prices looked higher to what he thought. you can see wti up by 38 cents to 67.01 and 76.78 and look at what's been happening with the ten-year note and yesterday we got close to 3% on the yield coming under pressure today at 2.933% thanks, everybody. make sure you join us tomorrow "squawk on the street" begins right now. ♪ ♪ good thursday morning. welcome to "squawk on the street." i'm carl kint ni quintanilla, and the ecb will end qe in december, ten-year 2.93 and the real map will begin with comcast making it official and a $69 million bid, with a potential bidding war with disney and the

solid macro data and supreme court watch. decisions pending on internet sales tax, cell phone privacy and a white house travel ban, many of which could come this morning. our parent company comcast announcing the $65 billion all-cash offer for the asset a 19% premium to the value of disney's all-stock offer for the same set of assets last night's conference call, brian roberts talked about expanding the company's global footprint. >> we firmly believe that the truly great media companies of the next century will be large, integrated entities with multiple growth engines across a wide swath of the global entertainment industry, and we believe our proposed acquisition of fox would not only enhance our domestic position in distribution and content, but would take us to global reach and additional growth in these businesses >> so, jim, we've talked about this setup for a while and we're finally here >> this was an astounding

conference call because i thought it was as much about why they should buy and comcast is favorable, and how well comcast is doing and that perhaps it's an aberration that the stock is all of the way down because i spent a lot of time trying to figure out why comcast stock went up on a very high bid and not because there was no stock and the answer is mhey, you dont even know how well we're doing steve was prominently on the call from cnbc, from our division, and i felt great about it i'm mindful and i said what do you do if you work with a company and you come on air and you say, wow, i feel great about my company and that was kind of the gist take it or leave it. fox will do great, but we want to be more international. >> certainly, this media environment is what cnn's had to do on the midst of this trial on their end. >> right >> now we have abc employees that will have to cover their same story in their own house,

but your point, rich greenfield was asked about the comcast shares and he said over the entire media universe because of the outcome. >> i felt at the same time what really has been driving it down was the idea that they would come back because if you go back, there really was a moment where it went from 38 up to 42, and broadband is really doing great and then it plummeted and the plummeting was in sync with the idea that the fox assets would come up. i literally disagree because i don't think it's analogous to the failing media, thank you, mr. president, as rich did i think comcast is acquitting itself of many different verticals and that was one of the things that came out >> let's put this in the framework of an investor playbook here. >> okay. >> do they start looking at assets that are more likely to be sellers than buyers how do you do this

>> look, i think that -- well, comcast is a deeply focused company that's not thinking about anything other than what's right, and i think that disney is the same. i know that -- iger wants this comcast wants it, and there was a great moment this morning at 5:00 with brian sullivan about the notion how much can murdoch win tax advantage versus what everybody else gets. you have the three most important people in the media and you're trying to figure out everybody's game and this is the most exciting thing that's happened in a summer because we're almost into summer that i can recall. >> true. >> i don't know who will get it, but i felt great about everybody. disney was up big yesterday, and i felt better about every company after comcast played its hand. >> it sure beats the summer spent wringing your hands about the periphery of europe and credit quality and macedonia

>> jay pal succeeded steve liesman asked a one-part question. >> speaking of that, as we wait for david to get to the phone. very quickly, what's moving markets is the retail sales number, .8, double the estimate and april revised higher, best in six months. you have claims down again, five-week low. you've been consistent in arguing stop worrying about the prospect of trade wars and the prospect of bad things happening because the real stuff is actually good right now. >> look, we're on the eve of the actual tariffs and i want to wish larry well and i also want larry on the microphone because i want the tariffs with china to be presented in a way that, listen, we want to do this so please don't get too fretful yeah the numbers just keep coming out, and the numbers just get -- i mean, when you get something like that, let's meld that with what jay pal said which is going to be measured and then have the sell-off for the last 15 minutes

and take that off the table and go for the 2:45 and 3:15 advance and what you say to yourself okay, pal will not try to derail us, the tariffs will not derail us what will derail us? is it retail sales no this is the best employment i've seen in my life. we always compare in 1969. i remember 1969. i am so darn old, that was a guns and butter problem. we do not have a guns and problem right now. >> not an exaggeration to say it's one of the best labor markets you've ever seen. >> we don't have enough people in the country you can argue there are still 7 million people looking for job, but i'm telling you that there are 10 million jobs with 7 million people looking they're just geographically in the wrong spot. >> and you have draghi which took a hawkish decision, some argued, followed by a more massaged presser. >> things are better and things are better than two weeks ago

and talk about granular. >> it would be data. >> i love that guy, and that's too close for comfort, and i felt that -- if we can get the euro back up that would really help the story we need the euro back up and we have the euro hiccup and we want it back up. >> right granular >> it's all about you, isn't it? i figured why don't you say it on air >> after your travel schedule, he did say rates probably not going to change until next summer >> i know. the rates there are too low and they have structural issues and then they have the migrant issue and europe has social conflict whether it be italy and you have social conflict in germany, and you don't want it to be tightening in a period where

they're trying to find jobs with 2 million migrants >> so you think we're deflecting either way here or do we continue to see the sideways job that we've seen since february >> we got through the big, bad event which was jay pal. he's really good >> did you hear santelli's play this morning >> wasn't that incredible? i'm on the same page as santelli. >> orderly. >> not since i went to chicago and had a good time that i was on the same page with that gentleman, but it is a remarkable thing to see how everything's coming together, and i'm going to come back to the tax cuts because the tax cuts were -- look, i was with gary friedman last night from restoration hardware, rh, his stuff is not cheap and it's blowing the doors off. everyone has more money except people who have big cities >> reports are called getting what's owed to you and they say an unusually lumpy tax refund

season could break record highs when americans file in '19, we estimate refunds could be 26% greater. >> 26% greater look, the money is in the hands of the people. the gdp growth is turning out to be funny other than men's warehouse and tailored brands, you have to go far to find earnings that are bad and michaels stores, tailored brands and h & r block -- that might be it! revised numbers 3.5% for your transaction fee and they'll have no resistance whatsoever i spent time over at etsy recently and boy are they killing it people are looking for $1.68 and the largest steel company in the country and you put together, it shouldn't be this good >> yesterday when we started selling off and i get that

j.p. morgan went down and we'll speak to david and the stock finished up 15 cents and it is ridiculous can we accept the fact that we can make money there is so much money to be made in this frackus with the payment process. and mastercard and visa cannot be the only stocks that go up. >> that's interesting. we did get a line on trading revenue for the current quarter out of city. we're not looking for huge gains in trading revenue >> city went down on that. city, by the way, is six bucks above its scheduled book value and the ceo is having 7% of the company and the company is not liked because what do people want they want global payments corp they want square so badly, why don't they just go out there and

i went to the dog track and the robert fell. the dogs are trying to grab it, and it's, like, let mae have a square n. it's the greatest story ever told. i have some square at my bar it's not as exciting. >> now that you mentioned that, gary cohen is talking right now from "the washington post" whos had expressed interest in thintech there are pockets that are interested >> this is the most important thing. paypal i happen to love paypal. >> the dogs -- we're going to talk to faber in a minute about comcast, disney, fox a lot to get to this morning we'll monitor gary cohn, and the first chance we've heard from him. when we come back, mark mahaney has a few challenges involving amazon as you know, the dow and s&p is coming off the highest loss since june and a drop on the

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♪ ♪ ♪ >> comcast making its bid for

fox assets official. our david faber has the story since the ball began to roll and he joins us on the phone good to talk to you. what's important to know this morning? >> you know, i think, carl, we were talking about this yesterday, in terms of how this will play out. fox has a regularly scheduled meeting on the 20th of this month which could be a good time to figure out what they want to do from here and engage with things from the past and in addition to the $35 all-cash bid and there was certain language over the willingness to engage and talk with the behavioral structural remedy and they'll want to talk about that, but listen, 35 is the roughly $28 that the current disney is worth in its stock and so one would expect that this could very well lead to potentially what we would call a superior proposal,

putting pressure on disney, of course, to come back to fox and improve its bid to buy the company and a lot of people have been focused on rupert murdoch and my reporting from previous days and weeks have indicated that murdoch will be quite rational here, unsentimental and certainly would not walk away from a far higher price despite what would be tax inefficiencies as we point out in the all-cash deal, and when disney does come up as i expect they will, they'll probably include cash in their deal, as well. >> well, david, did you find it interesting in the conference call that hulu wasn't stressed at all and suddenly it came up in the q and a and i think hulu is a critical part of what they want >> i think direct consumers are important for all these companies. disney is building its own and it will become an important part of its future regardless,

frankly of whether it succeeds in buying fox assets and it will be important for comcast, as well i believe, jim, there was a willingness in the language that was in the press release to potentially, and i don't think comcast would say this, but at least you've got to think, okay, what if the regulators say we're not comfortable with the biggest broadband provider in the country having control of hulu, one of the key over the top platforms? so i think as important as it is, i do wonder whether comcast would be willing to divest that asset in order to get the deal done because you could see that becoming, if there was anything, that it could become one of the key sort of areas that regulators would focus on, jim. >> i'm glad you brought that up because i spoke with it last week for the antitrust he was talking about how disney was correct in the way it was

going about it is aisaying, andl us what to do. it seems forthcoming about the need to please regulators before it pleases shareholders. >> yep, and i think that's something that they believe, that comcast and the fox sports certainly wanted to hear because remember the last time they went through this and i've heard different stories in terms of whether comcast really did make certain promises and fox didn't necessarily ask for them to do certain things, but this time they wanted to be clear at fox, jim. they're willing to do what it takes to get this done now that said, it certainly as a potential seller want to have that in writing before you decide, for example, the 35, if it were to stay at that number which i don't expect is the right price, but this is going to be, as we said yesterday, guys, an interesting, fun, most

likely war here between these two companies at least for a while unless something unexpected occurs. >> finally, david, as we watch that, we're also getting more information about the integration now of at&t and time warner anything we should know about that >> it will be interesting. he's going to be the guy running the entertainment assets and he'll have the portfolio i think it will be interesting to watch in terms of their ability to integrate these assets and deliver on some of the things they talked about the stock is, as we know, under a lot of pressure yesterday and i don't know what it's looking like today, guys, but there will be a great deal of focus there and it was there, wasn't it, jim? >> i know a lot of people, i'm pretty astonished that comcast stock wasn't down and also that disney flew because david, is

there any way that the stock of disney is saying, okay, look, we're going to come back with cash, not stock. we're willing to take more pain because disney's stock should have been down yesterday, not up >> yeah, you know, jim, it was the same thing when we were on the air it was down and then it turned around and maintained for the day part of it is the expectation on the part of investors that if disney comes back as we've been reporting they will include cash in this deal and so there will not be more stock. you could argue that bid there were other stories going around saying disney could lose now and they could potentially sell the company and my question is to who? let's be realistic, it's an enormous company and they're coming along and they're going to buy it. come on. so, that might have been part of it and another might be the machine. we talk about it all of the time it seems to be a huge buy program going on for media and it's possible that comcast and

disney get swept up by the teams who are not necessarily recognizing that they're involved in a bid. >> david, enjoy your vacation, man. if it is a vacation at all david faber on the phone today covering media even from a break. >> when we come back we'll get cramer's mad dash and count down to the opening bell and a oklo at the market on a thursday morning. don't go away.

saying saying liste ♪ six and a half minutes to the opening bell

let's get to cramer's "mad dash." mark, one of our favorites will be on. he has an outperform and it sounds great, but then he goes, walmart's doing better and then he says amazon's u.s. prime penetration may have plateaued, and that was worrisome, clearly an e-commerce leader and a few challenges, there is nothing here that makes me want to sell amazon, but i don't want to hear that anything's plateaued and i hear anything associated with amazon given the fact that i think you can agree with me that it's been a good performer and david raises the price target and i do want to point out when mark's on it might be a bit of a buzz kill. we'll find out and he'll be on squawk they may go to 2100. >> mahaney is stone cold and he's starting to anger me. he's always been a great supporter. >> he's liked it a long time and it reminds me of the oracle

downgrade because the survey shows some loss of business from oracle to amazon to microsoft. >> yeah, look, amazon web services are notaccentuated enough in mark's excellent piece. amazon's advertising not accentuated enough international should have been accentuated more and he makes good points and just like the amazing score can comcast, if you're not international like walmart, people think you know what you're tapped out. that's the new theme of 2018, you're tapped out if you're not international and what i will say is amazon will be very international. >> very interesting point, gem we'll get the opening bell in miteonhi a half nus ts thursday don't go away.

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estimates and the media chess game is in full swing now. >> look, i want to see if this rally holds because remember, what it's based on is kind of -- well, let's forget about what the fed did yesterday and now let's think about how europe's getting stronger and the job rates are good i don't know the staying power because while this is all well and good, we do have the tariff issue. all i'm saying is this, it is surprising that we're this strong we're based on retail sales, based on europe, and that the last 15 minutes didn't matter. i don't know i want to see how things go. i need to see the banks do better they should not have reversed yesterday. they ended up being terrible they're big winners from yesterday so if the banks read, i'm happy. >> that would be interesting to watch. >> china did have a couple of big misses on retail sales overnight and success at investment and industrial output >> right

the tailored brands is a farce they acted as if nothing was wrong, nothing was wrong and then you get a question two-thirds of the way through that says please hold my hand. would you hold our hand? >> amazing amazing. >> there's the opening bell at the big board this morning and it is u.s. express enterprises celebrating its ipo today and we'll talk to the ceo on squawk alley, and dropbox celebrating pridebox >> subscription models i love a subscription model. >> you're coming back to this this week. >> costco rh, spotify. >> and your passive subscription model. >> a lot of comcast is involved with subscription model. i have zoro on tonight and they're the king of the

subscription model economy, but when i go through what they're talking about and what comcast is talking about, we need to have global scale subscription model and tien's a great guy and by the way etsy starts a subscription model today everyone wants to be part of this subscription economy because it's got renewable numbers, and by the way, we work -- >> oh, my gosh, the valuation on we work. >> neumann's real. the guy who runs it is real and the subscription office is real. it's very exciting a very exciting company. >> it's amazing. there are some potholes to keep track of today we mentioned oracle at jpm to neutral and kohl's, the cuts are neutral. >> the stock has just gone crazy. we all struggle with a stock that went from 60 to 78 in a

week in maybe ten days' time and that is to me, there are speeding tickets, periodically look, we know that rh will be short squeezed it's a gigantic, gigantic short position kohl's had a gigantic short position and people don't know that, relative for a big department store and yeah, they're going come in and people got very enthusiastic about retail and today we've got michael's which was guiding flat, the tailored brands that i mentioned and we got water thrown on retail that's been very strong. >> want to go back for one second to we work. this is the next big company this is the one that everybody wants. international scale and good, lean model and we'll be trading this stock, i think, in 18 months. >> you think so? >> uber, air bnb and we work, you think? >> those are three companies

that are the world's their oyster all three companies are very exciting uber has cleaned up their ethical act and get ready. you think you've seen everything with fang? we'll have to come up with a new acronym. wow, that will be challenging with a as your only -- >> wufac >> the ipo environment is pretty robust here. >> yes, it is. some of the companies that have come public in the last few months are so exciting to people you've got -- you've got zoro, and it's selling at 15 times sales and it's not -- it's not easy to generate that kind of valuation. i know david's not here right now, but he'd be saying to me, he'd be going, jim, 15 times sales. >> that's exactly -- >> and 15 times sales. david is very good at that

disney is your top dow component up 1.5%. how crazy is that? he's supposed to be adding stock, and this shows you that these stocks got oversold and the naysayers came out and said we don't want to touch this and now we've seen the abyss and it turns out the abyss isn't nearly as deep as we thought. the whole time during this fight with the exception of the one "star wars" movie i didn't see. >> "solo"? >> this has been amazing >> have you seen the trailer for dumbo? >> i dumbo >> i cry happened. >> does he live in this? >> meanwhile, comcast, our parent company up 4% and almost back to 34 >> listening to that call and you say to yourself, wow all cylinders and they can afford to pay, and 65. do i have 80

do i have 85 i've got 80 and 95 sold in philadelphia >> you are an actual auctioneer. >> i got classically trained and -- i do it only for charity now, and i love it so much >> we are watching gary cohn talking to damian paleta of "the washington post" and he had a message coming out of the g7 take a listen. >> i think the overall meeting there, we continued on the same path of course, everyone likes to pick on their one little favorite pet peeve to what one country is doing on another, but overall, i believe very strongly that we need to head to a global environment where we all trade freely and independently with each other we all gravitate toward our comparative and competitive advantage and that means we will trade with each other. we will have trade surpluses and

trade deficits with certain countries because it's just the way the world works. >> look, i have always said a trade deficit doesn't matter in many respects it's helpful to our economy. >> sort of an echo of what greenspan told sarah eisen on our program yesterday. >> a globalist view. it didn't fit in with peter navarro. >> or you, maybe >> i know gary knows where i am. i'm closer to peter navarro. when larry kudlow was my partner that was my view i'm not on the bandwagon that's been my view ever since my father's list and my father ended up working for the chinese and you couldn't beat him. you had to join him. i feel -- i like gary being back and it's kind of like, jean! jean, come back! he's a great, level-headed guy

there's politico saying kudlow and larry who is out of the hospital now expected to come back to the white house fairly soon >> good. we need the great articulator. he is so necessary and we need it because the pessimism, i mean, the president flies to singapore, the president failed in the negotiation oos auto negotiations haven't started yet. no, it's over. it was a big defeat for the president. he hasn't gotten off the plane yet. i would like it to stop. >> we're watching that i do want to touch on it before we get to draghi on tesla because musk did buy it in the low 340s >> he's unbelievable still the largest shareholders and owns 19% of the company. >> i remember there would

periodically be these companies that knew exactly how to handle the shorts and no one has been as masterful elon musk is masterful and he'll take the rock toet to mars he floats like a butterfly and stings like a bee. >> well, if they can crack 350 which is just shy, and it will take you to levels of last fall essentially in the low 350 >> if he does the model 3 that he says, and if he does the business that people are getting more excited about and obviously buying back. >> the guy is going for broke, all right? but gary friedman at rh went for broke and he bought a ton of stock in the 20s when restoration hardware was in, and he went all in, and look at the stock. 155 so anything can happen and fairytales can come through. do you think there is a long

trade in tesla on the notion that elon will pull out all of the stops to make this initial run work >> yes, i like when you said trade and you can argue since 290. it's painful i don't like to recommend tesla's stock because i can't figure out the valuation when you listened to the call last night to comcast, say you want to be like netflix and they want to be international and netflix doesn't have any real hard assets the way comcast has, but i admired the way netflix stock went off and you can adhia admire tesla from afar >> almost 388. >> incredible for the high >> incredible. >> draghi just wrapped up his news conference and euro has moved on his comments and steve liesman has been working on that this morning. >> history here for the european central bank and causing the euro to fall out of bed and we'll get to that in a second and we'll show you what the news

was here number one, it will taper the quantitative easing that has been on since 2015 and it will start to bring it down again in october to 15 billion euros a month from 30 and it will stop qe altogether after december, and it will keep the balance sheet unchanged for some time. some particular time after the end of qe and the third thing, it will keep rates unchanged through the summer of 2019 holders of the euro did not take this well. you can see it's been straight down since the 7:45 announcement while draghi was talking, and i don't know if we have the chart. i'm sure we do let it is right there over my left shoulder, there it is and when you talk about floating like a butterfly this thing's fallen like a piano from the third-floor wend owe. let's hear about what kind of confidence as to why the eshls cb was able to do this >> progress toward a sustained

adjustment in inflation has been substantial so far with longer term inflation expectations well anchored, the underlying strength of the economy and the continuing, ample degree of monetary accommodation provide grounds to be confident that the sustained convergence of inflation towards our aim will continue in the period ahead >> he got it out eeventually. there are the gdp numbers for the growth outlook, 2.1% and draghi also said he was concerned about the trade conflicts and tariffs that were around and not hitting the forecast just yet. he sees no contagion from italy and dismissed the threat from the euro calling it irreversible and guys, did you see the retail sales number, and i expect the cnbc rapid update to be marked

up at or above 4 and we'll collect the samples that are out there. >> wow steve, thank you for that. steve liesman. >> the dow is up 83. hey, bob >> they're talking about the ecb, and the big thing is it moved not only europe, the market and even here in the united states we moved up four or five points and the key mover, of course, wasn't the fact that they were ending the asset purchases and it was the fact that the rates were unchanged with the last summer and you see that pop up into positive territory here in the united states, sectors, we're still considering getting the consumer discretionary okay and tech up a little bit and we need more help and banks are just a problem they have stocked being a leadership group for the last couple of weeks essentially and we have a week with a lot of news and what we don't have is movement in the stock market here and we have media m and a,

and rate hike and strong retail sales and we have some risks out there. the china economy, and the china tariffs are an issue and the president may impose them tomorrow and a more hawkish fed, and the presser yesterday and you can argue they're somewhat more hawkish and what we don't have is a lot of movements in the market we're only up because consumer discretion because the retailers and the media stocks had been really strong this week and we're modestly up on tech as the semiconductors have moved back and banks that was a big mover and energy stocks have essentially stopped helping the market out and that's kind of why we're just flat right now. it's not that there's nothing going on we do have good highs and amazon, twitter, netflix, sales force and they're all sitting at 52-week highs and they're hig high-profile names steve mentioned the retail sales numbers and boy, they were terrific

i watch these numbers pretty carefully and i don't normally look at month over month numbers and building materials and gas stations, clothing, my favorite categories and restaurants and bars that's a lot month over month and look at the department stores and all of that commentary, and earnings numbers showed up in retail sales and up 1.5% and you don't see that kind of number up very much and the results, we have seen stocks move on this the markets played attention to the early commentary from the retailers and all of the department stores are doing darn well so far, and remember, this is only half way through the month. right now we are just off the highs, paul, up 70 points in the dow. >> talk to you in a bit. bob pisani let's get to rick santelli good morning, rick good morning, carl can we see retail sales stronger than today sure we can, but it was darn close. and yet yields are actually lower. if you look at a one week or the two-year you can see the

volatility that we've had whether it was our central bank yesterday or the ecb today, but then again we're still down a basis point and look at one week of ten, down two basis points and it certainly looks like 295 like this could be the tenth day in a row that we close in the 290s, one week of boons and look at the far right and the volatility he's had and it's still holding up okay at 44 basis points and it is down on the day, but what's going up in europe and in my opinion what will occur with the bank of japan tomorrow and these are big reasons depressing our yield where the relative value pressures are pushing to the downside with the domestic economy and pushing it to the down side with the current fed strategic outlook, so to speak the yield curve, it continues to pancake out on us in a very methodical fashion and one week at ten minus 2s and august was down seven

30 minus 5s and it's hovering around 25 basis points and the fourth of july '07 and here's something to talk about on the exchange later and if you look at the difference between sevens and tens, was there a time when it was up 2, 2.5 basis points and every time seven to tens invert, every time, the whole curve invert, but you need to ask one more question what's the timeframe seven to tens convert, but it might take a long time for the rest of the curve and that's the rub in such an easy sounding, kind of historical data point, if we look at the euro versus the dollar for one week, lots of volatility, but what's really interesting is it's still not far from 117 and those are automatic scaling on those charts, and it's a big move, but it isn't a huge move and there is mean reversion going on and finally, one week of the dollar index. i really like this chart and we

spiked yesterday on the fed and we couldn't hold it just like the interest rate, but we traded higher than that spike today dollar index especially on which side it closes on. carl and jim, back to you. >> rick santelli in chicago. when we come back, eli lilly's david ricks with big pharma. dow holding at 76 and the s&p 2784 with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices...

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i'm not going to get tel you there's not friction in the system there's a lot of friction in the trading system right now but ultimately i think the goal that the united states wants is is clear and i think it is the right ultimate goal. the right ultimate goal is that every country should lower their trade tariffs, lower their barriers, get rid of tariffs, get rid of barriers.

>> that's gary cohn talking this morning. also commented on whether or not tariffs could offset tax reforms. and on the president's tweet on that jobs friday says anything that deals with the integrity of the market troubles me we have rules. we should abide by the rule ps >> we learned that others have done that. i think that what gary is making great generalities here. we don't want trade war. let's just o do thing its by the book the president is not a by the book guy and i wonder whether that wasn't one of gary's issues there's photo enough by the book he worked at goldman sachs so when you come from that culture, you deviate a little bit from the culture and you still remember it as being the way. >> isn't part of the value of

the team, of equals looking for desperate points of view >> although i would not equate these people with the team of rivals but yeah, look, this is a president that likes to pin people against each other and may the best person win. >> the best person did win >> i like gary what am i going to do? i can't. >> dow is up 67. don't go away.

time for trading >> i'm thrilled to see the action it did an acquisition. i'm a big champion of these. i spent time with carnival and norwegi norwegian. they said everything was going great and then there was a note saying things weren't. and i think this is more reflective of how well the cruise lines are doing when numbers are holding up well it's good to see stocks acting better >> i'd love to see a chart of

that versus crude. >> that's been a problem it's been a big increase i don't like what's going on with the airlines. i do think it's not overdone >> what have you got tonight >> probably the hottest stock in the entire market. including netflix. let's go back over the recreational market. i feel it's too weak and part of the subscription economy. this is a remarkable story >> we need an acronym for subscriptions and for next year's ipos. you'll get to work on that >> i'm going to fang myself when i'm doing my weeding i'm going to come up with all the acronyms you need. >> we'll see you tonight when we come back, media investors react to comcast's bid for fox asset ises p 4%.t now the leader in the

s&up.5dow is up 62

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good morning, welcome become to "squawk on the street." the themes of central banks, interest rates, media and today an improving mac kro background. the dow is up 70 points. s&p up 7 >> the red map for the hour begins with comcast. its challenge to disney a mega media bidding war. the latest following the $65 billion offer for fox. >> the fed raising rates setting the stage for two more hikes in 2018 we're going o to debate the market impact. >> ask we're on supreme court watch. any of which could come this morning. after better retail sales, back over to rick at the breaking economic data on april business inventories. >> remember, april business inventories is important because it's a q2 number towards the end

of june ask you see how strong some of the numbers are regarding gdp. we're expecting up .3. that's what we have. so that may alter the ca calculation along with retail sales and give us a gdp boost. i want to put a word of caution out there. last month was initially released and unchanged now it stands at minus .1. so that was the march number it's the fist negative business inventories number since april o of last year so just to figure that in. carl, back to you. >> thank you very much what a busy morning. our parent company making it official an offer for fox's entertainment assets julia is in l.a. watching details on that. good morning, julia. >> good morning, carl. comcast's $65 billion offer for

fox is a premium to disney $52 billion offer. that deal already in place now comcast is bidding to buy fox's movie studios and cable channels along with hul, sky and star this would bolster its international reach as well as its ability to go direct to consumer after fox rejected comcast all stock offer back in december citing regulatory concerns, this time comcast has offered assurances including $2.5 billion in case the deal is blocked in addition to covering the break up fee fox would have to pay to terminate the current deal comcast ceo saying he's not concerned about regulatory hurdles. >> we're confident in regulatory approval as we believe our transaction is, as or likely to receive regulatory approval than

disney's transaction fox has a collection of terrific businesses that perfectly compliment our own and are superior offer truly reflects the value and opportunity we see in these assets. >> comcast agreed to the same framework of potential divestitures as disney including selling the regional sports networks they acknowledged the reseptember of the offer and it has not yet made a decision as to whether or not to postpone or adjourn the special stockholder meeting. it has in place to consider disney' proposal no comment from disney we'll have to see if the ceo looks to top the offer back over to you joining us for a closer look at the stock impact of the deal is the co-chief investment offer. good morning, good to see you both it sounds like you think disney will have an answer.

>> the name of the game is to get more content and to get bigger fox is the most expedient path >> where does it end where does it start to get thin? >> they have a lot of capacity to add more cash probably another $10 per share or so. it doesn't mean they will go there. it's about value and where value tops out >> as a shareholder in comcast and disney, which do you want to see win? >> i'd like to see both win, but ironically, i would be more impress ed if diz et knee just said we made a great offer and we'd like to have the shareholders vote on it. that would be very impressive. >> i think disney ironically can afford to do that, but disney has content. it has talent. it has scale and to the extent its strategy is peaked with the new distribution model, i'm not sure

it makes sense for it to use cash anything except this investing in talent. it's going to be the winner. i like disney if they go for it, but i like it a little less. >> you said buying these assets is the most expedient path to getting more manufacturing for your direct to consumer offerings. what would plan b be it's important to remember this started because the murdochs signalled they would be willing to sell. >> that's true both companies have plenty of scale already. they have great talent and assets they could be very successful as stand alone entities but they could get more content. so plan b may be cobbling together names like discovery or viacom >> i don't think anything else

has what fox had they have a great library and international assets the question is how much do you want to pay for it there's one other point that has to be made i don't know how important tax considerations are it may not be important and comcast has a higher bid but if they are important, if it you're in a blue state or a state where your tax rate on a game is 37%, that almost wipes out the spread in the offers i think comcast can go higher. i think disney's offer is attractive right here. and i think if you can do it without expending cash you're in a world where your probably competitors

that able to spend that money as they want. they announced a new pricing pattern. $11.99 you can get youtube without commercials which is is the equal of spotify youtube has never made a real push to develop story type entertainment content. they have the power to do so what netflix has demonstrated and what amazon b is is going to demonstrate that the key is the ability to attract talent, manage talent. it's burdened by debt. the balance sheet does not have the ability to generate the kind of cash those companies can. >> the motion when it comes to

taxes is the murdoch family. >> what does he want to do with his money? i was going to ask to give us a read on what the murdoch familimenfamily wants. >> i wish i knew for sure, but you have two decisions if you sell tr cash you have to look at what you end up with after tax. then you have to reinvest the money. so by doing the disney deal originally, it didn't answer the first question it certainly answered the second i know what i want to do with my money. he may not i think you have to ask mr. murdoch that in the case of brian and rupert, throw of the most talented people in business it would be nice to know what's

on his mind. >> chris, what's your read on the fact that the stocks are up today. is it that we have rational competitors here and whatever outcome is net positive for the business we almost killed the penalty still good on the fundamentals so investors want to own them. and if you buy comcast today, they pay $35 for fox you're buying a company with just over seven times in a couple years >> what would any of this mean for netflix? a deep dive into how it views the companies and how it's causing them to make all these deals. >> they are the elephant in the room and they are going to have a fiercer competition from the new

disney or comcast. >> i think there's one other thing that there's a big elephant that nobody has discussed. one thing that google can't do now and one thing that apple can't do now is buy time warner. so you take a look at the remaining companies in business and nobody has to worry about that and secondly, time warner is going to be challenged competitor in the future because it's going to be burdened by at&t balance sheet will they be able to hold their people netflix competitor went up tr that matter, so did comcast these companies are not burdened by those kind of balance sheets. >> that does take us back to the downgrade yesterday. >> when we come back, the federal reserve raising interest rates for the second time this year while indicating possibly two more rate hikes before the end of the year.

we are breaking down the market impact also big moves on the ecb news conference we have a lot to talk about when "squawk on the street" continues. >> i can sigh that committee participants generally believe that the fiscal changes that includes both the tax cuts individual and corporate and spending changes will provide meaningful support to demand signicifant support to demand over the course of the next three years.

most show while we are at currently close to the 3% annual rate, it's not going to stay there. >> alan greenspan suggesting growth has peaked. stocks are et rebounding for the worst day in two weeks after interest rates were hiked. the european bank announcing a plan to end bond buying at the end of the year. a lot to chew on steve, if you had to wrap it up into one theme, feels like the easy money days of post financial crisis are ending. >> gradually coming to anened in a telegraphed way in a way that doesn't seem to be upsetting markets too much they seem to be telling you what they are doing and explaining why they did it.

so it seems to be going down reasonably well. that extra rate hike seems to be digested by the markets. and there isn't a sense that the overall idea that rates are going to remain low relative to growth that's pretty strong for now. that seems to be intact. and the ecb acted this morning a little bit of in the euro, which weakened quite a bit but markets are digest iing it pretty well and you can expect they will have this long trajectory of reducing accommodatio accommodations so nobody is panicking here. >> that chart is is certainly the chart of the day you don't see the currency move every day. how is it impacting stocks >> to rate hike in europe. that's what's important. we seem to be having this moment of obsession with peaks. two months ago everybody was obsessed with peak earnings. it's going to. ha except it didn't

now we're obsessed with peak gdp. so everybody is trying to figure out where the top is it hasn't happened with the stock market though. remember everybody was obsess issed with the peak earnings and numbers came out and everybody said heavens they are bringing the numbers up for q2 and q4 numbers are going to be higher we are not at peak earnings, so that theory wasn't right so the stock market is accurately figured out that we have a ways to go. it may be the 2019 numbers aren't going to be as high because the tax cut is priced in, but we have a long ways to go in terms of any negative movement in growth and earnings. >> almost implicit in the fact that markets are okay. the idea that the ecb's actions were not instrumental to the growth outlook over there. it seems as if people were wondering if you're going to have a growth penalty even next summer when rates might go up.

>> the idea is that we can do this essentially a handoff it's a relay race. for awhile it was the monetary policy that were running and pushing growth what if there is stronger growth look at the fed growth rates and what you find is they don't see the good times lasting not a single member does you have for 2018. they go down and then back to a trend of 2%. so they are not necessarily buying this idea which is in the office of management and budget. the white house is forecast to 3% >> that's a good point a lot of economists do say this

might be as good as it gets and we have a front loaded fiscal policy, which is the tax cuts, the deregulation, which is certainly helping now, but it can't last forever >> i would reference the accurate fed forecasting history that exists out there. the important thing is i watch what the companies say what i hear in second and third and fourth quarter is their businesses are generally doing terrifically even now look at when things slow down, we have energy stocks to move up and they moved up and helped the market now they are sort of sideways. we had banks move up we had consumer discretionary stocks the retailers are doing so well. media stocks are also doing well that's in that group you have amazon and netflix helping out. we get this rotation in the market because sectors come in and do well for a short period and move sideways and you get other sectors coming in. that's a real sign of growth

it's true that teches are the biggest leaders, but they are not the only leaders >> bob, let me give you some here you can't put this stuff in stone, but let's say you're right. the fed is wrong i think there's a good chance they are here. let's say growth does upshift or shift up by a percentage point i don't think it's crazy us to think about the feds shifting up so would the long range fund rate and the fed is seen going a bit above that in 2020 but what if that funds rate is 4% and the fed has to go up above that i know that's a stretch. but the fed can't low on growth and stick to the same rate for the funds rate >> they will definitely go out and change their forecast.

and how well they manage that forecast is going to determine how stocks react if suddenly they get a lot more aggressive, the market is going to move. >> home builders yesterday >> they were down. there was an independent analyst report that was out that was a bit critical of where the markets were in may. so that was an an influence there. the feds are going to change a little bit the fed has done a great job managing expectations and that's what the market wants. they want to manage. expectations it can handle higher interest rates, but how the fed goes about doing that is important. >> i will just leave you with i know you're listening to company commentary the yield curve continues to narrow there will be a lot of questions about short-term good, but pretty soon recession around the corner >> that's the long-term historical pattern even people say inverted aren't what they used to be

for long-term paper, it's particularly in europe coming in and buying and keeping those yields down on a relative basis. >> it's a good debate and one we'll continue to have here. steve, thank you when we come back, with at&t's purchase with time warner complete, what does the future hold for disney and comcast. st f mutt council joins us in ju aewines stay with us

we're taking a look at tech stocks >> good morning, it may us not feel like in all parts of the market, but with the that's dak behind me, we're talking about record high levels so far this morning. as we have been saying, it's been some of the names like comcast up 2.5% helping to lead the way higher some are ulta beauty let's take a look at the big tech movers as we take a look at the actual maybe qqq this is the power shares

the index fund that tracks the nasdaq you can see a 27% move just over the course of the past year to these record high levels and this particular etf has been following that move along the way. if it you look at some of the more focused on stocks, the facebook, amazon, you can throw maybe apple in there you see facebook, amazon, netflix and google, we're talking about record high levels that we have hit so far today. these have been because of the nature of their market cap some of the biggest drivers for the qqq and some of the s&p 500 performance. i want to call your attention to two stocks in particular on the et mega cap side worth $100 billion or more these two are some of the real big stories that maybe aren't being told as much adobe and nvidia these two hit record highs today as well. so let's not forget some of these stocks that are helping drive some of the action here.

in this case, these two doing a lot of the work in terms of the overall driving performance for technology overall >> interesting day thank you so much. meanwhile, elon musk increasing his stake in tesla buying $25 million worth of the stock this after the company laid off 9% of the workforce citing a desired shift to profitability the founder has been short on musk and tesla in an interview on closing bell yesterday. take a listen to that. >> the company is not profitable from operations. the company will pull out all the stops. it will do a lot of one-time items, we believe, to show a gap profit in the third quarter, but they are just that one time items the basic problem is is that he's making the cars at not enough to make must be and that's before the competition

rolls out, which is late this year and early next year >> we're going to have more on that news and news from musk's other company next hour. when we come back, the secret weapon on antitrust the division chief council will join us with his take on at&t and everything else in media dow with some solid gains. "squawk on the street" is back in a moment. >> we have a proven track record of innovating companies, investing them and growing them and we think we can continue that with the fox assets we have proven ourselves to be good stewards of strong, successful brands and franchises and with the investments, our company has been able to grow and compete more effectively we'll deliver those same commitments to the fox assets.

well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

good morning, here's your update at this hour. mike pompeo meeting with china's foreign minister in beijing. they are discussing the status of talks with north korea and he thanked china for helping to bring pyongyang to the negotiating table. >> japan, the republic of korea and china have acknowledged we have turned the corner and begun the process away from the threat of war and towards peace on the peninsula. each of those three countries has acknowledged the importance of the work that president trump has undertaken and the commitments that they have made. >> north and south korea holding rare high level military talks to discuss reducing tensions across the heavily fortified border high on the agenda is president trump's assertion to kim jong-un that the allies would stop war games during the nuclear negotiations as a measure of

good faith and meghan markle making her first joint appearance with queen elizabeth. they traveled to watch a performance by local school children the duchess who wore a beige dress sat next to the queen for that event you're up o to date. that's the news update pack down to you i love that dress. >> doubling down on the wedding dress. welcome back to "squawk on the street". one hour into trading, setting the tone the dow is up 66 so we cut our gains. the s&p is still up .4 and it's the nasdaq that is charging higher up .8%. technology is the best performing sector. most groups are higher they are at the bottom of the market again >> we had had this discussion looking at gpm was the name he

brought up does that sort of ke note a belief that the fed could talk about more but maybe not. >> the markets can talk about it i think it could happen. i think it's interesting it becomes nip and tuck. if the next one you get in there higher, it follows along that path, then the tenure doesn't note >> no matter how much the rates are going up, the financials have focused on the long-term picture, which is long rates aren't moving up as quickly as short rates. and that doesn't bode well for profitability. people think that's the wrong call >> or if it's just delayed the market is kind of affected by all these other things. people keep talking about the german yields and all the rest of it. definitely an issue. not very committal it tells you the neutral rate is lower. and wait and see >> disney is the best performing dow stock right now.

a lot of action in terms of the media stocks and speculation comcast is higher for a change on this new and improved offer for fox. >> this all got touched off at et low levels. i think people who were spooked by the idea of a bidding war are gone they sold the stocks so you're left with how the numbers might work i wonder if there's a calculous that one that doesn't get it either the stock goes up so much if you own both of them, you're probably going to be okay. also i think that both companies have reputations for not doing kind of irrational things with their money. >> we'll have more faster rate hikes. stocks are doing well. the economic numbers in the u.s. are doing exceptionally well retail sales this morning puts tracking gdp around or above the 4% level that's a big deal. >> we're watching that dow session high was up 131. europe briefly had its steepest

one-day drop against the dollar in almost two years. former adviser gary cohn talked this morning at a "washington post" event. take a listen to his take on current economic growth. >> we're in a really good position all that said, some force can happen tomorrow. it could be happening now that could change all of that and economies are fragile. they are very fragile. you want to continue on the path i think what the ecb announced is what the bank of japan is going to do. everyone is acting very responsibly. everyone is doing what they should be doing to allow the economies of the world to denormalize and get back to a normal rate and that's in everyone's best interest i'm very optimistic. >> cohn talked about a number of thing ps he talked about whether trade deficits matter in his opinion they really don't.

we are going to trade with one another. the president should not have tweeted on jobs friday he said we have rules. and then also mentioned the idea that tariffs offset the benefits of tax reform over time. >> to some degree. the idea that trade deficits don't matter, that's not a line you could have sold in his old job. >> i think it gives more clarity on why he left there was this talk because he disagreed over the trade policy. clearly he's feeling more comfortable spelling that out. >> back to media on the heels of at&t oost victory in court comcast is trying to crash disney's party making that cash offer for fox's asset ises the move will likely trigger a bidding war and be closely watched for antitrust regulators they are president and ceo at public knowledge it's good to have you back >> thank you for having me

>> you know antitrust well you know comcast really well we talked about price today. how should we be thinking about this potential bidding war from an antitrust standpoint. >> we'll see what happens in the marketplace. on the straight antitrust issue, comcast effort to acquire 21st century fox assets is going to get careful scrutiny by the justice department it's going to be viewed very similarly to the way they viewed the at&t timewarner transaction. that didn't turn out for them. but i have every reason to believe they will continue to follow the same logic about what is harm to the competitive process. i would expect them to be tough on comcast >> there's this camp of thinking that the doj had a big stunning loss when it comes to fighting at&t so they us probably won't challenge another big one like this why do you think they will

>> i think they virtually have to because vertical cases are hard to litigate that's why for decades, there was a lot of concern about going to court you don't know what judge you're going to get these are complex. there's no clear economic framework for this like there is for horizontal transactions. so is a lot of it depends on the judge. they are going to say we had a judge who got out of bed on the wrong side who didn't understand this i wouldn't be surprised if they try to appeal it there are a lot of grounds for that so i us think they are going to pick up the pieces and say if the facts fit the concerns about competition, you got to challenge the deal that's the framework they have established. i would be stunned if they moved away from it >> what about the point that in this new world we're in the ways in which a comcast could been anticompetitive if they owned greater volume of content assets just maybe don't work anymore.

the idea of pushing through pricing or depriving your networks from other distributors if those are the things that regulators will be worried about, it's really not as applicable in this environment how would you answer that? >> i think that's just wrong i think the judge got it totally wrong. i think the justice department's case was a solid case because right now you can go to netflix, put you can't get the networks you can't get all the channels you want all these services are complimentary. they are great they are wonderful but you have to pay your $150 first to your cable or satellite company. so the judge just missed that. if comcast comes in here the justice department will take another run at it with new facts and a new analysis that bolsters the same theory. it's not to say we're not getting an explosion of new options. it's to say consumers keep facing inflated prices and leveraging in the marketplace against competitors.

it can't get the skinny bundles and shows and channels they want because of the power of a few large cable satellite companies trying to control the most popular content. that's the story they had before i think that will be the story they have again. >> it seems whether they need to rewrite rules, you're saying the opposite of what other guests have argued about the future of streaming. do you see a consensus forming either way in the next couple years? >> i think it will play out. but i think what you're seeing here is if we don't stop these vertical transactions, you're going to have three or four companies dominating the popular content. sure you'll have online offerings by these companies, but. it's only after you pay the $150 to $175 to the broadband cable

company. so i think this is what the justice department is try ingino et prevent i expect them to continue. >> so you mostly outlined your case for why comcast would have a battle when it comes to acquiring fox assets what about disney? do you think they are better positioned from a regulatory standpoint to take this deal >> i think disney has an easier challenge in front of the antitrust authorities. there are horizontal concerns. there's concerns about sports with espn. there maybe some significant concerns on ownership of studios and some of the best first run properties that has to be analyzed. but i see a bigger overhang for comcast than for disney by far >> we hope you'll come back. there's a long road ahead. talking comcast, fox and disney. >> when we come back, vincent

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there's a strange divergence happening between big and small banks. find out what it means on trading nation more "squawk on the street," right after this

31 points. dlets get out to chicago for the santelli exchange. >> listen, this is going to be a fun one. we have vincent reinhart i'm really looking forward to talking to you today thank you for joining me >> thanks for having me. >> we ended up with the same phrase describing the sheriff many town. explaining why you think he's the new sheriff in town and why

that's such an appropriate way to phrase it >> he went out of his way to be plain spoken he said that at the gibbing of the press conference they shortened the statement, took out the guidance and no longer say that the policy rate will be below its neutral level for some time. why? because they aren't really sure what the neutral rate is it's overpromising to say that and they may get there quicker than they think and they are probably going to go over that rate the federal reserve is going to be firm policy next year in 2020 in the press conference, he stuck in his own lane. didn't venture into providing advice on other policies >> especially the politically charged passing lanes. really tried to avoid those. >> yeah, his lane is pretty

narrow even when there were plausible questions that might influence at least the forecast of the economy, he didn't want to talk about trade. >> let me interrupt you a little bit. i want to get as much out of your brain as i can. one of my friends text me this morning. i happen to agree, but it's pretty strong stuff. he said the era of too big to fail, save the bank mentality at any cost is gone in the form of jay powell my answer is they are going to go back to being a nudger than masters of the universe. would you agree with those comments >> i think that's right. i think you never say never. there is a hurdle big high enough that in events you could get jay powell out of his comfort zone, but he is much more comfortable in market volatility, much more comfortable in having markets determine prices and probably

more comfortable and confident that market economies generate good outcomes if you don't get in the way >> i'll tell you what. every trader i talk to has this real deep feeling for exactly what we're talking about traders like the markets to create the outcomes, not preet designed by policymakers which leads me to mario. we have a minute left. i don't understand it. for awhile the big term in the world was synchronized growth. i don't understand how he's going to synchronize policy to such a varied group of countries and economies whose personal citizens do not really want to meld cultures, which make it is difficult to meld financial cultures your thoughts? >> think about economic performance. italy hasn't even recovered its level of real gdp back in 2008 the experience some of those economies like germany were working above capacity

some are still considerably below capacity hard to set monetary policy for the whole group. what did he do he basically laid out the path for monetary policy until he retires. we heard about the taper done this year. we heard they are not even going to think about raising rates for another nine months. that's not data dependent monetary policy. >> we're out of time you know what traders tell me the code for everything he said there that you repeated was? we can't buy any securities because there's not a lot left and in terms of raises rates it will never fly right now that's what traders are. let's see what the markets do. vincent reinhart, thank you for joining me today >> thank you very much and when we come back, the ohio factory owner who wanted to bring jobs back to america but couldn't why his efforts were trumped by ostl tariffs. his story, when we return. okay, well let's see you get up from the couch.

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welcome back to "squawk on the street." i'm dominic chu. s&p up about a quarter of a percent. sectors leading the way is technology, utilities and

discretionary, following down over here is staples, industrials and financials, bringing up a bit of the rear. let's take a closer look at that discretionary center, that group currently on pace for its seventh straight record close. not too shabby in terms of the overall picture in terms of discretionary stocks names in the upside today, a lot of media discovery, cbs, viacom, charter. all four of these stocks, as you can see here, at a 10% premium or more from the 52-week highs something to keep an eye on. we're keeping a very close eye on shares of royal caribbean, up more than 5% on pace for its best day of april last year on back of its major investment luxury cruise line silver sea. those shares popping today back over to you. >> dom, thank you very much, with some of the movers. president trump's steel tariffs butting heads with trying to bring jobs back to the u.s. stripmatic is feeling the

pressure joining us from cleveland, ohio, we understand you make tubular metal products that go inside of vehicles what have the steel tariffs meant for your business? >> thanks for inviting me on it's about 95% automotive. we had an application in the food equipment processing industry so late last year, this product was brought to us. we did a feasibility study at that time labor be, material we felt we could be globally competitive with the current supplier in chiena $750,000 in new capital equipment. and as we were moving along to finalize our proposal, the

threat of steel import tariffs from the end of november, december to march of this year had escalated to the point where it totally put us out of contention for bringing that business to a made in america product. >> a loss of competitiveness for american business. bill, i wonder, are you sympathetic with the view at all from the president and the administration that the u.s. steel industry has been disadvantaged for so many years by protectionist policies from the likes of china flooding the market with steel and finally we are fighting back? >> i am sympathetic to the point that china is the main overproducer of steel. the cause of the global glot of steel. the application or fix to this is not going to -- it's going to

cause a lot more damage than it will to stop china from overproducing what they are. >> got it, bill. we're short on time but we appreciate you coming on and telling your story bill adler, stripmatic ceo and founder operates out of cleveland, ohio. we're going to go to sue sue herera, breaking news. >> yes, indeed, sara thank you very much. new york's attorney general barbara underwood is suing donald j. trump, his foundation, his children, alleging persistent violations of state and federal law. the allegations are that there was a pattern of persistent, illegal conduct occurring over more than a decade which includes extensive unlawful political coordination with the trump presidential campaign. alleged is the following mr. trump and the trump foundation used their charitable assets to pay off his legal obligations to

promote trump hotels and other businesses and to purchase personal items in addition, the allegations include at mr. trump's behest the trump foundation illegally provided extensive support to his 2016 presidential campaign by using the trump foundation's name and its funds that it raised from the public to promote his campaign for presidency, including the day before the iowa nominating caucuses basically the attorney general wants that foundation dissolved and says in this allegation that they raised in excess of $2.8 million in a manner designed directly to influence the 2016 presidential election at the direction and under the control of the senior leadership of the trump presidential campaign. some very serious allegations. we will await a response from the administration but, once again, barbara underwood is seeking to dissolve the foundation so, we will keep you posted if we get any response.

sara, back to you. >> sue herera, thank you very much meantime, watching this market, stocks have lost most of their gains from early this morning, dow dipping into negative territory down 12, s&p and nasdaq continue to power higher we'll be all over the moves in "power lunch," including the sharp weakening of the euro. draghi in the bookahd s eaof k r do a later tonight.

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good morning it's 10:00 a.m. at o'hare international airport in chicago, 11:00 a.m. on wall street and "squawk alley" is live ♪ good thursday morning. welcome to "squawk alley." i'm carl quintanilla with mo