>> yeah, thank you very much. >> thank you thank you for being here. >> thank you for hanging out with us. it's been a great. hon can has been here. jpmorgan private bank. make sure you join us tomorrow "squawk on the street" begins now. ♪ welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer nasdaq shooting for six days up. the longest win streak since march. vix the lowest since january europe is solid. oil within a near shot of 70 as the white house imposes sanctions on iran. investors are shaking off the global trade tengszs oil and gas gaining. futures higher s&p closing in on a record could it be the amazon

affect carl icann is calling on scrap sigma. and zillow shares tumbling stocks are on track to open higher s&p and nasdaq within 1% of record highs you got oil prizces rising this morning the president tweets the iran sanctions have been cast. they are the most biting sanctions ever imposed anyone doing business with iran will not be doing business with the united states. i'm asking for world peace nothing less and there's a lot of discussion today, jim, about whether or not that ends uptightening supply on oil. >> i think it will, from the point of view, that oil will grow, command for oil will be up this year.

it would tighten without if you take away a million barrels a day, you say it's going to other places. you have a situation where oil can go to 75 or 80 that's why the oil stocks are reacting more positively including companies like schlumberger which has been a dog. they represent long-term view of drilling so i think that the price of oil is correct i think that oil will be going up no matter what. this is an accelerant. >> i feel like we a bunch of our experts on a month ago when oil was in the low 70s saying we're heading up from here in part because of venezuela mexico. >> right mexico is not drilling. >> i'm forgetting one other place where they're not as much. >> nigeria. >> thank you didn't happen. >> no. because at the same time libya came back online it's a short term thinking

market by the way, five years it shows there's not going to be any real lift ic that the short term nature of oil i'm quoting from core lab is going higher if only because they haven't -- there's just no big plans. i was in the gulf two weeks ago, nobody is drilling i mean, chevron was the last company to drill nobody is drilling. >> right that's what controls the real price is these million barrel fines. >> what was the target projection to you? >> $100. >> $100? >> yeah. >> within? >> by maybe within the year. >> yeah. i remember when you told us that what >> well, look, a lot of this is just quite simply the idea that nobody really believes the big oil companies nor the nations believe enough to write a check to schlumberger. or in the case of venezuela, which, by the way is the largest service in the world no one can figure out why mexico

isn't drilling why a lot of african countries aren't drilling. why is indonesia not drilling? why is china not drilling? that's why. >> how about the impact on the consumer, you know, we've talked about real wages going flat. in large part to what oil has done over 12 months. >> if it did it again, it would be bad no one knows autos like phil and phil has been saying that the autos now, except for what the president wants. >> he wants to cut fuel economy. the fact to fuel economy has gone up so much it doesn't matter. >> right what matters is employment and employment is so strong. look at matthew boss' piece today about guiding up the dollar five below is the mother of all short squeezes one of the great companies ever. it's fun but it is, i mean, dollar tree is fun, too. you can go to dollar tree. >> i didn't see the -- >> i haven't done that. >> no.

>> it's extraordinary. i think when you look at the visa numbers, for instance, visa had a data that shows there was no -- visa, they have a great reel on things there was no big decline in consumer spendings with oil going to $40 to $70. there isn't. that's because people have jobs. by the way, the credit numbers show there's a radical decline in the amount of credit people have when you have a tax cut, which i know some people feel didn't reverberate. that's just in our area. when you have the employment being to the point where companies are doing anything they can, including hiring a lot of patrolerolees which they wer jail for selling pot which is now legal. there's more disposable income. >> interesting

i don't know others argue people at the lower end of the income spectrum have to drive more. they spend more of their disposable income on gas. >> historically that's been the case i think the wages are good jobs are plentiful maybe you don't have to drive as far as you did. >> i'm wondering whether we should talk about trade. we haven't hit it this morning whether it's steel or anything else >>well, there's a lot to get to. let's get to -- i know you want to do sigma, too. >> we want to do that, also. you know, not unexpected but strange, i guess, is the wavy to say it karl issuing that open letter. he's opposing the insurance deal to buy express grips he said the deal is $60 billion but it's cash and stock. $54 billion, depending on where it is now. icann said said sigma overpaid.

he doesn't own a lot of stock. came late to the party here in terms of missing the record data perhaps it wasn't a great concern to him seemingly an uphill battle august 24th is the meeting the iss the important proxy advisory firm expected to come out with the recommendation this friday that will be important here. but it's a tough one for him and he is short es rx. he's short express maybe short more express than sigma. since the dollar amount on sigma isn't that large maybe he's trying to help it short out. i'm not certain but i will tell you in talking to at least one large holder here who, you know,

opposes icahn on this in all fronts and points out these pbms have been successful in keeping the rate of inflation in terms of drug prices lower for their customer base. express customers paid 1.1% more in '18 than they did in '17. that's roughly half the rate of inflation. it goes on to point out a number of icahn's companies use express. use express. questions here big holder, what will their guys do is a question in terms of the vote but sigma has to fight back here icahn is not a foe to be dismissed lightly. you can read his letter, if you want it's on his website.

i think it's a natural fit i think that cigna is worth a lot in this stock. it's kept cigna down once the deal is over, i think cigna will go higher. >> express is 23% market share they're going to say they're paying less than 13 times. $600 million in synergies they've noted. when they're arguing about price, express said they could project as much a billion and a half in potential synergies. yeah he's got lots of things, jim, he's arguing in favor of this deal again, uphill battle potentially for icahn given how quickly the meeting is coming on at the same time, if you're cigna you've got a short amount of time to respond here. >> right. >> in terms of getting shareholders where you want them but the holders will be the question do you get a vanguard to

actually go with icahn is a key question we'll have to wait to see what the battle shapes up as of the next week or two. >> and why what is the thesis? >> i don't know. i don't know what the thesis would be i mean, listen, he's basically saying with all the other things he's saying they're paying too much that's what he's saying. they're paying too much. >> calls it a $60 billion fine. >> oh, please. >> he needs some data. it's a better vertical honestly i really think -- i don't know how much i don't want to say he hasn't done a lot but i think it's a compelling argument. >> inexplicably ridiculous is what he calls their decision some are wondering trying to explain icahn's decision here. >> do you think the threats on multiple fronts from amazon and others are overstated? >> yes i talked about walgreens how

that, too, has been one of the companies i feel like these are autozone, o'reilly they were supposed to be crushed by the death star. they haven't i understand amazon made that acquisition, but these companies make a ton of money. and santeen is up $40 these companies do more than drugs.cee companies do more than drugs >> you're texting and i'm trying to talk. my wife would pull it away. >> i sent the text to the wrong person. >> oh, thank you let me get that phone. >> you don't want to see that. >> you're playing candy crush. >> we're mouthpieces for the people out there. >> we are? >> yeah.

we're mari two big names in tech and media. jeffrey katzenberg and meg whitman. we'll talk about their mobile video venture. take another look at the premarket, s&p within 1% and looking for the highest close. just had the highest close since january 129 -- 29th.

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talking about the ongoing rhetoric between u.s. and china on trade this time apple appears to be caughted in the middle "the people's daily" of china said apple has benefitted over the years from cheap labor helped get the $1 trillion evaluation over time and if the trade skirmish continues, could be the target in china of what they're calling anger and nationalist sentiment. interestingly, axios has a bit today about the white house pulling together tech officials and trying to reassure them

about the direction of the trade rhetoric. >> i think your biggest worry, always, is it the beginning of a boycott? they don't pay people enough therefore we should buy other company's phones and my problem is that repeatedly apple has been cited as being one of the largest employers in china and, you know, you play with fire apple can pull out of china. i'm not saying the rhetoric is a little intense. >> they could but sell what percentage of their phones. >> it's big. >> $25 billion into china. >> i'm saying, look, i've been floating this thesis that eventually will be boycott of some companies. >> it will be interesting if and when it occurs it'll mark a new tack in the war. it won't be about tit for tat

>>well, look, obviously they're not letting up i think it's interesting the chinese stock market was up last night. i feel that for a lot of with the possibilities of china losing, so to speak, the trade war short term is that chinese stock market breaks. didn't break last night. >> they got some decent numbers. >> yes. >> a little better than expected. >> every little data point helps them a boycott is something that everyone keeps expecting will happen it doesn't happen. but this would be the way you would do it. as you can say, listen, maybe we shouldn't be buying their phones because they don't pay our people enough. that would be the beginning of how it would start i'm not buying it. >> you don't think they're going there? >> no. they would target some other companies, first same thing with starbucks >>well, they have a partnership with alibaba which is important. >> i know. >> you don't know what to expect.

>> no. every day there's new rhetoric and the rhetoricis a little hotter now than i wish it were in the sense i'm not political but you like to be able to figure out emmerson reported a blow out quarter today. a lot of their growth is in china. it's embedded into the chinese way of life. so, you know, anybody could be targeted but apple would be the most visible other than starbucks. >> right we should mention, as well, another new story, of course, we're following. it's going to take awhile, which is the government's appeal of the decision to allow at&t to buy time warner. refiled. you got a response from at&t saying, hey, there's nothing much new in here there's a risk no doubt for the deal it's going to be quite some time until we actually get to the heart of the matter here in terms of the hearing in the appeals court, but important and certainly wanted noted as is the overall theme here, which is a government and

regulation in some way, when it comes to m & a that is all over the place. yesterday i was mentioning this deal, of course. praxxair i forgot to mention the biggest one of all which was cfius sayi saying qualcomm can't get brought by broadcom. maybe we haven't seen the last of cfius it has expanded powers that will soon take place. i think the president has yet to sign off on that. >> what are you thinking t-mobile/sprint? >> no. i'll leave it at that but, you know, there's a lot of mine fields out there. >> yeah. >> large m & a and qualcomm and nxp and it comes back to china what happens when you need regulatory approval there. a lot of people disney and fox it shouldn't be a problem at all. at all. >> no one wants to hear that. >> right. >> who knows. >> one of the reasons why i

switched my thinking about this t-mobi t-mobile/sprint deal is the lead the chinese are getting. they're spending more. they're well ahead i think it's a national imperative we have the strongest 5g. >> that was cited as a national champion of 5g in particular in china, even though china had nothing to do with the deal. it was a singapore company at the time. >> right you're going to hear more and more that the chinese are ahead of us on next generation tech. i think it's going to force us, force this government to say we have to do some deals to get back in the race against the chinese. having legere move with sprint would do it. >> have a japanese-controlled company move with a german-controlled company. >> it's basic kansas city. >> okay. that's technically true. >> i'm just reminding you. >> did you ever hear of the

royals >> japan and germany, what do they have in common? >> it's wilf's birthday. happy birthday we'll get cramer's mad dash and count down to the opening bell in a minute. we have to get to disney and snap tonight we'll talk about zillow when "squawk on the street" continues. let's begin.

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all right. it's a tuesday we like to remind people what day of the week it is here before we get started with the mad dash a little more than seven minutes before the opening bell. you want to talk about a large cap company. >> yes we haven't talked enough about it whether they're going into china the censored version from google getting a lot of share for facebook for ads that will affect more than realize. or, david, morgan stanley, waymo three steps to 175 billion that's what morgan stanley values waymo waymo said there's going to be antonymous ride hailing in phoenix. i have it confirmed it's going to happy later this year waymo, i think, is the big leader in antonymous cars. i want to give you a figure, david, if you had a 737 go down every single week, we would be flying -- a crash every week will you be flying

>> no. >> automobiles are equivalent. that's how many people we might be able to save with antonymous driving. people are realizing it's safer than to have drivers fall asleep or be drunk. >> any idea how they get to that 175 billion? how they're working that >> i think this -- >> it's not a cash flow model off -- >> i think it's this. >> yeah. >> 75. sounds good. >> yeah. but they said this is $90 billion. $7 billion licensing opportunity. this is a billion dollar antonymous railroad tax. >> got it. all right. keep an eye. look at that up 1%. that's a big move. got more to get to this morning. including zillow i know you have something to say on that. >> oh! >> spencer was on already. he was on already. we missed him. got an opening bell after this

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the opening bell set to ring in just over a minute's time. we're going to begin this .008 record high on the s&p the magic number is 2872.82. it ran up into the finish that day, january 26th. >> i don't like market that goes up on oil and rates going higher but you get the financials back. and that's 20% of the s&p. and you've got good tech news in toyota that was a fabulous quarter. etsy a fabulous quarter. positive research on amazon and alphabet, obviously. i see enough to make the market go higher, but i don't -- i do think i'm worried about oil. i don't want oil to go up too much we're not going to lose the rails because the rails are just

on fire. [ applause ] let's get the opening bell at the s&p. >> wow that shouldn't be happening when the market goes higher this is actually pretty standard pattern. i think there's a lot of companies, the rotation has been so evident we have this amazing rotation into the let's call it the kraft heinz group the other day. the rotation back to the banks it's every day there's a new group that goes for a nice run makes it so it's heart to, you know, pin the tail on the bear.

>> rolling bull instead of rolling bear >> rolling bear. people want to be bullish. i mean, there's a piece out every day that is good there's a piece out by goldman today on nvidia. there wasn't a single positive word but they said it was good that's strange the only stock that, really, took it on the chin, david, i looked at you -- newell. >> newell? >> newell. >> it's interesting you note that yesterday we did talk about it i think you did in your trading at the end of the show. >> it deteriorated more. >> interesting we were talking about cigna earlier with mr. icahn opposing the deal. carl icahn got three board members. they were opposed to each other as there was so much going on there. martin franklin getting in with star board and getting out with star board jeff smith in there, still. >> right. >> fighting with icahn

he got two board members icahn got three. they still got the same ceo, jim. >> they need customers. >> some people are throwing their arms up and saying all right, you know. >> living room, i mean, if you sell into the targets of the world, you're having a tough time even the home depots i'm more sympathetic than most because these are, i mean, unless you're apparel. apparel has been incredible. shoes have been incredible hang bags have been incredible. >> people are buying clothes they're not buying mr. coffees. >> do we have a chart on newell, though >> it's optimal. >> yeah. >> down 56% this year. but, i mean, we're trying to get it. >> remember the mr. coffee ads >> yeah. that made me think about it. >> that doesn't look good. >> no. it doesn't work. >> no. it didn't. i'm with you on that it's just there isn't a division

i can point to they have a lot of sporting goods. you know, graco with the babies r us and not so good look, it's just -- there's not a lot of positives okay it's a repository of everything that is not selling well. >> oh, jeez. >> that's harsh. >> oil and resin went up no, you don't want to short it down here. >> uh-huh. >> they have board members, david. >> yes, they do. >> they have board members. >> they do mr. icahn and mr. smith. >> that's more than zillow has. >> maybe carl should be more focussed on this. >> we hit a new 52-week high at least on disney. cracked 117. we have earnings tonight the discussion, as we said yesterday, about espn plus but what they're calling disneyflix it would be competitive to

netflix. and the added wrinkle of katzenberger's new tv. disney has a piece of that. >> alibaba is an investor, as well. >> disney keeps moving up into the print. >> i know. >> i think there's a feeling it's their time. what i find interesting is amazing is that i believe the discussions is going to start around the theme parks and movies believe it or not, that's been completely ignored once things start going, we'll talk about these franchises again. we won't think about solo. we'll think about solo as being a saw. >> star wars land in orlando at disney world is not that far from going live. >> it's going to be. >> good luck getting in.

>> yeah. >> when is that going live >> mid '19. >> wow. >> nobody cared about it and now i think people are going to care about things they didn't care about if espn is not out there looking like -- looking anemic. >> yeah. i shared the yesterday the bullish sense i got from investors that would be what they were hoping for but i don't know what the numbers are going to look like. >> i think it's going to be a big quarter. and i think that david hit it yesterday. it's the deceleration of cord cutting. >> yeah. >> moffit had some numbers on that that were helpful but is it a quarter phenomena? bob ieger positioned this company for that future. >> it sure has. >> the cord cut future with all the direct consumer offerings that disney is going to have. >> yay and it's funny you talk about

the avatar franchise i love it. i want to go to that ride. i do. >> have you been on it pandora? >> no. >> it's pretty great we worked for a competitor but -- >> right. >> i'll throw that in. >> harry potter is the greatest. >> harry potter is great. >> you've been somewhere >> i have been to harry potter. >> you left the west side? >> yeah. >> did you wear a asbestos have a -- jacket or something >> zillow is down. also, announcing its agreed to acquire mortgage lenders of america. a zillow advertiser for an undisclosed amount spencer was on squawk and talked about the move. >> any time the stock price reacts negatively, it's a little bit painful in the short term. i think the reason the stock is reacting the way it is we lowered guidance to one of our

four marketplaces rentals. about 10% of revenue missing revenue results. we lowered guidance for the year i don't think the stock market is reacting negatively to the move with the mortgage lenders of america acquisition, which i'm excited. >> regardless, that's a move almost 18% this morning. >> i disagreed with spencer. i think that the market is confused about the whole process of buying homes and trying to sell them. it's not flipping. i think there was more than that one line that is disturbing people but the main concept is spencer made us feel the whole advertising business has peaked. now spencer is the star of the play and he's also reviewing the play and telling you, hey, they like the play they didn't like this one act. well, i'm looking at the play and i'm not liking the play. and i think in the end, the idea that spencer is able to say that the place of google when it's

not is disturbing. it's not one of those but the play is not a great play because suddenly, to me, it seems like -- it's turned into a broke. a real estate broker there's a handshake deal and it goes like this and it turned out to be in 19 homes. that's fewer people than the therapeutic study. >> i remember meeting michael and saying we have the homes and inventory unsold homes isn't it great you want to paint it

go ahead and be my guest it takes a little bit more i think spencer bit off more than he can chew spencer will argue against that because that's what he does. he won't say, jim, you're right. he won't do that but i think he was the one who said that there is a limit to what we can do with the advertising business and that's what i thought was most negative. >> and almost equal but opposite move is in etsy today. as you mentioned earlier, they missed by a penny. they boost their guide on revenue. rbc takes the target to 45 it's close to 48. >> no one understands the power of that company. this is the anti-amazon. this is the kraft amazon this is the amazon that makes you feel like, wait a second it's not a mass merchant you go ahead and buy and they curated it. when you have a holiday, it's easy to use. they're down the block from me and it's impressive. they're in brooklyn zone they're like a dodger stadium.

>> when the guy silverman took over. >> silverman was the guy who understood he was also interested in profit unlike the previous guy. >> 213% in the year. >> yeah. it's a great site. it is a site where people who make things now go to -- by the way, i think it's hurt ebay. i think you put your stuff on etsy not ebay. ebay isn't doing that well but etsy is a fabulous mall of companies that make things that you can't go and buy at the mall notice how when you give a present to someone that's great. you went to amazon you know how to do key words that's fantastic that was the dissolution of presence now you go to etsy and you get the cuff links someone made them. that's etsy. it's handmade. it's there for a company that does not -- it sticks it to the

man. >> what? >> it sticks to the man. >> that's the first thing i think of when i think of etsy. >> they stick it to the man every day. >> he agrees with me. >> sticks to the man. >> all they're doing. >> dean foods another tough story today. down 11% they matched forecast but cut their full year on nondairy cost inflation, jim it's a running theme. >> you know i never liked that it was the part everybody wanted and they got the bid this is commodity. and milk is milk i mean, george w. bush know how much a thing of costs? milk costs less than it used. >> it does >> well, you know, it's a football commodity. >> uh-huh. >> i remember the late -- and i'm going to say great aubrey mcclendon. think about how much a gallon of gasoline costs and all the things that have to happen to get there. the gallon of milk there's no real value to gallon

of milk >> there isn't. >> it has to be pasteurized. >> you have to get it out of the cow. >> when you go to the supermarket, there's 40 different milks. >> some have no antibiotics. >> yeah. >> this one has a sunrise and this has a picture of a cow. >> i'll tell you the best milk, okay chocolate. >> true moo. >> yeah. >> i used to sell yahoo! at the eagles hey! i got ice cubes. vanilla or chocolate >> we know they heard you, that's for sure, jim. >> i used to pay guys not to come up to the 700 level don't come up to 700 i own the 700 level. >> you were selling -- >> ice cream i sold it everywhere. >> dow is about a thousand points shy of the own record we have s&p 28.60 almost we'll get to bob.

>> and the key is the broader indexes are essentially knocking on the historic highs. let's take a look at the indexes now. remember, the key point s&p small cap essentially historic high right now s&p mid cap essentially historic high mid caps in guys like what would you call mid cap five below maybe murphy oil, those kinds of stocks small caps. worldwide wrestling. a lot of retailers like guess, fossil that's essentially a historic high s&p 500 closing high 28.72 right now 28.59. nasdaq we're 1% away that's the key now global markets, take a look. this is what i keep talking about. u.s. is on pace to invest. we're a half percent from a

historic high in the s&p germany is 7% away india had a great year they are also knocking on the door historic highs right now and look at the difference between india and shanghai you won't see it very often. that's about as far apart they've been in terms of -- their new highs, of course here in the u.s. we have energy, tech, materials doing well consumer staples taking a break. pepsi and coke down. they've had a tremendous run not surprising they're slowing down why are we doing so well i keep saying it's simple. the u.s. is the place to be right now. strong earnings story. we've got gdp growth that's a good story. we have a tidal wave of buy backs that results in share count reductions we have dividends growing. we have sector rotation. they bacon sumer staples that's keeping the market up

there are reasons to worry you want a short list? okay rate hikes, worried that tech could be vulnerable. trade wars, we could be worried about margin pressures i worry a little bit about margin pressure. we're getting earnings growth all the way to 2019. you can have the market go up on somewhat decelerated earnings growth it happened many times peak earnings is not a real story to talk about. where is the new highs we have a small number of new highs out there. that tells you a maul group of stocks are moving. apple is at a new high disney is. we have the earnings of that railroads are doing well target is. it's small 50 stocks on the nyse today out of 2500. that's a pretty small break out group. what about -- reminder here laggards there are a plenty of companies a long way from the 52-week

highs. general electric a whirlpool. there's a bunch of retailers that haven't gone anywhere and, of course, a lot of those famous investing companies have been doing because of the price wars that we're seeing from competition for everybody. so right now 28.58 on the s&p. 28.72 is the historic high. >> see you in a bit. we'll get to rick santelli, as well good morning, rick >> reporter: good morning, carl. one week chart of 10s showing you we're holding. as a matter of fact, yesterday we had the lowest yield close going back to about the third week in july you know, the day we ended the 22-session stretch in the 280s and jumped into the 290s if you look a chart starting about the third week in may, you can see there's a lot of support, a lot of price structure below the market that has been one of the support strategies of many traders when yields start to get down

they seem to snap back dollar index you look at july 1st, 2017, 13 months ago dollar index. yesterday we closed about a level we haven't seen since then we've given up a little bit of ground and the reason is the euro it had a nice pop. why? we talked yesterday that the dollar index kind of jumped the broom to a 13-month calm but you've had a couple of sessions like may 29th, open the chart up to may on euro versus the dollar did didn't quite breakthrough the range traders are looking at the consolidation and making a judgment call. they're trying to say it's going to hold the bottom of the range. maybe they're correct. it did have a nice bounce. finally, let's look at the pound versus the dollar. carney raised rates and it starts sagging a bit there's a lot of issues from

brexit on down if you lock at an august of last year chart we're now training at the lowest since september even though it opened like the euro with a bit of a pop carl, david, jim, back to you. >> all right, rick still to come this morning an interview you don't want to miss jeffrey katzenberg and meg whitman. dow up 113 lead by cat and disney which reports tonight back in a moment

nasdaq going for six days up, hasn't done that since march. it's going to have to rely on faang to a degree. 'lgestk adwel t octring with jim after a break. financial services right. but if that's not enough, we have more than 8000 allys looking out for one thing: you. call in the next ten minutes... and if that's not enough, we'll look after your every dollar. put down the phone. and if that's not enough, we'll look after your every cent. grab your wallet. (beeping sound)

(computer voice) access denied. and if that's still not enough to help you save... oh the new one! we'll bring out the dogs. mush! (dogs barking) the old one's just fine! we'll do anything, seriously anything, to help our customers. thanks. ally. do it right.

are you ready to take your then you need xfinity xfi.? a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. ♪ >> let's get to jim and stock trading. >> our music there, twlo is killing it today this was a much, much better than expected plus 50% quote, which is very difficult for a company of this size almost a half billion dollars in

sales. when you're on the conference call, they are powering alexa, what's app, facebook messenger and we chat. and most importantly they talked about the explosive growth of what's app now people are trying to figure out why facebook is going up, given the fact that they had a terrible call and i think that people are talking about messenger and what's app and that whole story about getting your bank data, that was nonsense the idea of monotiesing, it's a different story. a lot of facebook ads went to alphabet one of the many reasons why alphabet had a good quarter. i do like the new theme of messenger and what's app and all in on twlo call -- sorry, z zillow. >> it's unfortunate. >> trulia. >> trulia. >> who's on first. >> we have logic tech, etar,

crazy stuff going on in the xrid tosh video game and e sport business. they have the key board you may need to get the ncaa scholarship for esports. >> you could have been recruited -- not me. >> no? >> no. >> could have gotten into tufts for a free ride. >> recruiting hard for video sports athletes. >> we have not mentioned tough zone jamie dimon, president for life look at that stock have you seen that this is disney versus j.p. morgan. >> the requisite dimon mention. >> race to 1:23, who is going to win. my money is on disney. >> on disney >> yeah. >> okay. all right. >> you'll get something -- >> we'll see what the numbers look like. >> and see what jeffrey

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good tuesday morning welcome back to "squawk on the street." david faber at the new york stock exchange and sarah has the morning off. we continue to trend higher towards the record high for the dow, 1,000 points to go and s&p which has about 16 points to go. a lot more talk about trade in china, election day in several states as well. >> well, key issues, our road map starts with asking for exemptions and blocking relief a look at how major companies are jockeying for position in the era of trump tariffs. >> stocks closing in at record highs, we'll dig through the big earnings movers and new tv, jeff cat katzen berg teaming up with meg whitman, will join us exclusively after raising a billion dollars for that new service. >> first up, markets higher this

morning, nasdaq up for a sixth straight day company earnings continue to impress with 2q sales up 12% compared to last year with disney and snap set to report after the bell chief u.s. equity strategist at goldman sachs who had a lot of good material out in the past couple of days good to have you back. >> we talked about a trillion dollars, a lot but you're talking about it in a much different sense what do you mean >> certainly it's impressive accomplishment that apple has an equity cap of 1 trillion dollars but the 1 trillion dollar number that we've been focusing on at goldman sachs has been the amount of buyback announcements that are happening and we know historically 85% of those announcements follow through to executions so that is a significant bid to the market if you will and we also know that august the month of august is the single largest month of executions, about 13% of the overall flow

for the year that's an important bid to the market as far as we're concerned and if we think about technology, that's an area we've seen a significant number of buyback announcements but you've had a less significant amount of executions this year so we look into the back half of the year as a sector likely to get more executions there. >> if buybacks are so pronounced and we know earnings and revenue growth is there, why ,2 t. 850. >> it reflects a couple of interactions the first issue, we have strong earnings growth this year but that will decelerate next year we're looking at approximately 7% earnings growth in 2019, number one, but you also have the risk of potential negative earnings revisions from tariffs. it's sort of a risk out there. then you have higher interest rates and expectation is another series of interest rate hikes for this year as well as into

next year and would lead to a valuation depression if you think about it for a moment, we've had a 7% stealth multiple correction in the last six months that's not always -- widely appreciated. you had a valuation that's come down from 18 times to say 16, 17 times in that range. that's the combination of medium modest earnings growth and potential for more valuation compression would suggest the valuation in the market ends at 2,850. >> have you put a number or percentage on where the market would be if not for these buybacks or how much higher is the market today because buybacks have been so aggressive by companies any idea >> it's difficult to say what if that didn't happen but the general accretion for earnings as a result of buybacks average around 1 to 2% if you think about that sales for 2019 will be increasing by

around 5%. expectation margins will be flat and so your earnings will grow at 5% but earnings per share will grow at 7%. that's the 200 basis points -- from accretion and buybacks. >> kevin o'leary did a major diatribe on cnbc, hates them he thinks it's a waste for the companies, give the money back to him, he'd rather invest it himself. do you take any position, squall tate tifly on whether or not they are good or bad >> well, i'll leave the moral issues to theolog ians, but different industries may lend itself to more buybacks than other industries from an analytical perspective, companies have a high quality problem which is margins are at record high levels therefore what does one do with the use of cash? most companies the number one use of cash is capital spending and that is a good thing from

a -- >> investment, et cetera. >> part of that is of course, dealing with depreciation, but it's also an active sense of where the best investment opportunities. we have capital spending and then you have research and development. so a lot of companies focus in health care and technology, that's more of an emphasis for those companies. then you have some cash m and a, which is david's favorite topic. if we think about uses of cash for growing, more than half of the cash is being spent to grow businesses and then there's the dividends and buybacks, it's a water fall and at the end of the day there's a certain amount of capital being allocated to buy back shares. part of that relatively small amount is a function of the tax reform and some of the repatriation taking place from overseas as a result of the tax law. i think that gets probably more emphasis is appreciated or maybe deserving because that's really concentrated in a relatively few number of companies. >> i don't think that would satisfy kevin but okay. >> but we should make point, it

doesn't necessarily mean they are going to buy that back this year. >> 85% of authorizations typically flow through to excuses. that may not be this year in particular, maybe over the next 12 months but that is what we've seen we've already had authorizations where seven months into the year, $750 billion so most -- three quarters of the way through that forecast. and that's a -- >> we're going to run out of supply we've got ipos coming in but also got active m and a taking things out and these buybacks, doesn't leave a lot. >> you have a shrinking number of companies in terms of the -- something like 3500 stocks in it despite the name. >> that's why we talk about the creeping lbo of the american stock market. >> companies are repurchasing shares and stock based compensation and options -- offsetting options influence but in general, company is a high quality problem more than half of the cash is being used to invest for growth. which is a positive and buybacks

and dividends, which is the less than 50%. >> on tariffs, you've assigned a 60% probability that we go ahead on the 200 billion of chinese goods, right >> my colleague our washington based phillips, 60% problem. >> if there's a surprise truce, wouldn't you have to reprice your year end target or at least your multiple forecast >> so, if you think about the baseline forecast that i have for 2019, $170 for earnings s&p 500. it's a little -- consensus $170, up 7%. that assumes that there's really no tariffs that are assigned that would be the baseline assumption the risk would be if you have more -- either modest tariffs that get implemented or more draconian scenario, we have full blown trade war. >> interesting that's a lot of good stuff great note this week thanks for joining us. >> we have economic data and

santelli has the numbers for us. hey, rick. >> michelle, yes, our june read on job openings and labor turnover will concentrate on the job openings 6.662 million and that is another record and over last month revised stronger so the difference would have been 24,000 versus last month and now stands at 3,000. this series started in december of 2000. we never had a 6 million read until the spring of last year. now we just string them in a row, three quarters of the last 15 reads have been 60 million or higher these are strong reads and yields held low end of the range when it was trading in the low 290s for tens and has crawled back up. >> we saw a bump at the s&p when the numbers came out thank you, rick santelli he was talking about the jobs number where have all of those jobs been added senior economics reporter steve

looesman has a sector by sector look at the united states. >> we do a little comparison too. 3.8 million jobs added in the 20 months beginning in december of 2016 but it kind of continues the trend because if you look back, the same -- the prior 20 months, obama added 4.3 million for a deficit of 482,000 but it's very important when you look by sectors, differences in how those jobs and where those jobs were created let's go sector by sector and look at the positive and negative under president trump more jobs created in professional business services but both strong in that regard a big difference is in manufacturing, relatively higher paying jobs where president trump has done 368,000 more jobs under his presidency than under president obama. and other we'll leave that aside. wholesale trade better and mining and logging also that was negative under obama, now some of that has to do with lower oil prices but other parts of it may have to do with deregulation and

some efforts by the president to spur those industries. let's look at the other side of this where the president is not doing quite as well. education and health services, lea leisure and hospitality and retail trade this is interesting here there was a big change in retail hiring that had to do with some of the stores and house that were closing down. that -- had nothing to do with president trump right there. government, you might say obama was a big government guy a lot of this change is in local and state government some of it in federal. may have very little to do with him. what's interesting here, the manufacturing and mining and logging are two areas that could be affected by tariffs but also by the tax cuts. so there's a push me pull you and we're waiting to see how it plays out. if the president plays it right, maybe he'll have this manufacturing renaissance continue in hiring in those well paying sectors. >> steve, i don't know if you saw yesterday, ap had an analysis of county by county job

growth and tried to argue jobs in so-called trump counties that lost not gained as many as counties that went for clinton did that make sense to you >> it's very hard as you saw in my report there. when i look at sector by sector, they took it down behind me there. but there's all kinds of threads and currents running through the economy, higher oil prices, tariffs possibly, all kinds of stuff here, that influences this stuff. i think the main thing, when you talk about for president trump for example, he had a higher base, so doing as well or nearly as well is a pretty good accomplishment here. this is a perennial job gainer, manufacturing -- this is a turnaround worth watching. also over here, this mining and logging, does deregulation add to the higher price of oil and help good jobs keep coming >> that's good stuff interesting, thanks very much, steve. when we come back, asking for an exemption, alcoa joining thousands asking for relief from

tariffs plus big names in media and tech investing a billion dollars in a new tv streaming venture led by jeffrey katzenberg and meg whitman. dow close to session hhs uigp 161. don't go away. are you ready to take your wifi to the next level?

then you need xfinity xfi. a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. major american corporations asking exemptions from the steer tariffs. u.s. steel and new corps successfully blocked hundreds of

requests filed with the commerce department over the past several months, from companies who would like to be exempt from the tariffs. al co-with a officially asking its own exemption for aluminum we're joined by the center fellow and james pap kik is, all of the bureaucracy entailed in going through this process, your assessment here of how this process is working and whether or not filling the administration's desires. >> i think the process shows how complicated really trying to change your country's economic mod model to one that will be a high tariff where companies need to sue relief it's extremely complicated and i think that's why these various models you see coming out of banks trying to forecast economic damage from these tariffs and more in china are

really overly simplistic it's difficult to figure out how it's going to play out with supply chains and we could be facing a very extended period here of a great amount of uncertainty about where trade is going and how it's going to impact business. >> jared, when you look at this article with the data put together by the new york times it suggests that american based steel companies are winning when it comes to the argument 6 of whether or not other companies should get exemptions. the stuff could be made here if it isn't made here it could be i gather you would probably disagree with this whole process but it sounds to me that wilbur ross would say, right, it's working, that's exactly what we want this want this stuff produced here physically, we're pleased with these results. >> i think there's a fund. a.m. i will logic, the steel companies have been giving 100% veet to power which doesn't make a lot of sense to me because their incentive is always to

block the exemptions look, the alcoa thing is revealing. auto companies went to capitol hill, please don't impose tariffs on imports that we need for our inputs when the company that you're trying to help, the industry that you're trying to help alcoa in this case for aluminum, is telling you, please don't help me, you know something is wrong. and here's the fundamental i will logic of the whole thing. you can't unscrambling the globalization omelet. >> that's what they are trying to do. >> that's the supply chain -- >> wants to repatriate supply chains and has no idea how that would actually work but that's what he's trying to do. >> that's why the whole thing just is so chaotic because these supply chains are deeply embedded one of the most americanized cars on the road right now is the honda odysseodyssey, 75% of parts are domestic domestic in our data means canadian and u.s there you go.

>> this was supposed to be a debate but of course you're both on the same side on this issue i will point out sitting here on the 10:00 show next to david faber, kyle bass has come out and supported the administration on this point saying look, we don't have enough smelters in this country if indeed it ever came to war, we need to produce stuff here. do either one of you give any credence to that argument at all? >> yes, but not with canada. >> yes but no with -- >> not with canada canada is not our enemy. >> i'm sure there's a shelf somewhere at the pentagon with our canadian invasion plans, i imagine it's a pretty dusty document but i guess it's there listen, to get back to what jared is saying, intel was just saying that these potential chinese tariffs, if they move their assembly plants back to the states, a billion dollars a plant. so long corporate tax cut.

>> michelle, i'll give you something more debatable i actually believe that donald trump was really on to something and is still really on to something when he focuses on the extent to which imbalanced international trade has really hurt people and communities in this country so i actually probably more than almost any other economist that you're going to have on your show today would argue that there is a motivation to try to help people hurt by trade. i just don't think this is the right way to do it. >> do you buy that >> yeah, that there have been people and communities who have been hurt by trade, that there are people who lose by trade, yeah i do and we should have done a lot more and taken that more into account but i really wonder if we want a long term commitment in this country to have the federal government pick which companies are going to win and which companies are going to lose. republicans and conservatives used to call that central

planning this is exactly what this is and we have a long term trade war with china -- >> let's move on -- >> get used to it. >> let's move on to what is likely chinese response. we have two headlines related to china. apple could be use as a bargaining chip and then at the same time world oil seeds, yes, a real organization and publication says the chinese may have to buy u.s. soybeans anyways because there's not enough elsewhere in the world to fill their needs so are they kind of stuck somewhere, jimmy, at this point? >> well, listen, i'm not sure about the soybean supply but i do know that it would not surprise me if this thing continues that apple is not going to be rendered immune. apple is certainly aware of all -- i know they are very aware of all of the different ways they can be hurt during an extended trade conflict. >> jared, if apple gets hur hurt, do you think this

administration cares >> i don't think the administration cares much about near term pain i do believe they'll double down on this philosophy that it will hurt in the near term and help in the long term the thing to watch in china, offsetting the impact of tariffs with a decline in the value of the currency relative to the dollar if the dollar appreciates 10% against the yuan, that's 10% lesson the tariff. >> apple is trying to be one of the good tech companies and make the administration care. >> all righty, thank you, gentlemen. >> you bet >> when we come back, take a look at shares of zillow getting slammed, issuing weaker than expected guidance. stocks down but was down nearly 18% a moment ago backing the new media company, all of the major studios goldman, jp morgan and alibaba, a billion dollar war chest for content. we're going to talk to both in an exclusive interview in

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the president hosts a dinner with business leaders and ceoz

tonight, boeing, fedex, continental resources and fiat chrysler and -- stepping down lats elater this year. in the meantime, time for our etf spotlight. is this shanghai or something else >> mostly shanghai the different etfs cover separate indexes, more than 2% bounce overnight if you look at three etfs that cover the large cap space in china the gcx, it's mainly a large cap mostly global companies based in china and fxi more commonly looked at as large cap etf the a shares that tied to the domestic chinese economy, a little bit more. the question is why. nothing too specific what drove it there

there was some talk of stabilizing a currency and build in foreign exchange. if you look at year to date you'll see this really looks like a powerful bear market bounce strongest rallies tend to come in bear markets. the differential in performance among these different etfs, you see the green one, the asher, is much weaker. that's mostly because it is tied to the domestic economy. the other ones very, very linked to not just the banks and exporters that are driving chinese economy but also the faag of china. if you look gxc, 10 cent and alibaba together more than a quarter of this thing. those stocks have been very weak the idea that the chinese market is showing likely losses out of the trade war, it's true but much more about capital flight nobody thenkz people are going to be playing fewer video games in china because of the trade war. but i think it's about capital wanting out and advance in a weakening of the economy. >> couldn't that be a result

about fears about the trade war? >> secondary one, absolutely it's not so much about on the ground today s exporters are suffering and crying uncle it's much more about, i think flinching in advance of this likely disruption. already had a slowing path so i think a lot of this stuff is exacerbating that without a doubt. >> all of that data that you just showed, i think when we have people come on and say fade trade, it just doesn't matter for the u.s., they look at all of the indexes and say, see, here we are. talking about reproaching record highs in the united states and tells you who is likely to -- >> it tells you which are levered to global trade. this economy in the united states has never been really that's the benefit insulation absolutely. >> thanks, mike. good stuff. >> see you in a bit. >> when we come back, betting big on the future streaming of video, jeff katzenberg teaming up with meg whitman, raised a billion dollars for a new

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good morning, i'm sue herera, has your cnbc update north korean foreign minister arriving in iran to meet with his iranian counterpart. it comes as the u.s. imposes sanctions on iran following their pullout from the landmark nuclear deal a brush fire in southern california moving quickly after igniting monday afternoon. the blaze consuming 4,000 acres by night fall and remains zero percent contained. the fire is located in a remote area of the santa ana mountains. >> for first time spacex relaunched the reusable falcon 9 rocket boosters. the boosters are zdesigned to

make 100 trips to the moon and back and the mystery of which hollywood company bought the brady bunch house has been solved hgtv is the buyer. discovery ceo making the announcement during his company's second quarter earnings call saying they will restore the home to its 1970s glory. you're up to date, carl, back downtown to you. >> now we know what happened to lance bass's business, sue. >> exactly. >> you got it. >> welcome back. david faber here at post nine and about an hour in the trading session, dow is up 180 and s&p ten points away from that interday and closing high we set back in january. meantime, former hewlett-packard ceo and jeffrey katzenberg closing a 1 billion dollar funding round for newtv.

newly every major media company is getting in early. let's get out to julia borsten sitting down with whitman and katzenberg. >> thank you both so much for joining us today after announcing this big news, a bill billion dollars from every major media company pretty much and alibaba and banks as well. what will you do with the billion dollars? >> it's about the billion dollars but more importantly every single major hollywood studio joined in this round along with as you pointed out technology companies and strategic financial investors, a platform optimized for easy on the go mobile viewing and allows top talent in hollywood to tell stories in an entirely new way. >> so we're going to use the money for content and help in those story tellers tell stories in a new way which is fwgoing to be premium content delivered in bite sized fort mats.

>> does that mean they are committed to provide ag certain amount of content? >> the hollywood studios want to provide con tent for the new platform because it's a growth area and allows storytellers to tell stories in an entirely new way and optimized for on the go viewing. >> what does it actually mean? how much with it cost and what will the app be like >> keep going. love it. killing it. >> well, it's going to launch we hope in the fall of 2019, christmas of 2019. there's a lot of work to do between now and then there's a chance it slips a bit because we want to make sure we have exactly the right content and the right quality of content. really today is the first day of the new company. we moved into our new offices in west hollywood and in temporary work space, it's like a temporary work -- like 'we work space called serendipity and we're hiring and starting to commission content jeffrey is leading the content charge and i'm leading the

technology and business charge. >> jeffrey n. terms of content, there's so much out there, there's netflix and hulu, over the top subscription services and a lot of concern maybe we're at peak tv, more tv series out there than ever. why do we need another app >> i think that what we're filling is actually a completely different experience you get up every day, you leave your house and you take your television set with you. and in the course of that day, you're spending right now, you are spending about four hours a day on this device on social media, communicating collaborating and playing casual games and watching over an hour of short form content. and what we want to do is to grab about 20 minutes of that time and offer people now a quality of story telling and the best of what hollywood has to offer backed in a subscription service which allows us to invest the kind of money that you get in traditional television to make that

experience exceptional so today, in short form, the high end of what you're watching and by the way we admire the work that's been done. it's innovative and creative, it's about 2,000 or $3,000 a minute on a scripted television show you're referring to, it's $100,000 a minute. and what you can do with that kind of resource and talent you can bring, is just quite unique and quite differentiated. >> if you talk about the kind of content. obviously people are used to getting content for free, short form content for free on f facebook and youtube and may already 1ub descrisubscribe to o and how are you going to convince them it's worth paying for content that's the length they are used to getting for free >> there's many use cases in the pac past that exemplify why when you

come along with something that is exceptional and convenient and premium, people will mig rate to it if in fact it delivers on the promise. two great examples, hbo comes along in the 1990s ands we're not tv, we're hbo and the content they made, even though there was all of the television in the world, all free, all available, many, many tens of millions of people went to hbo what they did offer was exceptional. both in quality and standards and practices and no commercials, et cetera we believe what you have in short form today and what we're delivering in new form will be the delta, the exception, the exceptionalist of that will be as great i'll give you another example music. six years ago it was all free and all music was available. 150 million people today paying $150 a month for music because spo spotify and apple came along and made it convenient they didn't change the music or improve it, they made it a

better experience for you to cureate and get music and recommend it so i'm pretty confident that what we're going to deliver is exceptional relative to what is available free today and there will be some percentage of people that will my great to that and be attracted to it. >> how big do you think the market is? >> we think the market is enormous, $2 billion spending over an hour a day viewing video today on their mobile. the content needs to be differentiated but so does the tech platform. we need to optimize in a way that is not done before. >> how does alibaba fit in >> they are going to be helpful to us. they are doing a lot of innovative things and it's a collaboration around the technology as well as the content. so we're excited about what they can bring to the table but we're assembling a list group of engineers here and in l.a., we decided to have the engineering team in l.a. to do something not done before, to get that video

on mobile looking fantastic. think about what you can now do in photography on mobile now we're going to do that on video. >> david faber wants to jump in here >> thanks, julia meg, it's been a little while. >> it has been. >> all of those years every quarter. >> on the subject of wireless actually back to technology a bit. your old haunt 5g is coming and it's a ways away i do wonder for a service like this, do you have a vision of how it will enhance it and change it and what you're able to deliver >> i think everyone agrees that 5g will enable video on mobile to look even better than it does today and just for historical perspective, you have to remember five years ago watching mobile -- watching video on the mobile was not a great experience do you remember the bufring and freezing that is largely solved think about what 5g will be able to do in terms of display and sound and instant discovery, there lr powerful things brought to bear. we think it's an element of the

wind to our back for this new venture. >> jeffrey, a quick question as well, more from the investment perspective, barriers to entry, if you in fact are correct, as you very well may end up being here, that this is something that people want, what stops netflix and hul alsou and well capitalized making an offering to their customers as well and moving strongly into the area that you may pioneer will there be enough market share for everybody to share or do you risk getting mediated by them >> again, david, i think what we are building both in terms of what meg is designing in terms of the platform itself and to make this a mobile first product, that is not the case for any of the people that you just named and you take netflix, literally less than 10% of netflix is viewing less 10% of hulu's viewing is mobile it is not optimized for it either the content itself, which is

primarily an hour length, is also not optimized for on the goo in between viewing so at the outset, i think we'll have a very strong first mover advantage. but like anything, if we are right and if it is successful, others will follow hbo succeeded, came showtime and starz, cbs started in network television quickly on the heels and nbc and abc and fox. so you know, i don't think either of us sit here and think, this is -- we're the only ones who are going to do this but i think with the financial backing, the incredible partnership from the content providers, our partners represent 75 or 80% of of the top show running talent creators in the business as well as probably the best ip in the world. we've a lot of great wind in our sale as meg likes to say so i think we'll be off to a good start will others follow

probably >> i would also say, david, there's something to be said for focus. you know, this is the only business that we're in and we aim to make this business, which is for a use case that's quite different. you take a tv in your pocket every day and ten minutes it happens all the time, waiting at the doctor's office and on your commute and it's taking longer and waiting for a friend for dinner and we want to take that ten minutes and want to make those moments extraordinary by the service we're offering, which is a different strategy than the companies that you mentioned >> well, meg, that was of course a focus was one of the themes that came out from our many interviews during the years you ran hp enterprise but another was the rate of change, which you continually said only increases and puts pressure on decision makers like both you and jeffrey. so what gives you the confidence that given how quickly the world is changing you're making the right decisions now and will be positioned properly for service you said not going to be available for some time? >> yeah, well, i think the good

news is, we've done -- we've seen a lot of patterns, we're good at pattern recognition having two long careers in hollywood and silicon valley we are bringing the very best of hollywood and silicon valley together we have to stay nimble i'll tell you one other thing david, you'll totally appreciate, it's fantastic not having a legacy platform, with the latest behavioral analytics and things is a real joy. >> one of the patterns we're hearing about in hollywood is cord cutting will this be a tool for cord cutters and are you getsing all of the media companies to invest in a platform that could can balancize their corps business >> i don't think -- this is not a zero sum game. people are already as meg said, 2 billion people watching an hour of this content a day we don't think we contribute to or accelerate the cord cutting that's a much bigger decision that people are making and certainly generationally since this is very targeted at 25 to 30-year-olds, this is the

old thing, we're skating to where the hockey puck is going we're not looking back at it so -- to your question, david, i would say to you, these two old dogs, we still know how to hunt so -- >> i prefer we are up and comers in the new space as opposed to old dogs but i'll take it. >> another big trend we've been watching in the industry just transform the business in the past year is media m and a the number of your investors are in the process of merging, disney buying fox, and warner media owned by at&t. how did this consolidation exchange your business >> you know this because we've been talking about this for well over a year or 18 months, through all of that m and a, and the sort of realignments that have gone on, we've plowed forward in this and the reason is that i think every one of them look at this as something new, differentiated from their own strategy and complimentary

that's why every time someone says hulu or hbo or netflix or cbs or nbc, we're actually going to allow there to be the next evolution into this new form which we think is a growth opportunity and most importantly our partners agree. >> another big story in hollywood over the past year has been this wave of allegations of sexual misconduct and gender discrimination as you build a new company today, how do you make sure it doesn't fall prey to the issues that there have been accusations about a range of companies most recently last week with cbs? >> we're really focused jointly on building a company for the long term with the right mission, the right vision and right values and we have to lay that do you know early the great thing about building a new company, you get to lay that culture down early and we have a really shared vision of how we want to do that, inclusiveness, fairness

and bringing out the very best in people. i think our careers, we embody that in many ways. >> listen, i'm -- i think we are both -- it is top of mind. it's not incidental in a way we have the advantage of starting with a clean slate in a new era. and the rules of the past don't apply anymore. you know, for me, i have always been blessed to work with incredibly strong women in every aspect of my career. you know at dreamworks animation, we had a tremendous representation of women and leadership of the company and production of it you know, for me in reaching out and being lucky to be able to get meg whitman, one of the most accomplished executives in american business in the last decades, you know is just a -- as i say to meg, i know what i know i know what i don't know and i

know she knows what i don't know so having her as the leader of this and ceo of it, i think just puts us off on a great start. >> and meg, you are a rare female ceo in this country just yesterday we had the news stepping down. a final question, why do you think there are so few female ceos and what will it take to change that? >> yeah, so i think first of all there are more than there were when i started in my career. i graduated from business school in 1979, there has been change but there needs to be more focus on women on boards of directors and bringing up and nurturing women in their careers and giving them the opportunities to prove what they can do and so i think every leeader now in most major companies we're going to be focused on giving women not only women, everyone an opportunity to shine and do their very best work. >> we're very curious to see what is going to come on new tv. can't find out when it will launch and how much it will cost and what it will look like i hope you'll come back on.

>> we can't wait to see what the cnbc version is on new tv. >> let's do it great. guys meg and jeffrey. we appreciate it. >> back over to you in the studio. >> julia, fascinating, our thanks to julia borsten as well. dow is up 175, about ten points from the s&p 500 record of 2,872. "squawk on the street" is back after this ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.

as stocks push back towards record highs, one technician says there's a major shift happening in the market. find out what it is and how it impacts your portfolio on tradingnation.cnbc.com more "quasquawk on the street" coming right up.

welcome back to "squawk on the street." let's get to the cme group rick santelli has the santelli exchange >> thank you i've often talked with respect

to central banks and policy that their policy becomes our policy, and globalism, there's pluses and minuses, and interconnectedness of it all we're learning that trying to readjust nafta and trade arrangements it's not easy. even if it is an improvement, it is not easy. but one policy being exported by the u.s. is something unlikely, not the first thing you would think of tax reform when we passed the tax reform package, i talked about this possibility. but "the wall street journal" today did bring it up, not necessarily in the same context, but it is pretty easy. lowering u.s. tax rates may raise animal spirits globally. think about it you're a company, a multinational. you have operations all over the world. well, there was a time you probably tried to domicile some profits outside the u.s. because it was taxed at a lower rate now the reverse is true. our tax rate is lower than many

countries and a lot of operations that generate profits outside the u.s. will slowly move them back what does that mean? think money. ale roads lead to the money tree countries that have a tax rate that's higher than ours are now losing that money. so what's their next move? the journal calls it the race to the bottom, meaning the bottom of tax rates this is one race to the bottom kind of like golf scores the lower the better at least from the vantage point of an individual i'm sure russell's and many other parts of the world that are running the show aren't necessarily impressed, but it can grow into a cycle. tax rates get lower and competitiveness goes up, most likely from a global stand point i think business is going to expand so we really want to pay attention to this, especially considering there may be more tax reform on the way. david, back to you

>> thank you very much, mr. santelli time to send it to jon fortt for a look at what's coming up on "squawk alley." >> david, the nasdaq and s & p are near all-time highs. which tech stocks may have room to run quk let mi uonhacongp "sawaly.

shares of marriott are falling, quarterly revenue falling short. the company gives a weaker than expected forecast for the current quarter. revenue per available rooms. seema mody is off the earnings call >> marriott ceo says weakness is not a sign of market softening, due to shift in the calendar with july 4 independence day landing mid week he pointed to markets like south florida, houston, san francisco, new orleans, where revenue per available room rates exceeded 5% marriott is bringing more hotels to market, signing $500 million ritz-carlton hotel in new york city, underscoring growth appetite for luxury brands sorenson touched on the unified loyalty program that will merge marriott, spg, ritz-carlton rewards into one come august 18. the slow roll out has been a

pain point for some investors. one writing it expects marketing costs to rise in the third quarter, hence the conservative guidance for third quarter shares down as much as 6% on the revenue miss the stock is recovering, down about 2.3% michelle >> had been worse. thank you very much. coming up later today, big earnings out after the bell from disney and snap. we have full coverage and analysis on the the closing bell, don't want to miss that. "squawk alley" is next don't move

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