good morning 8:00 a.m. at facebook headquarters and 11:00 a.m. on wall street and "squawk alley" is live. ♪ >> good wednesday morning. welcome to "squawk alley." i'm carl, jon fortt, and julia boorstin with us at post nine for the hour a lot going on joining us on set elevation partners co-founder and early facebook investor roger mcnamee. a loto get to with roger today. we will begin with facebook the social network under fire again after disclosing data sharing partnerships with at least four chinese firms including huawei a

chinese mobile phone company u.s. intelligence officis have identified as a national security threat. actually, a lot of facebook headlines today. there's the huawei and data sharing, news on insta and video, deep dive on what'sapp and the riff between the founders and zuckerberg. the data sharing what does it mean to you, knowing where we've been on the story? >> as investors i think we have to take a couple issues away the first is that facebook's lack of transparency relative to its business practices is in conflict with the politics of being as big as they are and it's produced this drip, drip, drip of revelations for stuff going on for years aeir wo and honest about it is going to be a political problem for them and a stock problem. >> this one i don't get. i mean, when you enable these apps on these phones they said hey, here's all this stuff that's going to be shared with the phone and i get, you know,

you know who makes the phone, that's why when i was reviewing these things or trying them out, the blackberry i was like do i want to enable this facebook thing, it's going to suck this data out of facebook and people are like it sucked all this data out of facebook. that's the game. >> i think the reality is, for a long time we trusted companies with like facebook with our data and now we have good reason to understand that was a mistake d >> the question and i think what jon is saying, what we've learned now that 60 device makersincluding four chinese device makers allowed you to get information from facebook and download it to your phone, that is so controversial? it seems like this is a different terussian manipulation of the election >> it's, obviously, a category than russian manipulation of the election facebook has always had a terms of service for users and developers that protect facebook from litigation but do not protect the sanctity of the data

itself there has never been any enforcement of terms of service. that was the problem of cambridge analytica and the issue is fine, the terms of service said you don't put this on your servers. but facebook wasn't checking nobody actually knows. and remember, some of those hardware guys are also in the software business, the video game consoles in particular, and so the questn is, how many of them actually look more like the integration of the huawei problem with the cambridge analytlem where they were sucking down all your data and doing something with it. >> facebook does say and i think it's worth noting facebook says huawei did not download any of this data. their server is just available on phones. >> not that they would know, necessarily. facebook is not that good at figuring out where the data ends you. >> and they've never looked. the problem that facebook has d this is the issue on whatsapp as well, is that they have a long history of saying things that protect their self-interest in the short term that, in fact, turn out in the long run not to have been true. >> what does this mean for

regulation >> i have no idea. i think that the temperature i rising and, therefore, in the long term, we're going to see greater regulation of these platforms. the question io ey fight ryp of the way or do they do the sensible thing which is to say wait a minute, we're not going to be able to do business the way we always did, we're going to have to recognize there's a public interest d why don't we figure out a shared space we can go to right away. otherwise they're going to be fighting this war of attrition which is going to be way more costly to them than settling >> two things, one the company has repeatedly said no material impact on the changes they've made in terms of usage. >> right. >> today deutsch has a look at both snap and facebook usage and they say post-gdpr, pretty stable trends. would you expect that to continue >> absolutely. the design, we've worked with some people who have done testing of the various screens that google and facebook created for global data protection

regulation, in theory they're supposed to be giving people thd control. the screens are almost perfectly designed to get you to gloss over all of that content and just press okay for keeping the old regulations. so one of the problems that mfortnto manipulatingt you in that process as everything else. it's not surprising that everybody goes hey -- they know the terms of services this long, boring, document, who wants to look at it. >> this reminds me of the rule that many of us learned in elementary school at the cold air cafeteria table. you don't leave your chips on the table because when you get back youchips will be gone same with your datt ing to n't trust facebook get smart and make your own decisions about who you're going to -- >> learning this the hard way, john our snack has been taken and we're going to have to figure it out. >> a greater question, though, what consumers want.

>> of course. >> and thehoices consumers are making and facebook has said that people want a good advertising experience where the ads are customized to them facebook gives you an option to clear your browsing history. they say they're making it easy to take that option buyo saying they're designing the system so you won't be inclined to. >> of course and toclear,s in their business interest to do it that way. if you're a shareholder you're delighted they put all that effort into making surat pe io not select the privacy option that might be in their best interest so i look at this and go, there is a public interest that is different than facebook's interest the question that i have been involved in and we've been talking about for a year is, do we have an actual conversation do we, in fact, have an informed conversation about what the right answer is and settle on it, right. ha n's the conversation we we'll see where it comes down. >> that's a positive, right, the fact that we're having the conversation. >> definitely. and to be clear, i mean, i hope

facebook has said yesterday about huawei is true i surely hope that data has not all been sucked into servers in china. >> staying on the phones yeah. yeah i look at that and go sorry, these guys, i mean, there's a reason people are worried about a security point of view they're talented the ability to suck things off the phone would be very high the reason they don't want the government buyinhuawei servers and huawei data communications equipment they're afra of huawey i would think that would be just as jermaine relative to data on phones they might siphon a person who was politically attractive to them or they wanted to compete with. >> we're going to follow it. good piece by the "times." nasdaq up again after posting another record close yesterday, third positive session ia row. amazon and microsoft with some all-time highs today

i mean, tech is er's crowding into it at the expense of things that aren't working as well. nd makes sense, right. i mean the fundamentals in the sector, the reported numbers v been fantasticand pele can imag surprises in tech that are a lot harder to believe elsewhere in the market where we're also at ry high levels i think there is this optimism around tech that ordinarily is completely appropriate and we'll see, you know, what happens here. >> there is -- was this question of regulation that really put a pause on the growth of companies including facebook and google stocks that moment when all of this came out about cambridge analytica. how you think the owth in the tstks recently is because people are less concerned about regulation >> to me, the issue, i'm sure that's at least some of it i think the real issue in the category is, should be global trade. what is our ability to do business openly arou the world? you know, our contacts in europe

are saying that there's genuine concerabout the historic relationship between the eu and the united states and the trade preferences and all of the positives that come withhat. the tech industry is more vulnerable to trade wars than most industries in the market. and so i would think investors would eventually just say, to the president, dude, stop. lay off with the trade nonsense, hey r the market andeally really unhealthy for stocks. >> well, i want to ask about m&a. because it seems to me, maybe it's just what's popping up in front of me, adobe buying majento for 1.7 million, microsoft buying get hub for ov $7 billion, big companiesfooe waiting on the sidelines, talking about valuations being high but i mean these big companies valuations' are pretty sweet themselves has that tipped, do you think,

to a point where we will start to see more of this big m&a to consolidate dominance? >> i think you're going to see some people really active and i expect microsoft and adobe will be two of them because they're out of the harsh glare of what's going on right now so they have a freedom of action. i ink they perceive that one of the regulatory things that is most likely would be a restriction on the freedom of goog and facebook to acquire more stuff, and so i think if you're microsoft you're sitting there going nobody is paying attention to us, let's go and buy a few strategically placed things gethub for microsoft is a really interesting acquisition. i don't know that they're ever get muc n material out of it but it is a strategically placed business that will improve their relationships of developers in ways they could never do any other way. that was a smart move for them i me, there's no dilution. it's like 1% of the stock. >> i think your line wasn'buy ao

make a lotf money. >> to be clear it's probably better for their brand than something they end up buying. >> if they get it right. if they have problems running gethub, nothing sinks your puon faster and worse than causing developers problems getting their work done. but microsoft track record has been pretty good lately. >> in fairness, gethub was having its own internal issues they've had a lot of turnover and conflict and from microsoft's point of view i love the starting case. , the ces of looking good relative to what was already there, adecent on their side. >> gethub a disrupter 50 company. >> knew you would mention it. >> let's get tesla, phil lebeau mu's shareholder meetinger elo yesterday. >> this was a relief really tha. shares back above $300 for the first time in roughly four weeks and the reason is because what elon musk said at the annual eting last night in fremont,

california first of all, he reassured investors saying he expects the company to be gap profitable in the third quarter likely, was in the a 100% guarantee, also he expects the company to bca e he second lf of this ye a as lt does not see the need for a e either in the equity or in the debt markets. the reason he's comfortable with the company not needing capital is because cash flow positive due to the increase in proddef l 3. remember, 5,000 per week has been the target for some t the company said once they get to 5,000 per week, the company will be cashpositive things will start to improve in terms of the bottom line they're currently at 35 hundred per week as of yesterday ors week he expects it within the next month to get up to 5,000 per week, in part, because the company is adding a third assee atts fremont plant. here >> currently the biggest

constraints on output is general assembly and i think we can wi the curre two generalweek assembly lines, but with the third one, i'm highly confident that we can exceed 5,000 unitswt to happen at least the guidance has been that it would happen te early in july to mid-july and that's what elon musk was talking about last night. also at the annual meeting sterday, the ss rejectedroposal to split the ceo and chairman jobs, elon musk has held both of them for more than a decade. that was rejected last night overall guy,t yog wi shares, de relief rally because investors are saying we think this time elon is telling us it's going to happen and will happen with 5,000 per week on the model 3. >> we're going to find out 7 close to thee day. we had a discussion before we came to air about the rubber hitting the road on the 3 now. >>his is the test.

everything is going to be fine he has been horrible at forecasting the transition in manufacturing from -- >> he admitt his timeline has been optimistic. >> to be clear he has cread e hiy of the.sy es in a sd of tim that buyhim a lot of time. you saw that at the shehder meeting. >> you've seen him salvage his he way he mana beingate deadlines. how reassured are you by these comments from yesterday? the stock is up 5.5%, but arves i mean, to my mind, this is -- if i were an investor in the stock and i'm not, but if i were, this is situation for sure because once he gets through that number, that's not the end. that's actually the beginning of tesla being a real business for a long period of time. so, in my mind, the risk/reward right now is super unfavorable because they are burning massive

amounts of cash to try to t to that 5,000 number. and if he fails, you know, if it taan extra three months x nths, you know, thock is not goibe able to this level. >> your point the er promin an end. we're going to find it'srelds get to make that call i'm saying for myself i'm less prone to accepting a promise than i might have been a few years ago. >> this is why -- >> others clearly differ on that issue. >> why it's so heavily shorted of elon. he has such trouble understanding why because he makes these promises some ceos say we hit 5,000 they say it once it's already happened and then people react to that. >> right. >> they're cautious in that. he doesn't play that game. and hey, i mn, at he en able tol off so far. was going to say -- >> this is why we're in the situation with elon musk. >> it's working for him. right. hey. >> beforjeff bezos none of us thought you could run a retail business bomising people you

would never make any money e right person in the right situation can sell the unsellable elon has done that better than any ceo in renmemory >> yep 52 billion, market cap and08 >> why is he going to change, if investors are worried he's going to keep doing the same thing. >> good stuff. thank you. always good toou. julia, welcome to new york. >> thanks, roger let's get over to bertha coombs at the nasdaq for the latest on the aetna health as ceo jonathan bush steps down. >> julia, ceo and co-founder jonathan bush steppingown this ahead of the company's shareholder meeting in a protracted battle of control for the electron flick health records firm, follows revelations of jonathan bush having assaulted his wife more than a decade ago during their divorce. this is t management performae. bush and the board have been under pressure to sell the company under activist with elliott management, and clear bridge also pushing for a new

direction. in a statement bush believed working for something greatef i you can do athena health has been that for last 21 ynose thingthat made m are e exact things that are in the way of the firm's potential to transform health care the stock up more than 20% since elliott offered 160 per share a month ago, hitting a new 52 week high today the board saying it will explore possible sale. evercorp analyst ross mucken puts the odds 60% it will be taken private by elliott. atheen ya represents what he believes is the best asset, cloud based, raising his price target to 179 and john, he thinks it's somebody outside of health care, microsoft, salesforce, or oracle. >> yeah. there is a lot of interest from outside of health care in disrupting it certainly, bera,

and from tech for sure thanks for that. ancoming up with tech stocks hitting all-time highs mike santoli will bring us back down to earth with a look at what's worrying wallt. the state that's suingacebook, washington attorney general bob ferguson will join us in a few minutes. ayitush we started making wine in 1948... [sfx: bottle sounds on conveyor] today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do.

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tech continues to climb as the nasdaq looks for its fourth positive session in a row. what is wall street worried

about? mike santelli is with us on sets >> at the moment not worried about anything much. look at the volatilityndex down near 12, tech in the process of overheating again and trade tensions and r maybe higher bond yields who knows. italy made a cameo as one of the reasons for concern last week. what i'm looking for what might be the next scare, what areas cod potentially cause a next gut check for markets. missing.t maybe goks goes last two months have been a not too hot, not too cold type of environm growth good, bond yields call down.we're seeing a lot off tightness in the economy, labor markets, logistics, transportations, costs going up for companies could lead to number two the fed next week maybe putting the fourth rate hike on the table, probably the markets are not completely geared for that back on the heels of it. and then your typical global financial mishap we're at the point in the cycle

you to be alert for that, might come in the form of a dollar funding stress, emerging markets. huge deficits and funding needs, all the dollars are getting sucked back into the u.s does that cause any ripples. right now not seeing them. i don't know what you do with this becau i don't really anency, but it's a matter of being aware of what wre notc. >> great. >> next week is the trump s summit, at&t, fed meeting, boj, ecb. >> next week is going to be plenty of ingredients for getting a little bit of a surprise, yeah >> great mike, thanks so much >> all right. >> when we return, td ameritrade tim hockey sits down with bob from thelol chge gbaexan conference we're back in a moment

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global exchange conference. bob? >> and tim hockey here talking to us. >> there is movement you mentioned our ims index. investors getting re-engaged and seeing net cash flow is back in. ca levs in our accounts are at historic lows >> we had the surge of volatility, volume through the roof andpp o a bit march, april, may was quiet. looked like 2017 you're saying investor activity actually did pick up >> yeah. >> is that because t market started coming back? >> a littl etame back littl and after maybe it was the volatility and the corrections once that dissipated, let's get

back to basic investing and put money dideeebound which wasa bit of e trajectory of our retail investor. >> you had a great yr. the stock up 20% a lot of the broke have done well in general. i'm wondering what the impact of the tax cut has been for you s d rt your stock is dowell >>olutelthe tax cut's meant it was a big increase in our eps and outlook, ntion we're not alone in that. it was a big shift. >> what was your tax basis before >> high 30s and nod 20s. so the accommodation of those two things -- >> you went from 40 to 25% is that fair >> yeah, lite n that a big shift that was one. we're not alone in that. another thing that was factor we just completed on our scottrade, that conversion week back in february and successful and focused on movinas a combined firm and that was

helpful, trading levels you talked about are great and generay inrest rat up is helpful. u'rerying to do isnto seen the personal advice business personalized portfolios. one on one relationships wit is there where the industry is movi you want to van investment relationship with the client >> that's part of the offering i see it as a continuum. we're known for being in the self-directed space, active trader and those clients looking for advice we tended to hand them off to our ria business and those advisers that work with us there. there's a widen ben r clients looking for more products and services alg that and personalized portfolio to us is thet offering that fill in that gap for us. >> makes sense you just had an interesting survey out of investor five years from now, 40% of your clients may be or millennials. do you have to market to them in a different way?

what do you havecho get them interested in thesinesn yeah.right now it's well over d of our new clients are millennials and you have tmaet y they are much more tech savvy. they tend to trade in the products, the fangs. everybodwh they know but that's demographics for you. one rule, everybody gets one year older. >> we saw a huge explosion in crypto stocks, as small as they are, cannibis stocks exploded in january. that's got to be a millennial interest, those two topics of some sort. did you see that in your own trading? >> we did. ity peaked in december and january. the interesting phenomenon leading to your previous question the sheer numr of new clients and accounts for our business and for many of the new entrants in our space, are off the charts it's partly because of these new phenomenon people are interested in trading them. >> have to let you go. ceo of ameritrade thanks for

joining me i'm here at the gl ehae conference coming up in the next hour, thomas petterfy, interactive brokers who has interesting things to say about the markets. >> bob at e sandler conference over to sue herera this morning and get a news update. good morning. >>oo good morning, everyone here's what's happening at this iselnt burning rags dangling from kites set off by palestinians over the border the israeli army have drafted drone enthusiasts as reservists instructing them to fly their aircraft into the kites. air china resuming flight between beijing and pyongyang as relations improve between china and north korea. they were suspended in november. drone footage showing the devastation caused by the eruption of guatemala's volcano of fire. the town is seen basically aa lifeless state houses aesreer with a very thick coat of gray

soot as rescue workers come on-site. and a study suggests strok survivors could gain the most from last year's lowering of the optimal blood pressure target from 140/90 down to 130/80 researchers at the university of south carolina estimate the new guidelines could cut deaths among stroke patient business one third. you're up to date. that's the news update this hour back downtown to "squawk alley." all right. julia, i'm sending it back to you. >> good to see you. >> thanks so much. good to see you too. thanks, sue. over to seema moody for the european >>ey, julia, interesting story playing out in new york, higher on wall street but in europe mostly lower but there is one standout sector that is the ners copper hitting three month highs on these supply concerns from chile and that's providing a nice lift to the european miners names like billiton and rio

tinto up there is more talk that the european bank will use its next policy meeting to discuss the end of stimulus spending the ecb chief economist today said it's clear next week the governing councillave to make this assessment on whether the progress so far has been sufficient to warrant a gradual unwinding of our net asset purchases. this morning jpmorgan writing there is a clear signal that a decision on quantitative easing will be taken next week and that putting -- that's putting pressure othe italian banks. the ecb has been a net buyer of italian debt if it starts to pull away from stimulus that could put more responsibility on the italian banks. but the larger european bank sector, deutsch bank, commerce, hsbc are thigher today, recouping some of e loss frast week meantime bond yields and eurozone's core and peripheral states are trading a few basis points higher, guys. a lot of focus on next week's june 14th ecb policy meeting

>> all right thank you, seema when we return, the attorney general of washington state is going to be with us for the the latest on the state's lawsuit against facebook and google. more "squawk alley" after this

facebook has confirmed it hr chch companies inclung one flagged by u.s. intelligence those companies include huawei, on po and leno as washington

state targets the social media giant and google as well alleging the company's failed to keep legally required records on political advertising. jous now is washington state attorney general bob ferguson thank you for being with us. understand exactly how washington state. >> so i was looking trying to understand exactlyhow

washington state defines political advertising because in this digital environment it can be difficult to define whether it's an issue ad or something targeted to a candidate or topic on the ballot.how do youit in washington statave broadisu laws and those definitions tend to be broad as well so it's a broad in terms of what the content is but broad in terms of who must provide information to the public if they receive political advertising and make that information available to the public. >> so hoare you able to determine whether companies are supplying? it's not as though they are on local television stations, only so many of them. these ads can be targeted to people who might not even be located in the state at the time when they're seeing them have you been able to audit this >> washington law is straightforward. it says basically any person in our state can walk into a tv station or radio station or a small town newspaper and ask for the information of any entity buying political advertisement at that newspaper on that station or at that radio station and those entities have to maintain books that show how

much is being bought, when airing and who is paying for that in the case of facebook and google, when individuals went into those entities and asked for that information, it simply wasn't available and that's not okay under washington ste law. facebook must keep that information. they have to find a way to do that and make it available when someone is buying political advertising or campaigns in washington state >> now, facebook jus a sees of changes that it started enforcing abou politil and issue advertising disclosing who is buying the ads. are those changes sufficient for you? >> it's too soon to say. wave had commuons with facebook i appreciate, we felt we had to move forward with lit gagts to get the outcome they want we appreciate the effort to have greater transparency, but they have to have that information available if you walk into facebook, here in seattle and ask that information, it's got to be available right there to the average person, average washingtonians in washington state. i think they're looking atimproo

before they are complying with washington state law >> well, presumably, the way that these disclosures are set up, whenever you see an ad, regarding anything, you would be able to click on it and get all the information about it the way we interact is about getting information on our phones than a facebook office. where do you see this going the future >> want to be clear. washington state law is clear you have to have that information available at the office wonderful they can provide it on facebook itself but washington state that transparency is key and they have to provide that, want to be clear, just like everybody else is it a hassle for every tv and radio station and newspaper and others in our state i'm sure it is to provide it but facebook and google must provide it because that's what our law requires. >> "new york times" op-ed suggests facebook should be cut down to size or split up what do you think about that >> i don't know cuss too much on that my job is to defend washington state law. what i will say is i do think with the 2016 election, the public is rightfully asking more questions about who is buying

political ads, who is influencing our elections and that's why this w in washington state which has been on the books for many decades now is important it guarantees the transparency so every person in my state can see for facebook, google, the south times, for tv stations who's buying the ads and paying for them that's transparency and r voters required and that's what i need to enforce. >> i'm wondering, how do you know, even if facebook hands you a trove of information about various ads they say is all the information about political ads, if you're getting all of the ads that were intended influence the the shapinof policy. how do you know you're getting all the issue ads that were targeted to residents of the state? what is the scope of this old law and is it sufficient to really protect consumers and protect democracy in the digital era?

>> the scope of our law is broad to such a degree, even though facebook and the internet and google weren't even contemplated as you can imagine decades ago when the law was created it was written in such a broad way it would encompass new technologies like facebook and google, new platforms to reach voters. that's a good thing but the law is broad enough to encompass that. >> unless you can see every ad specifically targeted to people within washington state, that say isn't for a product, how can you know that you're getting all of the ads that are meant to influee politics or policy >> well, any law requires, right, the target in this case, individual entity complying with it, must make that information public ave the y my offi to subpoena documents,o get information. we have that ability and that authority. we're not talking about that right now. we're in the early stages. we're talking with facebook and google we want to work this out

there's no resn things case unless i'm satisfied we're getting to a solution and the information provided and all that information is being provided to the public >> and so next steps, what sorts of ashurpss, aside from them being able to hand you and your representatives something when you walk into their local offices, what do you expect them to do at this stage? >> at this stage with google and facebook, what they need to do is do what every tv station and radio station and newspaper do in my state. if you walin the office they to hand to the public who has bought ads, paying for it and how long it's being purchased. that information must be available on-site onand for any any washingtonian. and facebook and google are not going going to get treated differently from me than any other entity in my state that's where they edne to get to >> a lot of flash drives i appreciate you being with us. >> appciate it. >> when come ick santelli, what are you wating ase approach 25 k? >> not only am i watching 25k,

i'm watching global interest rates on the rise. let's see, what's going on next week central bank meetings, just about everywhere you look. that's what we're going to talk about after the break.

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at hollidayinn.com every stay is a special stay at holiday inn. > here'ss comingp can tech take the rally to new record highs what else has to start working for the bull run to keep going after one big run, one retailer might be getverheate that's the word om one analyst today in our call of the day and the financial stock that's doubled from its 52-week low we have the ceo in a cnbc exclusive interview. carl, we'll see you at noon. 15 minutes away. >> sounds good see you then to the cme group in the meantime and check in with rick santelli and get the santelli exchange. >> good morning, carl. so i know we have a lot of

central bank meetings and every one of them is going to important fovestors and potentially modifying their investing strategies, but there's one that stands out and today's market reflects that it's the eand why does it stand? well, not many times do we get such a good glimpse into the psyche of investors as we have the last couple weeks and i guess a thank you to italy is in order, not for their misfortune or their debt or some of the complex issues they face but for how their markets have behaved and wh other markets did because of that. as their rates started to fly, and the thumb on the scale started to lose its downward pressure and, of course, i'm referring to how the ecb - when they lend against it and

give the bank of italy money timately there'ses a problem out aren'predetermined.and the and once that happens, a variety of things start to happen. we see investors run towards safety, pushing yields and u.s. treasures and bunds down thatn't happen today as there's a resurgence of italian rates. why did it happen? because the ecb basically told us that next week they are going to discussf qe many investors may not bleesh it but it doesn't matter. investor anxiety versus ecb commitment there could be a good trade because of this. euro versus dollar the one that jumps out at me and this chart goes to '09 but only for effect. by going back that far, you get to see how significant this transverse line of 120 is. it's been very key bottoms along

the way, once you go through it, you accelerate momentum and when you come back up, you define it. but here's the point of why i used the big chart you see this really cute pattern here most likely that destination is going to be, you guessed it, 120. and my feeling is, no matter how the longevity of the issue and the ecb is or their commitment is, nothing is more anxious to the investors right now than the possibility of the thumb coming off the scale. so it may get there. the real

silicon valley under pressure for its lack of dive e diversi diversity, with women being one third of the employees a group of female investors say silicon valley's gender gap starts at the very beginning when the first shares of a company are being allocated to early employees. the document that lists those initial equity stakes is called the cap table.

seema became coo of video chat platform house party while pregnant with her second child >> there's a prototype here of the start-up founder being white, single, young male. and you know, who's dedicating their entire life, subsisting on rn noodles to build an empire and you ow, unfortunately, that didn'look like me >> she was convinced by angel investor chloe sladen to leave her executive job at yahoo's tumblr and co-found house party. a big risk in exchange for a chunk of shares on the company's cap table. >> the cap table is the legal document that records who's going to make money when a successful start-up exits. it's the road map to power in >> investor called #angels is focused on getting start-ups to allocate more shares to women. the group hosts dozens of events to discuss the cap table gap and they have invested in more than 60 companies over three years.

their work with vcs and founders to place women at early stage start-ups is already having an impact as she makes sure female employees are well represented on her company's cap table >> those early women who were here have helped not only define our culte d r producd our ganization, but they'll also be part of the wealth creation one day, should we exit >> the next step for this group of investors, the #angels, is pushing for start-ups to disclose diversity of their cap tables >> this was a big topic at code last week. a lot of people talking about various efforts to change things, and others question me too and movements like that scare men out of mentoring, perhaps, female executives >> yeah, there's aion about backlash, the whole time's up, me too movement. what's interesting about this group is they're trying to

partner with vcs and companies saying you don't want a company with all men we know this network of talented, qualified women. let us help you match th up with the holes you're trying to fill so they're really trying to serve as partners and sort of explain the long-term potentia put more women on the cap able >> are they focused specifically on women how granulare are they defin diversity? hey're looking broadly, but this is a group of six women, and they're inviting particularly women to come to their events and obviously, they want to work on diversity in general, because -- >> not obviously >> not obviously, but the are talking to the fout itone thing they do is sat down with each of the 60 companies they invested in and explain the importance of diversity for the long run of their company. and you know, silicon valley happens to be very white and very male. they're looking to changthat the ideaou c getn early and get more women of color on the cap table, these are women who down the line could be the kind of investors

who would fund more women down the line you look at the fact just oe wo figure out how to reverse that going back to the very beginning. >> vealy interesting story, and one we have to watch for sure. >> market doing okay here. dow up almost 200. we did hit 25k jpm leading e charge back above 110 an interesting session we're back in a minute you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor

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taking the senate ou instagram. the company considering a new feature that would allow users to post videos up to an hour long currently, instagram caps vide posts nd anjulia, before facebook bought instagram, i remember a time when you couldn't see instagram photos in a normal web browser. it was only on mobile. they were very narrow in their focus, but you get big >> now they have all these different options. you can do live video on instagram. i think one of instagram's appeals, the main reason it's so popular is because it's so simple, so clean up. wonder if this will clutter >> we'll watch that. financials the other big story one against for e year today, jpm has caught up with the s&p as it gets above 110, and twitter caught our attention,

speaking of the squeeze on social media back above 40 for the second day and snapchat up 20% in a week. that's gotten a lot of people's attention. >> twitter hitting that new one-year high today, 52-week high today, and joining the s&p 500 tomorrow >> that's right. let's get to the judge and the half welcome to "the halftime report." i'm scott wapner our top trade, the russell's record run and what the breakout could mean for the tech given rally. with us, joebrown, steve weiss,e adf asse at ubs.in brown, the let's kick things off with the markets. that move in the russell joined the nasdaq, by the way, at a new all-time high just a short time ago. peet, we pose the question at the top. it's been a tech-led rally back. >> no doubt. >> what do we needo start working as well for it to