everybody. we want to thank elizabeth coraly for being our guest. >> thank you >> and mike, thank you >> folks, this does it for us today. we have one more day left in the week i thought it was friday when i came in, but no, it's only thursday so i will see you back here tomorrow. right now it's time for "squawk on the street. ♪ ♪ good thursday morning. we welcome to "squawk on the street" with david faber and jim cramer the philly fed comes in with the best in four years europe is red and in advance of opec's decision this week and our road map begins with stock futures pointing to a fixed open as they simmer the eighth straight loss and the nasdaq feelueled by fresh recor

>> amid new warnings about the tariff impact on corporate bottom line. >> and targeting cord cutters after it's a time warner win at&t launching some new wireless plans bundled with video going to start out, though, with some breaking news, i'm pretty sure over at intel as brian krhysanich had resigned and that's literally all we have at this moment. >> one would expect that that's inexpect unexpected without a doubt we have to read the release. 2018 will be another record year oh, okay you guys are seeing this, right? yeah as a past consensual

relationship with an employee. >> i want to read the release, but this does appear to be related to that. that's too bad brian's done a bad job i see that that's suddenly irrelevant and that's the way the world is >> we'll be talking about this throughout the course of the morning. >> sorry to be stunned sometimes you get stunned. >> it comes on the heels of other news into space. >> micron going into the third quarter with an unseasonably time of the year >> i told you that company would go to 330. how about we go to 330 next quarter, and people looking for the next year which is why stock -- >> and more headlines with everybody that we're getting them, and an investigation apparently that was undertaken confirmed the violation of the company's non-fraternization policy this does appear to be -- it's

not related, it's an apparent violation of the policy and i don't know anything about mr. swan do you, jim? >> no. i just think brian has set the path to be far more than just pc and autonomous driving and very thoughtful man and an old school person who is not on the sales side and was reinventing intel and over >> the press release doesn't include any kind of quote from krzanich intel was informed that he had a past consensual relationship with an intel employee an internal investigation by internal and external counsel has confirmed the violation of intel's non-fraternization policy as david just said. there are a couple of lines here

from swan. they also see q2 adjusted 99 cents and revenue about 16.9 they will continue to search for a new ceo d they will hire a search firm and say a robust plan is ince >> by the way, q2, 99 cents and it was at 86. >> it's going to be a great quarter. i know my travel, a lot of people think intel is pc they did an increase of the buyback, and the pcs are on fire his data center work has been just terrific. they were about to break out for autonomous driving and i know brian is always unhappy that we continue to emphasize how great nvidia was he didn't understand why i would name my dog nvidia, but that was an extreme moment, but he was

doing pretty good. >> when you take a step back and look at the broader sensitivity and really what is the new world for the behavior of execives in terms of their relationship internally with other employees, and that's the world we are now in and boards take these things very seriously obviously, they undertook an investigation trying to get more information and certainly expect that we may, but that's how things go now in corpo america. this is not the way things -- even five years ago or even a year ago, frankly, and certainly not te 15 years ago. >> it's better than i just did, i know that. >> we should point out his career at intel has not been short. it's joined the company as a process engineer in new mexico in the early 1980s was promoted to coo and helped develop what's been the strategy in china before finally being named ceo

five years ago >> he worked up the way from the ranks from the engineer side a lot of it was it was run by sales guys and the way amd was run before the suit was run and at least to be an engineer brian pioneering a lot of incredible work and people thought he overpaid for mobile i and the autonomous driving he's doing in israel is ahead, and they may argue with that, but if you listened to the micron call last night you realize that the days when pcs were the only things that semis made quite wrong and nvidia made gpus and they're more powerful and faster and it's just one of the things that intel's run out and brian krzanich said it was not it's not true.

t matters with the earnings. the strong guidance outweighs the loss of krzanich himself. ue important than the assassination. >> i'm going to make a phone call >> that's a ms. lincoln. >> make a call and i'll talk to you after the show >> the fact is that micron's numbers were fabulous. intel's numbers are fabulous people continue to underestimate the conversion to the crack and how vmware they have explained and red hat has explained over and over again how quickly this is happening and if you go into a data center, you see chips by intel and chips by amd and chips by micron and people need to understand this is no longer cyclical it's not boom or bust, and the gross margins are great and intel is doing a fabulous job, and i love the path that he put

the company on, with the competitive fellow. minutes old and you have faith that others can take that baton. >> yes absolulyere's a bench there andt would have been the previous year, but what i find is what people have to recognize is brian just said, listen, we ar not going to be the intel of old. we are going to be bold. in the meantime, our core business will do well and we'll keep developing chips and obviously always in the equation and intel against amd and nvidia against amd and the winner has been a surprise winner has been doctor lisa su who sat there and told a great story even though they were constrained with intel and jansen and nvidia and we were in a moment when the people who run intel, and the people who run nvidia, and the people who run texas instruments and

the people who run amd are good and that has produced a dominance in our industry. everyone has such an iri complex against asian they don't know these ceos and hogood thee and the best we have. >> krzanich has been close to the white house and the china policy, the trade policy the strong forecast here marries >> oh, yeah. out of micron. >> we're going into the time of year when handset and pc chip demand spikes because of what they want to sell later in the back half. >> micron is going over and over again and how difficult it is to make the new chips and it is no longer commodity and i'm using the 1250 number from micron, from my contacts and trying to figure out the mosaic. 1250 they have a strange fiscal year for the calendar year, but people are using 1150, so imagine. >> it is four times earnings

the biggest stock in the s&p is big numbers. >> it is crazy news. >> i'm stunned >> what should we do >> you know how to report it. >> look, let's tie it to what we already know about tech. the dow is down seven straight days in that time the nasdaq is up 1% that divergence according to the folks today has happened twice since 1971 >> oh, my god, you'll give me what the march -- january 5th of 2000 and march 12th of 2000. >> the hierarchy of tech and highly shorted stocks, right >> i liked fang last night and his name was dang fang -- i'm sorry, david i didn't know you were on the phone. the people are out of their minds and there's no china in fang, and facebook and instagram numbers are amazing and amazon has taken over the world and

there was a piece today about how they're doing in private label apparel. google they may have the biggest upset surprise of the whole group because youtube has been such a great source of advertising, yak and they're signing up international numbers like you wouldn't believe david, it's all about fang >> i believe it is >> you do? >> sure. that's what i've heard you tell me. it's all about fang. >> can i share some reporting on intel? >> go ahead. give it your best shot >> that's it you don't want to hear it? >> yeah, i want to hear it i have to make a call myself >> this policy has been in place at intel for at least the last five years and the policy is as follows, that you are not allowed to have a relationship with someone who is a direct report period apparently mr. krzanich did violate this policy. apparently the consensual relationship took some time ago, and was recently revealed as is

also policy by somebody else who is aware of it as they are supposed to make counsel at intel aware of these things that there has been a violation of the policy so evethough from what i understand ain speaking to peopl the consensual relationship ended and may have taken -- may have even ended some time back, perhaps even a couple of years ago, it was recently made -- intel was recently made aware of it, very recently and undertook an investigation and found that mr. krzanich had violated the policy in terms as they said in the release that was in place and there was a pretty clear-cut violation and he, therefore, was asked to resign. >> you see the total hit and board they have. >> that seems to be what's behind this, again, a consensual relationship that took place, and perhaps ended some time

back, but was recently made -- intel was recently made aware of by another employee and investigators found it and a technical violation of this type required mr. krzanich like another employee. >> you might remember from years past is the chair. reed hunt, fcc, obviously, i believe. >> yeah. >> and you don't want to mess with him from work day he's certainly independent these guys are certainly independent and not a hand-picked board by any means >> this is pretty straightforward. once the board learned of the violation and once the counsel confirmed that was the case there wasn't much that was going to be done here other than mr. krzanich to step down.

as much as they wouldn't have wanted this over the normal course how would you view his tenure thus far positively, i would on. >> positive. >> very positive >> brandy was always in the green room when he came on, and we hope everything -- we want hing to work out brian spoke softly and carried a great set of numbers he was responsible and when he would go out to california i always was expecting just one more great piece of news and he always gave it to you. >> that chart over your shoulder, jim. that's the chart of intel shares since krzanich was named ceo >> it's great. it is a very low-multiple stock. it's a low-multiple stock because people keep interpreting the company as being a pc company. never mind that they turned around hp and giving you double-digit growth.

you're dealing with a company that sells at 13 times earnings. remember micron sells at 14 times earnings, but micron is allegedly more boom and bust i don't think it is anymore, but -- look, intel from the days of moore, and from the days of andy grove, craig barrett, titans titans >> meanwhile, from the stock perspective it seems to be responding more at this point. we have 15 minutes to the revenue announcement as opposed to the resignation of a well-thought-of ceo. >> they get a report right now for how the quarters end tip leak at intel, but they know what it looks like >> yeah. >> this is a terrific piece of news and you can take a lot of extrapolation and yes, that could have another outperformance day if we continue to focus on the fact that fang is doing well. if david gets nxpi news and it

was acting qualcomm stock is undervalued here and there are a lot of semiconductors that are good and microsoft is breaking out and you're looking at ge >> although you did see that the last ten companies to get booted from the dow are up an average of 6% in the following year? >> it was down 4% in the following year >> pretty amazing. >> look, the group that i have to watch and it's painful to banks. from cvs i think mike is doing a great job. >> my god, you were levitating >> you were at the top of the show >> i like the guy. i like the guy the guy is a smart guy it was three bucks below and here we have seat car, and we have the results and he'll come out fantastically in c car they'll announce the 7% share buyback and they can boost the dividend in eight days

yeah, i like that. he could have been drafted, but chose to go into banking and he could have and the bears wanted him. the bears wanted him >> i'm sure they did >> you don't believe me. >> no, i don't know. i don't know >> you do one of those things. >> oh, yeah. i could have been drafted. >> you should have had the crimson about it was city versus the bears and he went with city and he's a winner and the numbers are good. >> actually, it was better to go to city than the bears >> i think so in retrospect because the bears had a couple of bad seasons. >> yaei don't know he mitt have hit the 86 class and could have backed up mcmahon. >> that's true fencheck was some player he was awesome no, but i think that he made me -- yeah, he's doing a good job, but the banks have been

horrendous here. horrendous he's so busy with the health care thing he ought to worry about the numbers more hey, smart guy, you want him >> he writes great pieces for "the new yorker. i enjoy reading those. >> we should get gladwell. >> by the way, guys, very quickly, back to krzanich. direct and indirect reports, i want to make sure i clarify that >> nice! >> man, i tell you -- and this is a 1.50 count. >> i got this in milan >> i got it in milan, a two-for-one. a buy one get one brioni, can you imagine, david how far the italians have fallen >> if you're just joining us, intel's brian krzanich is out and we'll follow that story and we'll take a look at the

'rba aermaet wee ckft a short break see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

♪ if you are just joining us this morning, intel's brian krzanich has resigned as ceo after the company discovered he had a consensual relationship

with an employee which is prohibited for managers. the company does give strong guidance in q2 and that's the reason why the shares are trading higher in the pre-market the dow is down for seven sessions in a row and possibly headed for eight and that would be the longest streak since march of last year at the same time the nasdaq sits at another all-time high, and fang cannot be kept down >> not now not here netflix has another note of international signup >> that's gone pair belrabolic. people are starting to compare it to the old aol. >> fang's market cap outpaces the entire market cap than the uk. >> fang's better time than the uk >> that's an unarguable fact >> when instagram had a number of more than a billion users and

now they'll monetize whatsapp. >> they want to play without sound. >> so smart. remember that was that outfit that was cambridge or is that called play? >> cambridge analytica and they did, what they got us to vote for who? we voted for trump >> really, that's about the extent of it i hate to say it, but they just didn't leave it. there were personalities who resigned >> meanwhile, twitter and square, are about to double for the year another note on square >> can you imagine if he took over intel >> did twitter move up is it reflected in the numbers themselves the people want a third alternative than advertised and they do a lot of video by the way, i don't think that

nodo doesn't get a lot of credit sarah doing a great job as cf owe for square the mr. dorsey, i know, i know, mr. dorsey follows me and follows you, too this is no slight to your son, mr. dorsey, but he has fabulous people underneath that and that's why he's so great and the restaurant business does a lot of great stuff they have caviar have you seen grubhub? have you seen grubhub? >> no. >> that's grubhub! >> that's faceback. >> darden and some of the -- to the moon >> stick with us the opening bell just a few momentaws ay crystal geyser alpine spring water starts here, passes through here,

and is bottled right here. at the mountain source. naturally. crystal geyser is the only major u.s spring water bottled at the mountain source. naturally. at the marine mammal center, the environment is everything. we want to do our very best for each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most sustainable organization we can be. any time you help a customer, it's a really good feeling. it's especially so when it's a customer that's doing such good and important work for the environment. together, we're building a better california. how far does crystal geyser alpine spring water travel from its source to the bottle? less than a mile and a half. crystal geyser. always bottled at the mountain source. naturally.

always bottled at when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

jeff and market volatility into retirement. isn't top of mind. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they're less concerned with market volatility and can focus more on the things they're passionate about. talk with your advisor about shield annuities from brighthouse financial- established by metlife. all right. we have a few minutes before we get to the opening bell. you are riled up, which i like to see mad dash time right to the bell. what have you got? >> it's a man. jack tatum once wrote a great

book, one of the best books i've ever read. there is a man named moss avian, and they call him the assassin he starts kimberly-clark with an outright sell, david talking about a proctor. a local private label push and competition in china and if i am tom, chumwhom i like very much. i would say holy cow, i've been assassinated >> by the label? he's more aggressive which matters, okay? remember nelson peltz from the board. >> these guys are huggies, right? >> yeah. yeah he's saying there is no upside pressure points are building and this seems to be down and it looks like the numbers are too high you think the numbers are too high and wow i think this is a great american company, and i just -- everyone is hurt with kimberly, but this

is a piece that says the guidance is too aggressive and china will be difficult, margins are going to be pressured and it is just an unmitigated, negative piece and the only thing he doesn't say is that he's switching to another brand, you know he's switching to costco, kirkland, kleenex. no >> we pointed out, amazon has its own private label now, i believe, right >> no. that matters david, you know what this is >> handkerchief. this is a handkerchief i think people will go back to these and not use kleenex anymore. that is how negative >> will we start wearing pads again, too put an undershirt under your shirt because your shirts pill and every gentleman has to have one. [ cheering ] >> early bell. not good that's an excuse to break away

omhe hanky. >> let's get to the bottom of the screen and it is essential properties celebrating an ipo today at the nasdaq. we'll watch knd. the philly fed was an outliar number. >> that was lighter and a lot of that economy is health care oriented a non-comcast part of the philadelphia economy, david. there is noncomcast part of it >> comcast tower is the highest tower, though, isn't it? >> that number was surprising. that was surprising. >> intel is going to be your top-performing dow component at the open, up 1%, at least as krzanich resigns, but they do guide up a consensus for q2. >> and the consensus going up

and it's mr. krzanich himself and he did put together past decent earnings and he was the destroyer of value like some ceos and the stock goes up and this is not one and this is in conjunction with earnings. as for the interum ceo bob swan has been cfo for almost two years. was prior cfo of ebay, trw and was the ceo of webvan and joined us on squawk alley, not too long ago. listen to this >> he was transforming the company and a company that had very strong market position in its core processing capabilities over time we've dramatically expanded our serve, and not just sticking to our microprocessor, but expanding what it is that we do so we play in a much larger

market today >> and that's really what brian did was try to dominate the data, there's so much data center you can't even handle it >> one of the things that i urge everyone to listen to. there was a price target and they're just talking about secular drivers and they're talking about the amazing mobile ship and what really is great is that the data numbers are 87% and can you imagine how good it is cloud, 33% and by the way, micron, just for the record, it will pay down $2 billion in debt they paid down $2 billion in debt and they're buying back more than 10% of the company and the buyback is going to be made and it doesn't start until the next quarter, but i just think i can't say enough good about that company. it's a $10 billion buyback in 2019 and that is a very good situation and that can help tech throughout the day because it is so broad based if you watch the cloud

companies, i call them cloud kings of vmware on the board of intel and watch sales force which has been incredibly strong and mark starting his hawaiian trip that he does right about this year every year, and a little rest and relaxation >> the dollar, meantime, is near a one-year high, basically almost a one-year high gold at a new low for the year oracle just talked about 4 you on x headwinds, and i don't hear you saying that will have it >> that was so hard whom i respect so much declined to give you the breakdown of cloud, and how much was in the cloud and i know that mark herd said that that was a nothing burger and people should stop talking about it and it did crush oracle's price, because they had a lot of

stock, too, but it was nothing >> one stock that is up, over 1%, 1.3% it is stunning to look at the accretion of values, which is 120% >> you sound skeptical, david. >> i don't mean to sound skeptical. this is parabolic. to me that is something i can't understand i can't because i know that it's totally -- it's all subscription growth and the idea that they spent a lot of money on content and it worked. >> we know the world is changing rapidly and we see that with the voraciousness that both comcast and disney are approaching the fox assets netflix has created and the

skinny bundle created by at&t. you look at it $15 or free if you become a new subscriber. there may not be that much you want there, and it's reflective of the changes that we've been talking about for the last couple of years that are only and rapidly accelerating >> right >> and this is that world. so at&t offering a lot of what they just acquired, whether it's tnt and cbs and cnn, and part of this -- part of this skinny bundle. >> do you have the skinny bundle >> i don't have have it as of now. no >> i also have the comcast bundle i have the directv bundle and the time warner bundle. >> eventually you will only have a skinny bundle and have netflix and/or hbo or hulu or go with their own skinny bundles that include those services >> to david's point, why aren't netflix bulls unnerved by the

prospect of big players coming into the sandbox is it international -- is it a huge head to head start? >> you listen to reed and he loves it the more others come in, the more he's confident there will be a bell onpeople to sign ubilo sign up. >> he says the more people embrace. >> and the reed hastings conference calls are brilliant they're uncredibly weincredibly orchestrated and it's not fair to your wives. i just think the production -- my daughter cut the cord even though i pay >> she could have cut cable. >> i said i pay for it. >> she has the optimum >> certainly it's enthusiasm for

the box assets as it watches and worries about the decline with espn which is the most expensive part of the traditional bundel >> and it's a very short trip on the verizon-fios bundle and you basically get sportscenter which is threatening to iger >> guy, not much new to share in terms of the fox assets and we spent a lot of time on it yesterday. we do -- we can tell you, yesterday i reported incorrectly initially that murdoch and iger had din or tuesdner on tuesday t they met tuesday night and not had dinner they did have dinner yesterday james was also there >> what did they have? >> murdoch >> where did they go >> they were at the river cafe in london. >> oh, man, that place is a fortune. have you been there? >> no. >> it is a darn fortune. my father in law picked it up and it was, like, oh, my god

i should have stole my -- >> i'm sure, but it's too early to celebrate >> from not our news organization, but from bloomberg indicating that antitrust approval could be coming soon. i have tried to confirm that, i've been unable to, though i've also not been able to necessarily prove that it's wrong. if that's true if you have antitrust approval from the deal that was only signed up six months ago with this nature of complexity, that would be very surprising given that deals like discovery were scrutinized to an enormous extent beyond that, would that actually happen that would be a turning point and back and forth here. we continue to move ahead in terms of the number. antitrust and the what you're willing to keep up is a key part disney is ahead of it and there

seems to be very little doubt about that and there is debate about how far ahead they are and that could dramatically change on the comcast side, not hearing too much other than, listen, they have to figure out if they want to wait a little bit and look at the proxy and the new filing that is out or if they want to move with some speed because they have the pursuit of sky. 61% of sky to keep an eye on the faster you resolve this the more you want to have sky if and when fox comes back to get the approval it needs to match comcast at 61% a lot of moving parts here, guys and certainly our parent company is not backing off and will be expected to come with a higher offer still. >> i think that we being, just judging by what you said with netflix, it could be reversed.

>> reversal day. >> not listening to aiary analysis of netflix and the two companies and how much they're worth. and it is out of line. it is out of line. >> you don't think netflix should be worth $22 billion more than disney. >> no, i do not. no, i do not disney is a fabulous company, and that does seem -- >> very quickly. ford down a percent as daimler becomes the first major company to blame trade tensions for weak guidance for the year. they see ebitda down on the year as tariffs for sales of suvs in large part that they make in alabama and ship to china and face chinese tariffs going in. >> it's knocking down a lot of the industrials which are doing quite well industrial stocks and all autos

are doing really badly today >> talking about industrials ge down another 1.2% the stock is $12.73. i spent a lot of time at 30 rock i work out of there often, and there are a lot of people in that building who still own a lot of ge, and it's -- it's a rare day that i don't get a question from somebody because i still own it and it is so painful to have to look at them and say why. why didn't you people hold on, jim. they hold on in the hopes that things will turn around and they look at 30, they look at 25 and they look at 20. you forget sometimes these are widely held stocks held by a lot of employees >> i have nothing to say except, david, when is it going to end >> i think we can expect ge to

make a significant statement as they told us it will by the end of the second quarter? >> you mean dividend or breakup? >> strategically about what you can expect >> it's a full breakup as some had been anticipated and certainly significant announcement around reorganization of the company including potentially something. >> aerospace is doing so incredibly well, and it means nothing. long term care, i don't know you had a $6 billion charge and the $16 billion. >> guys, you look at ge now, jim, and you do have to say the market cap is the same as honeywell. honeywell doesn't have as many businesses as i recall >> honeywell is much better. honeywell can break up, the climate control business is

extraordinary. their aircraft business is just amazing. i mean, really, really incredible i just think honeywell is a very pristine company when that breaks up, it ll be worth a lot and the united technologies breaks with pratt & whitney and the aerospace business. >> do you think honeywell will pick up, and he's pushing for it and he said we're not going to do it. >> you have to read the analysis of the one division that honeywell has that the building and it's the best in history he is a huge backer of honeywell. obviously not that much of a backer >> and i expected based on reporting that united technologies once they conclude the rosswell collins deal that they'll move down. >> remember, 600,000 owned to china. >> and you have ge potentially and aerospace, they try to do

something that shows the value there. >> that's a kindf unique situation. honeywell. >> turbines are in a secular decline. >> turbines. >> they call it turbines >> just like they did completely ridiculous and accounting that had nothing to do with gap they call it turbine. >> i call it turbine >> you say tomato. >> poetically, utx and ge are leading the dow lower for an eighth day in a row. let's get to bob pisani. hi, bob. >> you're right, carl. materials and industrials still weighing on the tariffs story and not doing much here. the open down, still down. take a look at the sectors leadership there, the semiconductors are still doing well

number one, number two, consumer discretionary okay and you see it to the down side and you mentioned some of the aerospace names with nth general dynamic with your usual group of caterpillar and some of the other once, johnson control and the bigindustrial name all to the down side affecting the tariffs there. i think the daimler announcement is significant i said be careful here because they're starting to price in the possibilities and companies in certain spaces like industrials and autos could be lowerg numbers and there it is. >> you can say it's premature. the tariffs haven't been confirmed yet so maybe they're jumping the gun and they have steel costs and maybe emissions issues and something is getting covered up here and it's a shot across the bowe a across the bow and a warning sign once again, all of the big, usual emerging markets and the philippines and the shenzhen investing in small caps in chinaa and indonesia, thailand it's been an ugly year for these companies, these countries and

most of them are down in the double digits areas and it's the philippines and the shenzhen and the china and smaller companies sector, indonesia, thailand all down about 7%. i've been trying to figure out a way how the market is voting on this tariff thing, and i think i found one. if you take a look this quarter, put the shenzhen, which is the smaller cap index in china against the small cap in the united states. this is the quarter to date. the shenzhen index is down 14% and that's the white line you're looking at and the russell 2000 is up 11%. the market is basically voting for u.s. small caps over virtually the rest of the world and certainly over china small cap. as of now, it's very clear the way the market believes who is the winner and who is the loser right now. >> elsewhere, earnings you heard him talking about darden darden just broke $100 that is a historic high and kroger on the upside the q2 earnings and we have

seven companies reporting in q2 and 29% earnings growth and 12% earnings growth and the growing consensus, big outperformance and the dow is down. >> we'll see you in a while. >> bob pisani. let's get to the bond picks. rick santelli in chicago good morning, rick. >> good morning, carl. it keeps overtaking the same mountain just about every couple of days. we get down in the low 290s. we move up into the higher 290s. you look at a 24-hour chart of the ten-year note yields they look like they wanted to grab, but they're losing it a bit. i'll tell you, the philly fed isn't a big number, but it definitely is on the weak side, weakest since november 2016, but there's a lot going on let's look at the entire month of june for ten-year and the reason i do that, look at the scaling there, okay? all in the 290s and that one dipped the other day and we settled at 289.75 and this is

the 15th day we'll be closing in the 290s let's look at the one-year bunds. they're very close to 30 basis points they're 33, 34 right now you can see by that chart that being on the south side of 30 or the north side of 30 is significant. we want to monitor that, and i think it's a variety of things going on whether it's equities and trade making markets a bit nervous. when equities get nervous, it is the yields that move down a bit, and the monetary policy with the bank of england. mario draghi last week, policy, they'll find a million excuses to normalize should they find something we're in trouble they both jumped up a bit and you can see the weekly chart the dollar index on the weekly chart, yes, it's down a bit and it's still looking pretty solid. far below 95

carl, jim, david, back to you. >> we'll see you tomorrow. rick santelli. intel's brian krzanich is out. "squawk on the street" is back after this dow is below 100 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. which is what we do. crowne plaza. we're all business, mostly.

103 in less than a decade. olivgaene rd up. we'll get stock trading in a minute starting a business is expensive. that's why many entrepreneurs rely on their own personal property, like their car or home computer, to help them do their work. but they might not know that those items may need special insurance to protect against costly damage, theft, or liability on the job.

trusted choice independent insurance agents represent multiple insurance companies and customize coverage so business owners can focus on business. announcer: to find an agent, visit trustedchoice.com anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

holiday inn express, we're not on an isl[ roar ]ore. [ heavy breathing ] [ scream ] rated pg-13. hi! are you two getting along? oh, yeah, yeah. [ hiss ] [ gasps ] [ birds chirping] ♪ no matter what you are they're a perfect match. the new ipad and xfinity stream app.

hey guys, i'm home! surprise! i got a puppy. add an ipad to select packages for just $5 a month for 24 months. upgrade online now. i really want to congratulate kroger. this is a major move they realize they were being challenged they made a couple acquisitions. they got it up to the next quarter. i was skeptical they could pull off this off because they needed to do so many things. >> i think it's a recognition that we got to become more digitized. we have to make our store mrs. exciting congratulations for fighting back and winning one of the nicest people in the

industry >> did you see the journal piece on companies that compete with amazon macy's has done a remarkable job. i truly want to congratulate mcmullen for what he's done. just awesome >> don't look at the multiple it's incredible. and zoom, this is a pizza company. they make them in trucks i try to be fashion forward. i try to think like a my lent yell a -- millennial just like you get two boxes of corn flakes. >> some nice threads you got there, my man.

yours feels like paper >> downgraded. maybe it's like kleenex. jack tatum is the guy. stop correcting me when i didn't make mistakes. >> i got trolls like i wouldn't believe. >> dow is down 104 more "squawk on the street" in a minute at&t provides edge-to-edge intelligence, covering virtually every part of your retail business.

so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item. you're gonna do great! thanks, dad!

break a leg! aflac?! not that kind of break. oooh! thafc?!d to hurt. not that kind of hurt. yeah, aflac paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing! see how aflac helps cover everyday expenses at aflac.com. becareally want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital.

good morning, welcome back to "squawk on the street." sara is off this week. take a look at the markets dow down 115 trade tensions beginning to bite the intel ceo stepping down from the company following an internal poeb of a consensual relationship the latest on this developing story. >> and the 21st century fox assets yesterday is comcast

coming back. and finally a seven-day losing streak fears of a trade war spooking investors. more later this hour first we'll turn to the news regarding intel. the unexpected departure he had a relationship with an employee that violates its policies the ceo is going to be named interim as they look for a successor internally and externally guidance at the same time appears to be the overriding concern as shares are higher >> they were higher. i haven't taken a look at them at this moment i notice they had reversed briefly. they are down 1.3% so the exit seems to be the focus of investors despite that $16.9 billion revenue estimate earnings per share estimate that was above consensus. they have a policy in place at

intel. they have had it for five years. that says you cannot have a s consensual relationship with a report and i'm told it was a clear cut violation of that policy it was a relationship apparently that actually may have ended some time back, but was brought to the attention of intel and the general counsel recently by another employee because another policy say when is you become aware of violations of said policy, you need to tell somebody and so apparently that happened. only as recently as the last week or so and they commenced an investigation and found it was true and the board asked for his resignation. >> policies like this are not uncommon

but we have seen examples of this before. >> john joins us ophe ahead of "squawk alley" in an hour's time. you know him well. what does it mean for the fate of theompany and the plans that were put in place >> carl, there's never a good time for something like this to happen in a company, to a company. intel is in a particularly challenging period right now for a couple reasons one is the business model. it's a company that was known for the pc and server business and that's been disrupted by the cloud. and they are particularly drichb by data. the software around that seems

to have integrated decently, but they continue to be integrated into the business to edadjust a the ai business evolves. it's going to take a strong leader to do that. when it comes to manufacturing, that's going to be continue the importance for the business model going forward. will it be more of a marketing project management type. will it be more of a type that remains to be seen and on the cultural side, he had moved the culture to one of greater represent sags in the ranks. he accepts these charges for intel managers and executives.

the available population in various categories if 40% of electrical engineers at the workforce are women, intel's target was to have 40% of its employees as electrical engineers be women that was a bold target so that cultural transformation has been a work in progress. it's not clear under new leadership how much of a priority that will be. and criticism comes. intel was on the case and changed the design of the ship and had fallen a bit behind on that when it comes to new manufacturing processes. they need a steady hand when it

comes to moving that forward it gets a little lost as somebody who is running that business he brought a lot of confidence in that. but this just goes to show how muchernal missteps, personal feelings can upset the trajectory of a company, the leadership, no matter how solid the footing seems to be. it's done quite well now there's uncertainty. >> in light of that, we got this guidance that was significantly higher than anticipating stocks started higher and moved lower. it's down about 1% now based on everything you laid out, it sounds like it's based on this leadership change. but it also sounds like he put a strong forward strategy in place as well. >> yes, i would say that the strategy articulation has been

pretty clear recently. but i don't know that everybody in the press, in the industry has quite bought it yet. so there's still quite a bit more articulation of that that needs to take place. i would continue to look at these acquisitns that intel has been doing outside of the traditional eelhouse how well is is the intel leadership going forward. will they be able to keep the distances integrated and marching in step with intel's vision if they are going to be able to hang on to the talent ent that others have recruited to intel, because as we know so well, amz is making big gains in the pc side of the business they have done quite well. and intel at large has been saying we are very much in that business too who is intel going to put out to continue to make that argument

that's so important to investors. >> thank you for laying that out for us we'll see you in the next hour >> jim stewart, you have written about departures what's your initial et reaction to this news >> it's pretty shocking news i had two reactions. generally speaking, i can tell you there's a chill wind blowing through a lot of executive suites today this was a consensual relationship that distinguishes from the many dimensions of the me too movement and let's face it there have been a lot of consensual relationships in american business over the years. that's number one. secondly, in terms of intel, this is a relatively mature, established, killer of the tech industry we're not talking about charismatic founder. intel has been through generations of ceos quite successfully

i don't know he probably knows more about that than i do my assumption is this will not be a devastating blow to them. >> specific to corporations, they had in place a policy apparently for the last five years that said you can't have a relationship wh the direct or indirect report. when you're ceo i don't know how many of those count. >> that's everybody. >> is that policy in place at a lot of corporations to your knowledge? >> that's a really good question i don't know i have to admit i'm not even sure about some of the places where i either do or have worked when it comes to the consensual relationship personally, i have always felt it's a better idea -- there are so many people in the world. don't go out with people that you work with. but i have never known that to be -- there are companies that do it. academia has been creeping in that direction, but a lot of universities are not at that point yet. but intel had this relationship.

my own feeling is it's a smart move i think what we're coming to realize as we explore this whole issue more is that power intrudes on these relationships. it's hard to say that there's ever a consensual relationship when you're an employee and dealing with the ceo >> it's unclear at this point whether intel said you can't have these relationships or if you do, if you find yourself in one, tell us >> i don't know who this person is, where they were in the management chain of authority, how much direct contact they had, what the circumstances were, whether it was concealed, whether it was somebody that was married. there are many unanswered questions that will shed light on this. my gut feeling it must have been a troubling situation or they wouldn't take a drastic move >> it ended some time back but only brought to light recently

>> i don't know the statue of limitations. >> does it feel like corporate overreach in terms of policy >> i don't know enough of e facts. >> i want to transition to the column coming out. trade taking a look at how that impacts higher end goods >> i was talking to somebody who i can't name, but who is in contact with the trade warriors in the white house he started reeling off this list of things we can slap tariffs on i bolted up in my seat you talk about steel i'm not for tariffs, but i don't buy steel. he mentioned french wine and i hit the ceiling. i said, wait a minute, this is going too far. but they were talking about french wine, german cars,

women's handbags, cheese has been a huge issue in the past. and they pointed out to me that the u.s. has had quite good luck when it comes to the luxury products they have threatened them in the past and feel it has worked. 1999 was a big example they put tax on cashmere cheese has been in the center of these battles multiple times >> not cheese. please don't take it away. >> i guess it's like these products, they are financially important, but more than that they are symbolically important. for french people, it's like hitting at the very identity of the nation whether this is going to be affected or not, i hope they don't do it. they are going to hit consumers. >> thank you for joining us. jim stewart in "the new york

times. we're going to have the latest in the bidding war for all the assets at fox. there's how we stand it's like election night little checks. who is ahead and who is behind >> we'll see what the roberts precinct has to say soon when we veor"sawonhe street," right after this break.

major indexes moving this morning. dow is down as trade tensions continue to weigh on the markets. commerce secretary ross joined

us to talk about trade listen to that >> we have to create an environment where it's more painful for these parties that have these huge trade barriers both tariff and non-tariff you have to make it more painful for them to keep those barriers than to get rid of them. >> that's bring in the chief u.s. equities strategist good morning the dow is is down 8 china's large cap is down 11 how long can this last it's almost like a were of attrition some say >> and down the spectrum, there's wider divergence between what small caps have done.

it has a lot to do with the dollar and not just about trade. we came into this year viewing protectionism and trade as one of the bigger risks for the market it's probably a fairly obvious thing to say that we still view that to be a fairly significant risk in the market >> you have not been necessarily unnerved by all these tough talk >> the market is a regulator for the president that he will look for market signals since he set it up as a measure of his economic stewardship as well i think some of that will reflect back on the white house and might go back a bit. on the other hand, i agree with liz that this small cap divergence has been about the dollar but part of the dollar is this trade issue. the safe haven runs the same idea with selling off and some of the picking up is a function

of what's going on a function of trade fears, safe haven investing. what i'm a little concerned about is this sense that people are running to tech and saying we're good if we're strong or we're good if we're a defensive mode it's good one way and good the other way and good no matter which way. it doesn't end up well >> where would you go instead? >> we think that some of the bashing is hard. the financials in particular look interesting to us a number ogood things are happening. i think the real catalyst for change will be a pickup in commercial industrial lending. usually it changes in standards. on the other side, energies and other area we'd be looking at where you can't get stuff out of the permian right now because of the pipeline bottlenecks as a result, you don't have this really fearful supply surge. what opec is doing is trying to

replace away they think will be lost so it's not like o'. peck is trying to step it up either >> do you agree or would you be putting your money somewhere else >> we still have tech as an overweight and financials and health care. times in the past, you have seen that divergence away from traditional or industrial oriented type indexes. you tend to see that divergence narrow by it picking up some relative performance i think that some of this recent performance a lot of which has been driven by the dollar is i'm not sure that has legs >> the supreme court has ruled

on south dakota and has agreed that states can acquire internet tax collection amazon down more than a percent very quickly so there's policy risk in all areas. >> there's taxation potential in the eu as well as they try to have policies against other companies. so there's a little bit of sympathy talking to investors about a month and a half ago so they weren't that upset about the u.s. beating up on china but the impact on china is severe >> there were some comments from the fed chair yesterday. he actually pointed out the fact that the two most recent stemmed from financial im balances, not high inflation and that it highlights the importance of closely monitoring conditions. we were talking about trade, the potential for inflation affects

tied to tariffs, but the fed tightening, the deficit ballooning, the fact that some asset classes seem to be getting stretched. is this the bigger risk for the market >> i think asset prices getting stretched i think we have a problem there because as the fed concedes current leadership and former leadership, what happened with this unprecedented monetary policy so z that they didn't get inflation in the real economy but got it in the asset side i don't think either of them are individually represent the kind of systemic bubble like the housing bubble or the internet bubble they are more microbubbles and some of them have already pop oed like short volume rlier this year so i think we have risks associated with some of those things, but it's been our view this next cycle will be a traditional cycle. not a function of some massive bubble burst, but monetary

policy getting tighter financial conditions you go late psychal and then you ultimately bring on the next recession and the market starts in anticipation of that. so we view this next cycle to be a more normal one. >> your thoughts i met with a banker yesterday morning. as rates move higher, expect multiple compression and expect markets to react somewhat negatively and this is part of the reason we don't have a buoyant view of the year we view markets giving you 5 or 6%, respectable return the multiple will compress as rates go higher. i don't know why people keep fighting it. >> that's turning into the dynamic of the year.

thank you, guys. good to see you both as we mentioned a moment ago, we got that decision hasn'ted down by the supreme court on internet sales tax. >> that's right. here's the decision here just handed to us from the supreme court. what they are saying is the case versus way fare. what the court said is is the judgment of the supreme court of south dakota is vacated. not inconsistent with this opinion. that would appear to be a big win for south dakota in order to be able to collect these taxes on internet retailers that operate in its state i'll have to go through this and take a look at the implications here one of the questions is whether supreme court precedent going

back about 26 years or more could stand given the fact that the internet and internet retailing has changed the economy so dramatically. is there a physical presence requirement. in each individual state that's a big question in the world of way fair. so it looks like this is going to be a win for states who want to collect those but we're getting this opinion now. we'll have to look for all the ramifications of this. >> we reported on president trump's tweets on sales tax. amazon does collect sales tax when it is sold by amazon. it is the third party sellers on the platform who don't always and in many cases don't collect. that would be an important component of this potential ruling if it has to change their

behavior, right? >> yeah, that's right. the question is really for the states what kind of laws can they write in terms of taxation on internet transactions exactly does an internet retailer have to have a physical presence and what does physical presence even mean in this day in age in that individual state that's the question that the court is wrestling with here and going back to supreme court precedent and going back decades whether they had even the possibility of foreseeing the retail landscape we have in this country today. and the argument was that they do not have the ability to foresee what would happen here and physical presence doesn't mean today what it did back then >> a fight that started in north dakota and now playing out with south dakota stay right there i want to bring in courtney reagan reaction from the retail side of things >> i have to say the national et retail federation came out with the lobby group and said we

actually want an equal playing field. we do believe that retail and et e-commerce has changed since laws looked at this idea of physical nex nexus and as david pointed out, amazon has been collecting taesales tax if it os and ships that product but remember t third party sellers on amazon, so part of the marketplace makes up a little bit more than half of everything that's sold on the site so really this has bigger implications for a smaller business they are going to have to institute tax software whether that's through the help of a platform like amazon that could provide that to them likely for another fee or whether or not they buy that software and figure out exactly what the calculation is on their own. but in general, i think retailers are looking at just evening the playing field and getting the laws caught up to where we are economically in the state of retail because

everything is cross border now not just states, but also internationally with the help of the internet >> looking at the decision here, they are talking about quill, the decision that they are overturning. they say in effect it's a judicially created tax shelter for businesses that limit their physical presence in the state but sell goods and services to the states consumers something that's become more prevalent as technology has advanced a divergence in the company. etsy is down too amazon is down only 1. in part of what we were just talking about. >> so wayfair has a marketplace model. etsy does because that's a platform built for small business sell issers so that's just an extra complication ta they are going to have to deal with what's interesting about this

decision that most of us that study retail or understand how it works you should charge sales tax no matter where the final customer lives and if that differs from where the product actually came from, there was some that studthe law that said that might be something that the supreme court doesn't want to get involved with and they may want to get something that lawmakers handle i think we're going to have to see how this becomes precedent and how it's implemented and how everyone deals with it from here this is a monumental decision that i think should be a turning point here >> and to dig a little further into that idea of tax shelters, i would imagine this could potentially be for some of the states that don't have brick and mortar presence but are looking to now potentially collect some of that wind falls >> when you read the opinion here, going through it right now, the language here seems to be very sympathetic to the states

you mention the precedent here in this case the court is saying the physical presence rule is defined and enforced and is not just a technical legal problem. it's an extraordinary imposition on states authority to collect taxes and perform critical public function. the court goes on to say in the name of federalism, quill does harm to the physical presence rule it defines, has limited ability to seek long-term prosperity and prevented market participants from competing on an even playing field. that seems to be the court sympathetic here to the case of the states and then also to the case of other retailers who are disadvantaged by the fact that the physical presence existed in the first place. >> don't go too far. thank you for your time today. >> happy to join you >> i'm trying to guess what ur view on this is with your experience >> i think courtney stated it

well this is a victory for leveling the playing field for all retailers. there's about $25 billion of uncollected taxes that they are going to be able to have access to i think there's a little bit of i still think the states are going to have to implement on the state by state basis how this is going to be executed but probably would be benefit of national legislation to clarify how they ought to be collecting the taxes. but in general, you have a situation where some players b weren't collecting the tax and it was unfair to some of small retailers. so this is a benefit for retail in general >> would you expect the fallout to be internet retai saying, okay, we'll pay the tax in that state or we'll invest in some capital presence to try to work around this. >> they are going to have to collect taxes. remember, this is taxes that are

owed by the consumer any way the consumer should be declaring it on their income tax return because it's a question of who is collecting the tax. i think it's going to be a situation where the ebays of the world are going to have to now start collecting the tax i don't think it's going it to affectheir capital spending plans or where they have a presence i think amazon was a good example. they have presence in most states any way so they were collecting the taxes where marketplace where they weren't collect iing the t. this has been 20 years in the coming and it's a recognition that technology in the world has changed and it's time for there to be this level play iing fiel. i feel terrific for the small mom and pop hardware store that's been disadvantaged. >> to dig into the amazon discussion a little more and the fact that amazon has collected and does collect taxes on many

of the products and many of the states that it is selling those goods to consumers on, but the third party sellers which are smaller businesses and small e-commerce they are the ones that could get hit the hardest by this rather than the big companies like amazon themselves. >> they are now going to have to play on the same rules that everybody else plays chrks is that they are going to charge sales tax. so let's say 7 or 8% or whatever the sales tax is in that state, they are going to have to collect it so instead of being able to sell it at that 8% discount, they are going to be selling it the same price that the local merchant is sell iingt for. it's going to affect them that if price was the only reason for being, they are going to have to either take a lower margin or meet the prices to absorb that sales tax which was their price advantage. >> so let me ask this another way, i realize it levels the

playing field with retailers but from an e-commerce p perspective, does this enable amazon to get bigger >> well, a kpcompetitor like a wayfair, which is a large competitor, but i think they had a little bit of an unfair advantage in terms of being able to discount products a little bit more than others were. so i'm not so sure it's a big versus small question. i think it's going to be that everybody is going to be treated equally if i'm a small retailer, i'm going to have a tough road competing just like a small brick and mortar has trouble competing with a big box they have to have differentiating product and figure out how they are going to compete that makes them different from somebody else it can't just be prices. it has to be product or service or other form of experience.

>> any idea how this might -- is ayman still there? >> one of the things that's striking to me is you look at this decision and it's talking about what we were talking about at the top just how much society has changed. they are saying that the quill court that gave the precedent case they did not have the present realities of the interstate marketplace. in 1992 less than 2% of americans had internet access. the internet's prevalence and power changed the national economy the court says and go on to cite number of sales versus internet sales so they are taking note of huge sweeping changes in the american economy and they say in this opinion that they are trying to make that economy and the taxation system there ultimately fair for both the states and

competing retailers who are not competing with these internet giants like wayfair. so a win for the states and the language is striking to other retailers who are competing. >> i agree it has far reaching implications $25 billion is an enormous amount of resources they can redeploy >> that's a big number if that $25 billion number you cited a couple times let's bring in steve what's your reaction to this decision from the court? >> i'm a little surprised they went this way because it overturns decades of precedent and they have ruled on this several times. but they had in past year because they needed to either choose the small online

retailers or small bricks and mortar retailers i think what this does is it essentially levels the playing field. there is a chance here r that it raises prices for consumers bypassing on this tax increase in some cases the sales tax numbers are 7 or 8% and you would expect to see that get passed through, but it does level the playing field and i think with the courts, they didn't want to pick a business model and they wanted to have the dynamic action on the field versus in the courts i think that a lot of people expected them to punt this back to congress. but they took this action. it really undoes a lot of things it's going to hurt some of the small players, but i think it helps the bricks and mortars players. >> so much of it would seem to

be about convenience price obviously is important here in saying it levels the playing field, do you think we're going to see benefits actually to the brick and mohr tar, to malls >> i don't know. because on the mall side, it's mostly chain players this is more of a mainstream play and how much is left is is the next question. i think it does level the playing field. with the price difference, this is how amazon grew up initially and all these folks grew up by not having to charge sales tax and having been a retailer that had the price difference taxes are for the price and people were going out of the stores and online to get the price difference and the price benefit. so it has been real overtime amazon now does collect taxes in 45 states.

so the largest players have pretty much a small play >> one winner out of all of this is a name that just went public a few days ago this is cloud based tax service. you can imagine a bunch of mom and pops will have to get familiar with some of this and some internet sales tax players as well. yould expect states to go after back taxes >> i don't think so because the players here that are going to be affect ed are small players most of the states weighed in on this decision i think hoping for trying to provoke this decision by saying they would not go b k back i think that would cause undue harm and some bankruptcy so i think this will be a go forward decision but it's a big number.

i heard $25 billion. some of the numbers were thrown out that were higher than that i think it's $12 billion but it's a lot of billions that will go to the states. we all know these states need revenue. so this is a big win for the state. and the business model across the retail >> stay with us. i want to go back to ayman in d.c. >> just looking through some of the opinions that are filed here we have some some concurring opinions the court's opinion is written by justice kennedy the first concurring opinion is from justice clarence thomas who was originally in favor of the decision that is now being overruled. he's expressing himself very broefly in a couple paragraphs saying that he was effectively

wrong 25 years ago and he's learned a lot over the intervening decades. he says although i adhere, it's never too late to surrender former views to a better considered position. so clarence thomas reversing himself after 25 years from where he stood back in 1992. and also the chief justice of the court desensing here. i respectfully decent here so the hardest in politics of all of this that we focus on with the supreme court not really playing out here when you have some of the conservative justices siding with the majority here and the chief justice john roberts descenting here in terms of the balance of the court and how things play out. this not in the partisan grid we have seen in so many decisions out of the supreme court in recent years >> ayman, thank you. steve, thank you some of the losers here is wayfair, etsy, amazon, at least

from an investor perspectivefar. we'll have more on this after this break is it? is it? this farmer's morning starts in outer space. where satellites feed infrared images of his land into a system built with ai. he uses watson to analyze his data with millions of weather forecasts from the cloud, and iot sensors down here, for precise monitoring of irrigation. it's a smart way to help increase yields, all before the rest of us get out of bed.

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... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com from at&t and time warner and the bidding war for fox, it's been a busy few months. in fact, a busy year or so for media. here to discuss is the founder and chairman we should add avenue core is representing comcast in the bid for sky. also advising on what's going on for fox. i want -- you have to admit

wars are awfully interesting. i can't remember one of this magnitude since maybe the fight for paramount and that was a smaller dollar amount back then. >> yes, you're right, david. from a tactical point of view, it's fascinating and this is an environment i think in which you're seeing a number of extraordinarily complicated transactions sometimes they are complicated for reasons of regulatory approval sometimes they are complicated because of the competitive bids. one of the most complicated ever was qualcomm which i worked on myself a few months ago. and there's just a lot of complexity now in the m & a environment and a lot of premium on tactical superiority. >> yeah, and as you point out especially in this end game

consolidation in certain industries, anti-trust plays an important role there's so many people who have a hard time figuring out where we are in antihv trust >> one of the things that people miss and it's being missed a lot in the press right now is the role that china and in particular they are playing. that's caught up in the u.s./china trade tension if you look at situations like nxp, which has waited 18 months for chinese approval and doesn't have it yet, i'm hopeful they will get it. this could play out also in the media wars the role of china and the requirement for chinese approval is a big element here because right now it's harder to get approval in china than it is in europe or it is in the u.s

>> yeah, when we follow nxp and it seems to be a victim of the increased tensions do you have any expect nation. you hope it gets approved. i have reported the remedies are already in place it's just a matter of getting the approval inspeany update for us? >> i wish i had one, but i don't. if you think about as i say the media wars that you refer to kmooi these approval is required in some of these big potential transactions and you don't hear much talk about that when you're reading about speculation that one of these things could close in a few weeks o and things like that so keep an eye on the china side of the equation because it's

complicated right now and china has not been approving at least in recent months certain is high profile situations they have just been sit issing on it. they haven't rejected them they just haven't approved them. >> but that was a japan and china situation. bilateral relations was japan and china. when it comes to the u.s. or u.s. centric situations, they have been sitting on it. >> talk to et me about the overall environment. what are you hearing inside board rooms? we have been through periods like this. me covering them, you advising through them there's confident right now. there's an awful lot between trade wars and anti-trust uncertainty that you point out do you expect this psych tocyclo continue at the pace it has? >> i think you have two-part

situation. at this very moment, t environment for globally is terrific you have continuing very lowest interest rates by historical standards and robust credit availability you have high market levels. and you have generally speaking pretty good business confidence in the industrialized world. that always spells for high levels of m & a. when you add the degree to which the u.s. economy is currently accelerating, the second quarter estimates are ranging above 4%, people think the ub employment rate may get as low as 3%. when you add that to the mix, it's a great environment for m & a because what really drives m & a is confidence. and right now confidence is pretty high. but the second half of the equation is the one you touched on there's a lot of noise the u.s. and china trade

tension. this environment, in particularly the financial market environment, is going to remain good until it doesn't and at some point, one or two or more elements of the noise, trade geopolitical tension, trade tension, is going to unnerve the markets and we'll see this environment change i don't know when that may be. maybe it won't be soon we're in a little bit of a nervous area and, for example, if the u.s./china tariffs were imposed and, for example, the chinese imposed tariffs on every dollar of the united states that would have a destabilizing effect on markets and ultimately m & a. >> i could go on with you all day. we are out of time evercore itself, you have been knocking the cover off the ball. and that stock near an all-time

high and for some of the reasons you just mentioned, of course. roger, thank you for being with us. >> thank you, david. always a pleasure. back to the scotus decision on online tax today. director of retail studies mark cohen. it's good to talk to you again good morning. >> good morning. >> we continue to go through the decision again, the prior decision creates rather than resolves market distortions this phrase you've been using of level playing field, is it really accurate? >> you know, the internet, e-commerce has gone from anonymous to ubiquitous. i can't imagine how the court would continue to support the disparity between e-commerce retail sales it puts an end to the ongoing

sniveling and whining on the part of legacy organizations that e-commerce players have had an unfair advantage. whether they had an unfair advantage or not, that kind of distortion is now over. >> does this change the trend in terms of e-commerce growth does it anything to cool it? >> i don't think it makes any difference whatsoever. players like amazon have already started to collect sales tax on their own sales. so, third-party partners will now have to follow suit as this decision is enacted. i don't really think it makes a difference in a trend in the business the e-commerce business is going to continue to bloom and the market shares that it's taking from physical retail will continue to take place. >> yeah. lot of viewers weighing in,

saying that you don't shop online to save money necessarily anymore. it's more about convenience. and unlikely that additional sales tax would change your behavior mark, thanks for the quick decision on it mark cohen joining us on a big day for scotus. >> interesting that clarence thomas, 25 years later says i've reconsidered let's send it over to jon fortt with a look at what's coming up on "squawk alley" for us jon? >> much mo on th subject but also intel's ceo surprise resignation. what does it mean for that company in t mstheid of a strategy shift and the industry at large that's coming up on "squawk alley. we had long deployments in iraq. i'm really grateful that usaa

was able to take care of my family while i was overseas serving. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. see how much you could save with usaa by bundling your auto and home insurance. get a quote today. it's not theirs, it's mine. the new rx 350l with three rows for seven passengers. lease the 2018 rx 350l and rx 350l awd for these terms. experience amazing at your lexus dealer.

and i am a senior public safety my namspecialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california.

welcome back to "squawk on the street i'm seema mody stocks are near their session lows, s&p down nearly .5%. we are higher so those rates continue to lead the market higher we're being dragged down by financials, energy and industrials. that group on pace stocks there leading the decline, including names like

f fedex, among others, leading industrials as the worst performing sector in today's trade. guys, sending it back to you. >> dow is down showing some pronounced weakness in the final half hour of trade. a lot more oe prsueme court decision when "squawk alley" starts in three minutes. eligible for medicare? that's a good thing, but it doesn't cover everything.

only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any of these types of plans, they pick up some of what medicare doesn't pay. and could really save you in out-of-pocket medical costs. call unitedhealthcare insurance company today to request a free [decision guide] to help you better understand what medicare is all about. and which aarp medicare supplement plan works best for you. with these types of plans... you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks and no referrals needed. there's a range of plans to choose from, too. and your coverage goes with you when you travel, anywhere in the country. join the millions who have already enrolled

in the only medicare supplement insurance plans... endorsed by aarp, an organization serving the needs of people 50 and over... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. apply for a medicare supplement insurance plan any time you want. call unitedhealthcare today. remember medicare supplement insurance helps... pay some of what medicare doesn't these kinds of plans could save you in out-of-pocket medical costs. you'll be able to choose any doctor who accepts medicare patients. and there are no referrals needed. so don't wait. call unitedhealthcare now to request your free [decision guide.] this easy-to-understand guide will answer some of your questions.... and help you find the aarp medicare supplement plan that's right for you.

santa clara california, 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪