it, by the way, read ken's new book, called "i love capitalism!" it's out now ken, thank you very much for being here. >> thank you. >> always a pleasure to see you. folks, we are heading towards the opening bell, and al morning long we've been looking at the futures, had been higher until just a little bit ago. the dow is now looking to open down by about 32 points, s&p off by 2, the nasdaq up by 11. join us back here tomorrow right now it's time for "squawk on the street. ♪ ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new yo stock exchange. futures fade just a touch after monday's rally trade headlines among the leads today along with global isms, primaries in eight states. of course, howard schultz on life after starbucks europe is mixed. yields dipped back to 2.9. oil's below $65, lowist since april. our road map begins with the

starbucks shake-up marking the end of the era of howard schultz, the architect of the modern starbucks, stepping down as executive chairman. willfee titan now turn his focus to politics? plus, tech's been on a tear. the nasdaq on track for a slightly higher open apple, amazon, oh, and twitter, helping to drive the sector to new records. and super bowl snub. the president abruptly canceling a scheduled white house visit by the philadelphia eagles. the latest volley in the battle over players' protests howard schultz has built starbucks into an empire 28,000 locations but he is stepping down as executive chairman of the coffee chain, effective june 26th the move fueling some speculation he might run for political office earlier on "squawk box" this morning, schultz talked about ceos like the current president running the country. >> when you're talking about a ceo in terms of public office, there is a very big difference between someone who has run a global enterprise, like myself, who has traveled to china probably more than any other ceo in the last ten years, who

understands those issues, versus someone who's run a private company with very little fiduciary responsibility to other shareholders and i'm not saying that as good or bad, but there's a big difference and so, i think, yes, president trump has given license to the fact thasomeone who's not a politician could potentially run for the presidency whether or not that has anything to do with me remains to be seen >> he says lots of things he can do as a private citizen, other than running for president but comparing his experience to the president's is going to raise some eyebrows. >> well, i think so when you look at the timeline of howard now remember, he stepped down december 1, 2016, so it's right after the election, okay kevin johnson got that nice period between december 1, 2016, and april 2017 to be schooled, then he becomes the ceo. so, if you want to look at post trump win, you can certainly make a case that what happened is that maybe howard, who probably considered a bid

against trump but was, i believe, a hillary backer, okay, so you don't want to upsett apple cart, didn't want to be a resurgent like bernie sanders, then waits no punitive candidate has come forward from the democratic party. and we know from the president that you can dismediate the entire party system. so you don't necessarily have to go to new hampshire, iowa. you can tweet your way you can facebook your way. and what i think is happening is it's never been easier for a ceo who has no party -- insinuating party politics, in other words, doesn't have to do retail. the only retail howard has had to do is starbucks he doesn't have to do retail political, and retail political i think is very difficult for anyone -- >> you mean kissing babies. >> right. >> rallies >> the gauntlet that we've seen over and over again no longer needs to be done post president trump -- >> i don't know about that it's not as though president trump didn't hit the huff stinks

very, very frequently, and he had to participate in all the primaries. >> you don't need to have been a party member agitating throughout in the old days, you had to go through a traditional -- what i'm saying, you had to go through a traditional political group. yes, you're still going to have to go to these states, but you don't need that kind of deep in the woods organization. >> you can make an argument that obama didn't have that either. >> well, but he was a senator and he did have political backing. >> a senator for two years. >> still what i'm saying is that you can literally -- >> he wasn't lyndon johnson, all right? he wasn't richard nixon. >> he was but there's no candidright now who has surfaced who has any more grassroots organization than howard >> certainly not the blessing of party structure, right >> right i mean, bernie sanders has come forward and howard schultz has come forward >> you think he's come forward you think he's going to run? >> i think that he has certainly set himself up when he talked about the issues this very morning, very morning. >> yeah. >> those were all issues that were political -- >> no, he did a very nice job

addressing them as well. we talked about that. >> yeah, talked about immigration, talked about guns. >> exactly, that's my point. >> let's bring in andrew ross sorkin, who did the interview this morning, in seattle at starbucks headquarters andrew, your thoughts on how he reacted to some of your questions about his future >> i think there's no question that howard is clearly thinking about political office he has not said as much, really for the first time, by the way you know, for so many years, the question that was asked at the end of virtually every interview we've ever done with him over at least the past two years is are you running for president, and historically, he would bat it away one way or the other. and this time, he effectively said that he's thinking about it and as you mentioned, i think really did walk through the issues, policy issues in a way that we haven't heard from him before, talked a lot about, by the way, entitlement reform, also talked about the larger debt, and i thought made one

particularly interesting comment about the democratic party, which is to say that howard really just positioned himself during that interview as somebody who's much closer to the center than the way the party has moved so left. so, i think that was actually a particularly telling moment. whether he runs or not, you know, i don't know as we know, so many different executives and others have thought about running before michael bloomberg for a good year or two talked openly about considering the option and ultimately didn't take it. i think we're really going to have to see how the landscape, you know, shakes out probably a year from now. but i do think if it's something that he is going to consider -- and he said this to me yesterday, stepping away from the company -- he said you know, i can't really think about what i'm going to do next while i'm at the company and i think that while you're running a publicly traded company, that is the right answer, both in truth and reality. and so, we will see what he ultimately decides to do, but it

is a momen day here, i will tell you just watching -- i went to the partner meeting yesterday where they made the announcement, and just the emotion was so palpable to see so many people literally crying was something that you just don't see in the world of business these days. >> first, congratulations on a great interview, i mean, truly great. it shows i'm very proud of our network and very proud of you, because you got everything that i wanted to see. >> thank you. >> you played some clips before the interview. and the clips basically said i'm all in starbucks, by howard. >> right. >> did howard feel that it's now ready, that kevin johnson's been at the job long enough, that he can now leave and do whatever the heck he wants? because that would be very positive for the stock, which we know has been an underperformer of late, even though it's been an amazing performer since howard started >> rig you know, i genuinely think based on the conversations that i've had with howard that he doesl confident in kevin's leadership i think they have a remarkable

kinship. and while howard is going , and there's no question he is leaving the company, he was still serving coffee behind the bar right here just moments ago, and i think he's never going to stop doing that. he has this honorary emeritus title. and by the way, going through the filing last night -- i don't know if you go through the s.e.c. filing -- he actually has access to go to any board meeting he wants forever he doesn't get paid to do it but i think even though he says he's taking his green apron off, i think it will be hard to take his green apron off forever. i do think from a stock perspee from an investor perspective, it is -- you know, the starbucks stock is the tale of two worlds. it is the u.s. business. and the question is whether that can grow in any meaningful way 2% same-store sales is about where we are now i think that can improve, but questions how much can that improve then there is the china story, which is still the growth story. so you know, it's sort of this

quasi valu quasi growth stock. and the question is whether over the next couple years the investor class that's in this stock changes from that growth piece to a value pce and how that really works, and that's the thing i think we need to watch over time. >> while you point out, anwe all understand how important china is to that and i sort of dove tails witat you said earlier, andrew, about schultz's views on trade, which he addressed in his interview with you. >> right. >> take a listen >> we are in a trade battle here that i do not understand our problem is not china our problem is here in the u.s we have a $21 trillion debt. we're paying $400 billion of interest these are things that are unsustainable. >> so, open markets and deficit hat you meant when you said moving to the center, relative to the pay lf >> i think there's no question, relative to the democratic party, he is much closer to the center than where bernie sanders or elizabeth warren or whomever

you think is going to emerge in the party. you know, obviously, i think there's probably a bigger question, which is if joe biden in the democratic party emerges, how that changes the dynamic for anybody who's thinking about this and whether other ceos emerge as well but i do think just listening and hearing him talk about china, hearing him talk about the trade war, hearing him talk about immigration, clearly, he is setting himself up for some form of public service by the w, -- he didn't really answer the question, and i still want to get the answer at some point -- could he -- by the way, he talks about public service. one thing is to run for the presidency could you run to be a governor at some point or be a senator or pursue public service in another way? he's talked about how he could do that as a private citizen he's going to run his family philanthropy he's got a foundation. he's also going to be writing a bookso, i think there's going t a lotom howard that's not going to stop the speculation over the next year one way or the other, but i think howard schultz will remain other. headlines one way or the

>> well, andrew, to me, those are all too small -- not to den grade the 100 senators and 50 governors -- but he's an international figu nted to ask you -- >> he's an international figure, no question. >> but he'per a globalist, i mean because we have a nationalist as president this is a different ethos that howard has. >> yes in a world of america first, he is closer to a globalist as someone who takes a global approach but part of that has always been his ethos, you know, he always talks about working, that this is a people business, starbucks is a people business, talks about the humanity of it all his business now, starbucks, that is, is now a global company, right 350,000 employees around the world. i don't think he shies away from the idea of being globalist.and standing of the united states around the world and how concerned he is about that, that comes very much from his travels around the world so, i think he does care about those relationships and the way we think about it. and you know, i imagine when it comes to policy, he will think

about it in the same way >> well, did you think it was interesting that when it comes to the boom that we have, he said that he credited president obama, and to some degree, which therefore be a lesser degree, president what do you think? >> i was fascinated by that comment. he has, of course, been critical of president trump before. but yes, crediting president obama and then partially crediting president trump. you kn, look, i think there's many ways to look at this. clearly, you know, there's a camp that woulur economy came, actually, pretty far under obama. a lot of people would say it didn't, but they would argue that it sort of set up what's happened now others would say it didn'treall arrived and some of these tax policies and other policies emerged. that's a debate not for another day, but that's a debate that i think you will see on the campaign trail, no matter who is

running on the democratic side, or frankly, anybody who runs against president trump in the future >> andrew, we'll see you a lot more later on this morning, help viewers get a sense of what schultz said, if they missed it earlier today. ossorkin's in seattle. when we come back, the president cancels a white house celebration r the super bowl champion eagles. we're going to go to philadelphia for a live report take another look at the premarket. futures did go red got a big day for stocks like twitter, amazon, tesla, carnival, and a lot more "squawk on the street" from post nine continues in a moment need a change of scenery?

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the president has called off the white house celebration honoring the super bowl champion philadelphia eagles. let's go to eric chemi, who joins us this morning in philadelphia good morning, eric >> reporter: good morning, carl. that's right, the eagles were supposed to be at the white house today at 3:00 p.m., but last night, the white house announced that that meeting was canceled and then players like torrey smith tweeted, "hey, the reality was that less than ten players were actually going to come." the president later confirmed that, so both sides coirming very few p were going to come, and that's why he decided to cancel that event this is different, because the golden state warriors, who won the nba championship last year, they never scheduled a meeting the unc basketball team, they

never scheduled a visit. and every other team that's scheduled one, like the astros, like the cubs, like the patriots, it was scheduled and they attended. sora, to have a cancellation 24 hours in advance. the president also tweeting that he thinks this new policy, that staying in the locker room instead of kneeling, he thinks that's just as bad so, if the nfl thinks this national anthem controversy is going away, it's not it's affected ratings last year, it's affected g media sponsors, and politics seems to be a big element in football right now, not as much so in the other sports we swung by the practice facility today that's where all the players are today, back at practice, rather than visiting d.c. back to you guys >> that's a big story. a lot of peopltalking today, eric thank you very much. jim, you were asked for your comment on twitter you said, my comment is we're world champions and i love the eagles. >> yeah, i don't think i need to go any further i'm not a political figure i love the eagles very much. we did win beyond that, i do some charity

work with some of the eagles there, i support chris long's efforts -- >> donated his entire salary for educational equality. >> yep, and was happy to address the eagles during the summer camp, go to the super bowl but i don't know how much i can offer on this issue. i just love the eagles very much and wish things had worked out. >> does it matter that no eagle took a knee or stayed in the locker room during the regular season >> i mean, i think that that eagles team is, from what i can tell, a paragon of racial equality, part of what we all want great teamwork some of the things that howard schultz talked about, i think that you would find that the eagles embody the good and it's remarkable team and i love them very much, and it's beyond that, it's very hard for me to talk about i love them very much, and it's

kind of emotional. i just don't know what to say, other than this is a remarkably fabulous group of men. and i think that they're terrific people. congratulations to them for the championship. >> the president will have an event later this afternoon, 3:30, which they're calling a celebration of america we'll see if he makes any further comments at that time. when we come back this morning, we'll get cramer's "mad dash," and count down to the opening bell contessa brewer is in manhattan today. another court day for harvey weinstein. hi, contessa. >> reporter: hi there, carl. weinstein refused to testify before the grand jury. the grand jury indicted him on two counts of rape and a count of a criminal sex act. he returns to court today to enter a plea, and his attorney says he will plead not guilty. we're waiting for his arrival at any minute when it happens, we'll bring it to you live on cnbc ahead on "squawk on the street.

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♪ all right, we've got eight minutes before we get started for trading here on a tuesday, jim. it's going to be a surprise to me where are you headed on the mad dash >> we're going to talk more about the world championship eagles and how i was ashamed that this happened okay, here we go i love the eagles. >> we're well aw and they love you. >> and i love what they stand for, all right there you go you can draw your own conclusions. david, carnival cruise. >> yes. >> in the last few weeks, carnival, i've been on one of them, beautiful ships. i was on a norwegian ship. both ceos assured me that things are terrific, but morgan stanley here has a cruise chat today

agents, they're talking with agents, saying that there's fourth-quarter weakness, cutting earnings per share, worrying about fuel, worrying about the dollar, and david, saying that things are softer in terms of pricing, the exact opposite of what i heard from these two great companies. the exact opposite the ceos were incredibly confident, predicting exactly something so different from this so, i don't know. >> what do you make of it? >> this is -- there are issues with the dollar and there are issues with oil. and you could argue that those are -- the dollar is ephemeral, not their fault, and oil, what can they do? but as far as weakness in terms of pricing, i didn't hear that at all, and i'm going side with the executivf these great -- >> the stock's a little weak, but i haven't seen it -- >> yeah -- >> down 0.8 -- >> it does have a 3% yield here, so you're being somewhat paid to wait these are remarkable companies, very little penetration.

my wife and i are booking a cruise. >> really? >> yes, mediterranean cruise it's a secret right now, but she doesn't watch, so it doesn't matter. >> good, she won't know. >> doesn't matter. she doesn't know i care about the eagles the only thing is she knows i love nvidia the dog and amgen, doesn't care for the oil companies, the fossil fuel companies. >> and i think your wife does know the eagles. i think that much she's picked on. >> i don't know. i think she wishes they'd go away >> all right, we've got an opening bell that's not going anywhere, a few minutes from now by the way, we'll also get to the news from uk regulators that will allow fox to go ahead for its bid for sky, and of course, comcast, our parent company's bid. wel pln 'lexaiall that to you when we come back after this i we worked with pg&eof to save energy because wenie.

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but not so much about what market volatility may do to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife. you're watching cnbc "squawk on the street" live from the financial capital of the world the opening bell in about 2 1/2 minutes. a busy day futures a little bit soft after monday's rally, which took us to some mid-march highs, jim, and people were beginning to ask whether this sideways action we've been seeing for the past few weeks was ready to break higher. >> i think that the action in the non-f.a.n.g. techs was just

plain remarkable i mean, you saw a breadth of action, whether it be -- now 25%, the s&p -- whether it be semiconductors, software, whether it boud comps. palo alto, i've got them tonight. that stock should have been up that was a great quarter we're seeing, whether it be just in terms of the -- let's just say kind of a metaphor for the moment, twitter being added to the s&p. so, i think that tech can actually lead us we're short health care. we just don't have health care other than the hmo we've lost that group. i like the fact that on the days thate're non trade war, we do see the industrials go up, and they are a very, very good group, this leadership. >> what constitutes a non trade war day? this morning we are dealing with headlines, or at least comments from larryudlow, who we just had on fridaabout the possibility of nafta going separate agreements with mexico and canada, not pulling out as

of yet, but certainly prestaging that -- >> that's non trade war -- >> that would appear to be -- >> it's neutral. >> okay. >> this is a day to the eagles, and that's -- yesterday was a lot of the eagles -- and that's a day where the world -- it's world championship go forward. but i do think that when the president is sidelined and not saying anything that necessarily is favoring, saying, listen, we have to do something -- >> i see. >> -- in order to, even if it hurts some parts of our economy, are days where you get a nice move i saw biotech yesterday have a remarkable move. regeneron, a lot of good news bubbling underneath regeneron. gilead, no news and the stock moved up now i'm watching amgen, see if that turns, because amgen's had some negativity. >> the trade show in chicago. >> yes and doing some remarkable stuff -- >> do you still have faith in some of these caterpillar, boeing [ cheers and applause >> i thought that boeing took -- look, if boeing hits an all-time

high, like nvidia did yesterday, that is the signal that we are back, and we'll take out the january highs. [ stock bells >> here's the opening -- better. irlines should do >> here's the opening bell and the s&p at the bottom of your screen at the big board, it's wyndham destinations celebrating its spinoff of wyndham hotel and resorts at the nasdaq mortgage trust, a real estate investment trust. you mentioned carnival before the break. >> right. >> another big mover in travel and leisure today. >> that's coming down. then what we need to see, carl, and it's just been hurting, the banks. we've got to see something in finance that makes it so that we don't feel that this group is crushing us. it's way in a slump -- >> what does that mean, we've got it see something in finance? >> we need to see takeovers. >> oh, takeovers. >> we need to see some m&a earnings, which obviously is -- we already have some interesting net-interest margin, but not great as we go back under three.

>> you're talking about we need to see broadly speaking takeovers that will benefit the financial institutions we are. >> yeah, because we need something that is a tailwind we need a tailwind. >> a lot of times that's not enough to move the needle. >> how about retail's excellent, they've got great -- they're lending and doing great! the regulations come back down, and all people care about with these are that we get seat car over, which is what happens at the end of june, which is the regulation you figure buybacks immediately. and we need interest rates at 3.5% 3.5%, that is more than you want, but that is what you keep hearing. let me tell you, we get in after 3 1/2 years, what happens? bank lending is going to slow down you can't win right now. you can't win! >> well, i guess that's why you've got saks down -- >> citi down -- >> remember -- >> unbelievable. >> citi's -- >> morgan stanley's market

value's about $5 billion more than saks'. >> the golden slacks -- my travel trust owns it i have never felt so stupid owning a financial as i do goldman, and i just don't think that's going to last they need to see "c" car, they need to see the results and then i think they can do a big buyback. and that would be the confidence that we right now all the stories about goldman are hanley blankfein you know, that's not why people should own -- you know -- >> blankfein is leaving the state. >> yes, he is. >> his candle is burning out. >> no one says he might run for president. >> because he would never be able to win. >> you know, i never thought about that. >> yes. >> that probably would play a role holy cow he'd probably lose >> yeah, he'd lose. >> how do you think of that? >> well, i knew. i just had a look at his height. there's a height requirement i didn't know if you knew that. >> no, i didn't -- >> as a short man, i can attest

to that. >> i can tell you the opposition ads are already -- >> we can start there. then there also might be a hair requirement. no offense. >> jamie dimon we hear is a candidate. >> actually, the "times" today says he's ruled it out, according to people close. >> good, because that's killing the stocks these stocks are awful he should be a candidate to buy back even more stock, maybe do something to maybe give us a bigger dividend after ccar -- >> it's been the only group up this year, jpmorgan at least i up for the year -- >> is it oh, this is a millstone group. we need this group higher if we're going to break out of this range, because we don't have health care, other than the hmos. >> meanwhile, f.a.n.g. has now outperformed the s&p by 30%. >> remember everybody -- you know, how many times -- i always see this defanged headlines and f.a.n.g.'s done, and they never once mention that i came up with it. >> what do you want, a little thing at the end that says -- >> by jim cramer >> yeah. >> or a patent >> yeah, i do. >> a trademark, tm >> i'm running for f.a.n.g. promotion. no, what really bothers me is

that people don't realize that it's perfectly fine that these companies think that facebook got inexpensive, that alphabet became inexpensive that netflix is never inexpensive -- >> never >> never. >> never nexpensive. >> but foul is very interesting. >> very positive. ter, which -- >> added to the s&p. that's got it up 5%. >> yeah. >> going to be added to the s&p. >> gmo out, twtr in. >> and twitter replacing monsanto, right? >> yep. >> and netflix to the s&p 100. did you see that >> well, netflix, no one bought netflix when you had a chance to buy netflix. but we're getting some interesting reviews about the developers conference from apple. deutsche bank says incremental, rbc takes its price target up. these people got awfully quiet what happened? >> they left. d i do feel -- i have wyndham tonigh but i do think that tony saganagy talked about it being

evutionary, not revolutionary, but he did not say this is a step backwards, tony, from bernstein. >> i know who he is. >> you do? >> you've haxed feelings he's an great american >> the time warner lawsuit >> talking about great america, jeff -- >> time warner -- >> oh, coming back a little. >> coming back. >> no kidding. >> yeah, coming back ever since that professor friend of yours from harvard came out against the government. >> against the government, yeah. >> yeah, i just think that it's going to be a little tighter, and i feel that way because i've spent a lot of time thinking about google and this move >> yes. >> google and amazon and this move if they wanted to, if they wanted to go buy anything involving entertainment, they could do it. that's how wealthy these companies are. >> i know. we are only a week away from what is expected to be that ruling that you're referring to

from judge leon and the doj for time warner, so much on that, including our parent company comcast's potential bid to try to acquire the fox assets. while we're on that, might as well mention as well uk regulators and parliament this morning do come out. and just to kind of cut through it, they basically clear both bids, the comcast bid for sky -- sorry, for the 61% of sky that isn't already owned by fox, and fox's own bid pending divestiture of that 61%, should they actually buy it, to disney, which is going to happen, because, of course, they've got to buy it together since disney's in the process of buying those fox assets. the question is, when it comes to sky, is disney going to come to play here, give its consent to fox to raise the bid to the 12.50 where comcast reportedly is that seems likely. they don't seem to want to let that go, although some strategize saying they should

let it go, let comcast be the dog that catches the bus and then see if they really want to go after the fox assets. but disney wants to own sky as well, so they are likely to compete here, and that is why you see sky trading well above the $12.50 that has been offered by comcast both bids going to be able to go ahead per uk regulators, although fox does put out a statement, now says they look forward to engaging with the dcms it's the other regular confidentiality they will reach a final decision that is from the conference for media and sport. >> let's say comcast, parent company of this network, were to win the bidding. >> were to win the bidding for fox assets, not for sky or for sky? >> for the fox assets. >> okay. >> they've already bid up the e sky, by the way, which didn't seem to me to be the bright thing to do, because now you've bid up what you've got to -- >> right. >> the ownership of the 39% that fox owns of sky has gone up in

value. >> just saying that murdoch would no longer have his so-called man there, bob iger. it would be brian roberts. >> yes. >> so, would bob iger run for president? >> i don't know. i don't think that's his plan, becausth every fiber of his bei expects that disney's going to win this battle, if it comes to being a battle against comcast they have every intention of we can get into it in more detail another time in terms of the antitrust differences between the two sides, but they may be significant and not necessarily favor comcast. and therefore, it will have to do more. they have a timing advantage on the regulatory front to a certain extent at disney, at least in a couple of months. >> wow. >> so, i think it's unlikely that he would do that. however, i can't say with any certainty that if they were to lose, he wouldn't reconsider a move for the presidency, but i don't think it's likely. >> and can you have -- >> i haven't asked him, though. >> can you have one iteration of "star wars" that didn't do as

well and really conclude that "star wars" ennui has t in do you think that's not blasphe blasphemy? >> i'm not a "star wars"xpert, but i guess i would say no. >> you guys mentioned apple. came withinnies of an all-time high again after wwdc yesterday. a big piece in the "times" about sort of what they're calling the nonapology tour of apple when it comes to privacy, something tim cook talked about. take a listen to that. >> i think the privacy thing has gotten totally out of control, and i think most people are not aware of who is tracking them, how much they're being tracked, and sort of the large amounts of detailed data that are out there about them >> "times" says that their argument is complicated, because on the one hand, they're having these apps now will help you limit your screen time or limit your time on an individual app, but in the end, they want to

sell more phones, right? they want to keep the upgrade cycle going. >> it is such an issue i know in the mental health field, a lot of people feel that apple got a bad rap to begin with, because they had made it so the parents can have a governor and the mental health field, not that there's one necessary skate of thought, but it's that the parents don't do enough, and that the parents advocate and asked tim cook to play the role that they're supposed to play. and i think that tim cook is being very honorable, but he could kick this right back, saying parents, why don't you do your job don't ask us to do your job. but he hasn't taken th attitude he's going the opposite. >> tim cook effectively has replaced the founder/icon of all time, steve jobs i mention that because it is worth taking a look, worth taking a look at share starbucks, because here we are talking about, as well, a ceo

who's taking over for an icon and the founder. the stock's down about 3%. kevin johnson's got his chance now. the board, obviously, is supportive of him. >> right. >> at this point i don't know how long the time period is. >> wow >> where they sort of say, okay, it's yours now it's not an easy job, though, to take over for a founder. he was the ceobut so many people sort of, until this departure from mr. schultz had been announced, sort of always considered him still the ceo, even though he chairman. >> well, i think it's important to recall that -- oh, boy, since july of 2015, the stock's done nothing. done nothing >> stock's done nothing? >> nothing. >> yeah. >> nothing at all. now, you could say it was 21,000% up so i do not mean to slam alphabet and remember, it was december of 2016 that kevin moved into the job.

but the stock has been an underperformer during a lot of people's span of when they think something should happen, even unds like sour grapes for me that howard's been unbelievable. but it is kevin's chance, but david, same-store sales in the u.s. are -- if it were itraditional retailer, we would say we don't want this in our portfolio, given the hot price for multiple versus what you get, say, if you want macy's, which is now beginning to have a cycle of positive comps after years of negative comps. so, it is not negative comps in starbucks. it's better than that. and china is amazing but the company's stock does trade on u.s., even if you think that's wrong even if you think it should trade on china it trades on u.s. >> they were earlyn a lot of the mobile tech innovations that others are now working on. >> their loyalty program is not asig as i would have thought i have ron shaich at this conference ron shaich, pannera, had a much more robust roller coaster

>> we'll watch that closely. got limited range here in the early going. dow's down 16. good morning, bob pisani. >> good morning, carl. just back from ten days in italy. and yes, the government may be a mess, but nobody has more fun than the italians. god bless those people they're a great country. let's take a look at where the market is. since i've been gone, that jobs report really helped here, particularly tech stocks here. some material semis, industrials up and you know what's still not working is the banks and consumer staples they've been a big laggard for weeks now. the s&p 500 is at the highest level since march, essentially, and mostly because of the technology move up show the chart there we're up 10%ce may 1st in e tech stocks, the orange. s&p's up about 4%. there's the reason the russell's hitting -- the nasdaq's hitting new highs right now. one thing that really has mattered a lot is buybacks and dividends, effects of the tax cuts they've been huge in the technology sector. 83% increase in announced buybacks so far. we're going to do $800 billion in announced buybacks this year? that's like beyond a record.

dividends are up almost 10%. all of this flows into the overall stock market if you take a look at the buybacks year to date, the biggest beneficiary had been technology stocks, not surprisingly so, we've got $374 billion announced buybacks most of this, two-thirds is technology and health care stocks remember, apple itself has announced theoretically a $100 billion buyback this year and that will have a huge impact on them, reducing their share count as well. and the share counts have to be reduced. remember, sometimes you have the buybacks, they don't reduce the share count because they put more shares on the front end that's not happening for the last several years, there have been share count reductions in the s&p 500. there are about 300 billion shares in the total s&p. down 0.5% so far this year, share counts, down 1% in 2017, 2% in 2016 yes, folks, that matters, and a lot of companies have been reducing their share counts by about 4% a year. so, all of this really flows in here what's not working so far, energy and tech both up about 10%, 11% for the quarter

retail's been doing well, but banks are lagging and health care has been lagging and consumer staples have been lagging, so this is not an equal performance by any means there is really a divergence in how the market is doing right now. the important thing overall, though, still new highs. let's move on. twitter's going into the s&p 500. you know my attitude about this? it's about time! five years now, part of the problem's been the stock has been an absolute dog for a long time. $26 it went public at five years ago. now it's $35 or $36 last friday before the announcement. it had operational issues, and i think that was a factor in why it didn't go into the s&p 500 a lot sooner it's fairly small, $26 billion, $25 billion market cap for that company. that's small even by operational issues for the s&p 500 e normal one is $46 billion is the normal number we have in the s&p 500. remember, we've got a lot of companies that have north of $100 billion market cap. so, fairly small company overall. finally, the important thing about tomorrow, if you're interested in market structure and finding out what's going on with investors, tune in 10:20

tomorrow we'll be talking to jay clayton. he's the chairman of the s.e.c this is a cnbc exclusive it's the first live interview since he became the s.e.c. chairman in may of last year we'll be talking about market structure, protecting investors, and even maybe a little bit about bitcoin. all of that tomorrow right here on cnbc. guys, back to you. >> bob, sounds good. bob pisani let's get to td pi, too. rick santelli at the cm nenk chicago. good morning, rick >> good morning, carl. today we have, at lease at this point in the session, a parallel shift in the curve maturities are down basically a couple of basis points, that after, of course, we are holding on a flat curve. yoknow, the 10s minus 2s hovering just above 240 basis points these are levels we haven't seen since the fall of 2007 now, if you look at a two-day of 10s, you know, yesterday we popped a mid today we gave a lot of it back but that isn't the point the point is, as you look at this may 1st chart, that we held the gains that we had, the

sell-off that occurred after the solid jobs report friday, and we continue to hold here's something interesting on that chart you're looking at if you look at the high-yield close and the low-yield close, the midpoint $2.95s about where we failed yesterday. that's not lost on floor traders. many are using that as a intraday pivot looking at a two-year chart of bund yields, they're down four basis points today, down at 38 guess why. well, it's not like it was a week and a half ago, but it's gone back a little bit look at what's going on in italy, a two-day of italian 2-years are up about 20 basis points today, getting closer to 1% two-day of 10s are also up about 20 basis points, hovering just below 2.75 granted, we had much bigger up days and much bigger down days in terms of yield, but still, these ranges, if you forgot the last couple of weeks, are very large, and my suspicion is that we continue to watch this safe haven of bunds when you see a

little bit more rambunctious southern italian bond market, southern european. and it isn't only italy. many are starting now, of course to watch all the economies rather closely and if you pick october 1st, you learn something about bunds and euros. if you look at the bund chart, it's kind of carving out good support in a range we've well occupied in the past, between 30 and 45 basis poins, similar to the dollar versus euro pattern, which it should, but that also means 116 is a key support level there. back to you. >> rick, thank you very much rick santelli. we're getting breaking news from the business roundtable first on cnbc. our cakayla tausche has that. >> a quarterly reading of confidence among ceos has fallen for the first time since trump took the presidency. the survey shows plans for hiring and capital investment over the next six months decreased as did expectations

for sales, lowering the overall index of ceo confidence by 7 1/2 points expectations for u.s. gdp is slightly to 2.7% from 2.8% one major reason for this decline, however modest, is uncertainty about trade cy 132 ceos were surveyed during the middle two weeks of may, when the white house was negotiating trade deals with nafta and china. 95% of the respondents said trade represents a moderate or serious risk to the u.s. economy. just 5% said there was no risk and roughly 90% of respondents said retaliation and a higher cost for businesses and consumers were among those risks. jpmorgan chase ceo jamie dimon, whairs the trade group, noted that there is continued optimism, but "to sustain this momentum, we need to ensure that we have competitive trade policies in place to provide the certainty necessary to deliver sustainable economic growth to create more opportunities for workers and families

nationwide." certainly, business roundtable got a win with tax reform and deregulation, but now trade policy is giving a lot of ceos pause. carl, back to you. >> interesting numbers look for more on that. kayla tausche in washington. as we go to break, take a look at the nasdaq composite. a thnasdaq. record highs for the in a row. similar story over the russell 2000. the dow is down 21. we are back in a moment.

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this is state supreme court as harvey weinstein is arriving for his arraignment. second time we have seen him with a court appearance in the last week or two. we will keep our eye on headlines or comments afterwards. contessa brewer is on the scene. shares of twitter near $40 on pace for the three year high. >> responding to just now to someone who is in my twitter file reminded me how expensive the file is. we do not have a lot of social media companies.

obviously this one in retrospect and i'm sure companies wish they had bought it. there were people who rebelled share holders who rebelled. >> crm rebelled. >> we should go right to break. >>ow d is down 16 points. don't go away. >>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 thsands 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 ameritra

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these kind of noisy people we have tonight. we have medtronnic. and then look at this. the two duo. he is the new ceo palo alto. people should stop selling the stock. >> great group. >> i say they are world champs. >> jim, we will see you tonight. mad money. dow is down 18 points on this busy tuesday. don't go anywhere.

welcome back to "squawk on the street." some breaking news. our april readjobs opening and labor turnover is 6.698 million. so just a whisker shy of 6.7 million. and that's a nice jump from

6.633. here is how wild the series has been. that means we now have four in a row on the numbers jolts over 6 million on opening side. we had ten out of last 13 above 6 million. these are lofty numbers. didn't see 6 millions other than over last 11, 12 months ago was first read. now let's get to the more real time may read on non-ism manufacturing. the number is 58.6, much stronger than expected. it follows 56.8 and it is 58.6123 the fourth best number next to january and february whh were both over 59. march was 58.8. these are solid numbers that is a bit of a surprise. we are looking at one basis point higher moves going on in the fixed income space and dollar index rally.

>> thank you rick santelli. welcome back to "squawk on the street." market trying to get into the green here on at additional blowout ism nonmanufacturing number. record high once again for the nasdaq. >> our road map starts with the majo starbucks. howard schultz announche is stepping down sparking speculation of a 2020 presidential run. we will share that big interview with you. the president disinvice preside president -- disinviting the eagles to the white house. the nasdaq rocketing to the new highs. we will look at the big names behind the boost. harvey weinstein is back in t today arriving moments ago. contessa brewer is there and she joins us with more. good morning. >> reporter: good morning, sarah. harvey weinstein is expected to plead not guilty to two charges of rape and a count of criminal

sex act. he is in court on his arraignment after declining to testify before the grand jury. the grand jury indicted him anyway on these two counts of rape. these date back to 2004 and 2013. two separate women accused harvey weinstein of the sexual misconduct of rapinghem. ose complaave been made to the district attorney in the past. now after reopening the investigation the district attorney is moving forward and charging harvey weinstein. we saw him walking into court today. he looks very pale what we saw as he walked in was his attorney say a comment to him and then he smiled and continued walking into court. his bail remains the same. he is wearing a monitoring device. this is about making a plea today expecting to plea not guilty. >> we will keep an eye on the

courthouse today. a big corporate stor are following. howard schultz leaving the company at the end of the month. >> reporter: good morning from seattle. an end of an era here at starbu starbucks. we got a chance to spend some time with howard schultz stepping down from the company. of course, speculation has already begun about a potential political career for howard schultz. he said he will consider public service as one of the many things he may do in the future. he started in part this interview by drawing a distinction between himself and president trump. here is what he had to say. >> when you are talking about a ceo in terms of public office there is a very big difference between someone who has run a global enterprise like myself, who has travelled to china probably more than any other ceo

in the last ten years and understands those issues versus someone running a private company with very little responsibility to other shareholders. i'm not saying that as good or bad but there is a big difference. i think president trump ha given license to the fact that someone who is not a politician could potentially run for the presidency. whether or not that has anything to do with me remains to be seen. >> reporter: howard schultz, of course, saying he has not made a decision about whether he will pursue the presidency or some other form of public service. boy, did he sound like he had some ideas about what he might sound like on a campaign trail. here is what he had to say on trade. >> this rhetoric about these trade wars that are now being engaged with china, with mexico, with canada and this might sound like a trite line. it's important. we should not be in the business of building walls.

we should be in the business of building bridges with our neighbors and allies and our standing in the world today ist. >> with howard schultz stepping down kevin johnson firmly in control ofhe company. china continues to grow. i asked howard schultz about the challenges that starbucks faces. >> we are a growth company that is experiencing a moment in time where u.s. comps have slowed. u.s. comps have slowed in the u.s. before and we will without question through innovation and disruption really i think do a number of things that will be catalytic over time to address the comp issue. if you just isolate china and the growth of our international business in 345e7b wmany ways t of starbucks is under valued.

>> howard schultz taking off the green apron for the last time but remaining an honorary title of chairman ameritous. he was serving coffee behind me. we will imagine we will see him behind the counter in the future, as well, even though he is stepping off the stage. we will be hearing a lot more from howard schultz in the future. >> the stock is down about 2.6%. were you surprised how forth coming howard schultz was about some of his policy positions even going into almost campaign style rhetoric we need to bui bridges and not walls versus talking about the future of starbucks? >> i was. i know this is something that he has given a lot of thought about. we have done a number of interviews over the past year or two where he has talked about his views on policy and his

views on policy vis-a-vis starbucks when we were in china last year he made comments about tax policy. that part didn't surprise me so much. i do think if he is going to pursue a life after starbucks in the political arena and if it is going to be 2020 it is somet clearly where if you are running a public company you have to somehow separate yourself from the company. i imagine if you were going to run you wouldn't do soor anotheyear that may explain the timing. so many executives and othhave running and then choose not to, mayor bloomberg being one of those. i think we will have to see where this all goes. >> really happied move the ba--e moving the ball forward. joining us this morning bill george who wrote about schultz's leadership in his book "true

north". guys, good morning to you both. i'm not going to ask you whethen unless you have a thought on that. this notion of someone who not quite founded but almost founded the concept of what coffee has become in the country. how transferrable is he to public office? >> he is an amazing guy. he defined quality and experience and product in starbucks and combined it with a social conscience and made tremendous business success of it. i believe he has tremendous skills that will transfer. do you have to agree or disagree with his politics? >> this idea that howard out there hat rthat running a publi company is different than running a family or private company. >> absolutely. totally different. he has done it. he has been in the face of the shareholders. he has achieved great success. you realize the issue was not

just about two men escorted from the store. he realized it was about a broader issue. we need his voice at a national level whether he runs for president or not i would like to hear his voice on health care and trade and frankly on the voice of the working person. he has created 300,000s. i would like to see howard talking about he understands working people because he is one. he is a great believer in diversity. he believes in immigrants and people of all races and religions. that is what he has created at starbucks. i would love to see him out there regardless if he decides to run. he can do so much more for our country. he is a truly authentic leader. u.s. needs more authentic leaders. >> management question for you. one of the themes that andrew talked to howard about was the idea of ceo as president. president trump, donald trump or

in many ways. i'm not sure as some media portray it it is the idea that ceos can become presiden ifically for the reason that howard which is president trump didn't run a traditional public company answering to a board. >> i think it is a big stretch. frankly, president trump was an owner and wasn't a ceo. it was a big difference. howard was the owner and then became public ceo. i love his views. i want to hear him out there. he is a fiscal conservative and social progressive. i like that. we haven't had anything like that. he wants democrats not to go too far to the left. ul make the big leap i think we need a go contest to find out. i would love to see him compete with long term established

politicians. these are issues that we need to address in the country, the trade issue. we are going the wrong way on trade. we should be building bridges and relationships with countries and opening upn china and india and elsewhere so don'ha these restrtions for american companies. that's what we should be focussing on, not tariffs. >> i can imagine there is nobody more relieved to see him go than kevin johnson who gets a chance to prove whetherr not s capable of taking over the company. he has been ceo for a while but mr. schultz cast a long shadow. what kind of advice do you have for somebody taking over >> this is one of the toughest things in business is whenyou have an iconic leader who leaves a company. you see when steve jobs left at apple you saw pretty good things out of tim cook. i'm an apple shareholder and i am very happy as an apple shareholder.

and then you have by contrast something like general electric in jack welch. that is really the open book question. so for kevin johnson or anyone who follows like that they have to chart their own course. of course, the company has core values, basic principles. you have to remain true to those. the worst thing is trying to go 180 degrees. you have to say it's me. what am i going to do with it? how do i do something special? because the world doesn'ok it looks forwards. you have to look to the future not to what happened in the past. the question is with a competition now in that market, with saturation in the u.s. what is starbucks going to do to move forward? they will go after the out of the starbucks experience. the third place i guess the fourth place is out here. how do they -- where do you go from here?

how do you go forward? that is what the focus has to be while looking at the past he has to say that's all fine but what do i stand for and where do we go from here as a team >> if it were a matchup between schultz and the president don't politicians these days have to engage with the opposi ways perhaps that traditional ceos are not prepared for? >> he looked pretty prepared in that interviewh andrew. he was engaging and willing to take on the president in many, many ways. howard is a guy that builds hope, not anger. i found it is easy to get people upset. he brings hope to people. that is what we need. i k i would love to have his voice and get him in a debate. he is not going to be bullied by anyone. i like to have tt out there. i think he can bring so much of this country. we need to restore ouralues. we have had our values slip. we don't tell the truth anymore.

we need somebody who can tell the truth. as jerry said he always brought that and stayed with srbucks principles that i interviewed him for 13 years ago. he hasn't deviated one bit in the 13 years from the values created an out of his life story. i would like to see more to that. it's good to be back with you, too. we will move on. we'll see what other information schultz gives us. this business rounble survey coming out above the historical average for the sixtraight quarter. down fhe first time in nearly two years. is this trade talking? >> it has to be. basically things are so good. you look at unemployment and consumer confidence, the economy is so strong it's almost unbelievable. it's trade. jamie dimon mentioned it. business people don't like uncertainty and they certainly

don't like trade wars. there is nothing any of us have studor learned that says tariffs are good. all yoarn fro1 forward is that is what caused the great depression is combative tariffs. it is always bad for every country when you do that. you are not helping anything when you do it. there are sometimes offenders, governments that subsidize an industry and you need to target those. there is no evidence that this is specifically targeted for wrong doing. >> next co released its own tariffs on u.s. exports today, on agriculture and steel products including american pork. does this have the potential and are we there yet to negate all of the positive impact for corporate america as a result of the tax cut? >> i don't think it negates all of it. we don't wt to start a trade war. i think president trump will back off. the farmers will be hurt, a lot of people will be hurt.

i want to go to another issue closely related. there are more jobs open today than they are people unemployed but there is not a matchup. the people that are unemployed can't fill the jobs that are open. we need to develop american workers so we can compete on a trade front. we are not able to compete in a lot of areas. we need to our education system and all of those things so we can compete not just on a cost basis but on a value-added basis with the use of ai and robotics and capabilities. we need to upgrade our workforce. that will help us so we can put people back to work with life long learning. that will be the key to the future of this country. if we don't do that we will fall furthed further behind. >> bill, doesn't competing involve an element of fighting >> what kind of fighting i don't want to fight with

tariffs. i want to fight with excellence and better price. apple knows how to fight. they know how to win. we don't pay low wages. starbuckis in the retail they are paying good wages. they offer health care to everyone. they give everyone stock. that is the kind of fighting i want to have where people are proud to work and you can build a great global enterprise. there are too many barriers in china and india. we are the world's greatest creator of intellectual property. why are we not protecting what we have? that is what we should be focussing on. g in war on steel is ridiculous because it will raise a lot of cost on automobiles and construction. we are going to wrong way on that one. that could undo the very positive economic environment. that could undo it if we don't pull back. i hope this president will pull back. >> i would like to have us fight to have the best education

system in the world. that is whe don't have now. many other subjects and yet we think somehow it can be given to people. people graduate liberal arts degrees. >> reallquickly, this guilt group deal and the valuation on that, what does it say about -- >> you bought this company at the head of hudson bay before. >> michael reun has always wanted this property. now he is able to get it. tremendous synergy. i am on one of the other boards for fanatics. >> you are still involved. >> michael is fantastic. i think it is a great home. >> just on squawk a few moments ago. good discussion. we'll see you next time. >> thanks, carl. when we come back a dramatic comeback in tech.

a look at what is driving the moves. invite rescinded. the president uninviting the philadelphia eagles to the white house. we have the latest from washington. "squawk on the street" will be right back with the dow up one point.

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tech is roaring back pushing nasdaq to fresh all-time highs. coo >> we have the nasdaq and the

russell 2000 hitting all time highs. nasdaq coming within about seven points with more than a dozen new highs right out at the open. the usual suspects really crowding out the field. apple, amazon which has a market cap north of $813 billion making it second only to apple. twitter this morning also hitting a three-year high. its valuation just above visa. when it is added to the index it is like thursday replacing monsanto. bio tech hitting back. after fda approved. under users dentsplay downgraded and starbucks as investorswonde schultz moves on. >> thank you very much. let's stick with the markets and

get recommendations. senior investment strategist. so brian, you have been recommending technology as a group. what does it say about the overall environment that those kind of growth stocks are still on top and leading record highs? >> it is still an environment where u.s. investors are favoring growth in a still slow growth world. i think a lot of people thought by the time we saw deregulation of industry that we would get to a new higher sustained level of growth, maybe a steeper yield curve. >> are we getting there? >> i think we will have better gdp but i'm talking about higher sustained levels of growth. we are pretty close to full employment. businesses have been investing for nine years. the likelihood of new higher sustained growth is unlikely. >> do you continue to favor tech stocks with the amazing run they have had on information technology up 14%, got a little

dip earlier but back to new highs. >> overall technology is a great sector to be invested in bec growth. as a long term investor i want to look for areas of the market that are being ignored and where investors can get better prices to enter. and that area for us right now is energy. >> within energy what specifically looks cheap is the case still to be made that this is an under valued sector three month performance is up 11%. >> there has been some dislocation that has happened recently. when i say energy i should be pretty select because we're interested right now in the dislocation happening primarily in the permian names. that basin, all of the success that happened there, all of the new oil that has come from the basin has created a bottleneck. too much oil, too little pipeline to clear the markets

efficiently. that has created problems for some companies that have great depth of inventory, very good balance sheets and good experienced management teams that know how to operate these companies. those names and the last couple of weeks are off 30%, names like concho, names like parsley, names like matador, those are the types of investments that i think will make money for investorslonger term. >> ubs has numbers about pace of buybacks, dividends, corporate flow. i'm wondering even if you are with your continued slow growth thesis if there is no way the market can maybe separate from that macro environment >> perhaps you could but i think you would need to see sustaine investing that needs to hire productivi productivity. we have been on this cycle for a number of years. broke it in 20. we are back up again. businesses are going to use some

of this tonvest. with the labor force already near full employment can we make them significantly more productive perhaps. i'm somewhat skeptical. >> tax cuts were not a catalyst. >> tax cuts were helpful to shareholders. if you are a shareholder perhaps you get some wage increase but is it sustainable? as aonsumer if you know they are not sustainable does it take us to a higher level of growth i think you see the yield curve steepening if we expected high sustained level of growth for most of the last number of years have been flattening, long rates unable to get much higher than three. that is still a slow growth world to me. >> i'm trying to understand how investors look at the trade fight that we have now with our allies and witoubiggest trading partners and how much that will cut into economic growth and if so if that is

being reflected at all in the market. >> i think it is. i think there is some concern wh not this is negotiation or whether or not it is permanent long term policy. i think the market is wrestling with that. there is real growth happening. i think the cap x cycle is happening. we are seeing it in numbers with the companies that we are speaking with. cornerstone macro put out a piece yesterday that did highlight th numbers up 21% in the s&p 1500 that is in the first quarter of this year. if we do have that growth really accelerate i think some of these other is are a little bit easier to overcome, but if you don't have that growth and it's not sustainable those other issues will become more problematic for the market. >> i think that is a big debate how far the corporate tax cut will go and how long it will last. we'll leave it there.

when we come back take a look at shares of twitter on pace for a three-year high getting awfully close to 40 as the company will replace quk t seend the "sawonhetrt" is back in a moment. dow is down nine.

we take you back to new york state supreme court. harvey weinstein making a second appearance in a week pleading once again not guilty to charges of rape and criminal sex act charges. his lawyer has denied all allegations of nonconsenseual sex as you know. contessa brewer has been following the case since the beginning. what do we know about this particular appearance and what comes next >> reporter: this is his second appearance in this courthouse where he is facing two rape act.ges and a count of criminal at this point he declined to testify before the grand jury. the grand jury indicted him anywhere. another perp walk into the courthouse. this time not in handcuffs. it looks like -- we are waiting for his attorney to come out and talk to us. he said he intends to vigorously

defend harvey weinstein against these charges. he says that there is no evidence. he said he told us last week you might remember that harvey weinstein did not invent the casting couch, that's his words. and again so today he goes in, pled not guilty inside the courtroom. here is harvey weinstein walking out right now along side his attorney. we do expect that the attorney may talk tus. what we saw when he was walking in was a smiling harvey weinstein. and now looking fairly sober as he is coming out. the charges against him at this point based on allegations from two different women. harvey, do you have anything you would like to say? i'm just going back. so again he is being loaded into an suv at this point. this is a real fall from grace

for harvey weinstein. he is a guy who was used to all of these cameras and the lights on the red carpet as the head of his own company. for him to come now to be facing felony charges that could land him in jail maximum penalty 53 years in prison, this is a far cry from the life that he was leading. there are many, many women who accused him of sexual assault allegations. he is facing multiple civil lawsuits. all of those civil cases to come after the criminal cases. >> thank you, contessa helping us understand what today is about. contessa brewer is in lower manhattan. let's get to sue herera. >> good morning. here is what is happening at this hour. president trump's former campaign manager paul manafort has been accused of attempting to tamper with witnesses.

it says manafort used an encrypted messaging app to try to reach certain rinszwitnesses. washington state is suing facebook and google.udi arow is first drivers licenses to ten wo the first step as the kingdom prepares to lift the world's only ban on women driving. a professional distance swimmer from france wants to become the first person to swim across the pacific ocean. he left this morning from japan and is heading to san francisco. he will swim eight hours a day with the trip expectedo take six to eight months. you are up to date. i will send it back to you. >> sue herera, thank you very much. as we go to break a check on the major averages. dow has been trying to get back to the flat line down about 11 points. we have recordon ains cega frat nasdaq and russell. don't go away.

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welcome back to "squawk on the street". live as always from post nine at the new york stock exchange. stocks are mixed. real bright spot in the session. the nasdaq in record territory. dow flips into negative led lower by jp morgan. financials among biggest losers. >> invitation rescinded. president trump calling off the eagles super bowl celebration. >> there is going to be a celebration here at the white house this afternoon but not a celebration of the philadelphia eagles. the president saying there will be a celebration of america in place of that super bowl victory lap that often happens between presidents and super bowl champions. this year not going to happen. here is what the president tweeted saying we will proudly be playing the national anthem and wonderful music celebratg

our country. the white house with the united states marine band and the united states army chorus honoring america. nfl no escaping to locker rooms. he tweeted we have had man championshipms including chicago cubs, houston astros, new england patriots and many others. national anthem and more great music today at 3:00 p.m. the president positioning this as a debate of patriotism versus the nfl itself. the nfl players association putting out a statement saying they are disappointed in the decision by the president to uninvite eagles players saying our union is disappointed in the decision to disinvite from being recognized and celebrated by all americans for their accomplishments. so this is a cultural hot button issue. the president thinks that going against the nfl on the virtues of patriotism works for him politically. he didn't like the idea of

having just a few of the philadelphia eagles show up here for the celebration, decided to uninvite the entire team. we'll see how it plays out. you can imagine the event at 3:00 p.m. will be very, very closely watched around the country. of course, there is also the question of what happens to the eagles' fans who drove down i-95 here from philly to come to the event today? will they attend the white house event? >> all those pennsylvania voters. totally unrelated question for you. this is a president we have seen sort of in this ongoing mode. also, we have seen him effectively target political opponents, attack them often times. any word otz would think this would be an easy one for him to go after. >> reporter: i talked to a number of folks at the white house about howard schultz. officially they are referring all questions to the campaign which hasn't commented yet. unofficially there are starbucks

jokes quietly making rounds at the white house. no official comment from the white house about howard schultz. >> thanks. let's get to our etf spot light and help determine if the broad market is fully back in bullish mode. >> if you look at the main s&p 500 index fund it closed at 275 on the button on march 15. you see the round trip we have made here. it traded above 275 today. it is a level are focussed on mainly because if you look at the steep drop that was the week when you not only had the early stirrings of the trade anxieties but facebook expose acame out. it was a pretty dramatic decline. we fought our way back up here with the nasdaq at an all-time

high. we had the s&p with a chance of regiachievement. i will point out since this point in mid march you have only the index. ctors that have it is basically tech, consumer discretionary and energy which had the great run. real estate a very small sector. it's a more hit or miss market within the index. right now it looks like it is potentially on the verge of winning back the benefit of the doubt. >> three key things happened. that is the oil rally paused, the dollar rally pauseand ten year yield paused going up above three percent. all of those were seen as head winds. >> what happened with that a lot of money went into tech. that's why i say in this piece that it is kind of a late 0s feel. that is a test. if yields go back to the highs can stocks handle that >> if you had your choice of sectors that would rejoin

leadership, financials, energy, multinational industrials which would it be? >> i think industrials would be the one you want to see pick up and carry through. energy to me is not that important. it's a trading sector. it's like an offset to other sectors. industrials have done okay. they have been mostly market performing in the last couple months. >> thanks, mike. make sure to check out the article for more. nexclusive interview with howard schultz, interview of the day. we'll bring you everything he said. mu mchore "squawk on the street." don't go away. the dow is now down about 50 points.

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people are looking for places where groups can save. you end up with something curated. >> people's experience at mcdonald's is about to change. >> you can customize your food in different ways. we will be transforming 1,000 restaurants per quarter. >> do you think consolidation is coming >> you have to be mindful of where the regulators sit. twitter shares are soaring after the company got added to the s&p 500. find out how much higher some see the stock going.

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time to join rick santelli who has the santelli exchange. >> like to welcome my guest. always great to see you. thanks for joining me. >> you know, the italian volatility is coming back but not in the same type of dosage. we see upticks in yield in aly. maybe some of us should give a big thank you to italy because that big sell off pushed a lot of of the negative securities in italy particularly the two year and three year back in positive territory. as a matter of fact, a recent reuters article and others have pointed out the newest info shows in the euro zone 36% of securities are negative versus in may and april current amount to 2.6 trillion euros so we call

it $3 trillion. your thoughts on what that means, who takes the hit and will the ecb still give full collateral value to their paper. >> i do like to see positive interest rates. i wish it was more of the nature of the ecb getting out of negative deposit rate rather than a market hissy fit getting us out of negative interest rates. i think it is a precursor of a lot more volatility in the european bond market as we get closer to the end of qe and ecb attempts to get out of negative interest rates. i wish it was more natural rather than market related. >> many of us look at selloffs like that and understand that when you are holding paper that is low yield or negative in many cases these sell offs create huge losses. is the ecb on the hook for a lot of that, peter where do we follow the money and

how will it if at all change behavior >> technically it's the bank of italy that owns the italian bonds, not necessarily the ecb. they will just hold the maturity. it's really the other investors. when you have negative interest rates it's the epitome of -- >> hedge funds caught in the cross fire. my point is that they are still giving full loan value out on the rities. at some point where does the ecb come into the balance sheet of this equation? >> it's a good question because they are technically no risks in terms of ratios. i think the ecb, they pull into the equation if they lose control of bond markets and a spike in interest rates starts to impact rates. >> kind of like what we saw a couple of weeks ago. >> exactly. i have said for a while, when you have negative interest rates it's the epitome of a bubble

because the only way to make money on security is selling it to somebody else who takes it off of your hands because holding that security itself won't make you money because it is a lieability and not an asset this is when things start to happen and i think it is pretty incredible the violence of the move that we saw in italy. unfortunately, i think there is more to come in other areas because of the dramatic impact that ecb buying had on the euro zone bond market over the past five years. they were buying seven times net issuance in the euro zone of sovereign bonds versus 25% by the fed. you have that gorilla in the room leave the room there is going to be more of these type of violent moves to come. >> now, in another very bizarre story that is getting out there, it looks as though if you comb through the ecb purchase information for the month of may

that they may have tried to penalize the formation of the potential new coalition bypurch percentage on paper in may than they had in the past. how do you feel about the idea of brussels to some extent, ecb to a larger extent, maybe both somehow in harmony trying to put their will on the new potential coalition in italian politics via picking and sing how they purchase into the qe program? >> i'moping it was more of a logistical issue. i really don't think that the ecb and draghi will want to get caught into a political situation like that. i am going on the belief that it was a logistical issue and nothing more. i look to hear how he addresses that next week. >> one final question and make this a short answer for me,

peter. is what happened in italy a tremor before bigger ones or do you think it is something that mario draghi can try to pat down he has become a pat down expert. >> going from 80 billion euros a mont 80 billion a year ago to zero, i think, is the beginning of a lot more tremors when they leave the market. >> excellent peter bookvar, thank you for your thoughts. back to you. >> rick santelli, thank you. ceo of qatar airways akbar al baker saying only a man could do the job in his position. gender diversity problem despite more efforts to bring more women into the industry. al baker later clarified his comments saying it would be my pleasure to be a ceo candidate i could then develop to become ceo after me maybe i'll read you the direct

quote. it's outrageous that this can happen in this day age he was at a press conference in sydney and was asked about what could be done about the representation of women in the av indy. he responded, quote, of course it has to be led by a man because it is a veryllenging position. >> what year is it again >> right, exactly. i mean, come on. >> don't look at me. >> right david? >> i wonder if actually there will be even more backlash to this, and pushback i don't know how it works. apparently, qatar airways has 40% of senior management as women. i guess he was making a comment about the ceo role but now he is on iata's chairman board of governors. wonder if there will be calls for him to step down that's a pretty bad comment. let's step over to jon fortt, who i know agrees with me on this let's find out what's coming up on "squawk alley." >> of course no bad comments coming from me about "squawk alley" coming up matter of fact, apple is about

all-time highs after the worldwide developer's conference where it took the veil off what it plans to do over the next year in softwares what that mefor plape and the industry that's coming up on "squawk alley. ♪ ♪ legendary jockey víctor espinoza is insatiable when it comes to competing. ♪ ♪ so is his horse. ♪ ♪ when it comes to snacking. ♪ ♪ at's why he uses the chase mobile app, to pay practically anyone, at any bank. life, lived victor's way. chase. make more of what's yours.

welcome back to "squawk on the street." dominic chu. either side unchanged so far with the s&p 500, just about fractionally positive. interday action for the sectors has been a pretty big mix. as you can see, materials, telecom and technology some of the biggest gainers. on the lagging side of things, you have consumer staples, energy and financials. i want to drill in a little bit more on the technology side of things take a look at this, because the s&p 500 technology sector could be on pace to close at another record closing level today so, that will be a big deal as well some of the names leading the way higher, you've got xerox, ebay and seagate technology to the upside we want to call your attention with what's happening with another big stock out there. that's apple another intra-day high just in

trading so far today as you can see here we're now worth $950 billion guys, sara, that race to a trillion $50 billion away for apple. >> apple versus amazon for a trillion first state since the supreme court ruling to offer sports betting, delaware we'll have delaware governor john carney on and howard schultz starbucks executive chairman when "squawk alley" starts in a few minutes.

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live ♪ ♪ good tuesday morning welcome to "squawk all i'm carl quintanilla with jon fortt on post nine of the new york stock exchange. morgan brennan has the morning off. busy day today for the likes of apple and amazon we begin with the news of starbucks executive chairman howard schultz leaving the company, stepping down from his role andrew sat down with him this morning on ""squawk box"." he joins us once again to wrap that up. good morning, andrew. >> good morning, carl. it was a big day in