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. equity futures have been mixed the dow down by 14 points. s&p down by less than a point. the nasdaq up by 11. this comes a day after the market staged a bit of a comeback we'll talk about that in a moment the nasdaq right now looks like it's indicated up by 11.5 points in asia, the nikkei was down by 1.1% the hang seng was up by 0.31%. if you look at europe, you will

see it's a modest advance. cac up by a half percent so is the italian markets. ftse is down slightly. treasury yields still sitting above 3% yesterday, 3.003%. right now the ten-year is yielding 3.008%. the commerce department launching an investigation into auto imports the u.s. wants to know whether those vehicles threaten to impair the national security of the nation asian and european automakers are trading lower on the news. a live report from beijing in the next half hour at 7:00 p.m. eastern time, we'll hear live from wilbur ross and talk about it with him a war of words escalating between the united states and korea after vice president mike pence warned north korea could turn into libya if kim jong-un doesn't make a deal.

north korea's vice minister of foreign affairs saying the remarks were ignorant and stupid and calls pence a dummy. this comes amid a scheduled meeting between president trump and kim jong-un. deutsche bank is slashing thousands of jobs as it tries to limit costs. deutsche bank saying it will cut the headcount from 97,000 to well below 90,000. the move will cost the company about $1 billion a year. the chairman is facing a n no-confidence vote at today's annual meeting we're getting new numbers on uber that puts the company's valuation at $62 billion. the ride hailing company announcing a new tender offer from investors and also telling cnbc it had net

revenue of 2$2.5 billion in revenue in the first quarter they also say they cut quarterly losses nearly in half. it's expensive to use, your kids don't really see the bill. they say i can just take an uber >> i have had this same conversation in my house >> you look at the numbers, maybe from here out to -- >> you probably shouldn't tip $10. we're lucky. but there are people who look at some of those things -- it's like having a private car. it's like having a car service, sorkin >> the old version of this, remember when you would spend hours on the telephone, and your parents would get the bill >> right you would get yelled at.

i had a particular instance where i used to use a mow democrat back in the old days of mode democratmss, i would have k into bbss and call long distance numbers, we would have a $900 telephone bill that was a complicated conversation with my parents >> i like calling the mother-in-law in florida, this is long distance this doesn't -- there's no long distance anymore it's like 38 cents >> we have to get off the phone, we can't talk. >> you're right, it's an age-old discussion of how th finances are being charged i mentioned lenny dykstra, did you see that >> yeah. >> the guy wasn't going to take

him to -- he wanted to change destinations >> right >> held the gun to the hoor upoe driver's head. the mugshot scared me. he tweeted out there's been much worse mugshots >> go silent >> one serious uber question for you. there's been conversations about whether they should put cameras in the cars for the protection of the drivers and passengers, however there's also the issue that passengers think if i'm having a conversation with my wife or my spouse, my girlfriend, this, that, if i say something, it's on the camera, then something later happens >> that's a tough one. >> i'm going to triangulate everything i'm going to satisfy everything. i decided. >> you are >> yes >> so i can see how this would be good. but then again i read what goes on in ubers, or supposed --

>> i read that, too. >> cameras yeah thil sta they'll start selling dvds >> exactly >> maybe not sell dvds, just treatment it a major fox shareholder backing comcast's bid for fox's assets yesterday comcast said they were in the process of preparing a superior deal for fox. after that tci penned a letter to rupert murdoch. in the letter they wrote if comcast formulizeds a superior all-cash offer we would support that offer over the current disney offer tci owns 7.4% of fox's shares. we'll wait and see what the reaction of the time warner case and how that gets settled up

>> 7%? >> a little more than that >> i thought the trust company was tcw, it's tci. we used to talk in the old days of the children's fund >> has nothing to do with helping children the children's fund, that's nice is that like unicef? >> i think they used to donate some of it >> hopefully george costanza made a human donation should we talk about stocks to watch? williams-sonoma is surging in premarket trading. they reported better than expected first quarter results same-store sales rose 5% l brands reported better than expected first quarter

results but profit margins at victoria's secret were down. it offered more discounts to get customers into stores. >> i have bad news this is upsetting. the children's investment fund, when it was originally started was i tended to partially give some of the money away >> nice. and -- >> for children. it was set up by chris hone and his wife today, according to the nice people at wikipedia, back in 2012 the fund and the foundation were split up. the found no longer donates money to the foundation on a contractual basis, it may do so on a discretionary basis >> again, i can see both sides of this. >> i'm so -- >> it's like a new day >> yes in this world, don't you think i'm on something here?

to not have firm views of -- >> i don't think this will last past the "a" block >> i see the good in everyone. >> set your watches. >> some of these things, seriously, both sides have -- >> i'm with you. >> if you disagree with either side, suddenly you're in position where you can be totally -- >> yes yes! >> eviscerated >> yes >> so who needs that >> yes >> playing golf tomorrow just not worth it. shares of netapp are lower today. even as the cloud data company's fourth quarter results beat forecasts. the first quarter outlook fell within the range of analyst estimates. you watch. new leaf what's today's date? >> i'm marking it down >> 23rd, i believe

>> it is may 24th. set your calendars >> record this tape. >> joour guests are joining us now. gentlemen, welcome to both of you. there's been two things that have been overhanging the markets, holding things back from potential gains, trade wars and the threat of the fed raising rates once again yesterday we heard from the fed that they would be willing to stand pat for longer even if inflation goes above the 2% target so, that's something that gave heart to markets >> that's good news. >> what do you do with that now? >> i think it allows investors to come back to focusing on fundamentals we had a great earnings season earnings up 24%. even news and consumer demand is good i think as much as the markets struggle with the trade wars, fears of inflation, flattening curve, we're still mid cycle so i would still be adding to

equities here. >> when you say mid cycle, even people who are bullish say we must be getting towards the tail end of some bull market cycle. is that not the case >> i conventionally think the view is because unemployment is where it is means we're late cycle. but capacity utilization is still low. if you look at our favorite metric, long-term durable goods spending, so capex plus household purchases of durables, it's still mid cycle usually it peaks at 27%, and it's at 22% today. >> so you think it's still safe? >> yes one legs of this -- of the next cycle is really that millennials are beginning to buy homes so housing purchases will take us towards 2.5 million starts. that will add a leg of growth to gdp. >> james, you're not nearly as complacent when you look

long-term like that, are you >> when you look at the fed, and the fact as you mentioned -- the question is were they going to make a state of overtightening too soon that caused fears, or would they let this ride too long causing things to overheat clearly it's not the fast they're tightening too fast. they're on a measured path this is almost the best thing that could have happened for the emerging market story now. the trade war issue you mentioned still looms. we think that's more of a medium term issue that will eventually get resolved longer term we think the global economic story that we've been talking about over the last few years, that's still here that's not a mare rairage. >> the emerging markets you have liked for a long time. that's a troubled place to be. >> we liked it for a long time it worked for the last 18 months, 24 months. the last five weeks have been

challenging to say the least we do recognize there are issues there. some issues are very long-term structural issues. the big foreign currency debt issues that's definitely a problem. but you look at the world now, the investment landscape, nothing is cheap there's hair of every investment thesis so do we prefer stocks in the u.s. or developed markets, or in emerging markets, much lower valuations it's just we have to get through some currency issues now >> tom, if you're going to sit down and say put your money in u.s. stocks, make the case why the u.s. is the best place to be >> the reason to be long u.s., you are getting a selection of high quality businesses. s&p is dominated by tech companies who have, you know, very large market shares relative to other global tech companies. you're buying solid healthcare

companies, and you're buying world class banks. so i think the s&p is a blue chip index if someone had to allocate a ten-year bond at 3 or 4, you're faces losses owning a bond, if inflation picks up, you're owning blue chip companies that benefit from rising inflation. so equities are a great place to be >> the f.a.n.g. stocks led the way yesterday. andrew, your thoughts on what would happen with facebook if played out correctly in the stock market to this point f.a.n.g. stocks would be a place would like to be >> i think f.a.n.g.s are just proof of the quality of the companies you're buying in the s&p. f.a.n.g. stocks are producing prodigious growth, 30% revenue growth year over year. with high margins. so f.a.n.g. is the type of companies that are powering the s&p, but in the next ten years you have to keep in mind a third of the return from the s&p will come from companies not even in the index today. every ten years a third of the

return in the s&p comes from companies added to the index >> is that a reason to gamble on some of these early companies we're hearing about? they have massive evaluations. you think about uber >> yeah. it's probably not necessarily early stage companies, but where growth is generated. one of the big themes that we're seeing today is that the banking industry and financial sector are essentially converging as we move towards digital money, banking and technology are the same business. for now, companies like amazon seem well positioned, but there are probably future companies that look like a financial bank. >> james what concerns you, what could throw things off >> the biggest concern is just where we are in the cycle. tom and i disagree when you look at the u.s., not only is unemployment below 4% now, but inflation targets are at 2% which is the fed's target. so there is risk of policy error

we are talking about the broader concern also is are there durable moves in things like emerging market currencies that really, you know, throw things overboard really cause cracks in that foundation if that happens, then you have serious issues with those types of stocks. as we see right now, valuations are still attractive earnings growth not just in the u.s. but globally are still on track. the global growth story is still real because of that we would stay invested in those areas. >> that expression is kind of gross, they have hair on them. every investment thesis has some hair on it it's been used >> does that mean it fell on the ground >> that there's complexity to it it's not clean and clear >> once again, two sides of the story. if you're losing your hair and your hairline is receding, you

would want some hair in the front. on your back, you see someone, you go, ew, at the gym there's places you want hair places you don't want hair >> industries are built around this you want hair on your palms -- >> maybe you want bald investments then >> clean investments >> do you see what i'm saying? >> i see what you're saying. it would be nice if you start triangulating a little starting with trump. >> i'm going all ides. >> we'll see thanks, james. thank you, tom we didn't talk -- people are dying for you to talk about -- >> you're here >> what did shiller say? noble lawyureatelaureate, the rl exuberance guy -- i think bitcoin could be great and not great. >> speak to this we talked about it off the air you had a big call, there was a crazy bit conference last week

in europe. there was an expectation by you that it would shoot up as a result of this conference. it hasn't. so what say you? >> i would say the conference, my take away growth in attendance means there's some serious new folks looking at cryptocurrencies, blockchain it's gaining traction but the move of institutions, which is the long-term story of bitcoin, it will take longer than expected part of it is there's no regulatory clarity in any sector where there's regulatory risk, it's tough for investors to come rushing in >> sounds like he's hedging. >> not hedging doesn't sound nearly as -- he's triangulating. he's taking my advice. thanks, tom. who knows. $200 it got to 20,000 it's crazy, but it might be great. some of the biggest names in tech including mark zuckerberg,

ginni rometty and sachia nadella are in paris karen tso is there she caught up with french president emanuel macron be careful, rich, creamy sauces over there smaller portions maybe, karen. >> that's right. this is the french equivalent of ces effectively, the big tech show in las vegas. so lots to showcase here the internet of things means lots of robots around but also big tech executives from silicon valley along with 80,000 other people france is trying to create a technology revolution. this is different because you have a start-up culture here, the right corporation tax back drop and money being toured into training programs to have the right work force it's a huge catch up at stake here the united states and china are

much more advanced on technology like artificial intelligence when it comes to europe lagging third, but france worse behind the likes of germany and the yew flighted kingdom i caught up with the french president, emanuel macron, and asked him about playing catch up to the likes of silicon valley and china. >> my perspective is to be leader in europe and push all the european players bridges gap. we are more and more effective and i work hard on it to make france much more effective second now, we are experiencing this huge change we need a new framework for technology, for all social media, for artificial intelligence it's not just about innovation, you need regulation. look at facebook and cambridge analytica. >> what did you say to mark zuckerberg yesterday

>> europe is the right place to build this framework u.s. is not regulated. regulation is made by private players. it's not sustainable for our citizens you will have huge scandals. china is overregulated it's regulated everything is concentrated by the government the place where we can build new democratic regulation for people and with people and that's what we did at the european level with the gdpr, it's exactly what we want to do. innovation, smart regulation, that's the best way to be the most constructive place. >> let me add a bit more context to this. mark zuckerberg when he was in brussels was talking about the right regulation, all on the eve of new data protection rules coming enforce in europe tomorrow emanuel macron talking about the right framework. he wants to move aggressively, quickly towards technology but doesn't want to do it in the

facebook terms or the way facebook did, which was to do things quickly so macron wants to try and change the dynamic here in france just point out tlaths gohat's g for the startups, and useful for big, old industries in europe who have technology or start ups on their doorstep that they can tap into i spoke to lvmh about that conversation back to you in the studio. >> great, karen. we were looking at the shot. you wouldn't know it was paris from the shot it looks like davos, the inside of the davos -- >> yeah. >> i think they all look exactly -- if you walk to the left, there's a little coffee bar, i think, where everybody hangs out, right i've seen you there on the corner looking to get recognized >> the coffee bar? champagne bar with the

caffeine -- >> the aspirin reportedly helps with dementia. coming up in the next hour -- that was karen tso in paris. a lot of big names there >> this big name will be with us >> ginni rometty will be with us she'll be live on "squawk box. i like what she said, she wanted to change artificial intelligence from artificial intelligence to augmented intelligence a human is there >> for now >> helps the human otherwise you know what can happen >> another guy who wants ai, he's scared of ai but also working on ai projects elon musk goes on a twit errant against the very people who cover his company, his war of words with the media we'll explain when we return >> he wants to start pravda, but the new york sometimes already

has that, don't they >> i thought you were -- >> i slipped i slipped. >> and commerce secretary wilburious will talk trade we'll talk will lubur and ginni. your muscles look good, but we should be seeing more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.

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welcome back to "squawk box. we're in the chairs, these two things that we'll talk about now are sort of what prompted my whole triangulation thing. i can see this and not see it president trump not allowed to block twitter users. in a ruling yesterday a federal district court judge cited the first amendment. seven twitter users brought the lawsuit. in this case, there is policy that comes out on the tweets everyone should have access to the policy on the other hand f he's a private individual, wanting to block someone from his account, i could see that whenever he tweets, it could be

policy >> it could be policy and everybody in the accent should have access to that. why can't he just mute them? >> it also prevents them from writing to him >> that's okay >> and writing publicly to him with his address >> that wouldn't bother me >> i don't even know when i tweet and i reply -- >> i know you don't want to see everything because it blocks your twitter feed. >> i'm getting out of it soon. >> i haven't been checking in at night, it's been good. >> it's been good for you. she's always smiling now >> speaking of twitter, elon musk going on a rant about the media. he tweeted the holier than thou hypocrisy of big medi companies who lay claim to the truth but publish only enough to sugar coat the lie is why the

number no longer respects them problem is journos are under constant pressure to get max checks and earn advertising dollars or get fired tricky situation as tesla doesn't advertise but fossil fuel companies and gas diesel car companies are among world's biggest advertisers. then going to create a site where the public can rat the core truth of any article and track the credibility score over time of each journalist, editor and publication thinking of calling it pravda. >> can i take the other side of this on the one piece -- two things -- >> this is something new >> no, he's been a huge beneficiary of the media by default. more than just about anybody, he's taken advantage of the media. >> speaking from somebody who knows. you're a fanboy. >> i'vesupportive of a lot of the things he said. but the idea that the media as a result of oil and detroit advertising are in the pocket of --

>> i like the thing he said about the clicks click bait the headline jumps out at you and everything -- >> but to andrew's point, heis the benefit of click bait. >> and there was a piece yesterday about a conversation that lesley stahl had with donald trump before her 60 minutes interview a year ago where president trump said one of the reasons he goes after the media is because when the media criticizes him, it effectively undermines their value i think elon has gotten a lot of criticism eventually specifically around tesla. this is a reasonable way to undermine the value of the media. if you believe in transparency, if you believe in the stock market, believe in everything that we're trying to do every day, if we want companies to be transparent, you have to -- >>ky triangulate this. there are times when undermining a real story about criticism,

well deserved criticism, that's bad, but other times where the media is so out there in terms of its own bias they need to be undercut i can see both sides of this, too. this next one got me the nfl. >> okay. >> on this one, everyone is against police brutality, right? but then again -- >> let me explain the story. we'll discuss. >> go. >> the nfl owners approved a new policy that will require on-field players and personnel to stand for the national anthem but it's on-field players. you can be on or off eric chemi caught up with the minnesota vikings owner, mark wilf last night >> we're supportive of what we came out with today in atlanta as far as the league and respecting the fact that players on the field should be standing for the anthem we have a great respect for what that flag means.

we're very supportive of the policy at the same time our players, we're working a lot to with our players. they do so much good in the community. we're working with them on social justice issues. i think this is a good resolution >> the new player policy says they can stay in the locker room, however if they're on the field and take a knee, the team can be fined then the team can fine the players. in the case of the 49ers and jets, they said they will accept the fine, and if the players wanted to take a knee or do something else, they're okay with that. okay where do you stand >> so people that are really made ma at the nfl for this, they don't like that the players can stay

in the locker room because they feel that skirts the issue people on the other side say it's always been about police brutality and has nothing to do with disrespecting the flag and the anthem disrespecting the flag is in the eye of the beholder. let's say vegans decide they will protest eating of meat by burning the american flag. they can keep saying, i'm protesting eating meat it has nothing to do with the flag but if you're using that, people will still feel they're being disrespected so the national anthem, your father, my father was in battle of the bulge, i'm against police brutality, but we need to back law enforcement. >> but nothing will come up with a solution that appeases every constituent. >> people feel strongly on both sides of this. you want to be able to -- you want to be able to make your voice known and highlight

certain issues, which the players were trying to do that were kneeling. but you can't expect people watching that, that -- >> they may not want to watch it >> think still will tie the -- you can say it's about police brutality, but if you're doing it during the national anthem, it is about the national anthem. >> there was a player from the cowboys who was interviewed yesterday who said i'm not an owner yet, but at the end of the day it's a business there are rules we will follow >> the most interesting thing that happened yesterday, though, was that mr. york, who runs the 49ers, said i not only will pay for the players, he said there should be no sales at concession stands during the anthem and that he won't have concession sales during the anthem >> that's good point >> which is a shot across the bow at the other owners. he thinks this is hypocritical because they're happy to make money during the anthem --

>> so people are buying beers during the anthem? >> of course >> i would stop. it's a valid point >> it's an interesting issue we had meek on the show a week or two ago now >> we have michael rubin on today. >> and we will talk about what's going on with the justice department i think a lot of people who have taken the knee or spoken out, they think the country, the system of the country is not working for them and relates a lot to this. >> the other side says you have coddled millionaires, and a lot of guys that are over fighting wars for 30,000 a year >> right >> and they feel like they're getting -- >> i like his point about not making money >> triangulate i'm 50/ 50 >> wow >> well done >> thanks. when we come back, a tech turf battle.

amazon and apple fighting for top talent and new headquarters. what investors can learn from that battle. as we head to a break, a look at yesterday's s&p 500 winners and losers whoooo.

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. apple and amazon are battling in a turf war, talking about a real estate war. the tech giants are shopping for some of the cities to which

they'll build a new corporate campus but are approaching the process in two different ways. joining us is didi caldwell from global location strategies good morning it's a fascinating approach to watch. amazon does this so publicly, with the hq2 process then apple which is doing something similar, but sort of under the radar. which is the better approach before we get into where they'll do this. >> well, they both have taken different approaches but when you're talking about siting something of this size, you throw the rule book out the window the more conventional approach is to do things secretedly there are thousands of these types of decisions made every year but they have -- in amazon's

case, they have taken the approach of making a public bidding process. >> is the public process a good idea by default there will be lots of cities and municipalities that will be upset when this is all over >> yes >> that amazon has to do business in. >> yes >> what kind of benefit do you think they'll get economically from whoever the winner is >> i think there may be several things they're trying to achieve here one thing is that they're trying to understand these locations in an in-depth way, not only looking at them for these headquarters, but also for future operations as well. they have fulfillment centers, back office locations, data centers. so by going through this process in a public way they're gaining intelligence about what these cities can do to support their operations, not just for this facility but for future

operations >> apple has taken a completely different tact, a quiet one. this is more in line with apple's approach to life, which is traditionally relatively in secret >> right absolutely that's the most conventional way. most of the time when these decisions are being contemplated, nobody knows about it the fact that we know that apple is looking is a bit unconventional but usually these negotiations are taking place in private, they're under the radar. and we won't know what the winning city is until the announcement is actually made. >> apple is looking at north carolina, raleigh, charlotte, the whole area there, the research triangle. north carolina has had some unique issues around the lgbt community, tim cook has been proactive around that issue.

the nba didn't want to do they're all star game there. how do you think that will play? >> north carolina took it on the chin when they had the so-called bathroom bill. they'll take measures to rehabilitate their image but they have lasting impacts. in these negotiations, amazon and apple will want to know what will be the future stance of north carolina when it comes to some of these social issues. we have heard of other companies that have made decisions to locate in places outside of north carolina simply for this reason it's deaf flfinitely an issue ty have to deal with. >> real quick, is your sense if they do locate to north carolina, they'll change the laws further >> i think that is a question that is left to be seen.

>> okay. we have to run great to see you thank you for your perspective >> thank you coming up, get ready to drive. summer is here as gasoline prices are rising. i paid 3.70 yesterday. cash they're rising nenuerfrw mbs om pump are next

the summer driving season has officially started, many motorists are facing much higher prices at the pump jackie deangelis has the story that's right with crude oil holding over 70, brent crossing 80 this week, all eyes on gas prices as we head into the weekend aaa has the national average for a gallon of regular at 2.96. we all know it's higher in a lot of places. that's up 59 cents from last year at this time. we didn't get to the $3 mark, but we are right there aaa is also forecasting almost 42 million people will get away this weekend that's the highest we've seen in almost a dozen years of those, almost 37 million will get in their car and they will drive somewhere. that means the road will be

congested. for example, if you're leaving new york city between 3:30 and 6:30 tomorrow afternoon, multiply your normal travel time by a factor of almost three, not fun. rescues, aaa will rescue more than 340,000 motorists, we're talking dead batteries, lockouts, flat tires, you name it $3 gas coming sooner in the season than previously expected. these oil prices are staying supportive >> does that mean higher highs >> probably the peak goes through the fourth of july we've seen this every year if we start at the higher base, expect the prices to go up >> thank you coming up, "squawk" going shopping a top industry analyst is here with his best buy and sell ideas. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business.

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. stocks are pulling back over trades in north korea. >> we should be happy. you see that orange line, up 13%. bottom line, that's europe it's flat. >> signs of a slowdown in the euro zone growth pattern and italy. >> some companies are seeing double digit moves >> the feds say there will be another rate hike. much the beg debate, how much more after that? big name retailers like wal-mart and kohl's have posted solid results this season, but there might be no better story than tiffany, which really had a good number when it reported, saw stocks shoot up 23% following its report

i think it was just yesterday. biggest daily gain in more than 17 years if you are joining, i remember that day, joining us, the senior manager gugenheim securities when which asked you your best pick, tiffany was number one >> it was up there him >> did you do that yesterday afternoon? >> well, we like going in -- >> how long has it been one of your fates >> since i joined gung hegenhei definitely in the last two years. i think the brand continues to be very strong there has never been a question in our minds on the strength of the brand globally in the minds of consumers i think what's changed at tiffany has been the management. you know, there is a new ceo in town he's off to a really fine start. you know, they had changed over creative the beginning of last year the former coach guy is now -- >> that's where he comes from.

you think he's good? >> yes >> the creative leadership he will bring he says this is the first jewelry collection under this guy. >> jewelry is 91% of their business this is the biggest launch in a very long time i think the new jewelry launch twefs 2014, the interesting thing about yesterday's results is, they pretty much didn't have this new collection in the results yet. it just launched may 1st so when we think about what's happening with their business today, we think there is a lot to come with the new product that's just hitting the stores this month >> all right nike, you are leak that too, it's adifferent story, nike ha been weak recently, right? this quarter >> well, i think nike has been under pressure competitively, you know, from adidas and globally and i think nike is really getting its footing ag n again, especially in north america. i think what is happening in we are on the cusp of a turn in the

north american growth for the footwear business, especially. they've got a lot of really good product right now that will be coming into the shelves over the next several months and quarters. >> the charts. the stocks have been good, you say the quarters have been in there the biggest concern has been the retail mark >> that's where you saw the softness >> that's turning. we think that's turning. they have got a lot of really good product coming of the next several quarters >> kohl's has a good number. you like it? >> kohl's traded off that's an ton. essentially, they reported a good sales number, a good earnings number. but there were some calendar shifts that really didn't foresee. and i think that created a lot of confusion i think that should create an opportunity in the stock you have mentioned this guy krakow, right, he came from coach, which is not coach >> tapestry. >> tapestry. >> yes

like carole king or something. so i had to remember what it was again. >> i still am struggling >> testry. >> got rid of the name a corporate name >> you'd like it >> the company has evolved so it used to be pretty much just the coach brand when lou left coach, it's kate spade -- >> why, buy, down? >> that's nice we give you a couple near highs and a couple that have pulled back that we think are opportunities. >> all right we don't know -- >> we're jumble brains sorry. >> i don't know, is it verbal? >> disdurable. >> thanks. >> -- it is durable. >> when we come back, two news makers will join us from the big tech conference in paris to talk about her company and the broader issues facing theically. plus, commercing is wilbur ross,

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auto imports under fire. commerce secretary wilbur ross launching an investigation based on the national security of the united states. we'll hear from commerce secretary wilbur ross. ibm is looking to hire a first on cnbc interview. comcast said to have a superior bid for the asset, topping disney what this could mean for the industry and your portfolio, as the second hour of "squawk box" begins right now.

live from the beating heart of business. new york this is "squawk box. good morning, welcome back to "squawk box" here on cnbc. we are live from the nasdaq markets set in time's square him i'm becky quick along with andrew ross sorkin you saw markets closing up their high levels of the day gaining background after posting loss earlier in the session the dow futures are down about 24 points s&p futures off two points the nasdaq is indicated to open at 6.5 points. the trump administration has launched a national security investigation into car and truck imports. >> that probe could lead to new u.s. tariff if it is found that the imports are threatening the health of the u.s. auto industry

commerce secretary mr. wilbur ross will have more. new laws designed to avoid the $10,000 cap on state and tax deductions federal law controls the proper clarkizations of tax payments. new york, new jersey and connecticut are among states that passed laws like this or in the process of doing so. several economic reports are out, initial jobless claims happen at 8:30 eastern time. they are expected to remain near five decade lows also home sales are out for the month of april at 10:00 a.m. eastern time and earnings just in from best buy, the electronics retailer, if it's clean, comes up 8 cents above stills. 7.1%, more than double the consensus still. overall, revenue also exceeded

forecasts and the stock is now close to a new high, up almost 2.5% on the session. free marks other stocks to watch, william and sonoma is reporting better results. same store sales rose more than 5% it is raising its full i don't think. also, l brands, profit margins at victoria secret offers more discounts and l brands cutting the earnings outlook for the year and shares of net app are lower as the fourth quarter rules beating the forecast and fell within the range of analyst estimates. in other corporate news, we are getting new numbers on uber. they are offering new and existing investors, putsing its value at $62 million it says it has net revenues in

the first quarter. that's up 67% year over year the company says it cut its quarterly losses nearly in half. >> and breaking news this morning, south korea, the media there reporting that north korea has followed through on a pledge to blow up tunnels used for nuclear testing. north korea conducts all six at this one site we are talking about. ibm announced a commitment to open jobs in france the company's ceo is just off a stage in paris, where she called on software developers to unite for good ginny thanks for being with us today. >> thanks, becky >> you know you were just off the stage where you were addressing big issues. obviously, technology companies have come under pressure here and around the globe for privacy concerns, what is ibm's solution to that problem? >> i didn't. i got a chance to cover what i

think were three important topics you mentioned the one in the introduction, we made an announcement what we do, not just ai. it was something call for code the u.n. and the red cross in a donation of $30 million over a number of years were working on natural disasters, one thing then the second thing i dealt with what, that's great. can you have all this wonderful impact but we have to have trust and technology and our answer to that and it's something we're sharinged with world, honestly, becky, what we've lived by for decades, we've codified it, put it in writing, shared it with everyone, it's called the idea for principles in trust and transparency simply put the first one says the purpose of ai is to augustment what man does the second principle is data and its insights in the ai engines that get built, they belong to the owner, the creator of that

s things like ai, they need to be transparent and explainable. you can't have a black box you need to know what data, who trained it if you really believe these things will impact important decision, things about school, how your kids are educated the medical decisions you make, how you do under writing, you will never do that if it's a black box, are you not sure who trained it you can train these systems to not be good or good, you can train them for bias or no bias those are really important when you say trust. those are three really good tenets and under that, we talked about look this is all great to help people do a better job. but we do have to reinvent skills and education and you guy versus had many stories and seductions on this we have been committed to this not only for decades, we have been running this new public private part theirship education called pathway to technologies think of it as a high school a

six-year high 100,000 kids, that means you don't need a university to participate in this economy. otherwise we will create a world of have and have nots. >> you are tackling good issues, people are concerned with ai they will be losing jobs made a point you will be creating 1,800 jobs in france. can you give us your insight force what your job plans are for the united states? >> well the job plans, you might remember a little time ago, associated with this new collar prem these we said we would be hiring 24,000 jobs over the next couple years we are right on track for. that here in france as well, that was 18 hum as you just said and it's around the center of excellence for ai and for cloud, the internet of things it is really being driven by the demand here the clients that

have implemented ai, here you will finds credit mutual lbmh, their big railway. it's quite a long list, they're one of the most aggressive countries in the world about it. this has really underpinned what president nipon, from the very first time i met him, he has been focused on how these technologies could be a cause for good that was behind the summit he held yesterday called tech for good i led the one for him on education. there was one on jobs for the future and once on inclusiveness and diversity. >> that's great. ginny, can we talk about ibm him you came out with earnings recently better than expected and the revenue line had turned around, which is something wall street had been waiting for, for quite a while. still the stocks sold off after the earnings report. some say because investors lost patience in terms of waiting for a turn around. can you address that and just say what you think the stock

reaction was and where you stand with investors right now >> yeah. look as we've talked about, i think that we have done and achieved a great job of repositioning the company. in fact, what you find is a different company than self years ago and whether that's the look at the portfolio. now top three cloud. 18 billion take a look at our new strategic initiatives. almost 15% of the company growing 12%. look at ai, platform for business quantum computing. what we've returned to growth what you said is having fourth quarter return to growth and on. the next part of that puzzle is continuing to improve value. remember, we are a high value company. which has always meant low single revenue growth and continued to move and improve your margins we said .47% of growth margins as i talked and, show the margin of improvement, which i was

actually as many of our owners have told us pleased to see the broad based improvement quarter-to-quarter you saw on margins. that's what now will continue. i think step by step is what we are doing here. >> ginny, andrew here. quick question about block chain. it's a topic we talked about you had early success with the block chain, doing it oftentimes in the private cloud on behalf of clients and it's a high margin business. yet, what i wanted to ask you about is in the past month or two, amazon released its template for the public cloud, trying to build it into the stack. i wonder whether the block chain, which it seemed it could be a high margin business will ultimately get commoditised and what that means to ibm >> first, let me clarify one point our block chain runs on our public clouchld it is accessible to everyone you can reap it from amazon as

well the most important part about blockchain the underlying component is basically opened to us it's free for everyone then people build makes on top of it. so we build some, our partners are building some. you know we have the big network on transportation around the world. there is now 200 companies queed up food safety 100 on boarding here we're into millions of transacts already. so the value in this is more around than the applications i build on top of it as well helping commerce and put those networks in. the fabric is already open source and actually always has been from the beginning. >> ginny, one more question, going back to what we last heard from the company after your last earnings report the cfo from ibm made comments from the street saying don't count on the continued boost that we've seen of the last couple quarters from main stream sales. that is something you are not

anticipating that was about a month ago when we heard that can you give us an update on those main stram i frame sales at this point? >> well, look, i don't remember jim saying something like that the comments are as you know when a new cycle comes out a new product or version comes out this is the 14 they go through cycleles they boost over self quarters. clients have a new upgrade after. that we have 18 in early quarters, you see the largest gains around that but we continue to see really strong interest in that main frame and, in fact, i always reminds everyone, it's a very important part of what we do our hardware business is 9% of ibm. there is 91% of other things we do s the a very important part. i was with clients until midnight telling me how much and how meaning. it is, it runs the banks and the telecommunication companies of the world. we are talking about things like encryption and security, which

is what it does. >> that is in and continues to be really important. that's what we exist for to run the mission critical work on it. >> ginny, we are still debating in this country whether the tax reform is inducing big companies to spend more capital or whether we're seeing buy backs or other uses of the cash since the law passed, have you changed any decisions about capital deployment based on the tack law and the change for ibm, how it affects your company if >> well, i think, joe, you and i might have talked. for us, it's a head winds in the first year here, but we are strong supporters of it, still, because in the long run, a competitive international tax system is what you have to have and, therefore, you can make the right decision at the right missouri so while for us it hasn't changed, i think as i look and talk to so many of our

clients, what does matter is how they feel about the whole economic environment of which tax reform is a part and how they feel about trade and how they feel about what demand is and really as you would guess, they take all of those into consideration when they make those decisions. so whether you are positive about the future and i do see clients undertaking what i would call you know fairly big strategic projects that they have not taken for a while >> ginny, i want to thank you for your time today. we realize you have a very busy day we appreciate the tame you are taking to talk to us >> thank you for taking the time as well. >> when we come back, we will talk about another news making interview you can't afford to miss commerce secretary wilbur ross will be our special guest right after the break. so much to talk to him about, given we have a lot of news to discuss. in the next half hour, morgan brennan will talk about the emerging battles of short-term rentals and the law, airbnb

unwelcomed guests. stay tuned you are watching "squawk box" on cnbc (baby crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)

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foreign-made products pose a threat to the u.s. economy and national security. join us now commerce secretary wilbur ross. secretary ross, it's good to see you. already some of our allies are carping into the national security angle in this saying it's a convenient use that's been done before by the trump administration in situations where it doesn't apliechl does it apply here? >> well, it's the early stages of the investigation, it was just launched yesterday, so obviously we don't have conclusions yet. but it is the case that many of the same pundits that criticized the steel and alluminum coming forth and criticizing this one so i don't find that very surprising there will be plenty of time for the views to be expressed. we'll have public hearings, public comment heirary, just as

we did with steel and alluminum. as i think are you aware steel and alluminum have worked out very, very well. there have been something like 20 facilities, either reopening or expanding in steel aand alluminum since we put those tariffs in so that was a very good activity for us we are looking forward to researching whether cars should be handled in a similar fashion. >> how did it apply to national security i guess i can understand steel and alluminum in the defence industry how do you check the dots for the auto industry and auto parts industry? >> remember under section 232 of the act trade expansion act of 1962, national security is broadly defined to include the economies to include the impact on employment, to include a big variety of things that one would not normally associate directly

with military security >> all right. >> but it is also the case, economic security is military security and without economic security, you can't have military security. >> you can't just say, it's quid pro quo? you can't just say, look, your tariffs are x and it's not fair, our tariffs, therefore, are going to start being commensurate with the way you treat us that's not really what's going on here? >> no, it's not. this is specifically just like the steel and alluminum ones, looking into the national implications and whether or not the abusive trade tactics in cars do have the sufficiently adverse effect on national security to justify doing something. we will give you a couple data

points that are sort of circumstantial evidence that we are looking at market share of imported cars has gone from 30% to 48% over 8 million cars imported each year into the country part of the reason for the big imports coming in as opposed to our exports going out is we only have a 2.5% tariff on autos and auto parts europe 10% china had been 25% partly because in other discussions, we're having with them, they've dropped that to 15 malaysia is way up in the double digits sia is way up in the double digits what all that means the domestic manufacturers in those countries have a very protected marketplace. they generally have 70 to 80%

market share we barely have a 50% share because our tariffs are so low, it's very easy for people to get of a 2.5% tariff it's about subsidized steel and alluminum in the foreign camps it's not very fair competition it's the whole sequence of things we are looking at obviously, at the beginning of an investigation, you don't have conclusion, you just have areas you'd be looking into. >>ing is ross, that makes sense when you lay it out that way the idea of a much higher tariffs on our cars than on the cars that we're allowed here to joe's point, why can't you come out and say it's not fair, it doesn't work that way is it about the wto and what they will and will not allow in. >> the wto has more complicated rules of any organizations a pair of them that creates some

of this difficulty are called the most favored nation clause that means we can charge a higher tariff to one country than we charge to all other countries with whom we lack a free trade agreement that's one boundary. the other boundary is th that's highest right i rate permitted to charge. regardless of whether we apply the most favored nation. in our case, especially the case of autos, it's also this 2.5% level. so we have no flexibility under wto rules to raise rates at all. even though all these other countries have much higher rates. so that's one of the inherent unfairnesses to which prior administration in the united states agreed. in the sense that i don't blame

the foreign countries. they're doing what is best for them the stupidity is that we've let ourselves get into this box of extremely low rates. we gave it away unilaterally now it's very difficult to get back to a recipro cam arrangement. in an ideal world, it would be reciprocal that way it would be fair, whoever had the competitive natural advantage would win. but when you have these artificial barriers that are very, very high, not just tariff they are also significant non-tariff trade barriers, standards, licensing, all kind of other gains that the foreign companies benefit from because their governments support them >> right >> so it's a lot of stuff to talk about >> wilbur, we have known you a long time.

i have to say my head spins a bit trying to think about what the administration thinks from one day to the next. earlier in the week we hadding is mnuchin on talking about the trade war with china being on hold there has been a lot written about the different camps in the white house that are either in favor of different ways of handling these trade issues, but here we are a couple days laitd later talking to you about additional threats thrown down on these issues. where do we stand on this? is there one policy coming out of the white house or is this something being coordinated sore it something that changes based on which side has the upper hand on any given day >> well, there is only one side that has the upper hand. that's called president donald j. trump he's the only one elected. the rest of us are appointed people it's our task to give him our best penalties he likes the idea of conflicting opinions, because that way he gets to hear every side of each

big trade issue. and because trade is so important and it is also so complex, it's really very, very constructive that he does get to hear all sides of the equation >> mr. ing is, can we turn to zte and where you personally stand on this issue, obviously, your department came down with very harsh penalties the president turned around and said, please relook at them. it has seemed like it's turned into a chess piece in a negotiation with the chinese and yet we have been told that the white house doesn't want it to appear to look like a chess piece. what is it >> well, it's a trade enforcement action that's what it started out as being. back some time ago, it became pretty clear that zte, which is the second largest chinese telecom equipment company and

the fourth largest one in the world, it became clare that they were violating the sanction. both the sanctions on iran and the sanctions on north korea so we have brought an action, got the department of justice involved and in march of last year, we reached a settlement, which got court approval and that settlement said, they would pay fines totaling a billion $100 million of which $300 million was delayed so that that would be drawn down only if they made a further vials. what happened consequently, is the court in texas, which is the jurisdiction where this occurred, appointed an examiner. the examiner made his report and we fixed out that zte management has been lying to us,

so in addition to many, many instances of violating sanctions, they've lied during the investigation. they've lied during the settlement negotiation and they lied again after the judgment has been entered that's inexcusable behavior. it's not tolerable behavior. so we decided to sanction them and in the court approved settlement, there were two things that we could do, one was to simply take the extra $300 million. the other was to put them in a denial order, meaning that they can thought get u.s. technology that's on the list i chose to do the stronger of the two remedies and, frankly, the staff had recommended doing the 300 million, but i really

wanted to make sure they change the behavior of this company they had been bad actors that's how we bought to the first decision now since the president requested we take a look at it, we are reexamining, is there another way of achieving the same ends result is there another way to make sure that we can change the behavior we will not have sanction violation, we will not have people lying to us. so we're developing a matrix of things and while we haven't come quite to a final decision yet, we think there may very well be an alternative that will be quite punitive to them but really modified behavior >> wilbur, do you think the china trade talks seek into the north korea meeting june 12th?

do you think that president xi, i don't know, is playing some type of hand there where things did change at the last meeting with kim jong-un based son only of the friction between united states and china in the trade talks? it seems like a bad way to conduct nuclear proern policy about nuclear issues >> well, i gave up trying to pre tend i was a psychiatrist years and years agoes so i couldn't look into the head of the north korean leader or president xi. what i do know is we are going back over to beijing next week after the oecd in par res. we'll have some technical people there at first i'll be going there a little bit later in the week and we'll see where those talks really do stand. we are hopeful that something

constructive can be done, but if it doesn't meet the president's requirements, they will not go forward and they won't go forward if we don't have really good protection of intellectual property, really good protection against forced technology transfers. all of the important longer-term issues >> one question to follow up on the zte question if in fact, you were to throw out management and reconstitute the board of that company, given the fact that it is a stated-controlled company and the steps that they had taken before breaking the sanctions ostensibly were approved by government officials or at least the government officials looked the other way and the national security concerns that still exist around this company, how can you get comfortable with that type of solution? >> well, if we do decide to go

forward with an alternative. what it literally would involve would be in planting people of our choosing into the company to constitute a compliance unit and that unit would report back to the department of commerce and would reports to the board share after management change. >> so we'd be installing compliance officer, our own people inside that company >> it's one of the things that we're considering because the whole key is enforcement they wouldn't live up to their agreement. >> do you think they would be amenable having americans live in a compliance way like we might for a u.s. based company >> if we conclude that's the proper alternative, we will find

out. remember, right now the sanctions that we put in are in effect so they don't exactly have a very strong negotiating position because this is a very, very painful thing for them they're not getting the qualcomm material they need they're not getting the other material that's very highly technical, without which they cannot operate a large part of their business so they're not exactly in a strong negotiating position and since it is an enforcement matter, if we're not quite satisfied that we have a very good alternative, we're simply not going to do it and we will leave in place the sanctions. >> thank you appreciate it secretary wilbur ross, great to see you from walk. when we return, comcast, our parent company to top disney's big bid for most of 21st century

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welcome back to "squawk box. we're talking media right now between the cvs via com. joining us with more on media disruption is sean atkins a senior adviser and former president at mtv him we were talking real world during the commercial break let's sort of go through the various permeatations of the soap opera right this moment let's talk comcast it appears getting ready at least to make a bid, perhaps a superior bid at least for twen 21st century fox, trying to

outbid disney, if and when we find out at&t time warner has been approved or not maybe if that changes. on the other side i would have your former employer via com and trying to block that >> right. >> let's do disney-comcast first. what do you think should happen? >> look, i do think the time warner deal with will go through. i think you will see comcast put the offer in it makes strategic sense for comcast to come after it and for disney to pay more for it. in a consolidating industry, they will make disney pay a premium to get it. i have a hard time imagining a scenario, though, if both those giants go toe-to-toe disney will win. they are in just as strong a financial position as comcast is if you compare the synergyist opportunities, what would ten

marvel clark dorsey or tie it to the disney is that a way whoever wins will be overpay something. >> i think so. >> they can push each other to the brink on it. >> you said a content synergy is why disney is more it's interesting to think that the mar val characters with look better >> disney will do better than they have a physics than any analysis >> can you imagine the scenario, some how instead of a bidding war that 21 or bo both of them calm each opts and say it's crazy for us to both go after the same asset we don't necessarily want every piece of it and find a the way to cab it up ourselves >> i don't know if they're ever play that nice towing. i do see the scenario comcast gets sky and disney lets that go. >> what about the huh will you since that seems to be the other

prize in all that? >> i can see huh logo. disney is aggressive live going over the top they have to two together. you could make the argument looking intentally, what does huh will you fit into that it fits into the scenario, there is a general entertainment opportunity. i can see them trading off if they needed to i don't see that happening. >> what's the price that would make you unhappy >> i think you as far as getting into like hairier numbers. now again those hairier numbers in terms of a delusion perspective are not that consequential. even at that sort of a thing for comcast it's a bigger issue. comcast is the second most levord entity. >> it's a very low turn remember right now, it's still not a lot of lever annual. >> correct if they pick up all the assets they peck up, that goes to

something like $160 billion. >> i have one question as someone who has lost this share of the comcast price the share prices come down it's an all cash deal. which therefore wouldn't require shareholder approval. >> that's right. >> do you think shareholders are voting in the market, that a vote or a worry? >> i think it's a worry. i don't think it's a vote. >> via com, cbs. >> yes >> i used to always think the family wins, because that's what happened i'm not so sure anymore the family winning mate into the actually be winning from i agree, you said in the beginning this is an amazing soap opera. you have three amazingly smart and driven people. so it shows. >> exactly >> look i was as surprised as anybody about the nuclear option cbs pulled obviously, i don't know less of hanging out with them. you know he's got a strong exit

package no matter what happens and he's towards sort of, he's had an amazing run so maybe are you sitingthere saying, look, i either get to do this under my desires or i just don't have to do it. i can guess why you can get to that nuclear offer, i don't really need the economic conversation i have been very skechl frankuc. less gets loose. there is no manner of companies that wouldn't snap him up immediately. so you will pay a double penalty in that transaction. >> therefore, you think what happens? >> i think the lawsuit throws everything up in the air they not only have implications just to cbs-via com but to two class structures i have a hard time seeing tell win that, i don't have a press dent there assuming that doesn't happen, i think essentially the most likely outcome is either we settled to backish is going to

be on the board, things he is concerned about or you will see somebody come out over the top, like verizon saying i am willing to pay, tra. >> it changes the whole thing. >> all of a sudden the conversation is in the legal structure get hard fer someone is like i'm willing to play a super premium for cbs. i don't want via com. >> that's the question, do you think verizon shows up do you think amazon turns around and does something interest org the tech players >> i have yet to see somebody show up, particularly once we get to post-june the clarity of what happens. whether time warner transacts or no. they will transact it's a question of who is transacting twharks the subsequent snowballesque is after that i don't think we have seeing a stop to consolidation over the next two years. >> thank you for come in. when we come back, cnbc investigators.

morgan brennan has the story for us. >> reporter: that's right, the emerging battle between short-term rentals a tndhe law we spent months investigating. you will not want to miss this cnbcic exclusive stay tuned you fine tune the proposal, change the water jug so no one else has to, get home for dinner and feed the cat. you did a million things for your family today but speaking to pnc to help handle all your investments was a very important million and one. pnc. make today the day.

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a church battle is under way between cities the upstart technology companies airbnbs that have been capitalizing on the wild west landscape. airbnb is a six time disruptor, coming this at number 3 on this year's lest, but gigantic growth means big growing pain, morgan brennan joins us with airbnb unwelcomed guest a cnbc investigation into that crash between illegal rentals and restrictive regulations. >> reporter: airbnb is worth more than its publicly traded rivals home sharing is here to stay lawmakers are cracking down on rentals against the law. >> that they have worked to craft regulations, not in miami

beach, where it seems to have no end in sight it's 9:00 on a saturday night. we're riding along with people beach code compliance on the lookout for illegal short-term rentals. >> what are you looking for tonight? >> hopefully we can establish contact and determine whether it's a violation or not. >> reporter: coach officer has seen it all. large noisy late-night parties in residential neighborhoods commercial video shoots with scantily clad women and a home investigated for short-term rental complaints. it's unwitting tourists who say they knowingly booked airbnbs is restricted areas all captured on body camera videos recorded of the past two years. some are so blah tant a as these house rules show what to do if someone asks they are told to lie saying they

are a friend and don't mention they rent this place at a loud party in california, in the san francisco bay area, shots rang out guests seen on under surveillance cameras running down the street. airbnb says it has zero tolerance for the type of behavior and permanently bans guests airbnb says these incidents don't represent the guests in 81,000 cities and 190 countries and it has successfully work with lawmakers around the world. back on the streets of miami beach, it's not long before we roll up on vacationers it has telltale science, two units have lock box and key pads >> do you live there >> we do

>> how long have you been living there? >> actually, we just rented airbnb >> are you surprised to hear it's not legal here? >> when you hear that story. >> the issue is clear cut to the mayor. >> it may work in some places. they don't work here because at the end of the day, it's not the mom and pops we are seeing here. we are seeing commercialized predator companies that are trying to commercialize our residential communities. >> predatory seems like a strong word what do you mean be they >> it is pred tore, it's not a mom and pop, making chicken soup at night it's people taking nice properties, buying them, turning them into essentially a flophouse. >> in an interview at headquarters the head of global policy strangely defended the

company's track record >> i have yet to see a program run by any plair mayor generating $6100 for typical middle class families, all without the extendture of a single taxpayer dollar what is what airbnb is about at its core using technology for economic empowerment. >> should airbnb be responsible for that mark, illegal activity on the platform? >> i think it would be a common sense solution from miami beach, happy to do this, if they want to sit down and have a constructive conversation, is you could take that 35% of the city city a residential area, maybe that an exclusionary zone, let it take place in the city that is explicitly zoned for this activity smr in the meantime, you have a legal listings on your site? >> well, first of all, few actually look at the underlying law in the city in miami beach, right? they allows for this activity to take place

$20,000 fines on someone making their home available a few times a year to actually help make ends meet. >> well, it is an increasingly complex issue and the for more on our exclusive investigation, go now to cnbc.com >> airbnb isn't the only shearing platform. what about competitors are they complying >> it is a complex issue and it involves everybody to a varying degree, whether it's airbnb, booking.com, home away, all of these companies have been having clashes to varying degrees in different markets. we spoke to officials in many cities across the country, whether it was new york the city, whether it was los angeles, boston, there are different issues manifesting that said the company far and away time and time again the one that was referenced the most by

those official, airbnb in miami beach, specifically. official there is emphatically say that site has been the biggest issue. >> it's like a sick him, too much >> there is a reason it is on our disruptor list the other thing i would note is in miami beach, specifically, there are areas where home sharing and short term rentals are ill leeshlgs particularly in places much like south beach the city specifically has a map that shows where it's allowed >> they can if they wanted to. >> this is one of the debates, it's a part of the reason we did this months long investigation you see stuff happening in other markets where airbnb used chris le husseins words constructive conversation. >> it seems like a quick fix how does the hotel industry fit into all this? >> it's been in a beg place like airbnb

he says miami beach has to use his words, hasn't had a desire a serious desire on a resulting issue, based on everything that's come out, that city, official there is are working closely with the hotel or effectively with the hotel industry >> it cuts into the revenue, every time in the hotel industry >> i will tell you, we did get a response on that the american hotel and lodgeing association said, quote, instead of supporting common sense regulation, airbnb has opted to deploy a massive obstruction campaign of dirty tacticles some the bottom line here is regardless of how the law came into being there is a law on the books and what our reporting showed is that that law is getting broken >> morgan, thank you >> cinomg up, dallas fed president robert kaplan fed

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the latest reviews. the lowest prices. greinkeing overnight, the u.s. launching an investigation into auto imports, citing national security concerns. >> without economic security, you can't have military security >> the "squawk" reserve. we will take you live to atlanta for a first on cnbc interview with fed president rod kaplan. >> they score a big deal with the nfl and nike, an exclusive interview, coming up as 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," live from the nasdaq mark, time's square, i'm joe kernon and becky quick and andrew ross sorkin they had an amazing session yesterday after you know if you think the fed doesn't matter, i guess they acted look they weren't that worried about inflation. the market came back down triple digits at one point. >> even more at this time yesterday. >> the nasdaq started the rebound yesterday. had a solid session, it's up again today, making headlines, best buy, reporting a profit of 82 cents a share, comes in 8 cents above estimates. part of this is me paying the

geek squad or magnolia or whatever it was the set stuff up at my house? i'm telling you, a penney is from that. comp store sales are up. more than double the consensus estimates overall revenue also exceeded forecast. what is our things called, andrew the booster wifi things we got raucus >> raucus. >> we got a few expenses like an industrial internet. it doesn't go down as much >> no no, it's great >> if that happens, life stops at my house. >> it might as well be the electricity being on the fact that they had to choose whether the garbage disposal works or the wifi or whether the lights work. >> wifi wins >> unbelievable. >> in the sorkin household, too. >> in global report, north korea has followed through on a pledge

to blow up tunnels used for nuclear testing. north korea conducted all six nuclear tests on this one site a war of words escalating between the u.s. and korea, mike pence vice president warns it could turn into libya if they don't reach a deal north korea's vice minister of foreign astairs fairs saying the remarks were quote ignorant and stupid many went on to call pence a quote dummy. questions remain about the scheduled upcoming summit between kim jong-un and president trump. perhaps, though, what's happened today may when not the comments but the action we will see. also an update on another story the ceof russell is stepping down effectively the board maebs and the trump administration hitting the company and its main owner, a

billionaire with sanctions in april. it was one that they sanctioned over what it called ma lean activity around the globe. whisle is one of the world's largest alluminum producers. >> the commerce department launching an investigation into auto imports they want to know whether they threaten the national security of the nation. auto makers are falling on this news we spoke to the commerce secretary wilbur ross in the last half 94 >> it's a whole sequence of things we are looking at obviously at the beginning of an investigation, you don't have conclusion, have you areas that you will be looking into >> on the ongoing trade negotiations with china,ing is ross says he hopes those talks in beijing are constructive. steve leishman joins us in

dallas with a special guest. >> becky, thank you very much. i'm here with the dallas federal reserve president robert kaplan. >> welcome to texas. >> yesterday as joe was talking about the market moved on the minutes. i think there were two things that were in there one was this discussion of symmetry and the long one. if we can take this one by one, what is your sense that the federal reserve will be? how comfortable are you on a the% target? >> my own view is you don't want to run below, few had excess of 2%, i'd be willing to tolerate that if i thought we were going to run above 2% that would affect my policy views so that's my view i did some calculation, you have to be 2.7% for like six years do you have that tolerance >> it's not historical smet try.

you don't need that to catch up. we had seven or eight years of an under run when i say we don't want to run a little above or bow low, that's fine we're not trying to catch up for historical under runs. >> is two-and-a-half tolerance level? >> i still say i want to run around 2 if we got a little above it. i thought it would be short term, not long term, i could tolerate that. fithought it would persist it could affect my policy views. >> the minister said there are a few people who think the fed will be at the neutral rate before too long. are you one of those people that think that >> well, as you know, i've said consistently, i think the neutral rate is somewhere in the neighborhood of two-and-a-half, two and three-quarters if i had to narrow it down the range. we're at 150 to 175. so it means after three or four

more moves we will be at neutral. my own view is we should be raising rates until we get to neutral we are should do it gradually. i'm not prepared to say how i want to go above neutral once we get there, we will have to make that judgment whether it makes sense to be restrictive or what i think will be restrictive. i'm not there yesterday. >> one of the interesting things is oil prices. >> yeah. >> they have been doing quite well, what do you think it means for the u.s. economy >> we have been in a over supply since '14 to '17, we think we're basically in global supply-demand ekwquilibrium now him shame should particularly be sufficient for increases in demand >> i think we will have

volatility here's why if shale is enough to supply global demand growth the problem is it has a very rapid decline curve and we have not been investing in long life pronltsz. we think it will be susceptible to geopolitical shots. the issue for us is not the next three-to-five years. it's beyond three or so years. we think we may well get into global under supply situation. why? because as prolific as shale is, it may not be enough to supply increases in demand. we'd say we will have volatility around a range >> i got two more topics i have to get to. the first is 21 of the recent developments, i think it's almost since the minutes as well is what has been happening in emerging markets is that a rick for the federal reserve and the u.s. economy in turkey and argentina and some of

these other places >> i watch this careful little people say why are you watching outside the u.s. so carefully? are you a central banker to the united states the reason i do is and just for people listening to, what's happening is the dollar strengthens, as the fed raises rates, there are a number of countries that had rapid inflows and with the dollar rising, there are sensitive increase to the dollar it's a continuum. the reason i watch it, if it gets pronounced enough, it could lead to rapid tightening conditions in the united states, which in turn could slow the economy. >> are you concerned about that? >> we're not there at all yet. it's a developing situation,on that we need to be watching and one indication is, if of 2016, we saw this happen with china. >> we're here at a conference on

technology and a disruption in the economy. why does that matter to the economy and monetary policy? >> the reason they said we are hosting this conference, we think technology has been going on for decades, we think that it's accelerating consumers have much more tech knowledge at their disposal than companies did. we think it will have a muteingesque on inflation. we think that needs to be taken into account we think it's having an effect on productivity. what i mean is because of the rapid disruption in industries and job, if you got a college or better level of education, you can probably adapt it to few are one of 46 million workers, are you seeing your job

disrupted or eliminated him if you don't get retrained, which is easier to say or do you may see your product level decline so we think it's affecting it's one of the reasons we believe that productivity is sluggish in the u.s. economy we think more work needs to be done in understanding that is there thank you for joining us >> thank you, steve. >> joe, back to you from dallas, texas. >> coming up, another first, fanatics inking a megadeal with the nfl and nike, founder and ceo of kinetics, michael reuben is literally standing by he's right over there. stay tuned you are watching "squawk box" on cn bc hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing)

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>> nfl owners have approved a new policy that will require anfold players as to and the for the national anthem. here's what the atlanta falcons owner arthur blank told c this bc last night. >> i think the most important thing. i've said this to the commissioner, to my own partners is that the league and the players are aligned on these issues this ist not about players and the owners it's about legitimate issues

that live across the united states in a variety of settings, in a variety of ways that we have to recognize and now i think the players an owners a and the league, et cetera, are working toke in partnership and collaboration on moving that ball down the field. >> so to speak the new option gives players the option to have staying in the locker room if they prefer not to stand for the anthem. we will talk a little about. that let's start with this the nfl and nike and sports merchandise retail fanatics have agreed to a ten-year partnership fanatics licensing rights to manufacture an distribute all nike nfl products for the fans joining us now michael reuben, fanatics founder how long has this been in the works? you already are doing some things, obviously, with the nfl? smr we really had this vision

since 2011 we want to verticalize the vision instead of having the model of a league giving rights to retailing and the consumer, we can make it faster for the fans. it has been in the works for years. >> what changes? >> what changes in the deal structure of all is now nike is focused on being this incredible design and innovative xa ento outfit the players, but everything is sold to the fans and we can get the merchandise to the fan much more quickly from a fan's perspective, quicker delivery of merchandise and it's really going to make the fan better overall >> i was definitely rooting for washington much better for business it was 3-1 over tampa bay bull marketed for him to win,

definitely better for% >> nike will be designing and manufacturing can jerseys for the players, themselves. >> yeah they will off the players, nothing made at retail whether dig's sporting goods >> here's my question. right now if are you a fan, one of the things you want i think is the swoosh because of the authenticity the idea that the jersey you will be wearing is the same type of jersey they're wearing on the feel, right >> absolutely. we will make the merchandise in the same factors we work with. so nike this is distribution it's about for us our whole supply change is how do we have every prod, every size, every color for the fan and for nike it's a 100% of the business. >> are they going to be

designing that jersey? >> it's on field, they design it >> the jersey i buy. >> they design it. we manufacture and sell it to you, dig's sporting goods or through the internet >> you will be designing other merchandise as well? >> if it's on the feel, it's designed by nike the same it is today. etching is always through nike factori factories. >> is that the first time? i don't know this, is nike ever effectively giving over its swoosh to another company? >> any big company, nike, estee lauder, they have businesses, they make a lot themselves this is a business where nfl said, look, we want to have a better model for the fans if we can split kind of the innovation and split the maximizing transactions for the fans, we can have a better

outcome for everybody here >> you own, part owner of the 76ers? is eight positive for sport overall? >> it's definitely positive sports i have been saying this for years. you have to give credit to adam silver years ago said this is the right thing to happen i think the reality, there was a massive betting on sports. now you will take the industry, make it bigger it will help regulate sports you will have more people. that will help viewership. it will be great for sports overa overall. >> i have been trying to think a way to say this the stanley cup final will feature a morally bankrupt on greed and deceit >> washington?

vega vegas? >> we have a lot of different perspectives >> washington and vegas, d.c. and vegas are so similar let me ask you, cubans said it doubled the value? >> did he say double >> not that much i love mark i think it had a modest increase in sports values it's a good long-term effect you will have better, more viewership, more engagement with sports that's great for the industry long term. >> both sides didn't like necessarily the goodell i guess what would you call it his solution to the whole problem do you think the nfl handled it in the first place and does this walk the line in >> let me say this, give you the real answer to this this is as

complicate and tricky as an issue as you could possibly have, from a business perspective, this is something that's really hurting the league, the teams, the fans, it was hurting the business for the fanatics, the disagreement wasn't about police brutality. it became a much bigger issue. >> last year we had you on the sho himself asked you if it was hurting business it isn't >> 40% this year the business overall has definitely suffered pain from it from a business perspective, it was something that was really difficult. few look at it from a social perspective obviously what i have been through with my close friends, seen what he's gone through first hand you can see how important for athletes and owners to use the

platforms to help some of these issues look at the way the ers, the nb, akraft got houston it and the supreme court let him out of jamie for a crime he didn't commit i think it's a really tricky issue. one you can understand both perspectives on. >> if you were the owner of one of these teams, what would do you? >> the owners voted unanimously except for the abstentions >> there were the abstentions. jerry york came out, said, we're not going to sell, no concession during the anthem. if you are a serious owner, this is how you want to play this and you are willing to give up the money no concession, that will be worth millions annually >> they're the ones that came up for this and voted for it. this is their solution the player's solutions >> of course, it's the only

solution >> you have a couple signaling ley they don't like it they are a part of it. >> i would say it's not a virtue signal at all. if you care about this issue, no, no, you don't think so you think. >> i think it seems like everybody's got. >> i'm going to go so far as to say i think it's hard to support meek mims look you have and take the position that it is unfair for the players to express themselves. >> let me start by saying this is as complicate i complicated an issue of anything er everything i seen. i can tell you what is great for me to watch the way the 6ers, the nbc, robert kraft, the eagles got behind meek mills we used our platform to make a

difference. >> yes in the real world the owners are walking a fine line between the 9% ratings drop for money and to not alienate the players, so be realistic about it don'ting a leak it's a high minded >> there is a question of whether they have just -- by the way. it's not clear the players are very happy >> they are very unhappy >> the owners are happy and they will pretend, oh, i didn't want to do this you can outpay for like the new york jets guy i will pay, they all signed onto it they all wanted to get this thing. are you an owner you probably wouldn't want to put it behind you, would you >> it's very complicated issue >> that's the virtues. >> people have a different take. >> i don't understand how you. >> demoralizing. >> oi don't know how can you say demoralizing >> i are not moralizing. >> i'm saying, i'm being honest

about what's happening here. >> but i think there is a lot more here than you talk about. >> it said it's a complex issue. both sides >> i'm not going to stake-out position unless i see both >> all right co coming up, the crowd strike, the company taking the 127ing spot on the disruptor list. we will talk to the ceo at 8:40 a.m. eastern time. ♪ most people come to la with big dreams. ♪ we came with big appetites. with expedia, you could book a flight, hotel, car, and activity all in one place. ♪

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>> good morning, everybody welcome back to "squawk box" here on c this bc. we are live from the nasdaq marks set in time's square i'm becky quick along with andrew ross sorkin and joe kernon electronics retailer best buy, the company earning 82 vents a share. that beat the estimate by 8 cents. revenue was above forecast, too. same store sales increase of

7.1% was more than double consensus estimates. check it out thing to is under pressure because of slower than expected growth this online sales. shares are down by 3 and a third persont. if you are waiting for the next version of sony's playation is consul, the head of the business says sony wants to spend three more years developing and bringing a new consol to mark. it went on sale and has sold more than 79 million units supermarket operator kroger is buying home chef that's the largest privately held meal kit company in the united states. kroger will pay $200 million up front and up to $700 million depending on certain performance targets. this deal comes a week after kroger's purchase of a $250 million stake in british online

grocery oka do group. we are seconds away the futures worsened down about 70 on the dow the nasdaq indicated down 1313 and the s&p indicated down about 7 to ten year is getting close. rick the number, please all right. well, jobless claims rose 11,000 from a revised 223 thousand. it's standing at 224,000 last week few recall the number was originally 222,000 continuing claims moved from an upwardly revised 1.712 to 1.74 him up a little on continuing claims these numbers are not going to give you huge clues about your strategy and trade marks, because they're at such low levels, late 60s early 70s

but if they move in the other direction, they're inciteful even with the perceived mark dovish minutes, the last fed meeting where everything moved a bit. we saw flight-to-safety safe haven like the yen move higher we saw interest rates to treasury yields move down, it was buyers buying from investors. but what we didn't see was that small down draft in the dollar index giving back little even with the holiday long week coming, it seems it's one of these trending areas of the marketplace. we pay close attention to that 94 hand on the dollar index. becky, back to you >> joining me is jim paulson, chief investment strategist. jen, we have been talking all

day about the mark you think the valuations are a little stretched why is that? >> well, i do, becky, with the market peak, i've trade about 23-and-a-half times trailing earnings on the s&p now, earnings have been coming up the mark hasn't gone anywhere the earnings is 121. it's a nice refreshing correction the problem is over that same time period, bond yields and interest rates have gone up, in relation to bonds and interest rates overall, the stockmarket even though it hasn't gone anywhere while earnings have come up is no cheaper than the top of the mark in january it's very differently when yields are rising, we're struggling a little with that. i don't know what the magic level for valuation is but if inflation is heading up towards 3 and bond yields to maybe three-and-a-half, i think will you need somewhere around a 16

or 17 multiple that will be able sustain that kind of economy and then be able to trace earnings gains again him we might still have a ways to go here yet either with stock prices coming down or earnings going up. >> first of all, we heard from the federal reserve yesterday they may be okay with letting inflation getting higher than their target for longer than anticipated. >> that doesn't ease any of your concerns on this front >> you know, it was interesting how the mark reacted to that joe mentioned bond yields have come down back to under 3% slightly to me a dovish fed reaction like that would scare me if i'm a bond holder. >> because in. >> they're going to let inflation get out of control or rise fur i'd be selling bonds, not buying bonds. and at this point with the unemployment rate of 3.9%. growth looking like 4% in this

contracter, i, it makes me a little anxious when i hear the fed so dovish rather than wanting to >> you are justing to conclusions thinking they will lit it rage out of control as you mentioned, you wouldn't be buying bonds. doesn't that make the bonds more attractive in. >> i think it does by default. what else you will buy but rising yielding will be a stock. if they rise more, that will keep a appreciate and the pe multiple in the stock market the other problem is if they let inflation rise, we will see more and more companies starting to report margin pressures. we've seen a little of that already. that could become more intense if the fed doesn't get out ahead of some of the inflation pressure >> i think your outlook is the mark remains relatively flat the rest of the year what you just laid out was this idea of going from 23-and-a-half

times trailing earnings to 16 to 17 times earnings. that suggests either there will be a big drop or earnings will be strong coming in. which is it? >> yeah, i concur earnings are good and ewill will be this year coming in 160 by the end of the 84 on s&p 500. if the mark is where it is today, becky, or slightly lower, it will be pretty close to types of multiples by the end of this year so it could just be it stay, goes nowhere fast this year, up and down, earnings continue to soar that might be enough to set us up for a good 2019 i just don't know if the mark runs away this year, even though the fundamentals on main street are really strong right now, including earnings >> despite all your concerns, you say you are aggressively overweight in areas like cyclicals. why is that?

>> i think a really difficult decision for portfolio managers, you are sitting here and the economy is super good, probably the best it's been profits are spectacular. do you dare by go overwapg cyclicals or with valuations high and the economy cycle getting old, do you start to get a little more defensive? ewould stay cyclical primarily because there is a strong relationship between cyclical out performance and the consumer confidence index and historically over the post war era when consumer confidence has been in the upper quartile, which we have been at, sick electricals strongly out perform defensive stocks even though i'm concerned the mark could hit another air possible, perhaps, i think even if it does you will sigh it led relatively by energy and materials, industrials, technology as opposed to some of the defensive stocks, which might get hurt more in a down

draft by rising yields >> okay. jen, always great to see you thank you? you too, thanks. >> when we come back, stocks to watch ahead of the opening bell. why bitcoin prices are falling it's a wide rage of crypto currencies we will tell you about that after the break [ music playing

[ music playing >> take a look at a couple stocks to watch. hormel reporting quarterly earnings, one cent shy of consensus estimates. hormel said it caused results during his quarter diageo has started an auction of its spirit brands including gold slager and mayers. oh, what is that >> it's a liquor with gold

flecks in it i can remember in college, it's bad. >> from college? >> yeah, it's been a while >> jagr meister. >> it doesn't have deer blood in it >> something, vixen. i can remember that and the next day. anyway, this comes from sky news, diageo would say its regular reviews, williams and sonoma, revenue competed forecast >> the doj has reportedly opened a probe they are manipulating current sis. the report and investigation deals with the practice of spoofing that's when an investor places orders intend and flooding the

market with orders take a look, you are watching it literally drop about 4%. we are down to 7300. give or take where you want to buy it from. the pressure on that i don't know if you want to call it a currency or commodity. that's what's going on this morning. when we come back a lot more to talk about cnbc classic disruptors and cyber cloud strike making the list for the second time in a row, this time come income at 27. we will talk to companies, ceo and co-founder right after the brake. a bachelor.

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welcome back to "squawk box," apple and volkswagon hitting the road with passenger vans with self driving technology, they will be used to shuttle coming after on and off again talks of other car makers they talked with bmw and autonomous vehicle, now have hooked up it appears with volkswagon with early tests. our next disruptor, clients like adp, shutter stock and sony, crowd strike the on our disruptor list for the second year in a row the co-founder and ceo and president. you have all three titles.

for those that don't know, explain how it's different >> it's basically a next gen ends point security company. we live it from the cloud. >> and when you talk about doing things for companies like adp. is this in the public or private cloud? >> we're delivering it from the crowd the brains are in the cloud the management is in the cloud. we have a maul lightweight agent that runs on every machine, whether it's a desk top or server on premise in a companies ip center or desktops or in a public cloud like amazon >> given that amazon, google, everybody, microsoft, azure, are all trying to build more and more of this type of technology into their own cloud rather than

have it be a separate layer, long term, do you say, an independent company offering this service across various clouds or microsoft or amazon will ultimately buy us and make us a manndatory piece of the stack? >> we work with amazon, google is one of our investor, we are agnostic, the most important thing is to make sure the work loads can be protected for our customers. >> do you see that as an opportunity or a threat to your business >> i think it's a great opportunit opportunity. if if you look at how we protect the customers, i think as a stands alone company, we have a lot of potential in the future. >> what i'm asking, very specifically is long term they

build more and more apps into the system the question is there are companies out there whether that becomes a central component piece from a competitive for an amazon or a google >> it could be they continue to partner with folks like we do. they focus on the infrastructure and making it all work we have gear guard duty service. it's worked out well so far. >> for those who don't know, when you think about gook him, if i was earning a small business today and put my stuff, using their aws or google or microsoft. is there a basic security? one you think is more secure than another

i think any of those cloud providers, their main focus is to make sure they have a cloud it's much more than maintaining their own i.t. department. that's most important. they may not have all of the infrastructure and expertise, by outsourcing it or leveraging some of our technology, they can have the best in the world >> where discuss cloud strike go next >> we continue to double in size, headcount, geographic expansion. >> you do a lot of business in china? >> we don't do a lot of bes in chosen. >> will you? >> we have a huge mark we have a lot of chers who have chinese part of the business there they roekt what is in china. if you look at the overall opportunity, we have done well, even a large public companies don't do that much in china

because of the companies actually based there >> thank you >> you can buy a crystal ball. i know you don't have one, williams and sonoma has >> i don't know, but you said you don't have one >> some people still have one? >> i'm looking for one that works, though. >> i don't know. you said you don't have one. >> you can buy them on amazon and then you tell us what you see. >> i will. >> you can see who -- >> thank you >> i do like that. you can see who else made the 50 list by logging on to cnbc.com/disruptors. >> when we return, in the past, i will say that it seems this man has a crystal ball, jim cramer at the new york stock exchange here are the futures, down 72 on the dow. we'll be right back.

♪ ♪ let's get down to the new york stock exchange. jim cramer joins us now.

it's kind of interesting with wilbur ross, jim they basically say, look, the rules don't allow us for quid pro quo, so we go back to 1962, and we can sort of use this little sort of a rule that was made back then about national security we'll use it whenever we need it for tariffs. i hear we put tariffs on trucks. have you ever heard that >> yeah. have a look. >> i thought that when they did steel they sensed because we actually make armament out of steel and not as clear cars and the countries are trading cars, but i will say that i thought becky, when she pressed wilbur ross on the different voices in the white house that was one that that he didn't really want to go to it seemed he avoided that to some degree. it's obvious there's complete discord there. >> although he did admit that donald trump likes to have views

and kind of see it play out which is more than i expected him to say, truthfully. >> play out pub luckily in the press is -- i don't want to do fake news because someone else might say stupid that's fake news >> it is confusing, right? trying to figure out where we stand from day to day. >> if you want the stock market to generally go higher which is what the president wants and let anybody talk, but i think it's an ill-advised strategy because it hurts the president it hurts the president's value as the president of the united states >> are bmws made here? i couldn't believe -- of all of the bmws that they're wored about is bmw 3 which is made in mexico when ford started moving its plant, bmw started to go full throttle in mexico mercedes was outrageous. so it looks like the germans don't import a lot of cars here. they are the single worst, but i

can be the president's guy, but i like to talk about it privately. >> it's only 4% according to numbers. >> bmw, mercedes, i'm not saying that it's criminal that would be ill-advised and it's unbelievable how they hurt our nation >> bmw is very aggressive and they're always coming up my rear end. they're always on me >> that's so 750 guys. the bmw 3 series >> very aggressive, it's like okay. >> i've got a wig plant down there it's ridiculous. >> okay. all right. >> tesla's going to be the only car. the president likes tesla. >> right >> thanks, jim we will see you in a couple of minutes. coming up on "squawk on the street," don't miss the interview with raphael bostic.

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♪ ♪ don't juggle your home life and work life without it. ♪ ♪ and don't forget who you're really working for without it. ♪ ♪ funding to help grow your business... ♪ ♪ another way we have your back. ♪ ♪ the powerful backing of american express. don't do business without it. the powerful backing of american express. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. whai tell clients, etfs can follow an index,

but which ones 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. and what we're looking at at the open 67 points or so on the dow

indicated down the nasdaq indicated down 8. that was the strong average on a relative basis yesterday, and it has been positive at one point this morning, but now it's down and then the s&p is down about 6.39 if you look at the chart where it turns into a triangle at the end. >> triangulation >> that's the word for the day make sure you join us tomorrow "squawk on the street, triangulation. ♪ ♪ ♪ >> good morning. welcome to "squawk on the street," i'm carl quintanilla with david faber from international trade to currencies to amazon, senator bernie sanders will join us at 11:00 a.m. to talk about his criticism of the company and jeff bezos this week futures are a bit week after yesterday's upside reversal and europe and japan saw a