its sister company tesla we've got all of that and so much more rolling out on cnbc as the day unfolds. back over to you >> very cool thank you for that always a great shot at spacex. especially with it early in the morning with the light like that great to see you we'll see you soon coming up in the next half hour, we will talk to number 47 on this disrupter list a company called luminar that's coming up at 8:40 a.m. eastern time

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♪ welcome back to "squawk box" this morning take a look at futures we do have green arrows across the board this morning let's show you what's going on right there. nasdaq looking to open about 29 points higher. s&p 500 up about five points check out shares of macy's this morning. higher after an upgrade to positive from neutral and check out shares of toll

brothers as well this morning. falling in the premarket after earning 72 cents per share short of the 76 cents analysts were expecting in the headlines this morning, big changes coming to the new york stock exchange. for the first time in its 226-year history, the nyse will have a female leader stacey cunningham will become the stock exchange's 67th president effective this friday sblooe she'll be replacing tom farley farley is leaving the new york stock exchange to head up a new purpose acquisition company backed by third point. a programming note for you, stacey cunningham will be on the "squawk on the street" show today. that exclusive interview is coming up at 10:30 a.m. eastern time when we come back, could crude prices head even higher from here? we'll ask an oil watcher next. but first mike santoli has been tracking wall street's most

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♪ good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin let's get a check on the markets adding to yesterday's nice session that we saw up almost 300. dow indicated up another 50 this morning. nasdaq indicated up 29.5, the s&p indicated up 5 the 10-year has been under control. 3.07%. hearing fed heads saying until we see the whites of the eyes of the inflation metrics that maybe you don't want to go too quickly right now on rate increases. let's take a look at some stocks

to watch -- it was harker. stocks to watch this morning advance autoparts reported quarterly profit of $2.10 a share beating stu ining estimatf $1.97. same store sales fell. micron shares -- represented about 10% of the market cap. anheuser-busch was upgraded citing valuation and the beer brew's strength in local markets. more homes have been destroyed as lava flowing from hawaii's kilauea volcano always kills me, that word continues to creep across the island >> just that one >> well, a lot of words do but lava flows continuing to cascade into the ocean creating large plumes of laze clouds of toxic gas and steam.

lava has spread several miles west several explosions continue threatening even more homes and forests. the activity has been ramping up the obamas, they are getting into the streaming business. former president barack obama and former first lady michelle obama have inked a multi-year deal with netflix yesterday. it allows the former first family to have scripted and unscripted series, documentaries, features, and more it will be produced under their higher ground productions banner there had been some speculation about this happening a couple weeks ago. so this had been in the making also, facebook ceo mark zuckerberg will testify before the european parliament in brussels this afternoon. data privacy will be the big focus. zuckerberg is expected to tell lawmakers the social networking

giant didn't do enough to prevent its tools from causing harm according to prepared remarks obtained by cnbc news, he's also expected to say whether it's fake news. foreign interference in elections or developers misusing people's information, we didn't take a broad enough view of our responsibilities that was a mistake and i'm sorry. today's european hearing will be live streamed. it is set to get underway just after noon eastern time. we teased it before the break. mike santoli has been tracking the most hated trade >> it is great consumer staples brands we've been talking about the packaged food industry, personal products mostly i think it's apparent in the old food stocks of campbell. obviously general mills, kell g kellogg kellogg's, kraft heinz let me first make the case that they're hated. obviously these stocks are down 25% to 30% year to date. you look at the sell side, analysts have buy ratings only in a percentage of about 25% to

30% of them are recommending these stocks now, marketwide. you have at least half buy ratings on the stocks. hedge funds have more bets on the short side of this group than the long. now as a result they start to look cheap right now two years ago, let's remember, nobody could get enough of these stocks because we were lusting after dividend yields and the defensive low volatility stocks. >> and the idea they were going to be mergers taking place >> all of it fit together. and now it's -- these are the wrong stocks for the moment. everyone thinking the economy is strong dividends don't look that attractive now the bear case is so well known on the operating side, right? campbell soup has no answer for their sol yum volume declines. you have to think are they cheap enough, hated enough it reminds me of the brick and mortar retailers last year you knew there was no way out. >> and an upgrade on macy's. >> so clearly at some number,

they're there. >> the idea of mergers, that they were going to all be gobbled up there were some investors that were pushing things like that. you think back to the square. >> because they haven't yet, you say there's only a couple of big buyers out there really. kraft heinz by the way still has the halo effect. street still likes it a little bit more slightly better valuation. but the rest of them, not so well >> the most hated trade is silver have you seen the ads we've been running them for three years i don't know if we run them. but i see them wherever. those same three guys talking about silver if it goes back only half of its highs -- >> poor man's gold. >> but it's been three years it hasn't gone anywhere. why is it your favorite investment why is silver your favorite investment market is up 80% or whatever why is it good why should i believe you anymore? >> there's a market for

people -- >> i haven't heard about silver since it went back to $50. that's my most hated trade and most hated commercial. >> most hated trade that somebody might ever consider buying would be mine >> they're mostly on the -- >> did you get silver at your wedding? >> i mean, i got -- everybody's got a little silver. got some silver coins. >> you could melt it down. >> melt it down. it was $50, andrew and i know people that put everything into it they had at $25. next thing you know, it was single digits. oil's a pretty good investment although there's times i think i'd rather have something alive. although it's hard to take care of cattle. let's check on oil prices at this hour. i used to say when it was $200 a barrel, i was going to buy cattle leather, milk, meat, warmth. joining us now gary ross

gary, you wish you had done live pigs or pork bellies or happy with oil >> i'm happy with oil. $72.50 $80 is -- do you think it's not going to do that i don't think anyone says that looks like the objective right now. >> look. we're almost at $80 brent. i think $80 wti is not out of the question we're going into the strongest seasonal period. big stock draws likely all this geopolitical risk, iran, venezuela, who knows what's going to happen in libya. it just looks like we're heading higher. >> it went all the way down before how is that possible in terms of supply and demand that it gets so strepped in terms of the

actual price itself? because the demand and the supply doesn't change that much. >> well, that's the point. it's an elastic -- price demand is with e las -- elasticity. it could create a down or increase in price. that's one of the roles opec tries to play to moderate those swings so they end up with a price the world can live with. of course these guys feed off of strong prices. they're not all that unhappy at $80 brent. i think the saudis are quite pleased to see prices close to 80 bucks. >> what did we say for saturday? $88? >> something like that, right. and it's coming down so it's just great >> $80 seems -- that seems like

at that point, you start to see the negatives outweigh the benefits for the oil stocks in the s&p in terms of the economy. that's a tax on consumers. that starts to go against the tax cuts that starts to eat into some of the positive things in terms of overall sentiment, doesn't it? $80? >> i think $80 is dangerous in that point of view from a long-term point of view, there's a huge amount of shale that's economic at $50 if not lower. so i think it's hard to see $80 as a long-term sustainable price. and you're right it's going to begin to undermine demand i don't think we'll see gasoline demand up year an year basically with prices up 20% which is the implied $80 brent price. to me you can undermine demand you also have a risk that trump gets very unhappy. you have the midterms. you have his base. this is right up his alley why not?

they've been using it for relief that can put a damper on the price quickly in the summertime. >> i don't know. the oil price itself, we hear about what we can do here in the united states. where we can make money. at $80, everybody can make money. i think. at $60, they were arguing some i thought we could influence supply and actually create a glut if we wanted to here with horizontal no >> crude supply is up in the u.s. 1.2 million barrels a day >> why aren't we still at $40 then >> because it's a glum 100 million barrel a day market. and the economy -- >> we became the swing producer, didn't we? more than opec more than venezuela. >> we are somewhat of a swing producer, yes. that can respond quickly opec has capacity to respond even more quickly.

in terms of influencing the price, i think it's 100 million barrel a day market. you're going to grow to the demand you need u.s. and others of course at 65% of the world supply is tied up in that supply it's not insignificant that's why you're getting this run-up in price. but it's inevitable that u.s. supply will continue -- couple things will happen u.s. supply will continue to grow but the other issue is our infrastructure is not keeping up with this supply growth. so we're seeing bottle necks so we'll see bottle necks in -- >> but those are temporary >> they're temporary, but they could last six months to a year. not only midland i wouldn't be surprised to see it on cushing in six months time where we become disconnected from global markets. >> thanks, gary. >> thank you meantime, news just crossing the wires. lowe's has named marvin ellison the next ceo

this move is effective on july 2nd. take a look at shares of j.c. penney on this news coming out that's a drop of 30 cents for the stock which is now trading at $2.20 we'll have more on this as we continue to take a look at it. again, ellison taking the job of ceo of lowe's. when we come back, the cnbc disrupter class was unveiled we're going to talk to number 47 on the list. luminar makes the technology behind autonomous cars the sensors, specifically. we're going to talk about that when we return finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums.

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♪ welcome back to "squawk box. senator bob corker says he's turned down president trump's offer to make him the u.s. ambassador to australia. corker says he felt it wasn't the right fit. and he still had work to do in washington offer him france or italy. see what he says right? >> i would take australia. i would take it right now. i'm available. >> oh. from your lips, please, mr. president, hear my appeal.

anyway, the president's offer came three or four weeks ago you don't have the money i've told you that you can't serve $10 bottles of wine -- >> i know. and it's on you. >> right i think they give you $10 or $15. corker plans to retire from the senate when his second six-year term ends in december. the u.s. hasn't had an ambassador to australia since december of 2016 i think our next guest could help you >> i'd take the kickbacks and all of the stuff that's how it would happen, right? >> it is pretty cool i haven't been, but i think corker's thinking the outback is not that cosmo right? it's not like a euro you know what i want and i'll go you know where i want to be ambassador malta. yeah small, manageable. mediterranean. >> i have the set all to myself. >> in the meantime -- >> he's going to australia, i'm going to malta >> ceo elon musk admitting a

flaw with the model 3 but he said it can be fixed with a firmware update. coming after consumer reports announced they failed to recommend citing braking in particular the stopping distance of 152 feet from a speed of 60 miles per hour was slower than comparable models. consumer reports did praise the model 3's handling and the range of battery but that issue -- >> it's cool they can fix it, i'll give them that. but i would prefer you figured it out before you sell it to me. >> the question, though, is whether that vehicle is -- as i was saying, when i was in a model 3, i thought it was actually oddly braking too much. the other thing, by the way, consumer reports doesn't love, which i thought was interesting because i kind of enjoyed it was -- the whole thing sort of lives on one big ipad. sort of benefits and drawbacks to that idea meantime, on basically the same

topic in some ways, this year's disrupter 50 list dominated by self-driving technology. that's something that tesla wants to institute as well number 47 on the list is luminar. it's autonomous car safety relies on the ability for the car to respond quickly to nearby objects. luminar is making the sensory to map out a vehicle's environment. joining us is austin russell he's the founder and ceo of luminar. you know that little thing that looks like a siren on the top of the car going in a circle, it's just a laser that's basically mapping and trying to figure out exactly what's around. is that a fair way to explain it >> yeah. so lidar stands for light detection and ranging. measuring the exact time of how long it takes for it to hit an object and coming back autonomous cars can see and

understand the world around them in 3d. >> does every idar system have to have that >> not at all. ours doesn't spin. >> doesn't spin? >> no. we actually have a laser we scan back and forth really, really fast to create the image it can be integrated into the vehicle rather than being a spinning system on the roof. it's going to have to be -- you're going to have to have multiple systems around the vehicle. >> one of the questions we're talking about this off the air is you guys are producing this lidar system there are lots of competitors producing both lidar as an individual company then there are the goggles of the world trying to do it in some cases themselves. you have all sorts of -- cruise has their own lidar technology, i believe. what's the strategy? to be an independent company that licenses to all sorts of manufacturers or do you think

ultimately every manufacturer is going to have their own version of you and maybe just pick you off and buy you? >> i think with this, it is kind of surprising the number of companies out there that have emerged in one way or another to be able to build these systems depending what you call a company. in that respect, you know, the thing is everyone else is for the most part using the off the shelf components as a result it's kind of crazy that it effective ly over a decade, we haven't seen relatively little to no performance advancement in these commercially deployed lidar systems. same ones you see today are the same ones you saw over a decade ago. so that was a lot of the inspiration for this to be able to create something new from the ground up. build our own components and

have something that can actually see a lot better >> what has been the biggest -- when does it mess up when does it come back and not interpret correctly. what are the biggest obstacles >> it comes to the last 1% as a whole if we want to be able to move from test fleets to real world vehicles that can be a deployable human solution. like when there's a object on the road or a kid in the street chasing after a ball or a stalled car in front of you. those are things autonomous vehicles can't reliably see today. we need better sensing technologies >> how far are we have having those technologies >> we do have something that can accurately see those objects you have to interpret them, but for the first time, though, is the first time you can clearly make out what's going on

>> what's your timeline in terms of when you think we will realistically have -- one city in the united states that's truly running autonomous vehicles people are getting in the car saying take me to the office we're talking -- >> from the back seat. >> level four our five type situation. >> yeah. so i think one thing that's interesting, a lot of people take for granted or makes it seem they're just around the corner you know, getting picked up in your home and going across new york city over to the office but the reality is that this is a really hard problem as a whole. and there's a lot of things that need to happen to solve that last 1%. >> that's what i was going to say. when you bring up those ethical questions. like maybe you can realize it's a kid chasing a ball what do you tell the car to do do you swerve off to the right and hit a tree do you swerve into oncoming traffic? how do you make those decisions? >> i guess the whole goal with our sensing system is to make it

so that you don't have to -- you're not put in a situation where tough -- >> you can see it far enough in advance. >> you can see seven and a half seconds ahead opposed to maybe one or two seconds ahead >> i just think of things that happen to real life drivers. >> yeah, yeah, yeah. and, yeah, as you said, that doesn't happen too often >> the trolley problem about whether you're going to hit the -- >> the ethical -- >> i think the most important thing now really is that just even remotely getting to a point where you can achieve that better than that in the first place. because right now we're actually quite far away >> when you say quite far away, whoo kind of timeline do you think we're on >> it all starts with the data just kind of garbage in, garbage out. so this is kind of the right platform, right start to it. i think it's going to start in constrained scenarios. you're going to be able to see, you know, on let's say for freeway applications starting

out as soon as, you know, 2021, 2022 and, you know, probably more of a decade-long problem. >> my 1-year-old doesn't -- >> we got a go, but right before this segment started we talked about elon musk and tesla which has been, i don't know if it's the most advanced out there but at least in terms of cars on the road pursuing autopilot. but also the number of deaths, people have been skeptical or worried about that do you think the way they've approached this is responsible >> yeah, so -- >> they don't use lidar, by the way. elon believes that cameras and other types of radar technology can do as well if not better >> yeah. so you actually don't need lidar at all to create an assisted driving solution a couple lanes on a road where the human driver has to regularly take over to prevent accidents every handful of miles or so if you want something that can achieve the millions of miles per failure that are required, you know, to be able to get like

you said truly autonomous vehicles on the road, not assisted -- >> will he need lidar eventually >> oh, yeah. >> will he need you eventually >> everybody's going to need to have a lot higher performance and right now we're the only ones that can deliver deliver t >> congratulations. >> thank you. >> come on back and tell us your progress fascinating. >> thank you. >> we should tell you, you can see the rest of the disrupter 50 list you can log on to cnbc.com/disrupters. coming up on squawk allie, we'll hear from the number one disrupter. gwen shotwell. the president and ceo of spacex. often gets overshadowed by elon musk. >> the market will open at about 9:30, as it usually does we'll check in with jim cramer live from the new york stock exchange and shares of jc penny after the chief executive is stepping down

home improvement low's named marvin ellisson the ceo.

current chairman of jc penney. he'll stay there until june 1st and take over at low'es. four senior leaders will share respond for the company's operations jk penny down 17 cents which is almost 7%. jim cramer joins us now. if i were mr. ellisson and low's calls and said come be ceo i might say "save me." >> marvin, look, he was fabulous at home depot. he's a good fit at low's anybody you can get from home depot. apparel the not right facility for him. hard goods is the right place to go and jc penney very problematic

maybe the worst numbers out of any brick and mortar other than sears. i agree with you it's a great trade for him and lowe's what do you think of our buddy leaving? >> well, it's not as much money as i thought maybe there's more to it i have friends who work for dan in a similar capacity in terms of being a spin-off and the guy loves it it's certainly a possibility that tom gets to do some stuff that is more entrepreneurial than working here. i would love to hear from him because he does a great job. >> yeah. and then i guess we saw kohls earlier. it was a surprise to you >> no. kohls was a surprise because they are believed to move so much on amazon there's no way it can be so much better on comp stores.

and it was and i think that kohls is a better model falling to 59 when people -- when there were rumors it was going to have a weak quarter obviously it was not the case. >> okay. jim, thank you we'll see you in a couple of minutes. don't miss legendary lee 'lben alimrert hel o"hfte po" at noon eastern let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need.

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if you're a frequent traveler you may think the airport is a zoo under normal circumstances yesterday it was worse than usual in san antonio that's where a monkey escaped its crate. you can see it here. the animal roamed free for nearly an hour before it was recaptured once captured, it was sent on the way to the wildlife sanctuary. apparently he liked the baggage handling area. there are all kinds of things to play around on he climbed to the top of the ceiling and took about an hour to coax him down. >> huh lots of fun things to ride around on. he did well. yeah. >> i always wanted a monkey. >> yeah. >> you wanted a monkey >> i wanted a chime ppanzee on

set. >> i'm sure we would have lots of investors. >> it's a good idea to harm a primate with darts that's all right. >> velcro darts. know those kind? join us tomorrow maybe we'll have a chimp on the set. "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." premarket is up a day after the dow reclaims 25,000 for the first time in a couple of months trade war tensions continue to ease a lot of retail earnings and new ceos announced here at the nyse and low's. we have a two-year debt auction this