mercedes-benz. the best or nothing. good morning, it is 11:00 a.m. at wayfair in boston, it's 11:00 a.m. on wall street and "squawk alley" is live.

good morning, i'm carl quintanilla along with morgan brennan and jon fortt. stocks are mixed with tech lagging today as the nasdaq son pace for its first weekly loss in five weeks. that, of course, as yesterday's scotus ruling continues to weigh down online retailers. suntrust, brent fills at jeffries on this friday morning. good morning, guy. >> good morning. >> good morning. >> investors looking for paths here because industrials, obviously, get iting buffeted by tariff worries and now you've got tech, oracle here, red hat there. are you seeing the number of options dwindle? >> look, i'll focus primarily on

internet names i can tell you the trade worries are not as much of a problem for internet names regulation is more of a problem and, obviously, the supreme court decision yesterday could also be another concern that investors will have to deal with generally fundamentally this group continues to do extremely well channel checks would indicate whether you're talking about advertising or e-commerce trends, we'll continue the trends we saw throughout q1. we saw an acceleration of growth in q1. so, so far, so good. >> brent, i don't get why people are so concerned about the supreme court ruling's effect on retail the companies that are publicly traded seems to me they would be largely set up to deal with this sort of thing. plus, new technology that several of them are developing that this creates demand for what am i missing? >> i agree with you, jon

i don't think this is a big issue. the shift to e-commerce is inevitable the convenience factor still is the biggest tailwind for consumers in the selection and that's going to take a lead over any changes in taxes. remember, everyone is going to have a level playing field that can shelter any storm in cost target, walmart, others in the industry can't shelter that storm because they don't have that recurring visibility and that software business baked in. so we think others are going to be more exposed potentially to the cost factor but amazon, from our perspectives, is well insulated. >> what happens if the u.s. postal service gets restructured, brent, does that impact amazon?

>> they have so many different divisions that if they raise prices -- everyone is anticipating that services to actually raise prices. there's other ways that amazon can hit different release valves to make up for these expenses that they would have to pay. you've seen them -- they have a mantra of failing fast they're in so many businesses, they could just shut down those businesses one example, you know, is education. they tinkered with it. we think they want to be in it, but they're actually shutting down my kids education platform because they don't feel like they're getting a return so, there are areas they can fill fast, reallocate costs and again that's an overhang for all the vendors they'll face fedex, u.p.s. would end up raising rates as well alongside the u.s. postal service. >> holds on snap and twitter after an amazing run in social names the last couple of weeks and highly shorted names, highly

leveraged names in tech and beyond i'm wondering whether or not you think that trade is coming to an end. >> to a certain degree, i think it is. twitter, we just missed it didn't upgrade it fast enough. what we've been hearing from ad agencies is that the twitter video is resonating quite a bit with advertisers i think that's what you're seeing reflected in the stock. we're not hearing much of that enthusiasm about snap, unfortunately. that's why i think snap is, you know where it is deservably, we think. twitter is run unless they blow the quarter out which, frankly, i don't necessarily expect i think the stock comes back in. >> what is your theory, your thesis maybe on what's happening in omni channel retail right now? this idea of blending the real world and the digital world? we're seeing that more and more across the regulatory

environment and also what companies are doing acquisition wise trying to deal with things like taxes, avilara, adobe, magento what do you think is happening here and what's it extra teenstl going to take for companies to succeed? >> i think it's a mixture. just look at the success this year of restoration hardware in sonoma right there they have both strategies and both those stocks have done well both investors have woken up to the businesses aren't going away because of amazon. we think that, you know, it's a mixture. you want to be able to go to amazon and order things. you also want to be able to walk into bhowhole foods and pick something up for your family on a short-term basis as it relates to what adobe is doing, we think adobe was late, sales force.com was early with demandware it's a long overdue acquisition that they needed

you're looking for something you actually want to transact. we think adobe is a great stock from here and grinds higher. we're positive about what they're doing to capture that on the channel opportunity. >> before we let you both go, youssef, we've seen faang continue to power higher with many of those names near or at record highs, even just earlier this week. how much higher can they go? >> not all faangs are created equal. look at a facebook or google and they're actually trading at very reasonable levels. in fact, below their expected growth rate, somewhere around 10 or 12 times, even 20 to 25 times. netflix or amazon are growing, obviously, a little faster but they're trading at substantially higher multiples that said, you know, i think generally we believe that

valuations are still reasonable. we believe that over time, as you look at these businesses over the next 12 to 18 months, two years -- not necessarily the next three or six months -- there's still a large upside that's what you're seeing reflected. >> i think a lot of investors know exactly what you mean youssef, brent, have a good weekend. thank you, guys. >> thank you. >> president trump tweeting about a possibility of a tariff on cars imported from europe, jolting stock this is morning. phil lebeau is in chicago this morning. phil >> this tweet from the president is a straight shot, couple of days after the executives from german automakers said hey maybe we can eliminate tariffs all together the president out saying based on the tariff and trade barriers long placed on the u.s. and its great companies and workers by the european union, if these

tariffs and barriers are not soon broken down and removed, we will be placing a 20% tariff on all of their cars coming into the u.s. build them here! how many european-built autos are sold in the united states? last year about 6.7% that comes out to just under $1.15 million vehicles about half of those coming from germany and the remainder coming from italy, new england as well. they are proposing or at least there are reports out of germany they're proposing eliminating tariffs all together so that the president doesn't slap a 20%, 25% tariff on vehicles being imported from germany. apparently that's not going anywhere with the president, according to this tweet. as a result, you're seeing the stocks, all of them, under pressure today one last mention, guys, of a new vehicle unveiled last night in atlanta by general motors. this is the new chevy blazer yes, they're bringing back the

blazer this will be sold early next year what's getting some attention today is the fact that it will be built in mexico and for some point of reference, general motors exports out of its plants in mexico, up 39% this year. so the blazer is coming back and the uaw is not crazy about the fact that it's going to be built in mexico. guys, back to you. >> phil, i'm wondering people are talking about it. let's say you won european automaker. >> yeah. >> do you continue to emphasize u.s.-based production and get hit on the tariff going into china or work on production sux and get hit with a tariff coming into the u.s.? >> they're stuck, carl fact of the matter is that you can't just switch on a dime. you have built up your production of suvs, if you're mercedes in alabama. if you're bmw, you do that in south carolina that's locked in place there's no way you can turn on a

dime and say okay, let's move suv production somewhere else so that we're not being hit as much and that's why the european stocks are under pressure. people are looking at the fact that they could get hit with retaliatory tariffs going into china and also with retaliatory tariffs from the president to the eu for vehicles built in germany coming into the united states so, that's why they're in the crosshairs right now you can see. if you look at these stocks over the last month, it's like this daimler, it also matters that they -- they're at, what, the lowest point since 2016? >> yeah and now there's some -- eu is doing some studies on what a 20% tariff would do to u.s. sales. and it's not pretty. >> no. not at all. >> phil, thanks. >> you bet. >> and coming up, big tech feeling some pain, following the supreme court's decision, changing up the rules on tax collection a pair of e-commerce ceos will

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supreme court handing down another decision today this time on wireless location tracking eamon javers is in washington with the latest e eamon? >> reporter: that's right, jon this case involves an armed robbery suspect who law enforcement was able to pin down his location using his cell phone, going to the cell phone company and obtaining those records without a warrant. timothy carpenter, the suspect here, argued that they needed a warrant in order to get that information. you know how this works, jon as you move about the city, your phone is attaching itself to different cell phone towers so it knows where you are the phone company has a record of that. and law enforcement has been able to access those records now, though, after this ruling that law enforcement agents are going to have to get a warrant to go after that record. here is what the majority decided here john roberts writing we decline

to grant the state unrestricted action toes wireless carrier's database of physical location information. the court very much focused on the idea that cell phones contain enormous amounts of information, where we go, who we talk to, what we say all of that, they say, falls under the fourth amendment protection the court here ruling that, in fact, law enforcement generally will have to get a warrant one exception here is in case of emergency. if they're tracking a fleeing suspect or something like that, there will be some exceptions here but a big win, as you say, for those privacy advocates. jon? >> eamon javers, thank you joining us, general catalyst executive in residence and ceo marketplace everything but the house, scott griffith. good morning, guys fa faroud this is a narrow decision, 5-4, the court being careful saying they're not trying to imply anything about other cases. one thing that jumps out at me is they say, hey, this cell

phone or, hey, your car if you've got one of these services in the car that's internet connected, it's tracking your location, whether you're making a call or not. and, therefore, it is an invasion if this is accessed without a warrant outside of an emergency situation. do you see any ways -- at least philosophically, that this could affect other things like the facebook platform where there are also concerns about data tracking >> i'm not sure if there's a legal connection there but, yeah, i think you're right one thing that everyone has been worried about more and more recently, and perhaps too late, is how -- what these companies know about us, how they're getting all this information and now it's not just, you know, the mobile telecoms but your home broadband also tracks more and more of what you do online so, right. there's enormous implications for all these other devices.

you mentioned cars have this there's, you know, a whole new class of other kinds of devices that aren't phones like wearables, like your watch a whole bunch of other things can track you all the time that are connected to these cell towers to me as a user of these things it seems like a common sensible decision to have a warrant to get that information. >> yeah. i tend to agree. i go back to, i think it was, 2005 when we first started -- i was the ceo of zip car for years. we were putting black boxes in cars somebody did something on a zipcar and we would get calls from law enforcement to ask for tracking information and location information often while they're still in the car and, of course, if they had a warrant, we would participate. we almost always want aid warrant. there were a couple of situations where there were judgment calls but that was really before the advent of the smart phone. i run an e-commerce company.

half of our business is run off a smart phone. the amount of information that is shared with us, as the seller in a marketplace, is extraordinary. this is the second time this week we've seen news about this particular issue of privacy on cell phones. at&t, verizon and, i think, almost all the carriers, are shutting down some of these major data aggregators, who were abusing the data they were getting. i'm with the reporting here personally that if i can open an app and turn off the location tracking, i don't understand why it's been so pervasive to allow even the government to do it until they have a warrant i would like to turn that off, too. i'm on the privacy side, too. >> i'm glad you brought up nuts earlier in the week from verizon, at&t and sprint, that they'll no longer share their customer information with third parties. everything we've seen with facebook and other digital companies and big-tech companies

in recent months and, of course, the supreme court ruling today, the implication here is that maybe consumers really don't understand, fully grasp their data situation, how much is being collected and how it's being used overall. >> yeah. look, you nailed it. trance par transparency is the headline for me i think a lot of us are sort of fed up with the lack of transparency and i run an e-commerce business that benefits, frankly but i think it's tilted too far the other way right now. and we'll have to sort of come back to the rules. a lot of the guidelines, rules, laws, regulations that we're all trying to comply with right now were set up presmart phone or at a time when smart phones might have just been emerging. now that 90-plus percent of the population is walking around with smart phones with 50 apps that are all tracking what they're doing, there's so much information, it's time to come back and say those regulations were set up for a different time it's time to sort of put a lid on that set and come back and

look at it again and i think that's had an we'whe seeing and they're self regulating at at&t, sprint and verizon, as you mentioned. >> we haven't had a chance to check in with you, faroud. congress looking at social media in data, weighing the nature of distribution scotus on internet taxes and cell phone location. i mean, how would you evaluate the government's ability to keep pace with innovation and can that continue as we go into 5g, autonomy and everything else >> the government is always going to be slower enforcement, regulators, the people who are watching these companies, they'll always be slower, which is not an argument we don't need them the thing is that, you know, tech companies, they want to move fast. they always kind of want to, you know, move into a market and then ask for forgiveness later

don't ask for permission and, you know, that's a fine play it often works we see it work -- we're seeing it working with the scooter companies in many cities now the thing is that, you know, we as citizens need the courts and regulators and others to kind of police this stuff. and, you know, the markets change one of the things with the internet tax ruling this week is like at some point, you know, the online retailers didn't need that help anymore. and so, you know, now we're back on a level playing field there. >> yeah. now let's move on to tesla the automaker planning to close a dozen solar facilities in nine states, downsizing its residential solar business, move last week to cut 9% of its workforce. if that wasn't enough, bernstein analyst out with a note this morning, questioning some of

tesla's accounting practices scott, you deal with entrepreneurs all the time and certainly familiar with the phenomenon that is elon musk, all the things he's inventing and pushing out to market. a lot of people doubting him, trying to make money off doubting him trot out an i don't care jacket some time soon what do you make of all these moves and what investors should really be focused on to determine value here >> look, you know, one of my spare time hobbies is to sort of dream up what's on elon's white board today. i think what's been on his white board is raise more capital. he has created a number of different major assets one of which is worth as much as gm and ford now in tesla and he has done that by using capital as a competitive advantage. and he has had to raise tremendous amounts of capital,

equity and debt. he's $10 billion in debt now i think he's heading toward the day of reckoning a lot of people have said this for a while. we're on crunch time right now you know, so if you look at what's below the raise more capital on elon's white board it's probably cut costs on one side, which we're seeing at solar city and with this 9% head count reduction they did i think you can't cut your way to a low burn at tesla you have got to raise unit volumes on the production floor. that's the big trouble he's having right now i don't know if i would bet for that or against that that's my assessment of what's going on i just don't think they can cut their way to low burn. they have to grow unit volumes or he's really going to face reckoning. >> farhad, everybody treats 5,000 a week like the finish line it's the beginning of the race, isn't it he has to keep that up. >> you're right, he has to keep that up and with good quality, right? those cars need to be sort of

near perfect so people don't complain about them. there's been great enthusiasm and nobody really knows other than a handful of people, nobody really knows if people will love those cars, whether they'll spread good word about them. i mean, i've been on that wait list for -- you know, since the day they opened it up. i'm doubting whether i want the model three now just because i'll probably get it in three year's time. there's all these electric cars. there's a whole market out there. his big thing was he was ahead of everyone. and now he's not and now his big thing is that he has this great car, flashy car it looks great reviews have been pretty good. but, you know, if he can't make a lot of them and he can't make a lot of them at high quality, that's going to be a big problem. the numbers have been going up, though it doesn't seem -- you know, he pulls rabbits out of the hat all the time

it could happen again. i'm not ruling it out. it looks tough. >> before i let you go, scott, as someone who has run several companies, the other big news out of tesla this week was the sabotage memo about an employee that had done some things to rewrite code and export data, et cetera i was sitting down with the ceo of raytheon this week as well. one of the things he said is that even though elon musk got out there -- he didn't comment on tesla, let me be very clear he said this insider threat is much more prevalent and common than people realize. >> yeah. i don't disagree with that i think, one, we all should listen to whistleblowers and i think we're getting better at that, for sure, on a lot of different fronts for someone who claims to be a whistle blower to go in and steal data and hack into software to do that is certainly illegal. and there are better ways to be

a whistleblower if that's really what this employee was trying to do i think this story will have legs for a while until we really understand what goes on there. it's not clear to me exactly where this lands it's not a great time for something like this to happen at tesla. you're trying to focus on production volumes and your brand and position and the backlog that was just mentioned, it's not a great time to have this in the news as well that's the other problem that elon has right now. >> indeed. no shortage of things for elon to watch he's giving us a lot to watch, too. have a great weekend, farhad and scott. >> thanks. >> more than 100 get hub coders threatening to leave microsoft unless the company drops its contract with the immigration and customs agency or i.c.e. >> sasha nadella just bought

gethub earlier this month but finds himself in a fight with contributors more than 100 of them signing an open letter to microsoft their threat is clear cut. either nadella ends his relationship with immigration and customs enforcement or they'll take their products elsewhere. as members of the open source community and free software movement we are horrified by and strongly object to the trump administration's policies of detainment, denaturalization, deportation and separation as carried out by i.c.e nad ella doesn't want to see tensions like this surface you had him on when that github acquisition was first announced and he talked about ho important it was to build a strong relationship with these coders. >> operated independently, it will be an open platform and i think most developers out there will judge us by our recent actions, and our actions going forward. we'll have to earn their trust

every day. we are very, very committed to it. >> granted it's only about 150 github users right now that appear upset but nadella doesn't want this snowballing into something bigger and messing this relationship up. he is taking heat from his own employees who signed an open letter also asking microsoft to cancel that $19 million i.c.e. contract nadella did respond saying the contract deals with e-mail, calendar, messaging and plays mo role in separating families. microsoft did not respond to requests for comment back to you. >> josh lipton in san francisco, thank you for that it's also worth noting that google also said recently it won't renew its u.s. defense department contract next year. i suspect we'll be having many more of these types of conversations where silicon valley and the federal government is concerned. thank you, josh. >> when we return, markets set to close in europe today is two years since brexit. we'll take a look at the

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hi, everybody. i'm contessa brewer. mideast team including jared kushner met with israeli prime minister netanyahu russia says the united states and its allies have fabricated evidence to accuse the syrian government of launching chemical attacks against civilians. russia says the investigation by the international chemical weapons watchdog was not objective but political. at least one major advertiser has dropped laura

ingraham's show after detention centers she described as summer camps. ioc will no longer run ads for home adviser or angie's list on the show richmond airport is reopened after being closed overnight due to flooding. forecasters are calling for more storms tonight that's your cnbc news update for this hour. carl, let me send it back to you on "squawk alley." >> thank you, contessa. markets are closing in the uk and across europe opec reaches that deal euro zone creditors agreed on a debt relief plan for greece shell, bp and minors like glencore among today's winners of the banks, credit suisse, ubs and deutsche despite the gains, stocks on track for the worst week in

three months weighed down by fi fears of a trade war warning out of daimler and further weakness today as the president tweets about a potential 20% tariff coming into this country >> two-year anniversary of brexit and the decision to leave the european union wilfred frost joins us. >> since the 23rd of june, 2016, there have been two standout dates, 29th of march, 2017, when theresa may invoked article 50, setting the departure for two years later, nine months from now and this past wednesday when the bill finally passed all legislative hurdles which keeps her safe for now until the final showdown when divorce terms are settled. and that should be after the two upcoming eu summits, one in june and one in october

what is clear so far is that in the short term, the economy is slow but is still growing and has not collapsed. but it is the yet to be defined terms of separation that will decide the long-term effects on the economy. >> and some businesses are getting unsettled. yesterday airbus said, quote, we can't continue with the current vacuum in terms of clarity and they added, quote, put simply a no-deal scenario directly threatens airbus' future in the uk however, uk chancellor philip hammond is upbeat at the prospects that a lot will be sorted in the remaining nine months. >> and so as we leave the eu, we need to forge a new relationship with our european neighbors that protects those patents of trade, those business relationships that have been painstakingly built over decades and that maintains low friction borders and open markets

>> the if we look at a proxy of how they're going, in the highs and lows over the last two years. it isn't coming up there it is. >> thanks, wilf. markets hanging on to some gains here "squawk alle iba ia menty"s ckn

i we worked with pg&eof to save energy because wenie. wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light.

the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california. welcome back the supreme court ruling that

online retailers can select sales tax. does that mean that online shopping will become more expensive for consumers going forward? joining me, co-founder of stitch fix competitor latote. gentlemen, thank you for joining us today. >> thank you. >> thanks for having me. >> paul, i want to start with you. looking at a note from you, saying we saw this coming. >> i think we did. most e-commerce companies have seen this for a while. $450 billion with transactions last year. it was going to be too hard to ignore much a lot of companies have tried to get out in front of this. and there's going to be headache in implementation. >> have you been planning this for a while and if so what do those plans look like? >> we implemented plans to start paying taxes in states that

require it we've been doing this all along for the last 2 1/2 years and so this isn't anything new for us i think for other retailers it means folks -- the smaller players that haven't been paying these tacks that will now be impacted by this i would say the majority of the players, companies over the size of 200 employees over $100,000 in annual sales had already been paying these tacks to states where they did not have a presence. >> paul, how have you been looking at which companies to go with, providing technology to help this be less of a headache? there are plenty of them out there. some of them spiked on the news of this decision getting handed down is it complicated or are there good solutions out there >> i think we're all in legacy custom systems and now we're out

of the box, e-commerce systems it's much easier to get into the system with plug-ins and platforms to do this we have a system that's been very helpful obviously there's a handful of other solutions out there that people can use, which is great that being said, if you're a small business just getting off the ground, as so many e-commerce start-ups are, year one, year two people, it's not necessarily -- it's going to be registering in each state and taking time to get that right and pay those taxes. the biggest issue for those businesses is once they get all the administration done is making sure that's accurate and navigating that properly. >> of course the other big news driver has been trade. rakesh, you recently expanded in china in january do you expect everything going on in the u.s. in china to impact your business and expansion plans there?

>> for us, the trade tariffs haven't done anything negatively yet. if these trade wars continue, you know, with china doing more retaliatory tariffs and trump continuing to stay on that course, it will impact what consumers pay for product. ultimately it's the consumer that has to suffer from the increased tariffs on any of the products that get imported today, garments, apparel are not being taxed, but that could change very quickly. >> paul, i'm curious how you've been navigating this challenging environment when it comes to contribution amazon is trying to push hard into apparel there are all of these different models around, you know, either buying one off or subscribing to packages of clothing. >> right zp. >> you mentioned a number of

platforms are trying to ease the erp, back-end systems end of it. are you finding yourself pulled into one ecosystem or another or is it a healthy time to kind of go it alone? >> i think today, to be a successful retailer, we still have a network of our own stores and national retailers throughout the country we sell a luxury dress shirt fits better, feels better, lasts longer than anything else in the closet we do that specifically on product that helps shields us from some of amazon and these other competitors. it's an important piece, i think, to be involved in a handful of different channels and for us, even this legislation might even be helpful for us with our high-end specialty men's retailers that no longer see commerce site as competitive but now an even playing field and may be more willing to take us our goal is to get our shirts on

people's backs because that's when they become customers. >> gentlemen, thank you for joining us today and breaking all of this down paul trible and rakesh, thank you. >> thanks for having me. who is now most likely to step in as a permanent ceo at intel? we'll talk about that. dow is up 167. rick santelli, what are you watching >> you know, i'm watching the markets. i'm thinking about costs, deficits but what i'm really thinking about is what internet sales, ethanol, ride sharing, renewables, electric cars -- at wt 'ln?ey all have in commo th'shawel talk about after the break. you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent

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let's go over to the cme group and check in with rick santelli and the santelli exchange. >> good morning. i'm going to have some fun on a topic that's been on my mind for a long time and on many viewers' minds as well. what do internet sales and china have in common a lot more than you think. a lot in common with tesla acres lot in common with ethanol, ride sharing, uber, lyft. what subsidies gone wild. now you can call them any other names, but they are subsidies. the fact that we're going to charge tack taxes on the intert

sales. let's think about how all these things started many of the issues, even china and its relationship with the advanced economies, they wanted to welcome china in. world trade organization help them establish the type of economy that could take care of its well over 1 billion population with regard to the internet targeted temporary assistance to get the internet to grab on, to take hold, to create a wonderful new industry electric cars, ethanol government's heart, for the most part, is always in the right place. the problem is that temporary, targeted assistance is rarely temporary. they seem to get a life that goes on forever. forever and a day. now, somebody bears these costs. see, inherent subsidy is that the subsidation comes with the

bill who gets the bill? when helping china turns into hurting others that have trading relationships, well, the economy, manufacturing what about uber and ride sharing? and to pick on them, there's a lot of these ride sharing apps, but living in chicago i've seen literally decades and decades and decades of very substantial regulation on the taxi industry high costs associated with getting involved and then one day, boom welcome mat. i'm not saying it's a bad way to go think agro business. the list goes on and on. when it comes to ethanol, the cost is born by those that now have to compete in a higher price structure by reassigning the corn crop to energy. the litany goes on but at the end of the day, we

need to take charge that temporary is temporary and at some point, we have to let the adolescents out of the house, grow up, and stay on their own two feet john, back to you. >> thank you coming up, what's next for intel? we discuss who might be the right fit to step into the seat. more "squawk alley" after this

markets hanging onto some nice gains after eight days lower. a large part of this, though, is going to be crude. best day now since november of 2016 xom and chevron each with 3% gains adding at least 40 points to the dow today >> you're certainly seeing a lift in those energy stocks today. also materials and industrials catching a bit today after what's been days of selloff for many of those. >> meanwhile, microsoft down a full percent reflective of what red hat said last night hasn't been a good few days for them >> or anybody big for that matter, it seems >> yeah. more "squawk alley" continues in a minute

so who will be the next ceo at intel yesterday reported intel ceo is out for a relationship with an employee that violated company policy nothing from the company yet on the process except the statement yesterday they will be using a search firm looking both internally and externally. but this is a good opportunity to look at the challenges of the company and who might be a fit as the next ceo. i've been covering the company for a long time. i've been thinking about

possible external candidates could intel poach from a rival lisa su over at amd has that amount of management chops though i can't imagine intel going to the chief rival for a new leader diane greene at alphabet would be an interesting choice very much on top of the data center and ai transformations that are changing intel's business and then there are the former intel folk who is i think are particularly interesting renee james was originally the number two at intel. she's now the ceo of ampere computing. diane bryant is diane greene's number two right now after leaving intel less than a year ago. all that brings me to pat gelsinger. he's interesting not only because he was a cto at intel. he's also running vmware for the past five years building a leadership bench which intel needs. he's an executive.

and grappling with cloud and ai challenges intel also faces. intel's got a strong culture needs somebody who gets that but can also pull ahead. we'll see who the board at intel either pulls in or brings up >> you picked four women to look at and one man are you trying to tell us something? >> yes seems to be a lot of qualifies women out there. >> it is a great thing i wonder if you think there's intelligence on which way they may go. >> no. i was compiling my list. former intelers who have technology experience who are well known, hands-on executives and happened to come up with a bunch of women which, hey, kind of cool >> it's also worth noting shares of intel are higher today. they're up almost 1% in what was sort of overlooked, i guess you could say in this news, this leadership shakeup news. the fact they did raise their guidance >> yes and intel has been running with a plan that has been working i think the question is

strategically with all these new pieces that have been bolted onto intel, a couple of the biggest acquisitions ever who can keep that going and figure what they should be grabbing onto next. >> quite the week. so many headlines and more to come in the days ahead have a good week, everybody. let's get over to the judge on the half all right. welcome to "halftime report. does it even matter if tech and small caps keep running higher here to debate that is our panel. stocks higher with the dow poised to snap its longest losing snap in more than a year. kate moore, we go to you first. >> great to see you. >> how do you see the market the dow is giving up this losing streak what does it