let's take one final look at the futures as we head into the opening hour about 111 now. home depot strong, helping the dow. s&p up 11. nasdaq up 36 michelle, we won't see you for a while. >> always a pleasure to be on with the both of you i enjoy it so much. >> good to have you. >> make sure you join us tomorrow squawk on the street did you see furyk? that was awesome squawk on the street ♪ ♪ good tuesday morning welcome to squawk on the street. i'm carl with jim at the new york stock exchange. david faber has the morning off. futures are up after four days down for is s&p. the lonnest losing streak since march. lira recovers a bit.

europe is mixed. gold holding just before 200 road map begins with musk naming names, disclosing the banks and the law firms advising on his bid to take tesla private he says the board forms a special committee. details next the turkish lira bounces back. global markets in the green. carl icon dropping his bid to block cigna's $52 billion deal for express scripts. first up, tesla announcing the formation of a special committee to explore musk's proposal to take the company private. they have not received a formal proposal and haven't reached conclusions on the feasibility of any such deal all current tesla board members are on the committee they do get the amount of k. out as we get a page one story in the times saying that the board was taken aback by the origina tweet.

>> i think we have to go back to what mark cuban said yesterday on scott wapner's show this is a man who is not a conventional ceo we keep expecting a certain level of convention. he's not going to give it to you. therefore you should stop looking for it now, this kind of whole sequence seems backward idea, maybe put the company up for sale, maybe take it private. let's hire goldman let's hire somebody else get a special committee going, see if it's right. he does it backward. instead of people doing all he did was do it backward they say he is covering his tracks he never should have tweeted. the problem is we don't know what's in his head we don't. >> does that matter? does the s.e.c. care to the pointed of intent is what you are saying. >> one, s.e.c. might call and say man, listen you can't do that anymore if it is a therno situation,

they won't see justice for five years and then they will remove him. this saudi fun, the public investment fund, is not backing him. and that's not what's going on when you think about how much money they could raise and how they own aram coand aramco has said over and over we have to have a hedge against oil everything makes sense now bears want to tell you it doesn't matter that everything makes sense. you know what? if you are the s.e.c. what are you going to do, call the suedies in guys get over here we need to talk? >> that's not going to happen. >> that's what i care about. >> what about -- going into the time space that quote sources close to the saudis saying they haven't taken any steps that a transaction like this would entail they raised the cfius word saying it might invite some review on that front if it were to happen. >> this all started with him getting funding that he could

have had for his company instead they told them to go buy in the open market the discussion -- i'm not bull nor bear i love the car what has mystified a lot of people is why didn't he need the money for his own company? if he was really in trouble -- why not? the saudis who say, there is $2 million you can buy in the open market or buy $2 million from his own company. then the bears would have no case he would have all the cash he needs. >> do you think he should have done that instead? >> yeah. i think that money is good i think that a companies that cash flow negative should have done that. >> yeah. >> again, he doesn't do what anybody else does. and we cannot -- everybody wants to hold him to the same thing that we would expect from literally from the great american companies that we a all -- okay, he doesn't play by

all the rules. that doesn't mean the s.e.c. is going to enforce the conventional rules a lot of the bears are preying not unlike what wapner did in scott axelman's book come on, s.e.c., let's go. i'm reading the carrier book for thernos. i want to interview that gentleman. s.e.c. gets on the case, and five years later they come down with the jack boot five years n. that case, you had the prosecution laying out the prosecution. if you are waiting for the s.e.c. to hammer tesla, let me just tell you, we will be on mars by the time the s.e.c. does that. >> what does it do for the bears' argument they are cash constrained, that they can't make 5,000 cars a week are those things settled in the near term, cash flow positivity? >> when he puts in a tweet i can't believe how many cars we

made overnight, man have we got this down? what are you going do? the man is a tweeting magician i don't see ford doing -- mary bahr is not doing what she -- he's not a conventional company. he is not a conventional ceo if you want to short it, you are shorting the honey badger. honey badger don't care. >> that's going back a few years. almost forgot about that one are you saying he is a hog that's slaterred in oil. >> look, the shorts are not here saying wow, $2 million in. they are sake walk tell hasn't been contacted call them. do you think they are going to talk to you. silver lake not involved hey, silver lake, are you involved goldman sachs, we did a couple billion dollar bond offer. >> it's been a challenge for

reporters to confirm what musk is saying right here. >> right i mean let's call amonger tolls right now and nail it down you can't. he's too smart and remember, he is david blaine you can't figure out how -- how did he get the king of spades in his mouth and sew his lips up when he had the king of spaids in will. >> do you have faith that the board will appropriately consider the feasibility of this >> highly independent. again. look boss -- worked with solar city out? i don't know i mean he was cfo of sigh res hemi that was dr. rogers. denham, a real company, successful linda johnson. denham, she terveed toyota motor company in australia for seven years. and arthur anderson. they are not titans of industry. this is not the proctor and

gamble board not jim neerny and flake checking off on it most companies are not behold tony the ceo the way this is he has directors that's a big deal. >> a plus. >> they are not all his brother. i mean one off i mean they are not all closely related to him this is as independent -- we want murdoch why isn't it murdoch >> you know why? because murdoch is not remember what cuban said yesterday. >> on wapner's show. >> he called in. wapner had such a great show. >> competitors are not standing still. inside word today that a ten cent backed maker of evs is -- >> zte, chinese backed -- the

president -- if he wanted to have an impact he would say to ten cent your thing is worth ten cent he would tweet it is worth ten cent but instead he is worried about the fbi. i get it but he could take the chinese down >> what is amazing is people are trying to piece together the time line behind these tweets using a page one story in the times with four by listens and the instagram stories account of azalea bank. >> let's put the fbi, the nsc, the imf and the international community and interpol you can't do it. it's in his head okay i have got someone who claims they are so close to the investment fund that it's absolutely untrue. and i come back and i say, so what so what? >> that's why i get you. they had $2 trillion by 2030

it reads really well he could have said it's pretty security it's in his mind sths there is a term of art. if you use the term secure the s.e.c. is going to come down on you. i say to you what are you, the s.e.c. there is a 7,248 page thing about how the s.e.c. is going to come down on herbal life last i looked the supplements keep coming. >> that's true it's why these things are so hard to enforce. >> ackman had it down nine ways to sunday. but in scott's book someone from the s.e.c. said ackman is too aggressive let's sideline it. the whole thing was predicated by the s.e.c. closing it does anyone think the s.e.c. is going to say elon musk we are referring you for justice, you are going to jail. thernos. elizabeth homes. the amendments the 4th, 5th, 6th always gets in

the way of people going to jail. what is the 6th, the jury pool. >> the bill of rights. that's a good tesla a block. when we come back we'll talk about carl icon, the activist abandoning his campaign against express scripts. the last losing streak for the s&p was nine days down it's bouncinbag ck from its four days today squawk on the street comes back in a minute. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done. it's a smart way to help increase the rhino population.

and turn the poachers into the endangered species. ♪ ♪ ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome.

in many cultures, young men would stay with their families until their 40's. higher and looking to snap a four session losing streak we have worries about turkey subsiding at least for today lira is up 5%. home depot, good qurd. upbeat results and guidance. taken numbers up on eps, revenue. still the come, 8% >> i think that forecast is going to be regarded as something people think is too weak i urge people to recognize this is the original u pod, underpromise overdeliver company. that 8% is extraordinary

the garden season was late in the midwest and laid in the northeast. yet they pulled it off >> yes we remember the q 1 print. we were all confused that day. do you think that was about weather. >> it was weather. this is a uniquely weather story. those of us who gore den know that the season started too late to make their quarter. then it came back to life. it was almost as if we are not gardening in may let's garden in june an honest company. a lot of companies blame the weather. a lot of companies blamed world cup. i mean, you know, there are a lot of companies who blame thing. home depot, when they blame something we must now respect the fact that it's real. >> right. >> they are too honest too, good if you sell the stock today because you think that that guide sans bad you are going to

ends up i think regretting it. but that's the way it has changed -- it's traded higher when it reports. then as we get through the conference call people say wait a second, it wasn't as good as it looks there are different issues some people on tweert today tony guyer -- was it tony no it was -- >> this never happens. >> oh, my. no but -- this is terrible. but it's about square footage. how great the sales were for square footers. >> cramer scherff. >> what am i kiting. cramer shirt >> calls happening now lauren thomas one of our colleagues saying big ticket purchases, those over $20,000. 20% of sales in the u.s., up 10% from q 2 a year ago. >> right and remember, there is a twofold issue with home depot. are they maintaining their lead on contractors that he got from

lowe's and how did they do in the garden season, their so-called christmas season both were great. but there are always people who interpret it as not being as great as we thought. they never get the pass that costco gets. i think people need to recognize this is a good company. >> mark cuban talked about how he now owns just a handful of stocks talked about selling the his twitter stake. listen. >> i have got cash on the sidelines. there is no way you can say i trust everything that's going on put aside tariffs and what the president is doing he has his reasons i think we borrowed from the future to kind of bump up the current market and as much as rick santelli gets upset about quantitative easing and cheap money i think borrowing from the future, and the debt is just as big a problem, if not more so.

>> he has four dividend plays right now. two shorts, netflix, and amazon. >> yeah, i -- those are -- i know he ultimately loves those products look, i think that mark -- i have known mark for a long time. he did a fabulous show with me in kelly, indiana when we did our college tour i think that mark, if somebody changes tomorrow, mark would say, well this is a good opportunity. i'm not saying he is a fair weather friend i'm just saying that mark is incredibly honest. if there is a price break i would think he would put money to work. if home depot is down today, that was up four, now it is a down two, that's an interesting situation. case by case he is rigorous and if stocks drop i think he would put money to work regardless of the definite simpson i am not calling him two-faced i think he is an original

thinker and will continue to find opportunities and take advantage of them. >> do you think we have borrowed from the future. >> we have. in the long run, we are all dead i fell lining there is a lot of -- if we get the 5% print gdp or if we get what larry kudlow is talking about i would say look i shouldn't have been so negative. i absolutely think we borrowed from the future because the definite sit is so very huge but the bank stocks, where the yield curve isn't plat but there is a longer rate but you are going to gett your wish when the banks start issuing bonds to pay for the deficit. >> russia is down 6. u.s. the up about 6. the biggest divergence in years. >> the stock market is about profits. these are the biggest profits in

history. switch one of the worst conference calls that i have heard in ages. there are not a lot of companies that didn't deliver. sisco didn't deliver last quarter. i bet they deliver this quarter. i mention that because the dow stocks, home depot is going to be down soon, i think that's ridiculous give the profits. and you will look back, wow, why did i sell that, the profits are so great here's a great example advanced auto parts. starboard took an interest, made it better, bingo, good quarter last night starboard puts -- elliot takes a stake he takes stakes in companies and the next thing you know, it's like, wow, that was -- i should have been in that one. >> we will talk more about all the things that have impacted

this quarter buybacks admittedly. >> do you think nielsen wasn't a short -- it was a short until it was a long. >> big elliot play this week that's right we will get cramer's mad dash. we will count down to the opening bell in a moment looking at the premarket coming off a little bit off the highs. w tudofures up 74. don't go away. biggest names in entertainment so we can fit them into our unlimited wireless plan. who's first? no. this isn't permanent, right? ask him. [terry squeals.] get unlimited data, live tv, and your choice of an extra on us. more for your thing. that's our thing. visit att.com

six minutes to the opening bell today mixed results, i guess,

right? >> but i still like the fact that victor lewis who is on "mad money" today really is starting to get what i regard as kinds of a rhythm in that he is joining michael kors last week the accessories are doing wereay well they are the strengths of this market poem didn't like the spin off. but give me a break. that was smart they are outpacing the forecast. true house of brands your house of brands that has been what manny tirico has done at pvh she has become a completely investable story big up some of the franchises in asia tapestry, it's carol king. we always liked coach but he has bought other companies you hear tapestry, you think, why, where, what is that it's coach people. it's also stewart weitzman who was not perfect. i'm surprised because footwear has been incredibly strong

witness nike under armour by the way very strong like this. it's investment. >> interesting coach comps up two looking for 2.1. >> yea look nothing's perfect but i do come back -- it wasn't as good as michael kors. i come back and say wait a second it shouldn't have been here. but it shouldn't have been here. i like the progression it makes. this used to be -- it was every quarter it looked like an os littler. now it has a nice way to go. changed there. retail was strong. what goes into retail strong, a lot of people are going to buy macy's of to of this right or wrong that is at the end of the week this and michael kors are the way to read through macy's. >> back to school coming up fast wl lkorabt that in the coming weeks

the opening bell in a minute don't go away. every fire department every police department is part of a bigger picture. that bigger picture is statewide mutual aid. california years ago realized the need to work together. teamwork is important to protect the community, but we have to do it the right way. we have a working knowledge and we can reduce the impacts of a small disaster, but we need the help of experts. pg&e is an integral part of our emergency response team. they are the industry expert with utilities. whether it is a gas leak or a wire down, just having someone there that deals with this every day is pretty comforting. we each bring something to the table that is unique and that is a specialty. with all of us working together we can keep all these emergencies small. and the fact that we can bring it together and effectively work together is pretty special. they bring their knowledge, their tools and equipment and the proficiency to get the job done. and the whole time i have been in the fire service, pg&e's been there, too.

whatever we need whenever we need it. i do count on pg&e to keep our firefighters safe. that's why we ask for their help.

i do count on pg&e to keep our firefighters safe. ♪ (whistles) ♪ come on. come on, squirt. (dog barking) whatever your financial goals are, a u.s. bank wealth management advisor can help make them a reality. talk to one today. u.s. bank - the power of possible. you are watching cnbc's

squawk on the street live from the financial capital in the world the opening well in just over a minute. busy tuesday morning we covered home depot and tesla and some other things. turkey blessedly, we haven't had to go toe to toe on today. >> i keep coming back. my nephew and i, cliff mason has been my head writer for 14 years on "mad money. of course my only writer because that's the kind of thing we say. he is talking about an economy that's less than a trillion dollars over there versus 19 trillion, ours contagions because of what happened in '97 and because of what happened in' 98 we are always wary. there is a risk factor but then you settle in union accurate is involved it hasn't gone out of business, and it ain't going out of business they are an amalgamation of

italian banks. >> turkey is more important to europe than thailand was to asia back then. >> greece didn't sink it, portugal didn't sink it. ireland didn't dink it turkey ain't sinking it. it's not -- remember, they have a central banker who said malcolm x bien any means necessary. and erdogan is totally covered by any means yesterday >> true. we will tell you what he said. looking a of the the opening board. inside enterprises celebrating its 30th anniversary erdogan calls for a boy cost u.s. electronics >> oh, gee. >> says he will not participate on u.s. sanction on iran or russia. >> i am not buying my iphone because of erdogan said -- come

on get some game there, chief electionan troic people are going to buy it anyway because it is a good machine. tim cook, say, hey. >> you are not concerned that it is a gateway, they run a lot of pipelines, obviously migrant flows that end and start there. >> have been forever we had turkist guest issues starting in the 1970s for germany. turkey is a country that was about to become i would say a member of the castle of nations and then became a dictatorship a dictatorship is per se something that the eu struggles with turkey's thing but remember, you have a devaluation of turkey in '93 that took everybody by surprise. and then they threw out the secular government and put in a government -- sectarian government what you end up is to say all right turkey has been bad so to speak for a long time. >> yeah. >> argentina a lot of people felt at the beginning of the year it was going to be a growth engine i had brakes on last night

they are cash management inflation is running rampant there. >> we saw the hike yesterday 4500 basis points. >> yeah. look, i remember -- i'm not -- history repeats itself in various ways but thun with is really a farce. >> argentina, even a function of viacom's results since they own a big piece of a dritor down there. >> i thought viacom bought back, put up a good quarter. but it was completely covered by the soap opera that is shy redstone how is that investigation going? i think that viacom was a great quarter. really from intellectual property they basically went through the closet and sold what they had. a lot of people don't care they will care one day because that business is a very good business. >> down grades at work today, biggest s&p loser is wynn as jefferies goes to hold based on recent board additions reduces the speculative premium in the shares they argue. >> i think a lot of people felt there would be a transaction in wynn i -- look, steve wynn, hate him

or like him, was amazing operator he was incredibly hands on you go over his conference calls. he often talked about the way the table should be laid out, the art. i mean, he was a manager to end all managers anyone -- i think wynn is down not just because of china because because when you lose one of these ceos who literally determined how a casino worked by the way, his casinos, all remarkable you always felt what great places to play you get rid of him and you replace him with -- i mean, i don't know, whoever is running it the guy seems like a good guy. he ought to be on the tesla board. >> the other note is urban today over at barird. >> the management team there said we are in a six-year fashion cycle. i am not going to go against them they are hitting on all

cylinders. that's a valuation call. every valuation call on the retailers that are smoking, they fail you have got to have more than a valuation call because look at five below one of david's favorite stores he thinks it is recreational equipment. they have a lot of warm clothes. five below look at that stock, what it has done five at every level, there is always someone who says this one is up too much you know what, that's not this kind of stock market this is the kind of stock market that says i want to be in burlington i want to be in five below it's time for me to be in tjx. tjx, look at that stock. home goods geez, these companies are horses >> that's true target, some of these others, have been amazing. >> target looks great. people are oh, cramer said buy target no, i'm saying is you have an amazing confluence of momentum

money going into retail and nobody wants to go against it. target is not expensive. coal's, not eggs spencive. nordstrom is a controversy if they miss again, it will be -- i think they will called into question about whether they know how to run the store. >> you said the gang couldn't shoot straight in the air. like their shirts. >> interesting news in restaurants. brinker, 119 matches revenues a little bit of a miss comps flat for the rtd quchl we were looking for 1%. mcdonald's today sort of reiterates what they have said about their investments in domestic restaurants but a few billion dollars to recreate the look of mcdonald's. >> i like that yesterday scott wapner -- some clown says all you do is pump scott wapner i pumped him four times instead

of three what happens he is going to make them nicer, easter brook is so smart but their burger wars, which is why i'm surprised that brinker did so well in relation to what i feared but yes mcdonald's has to spend that money they do. they have got to make their stores better. i like the new drivethrough. i like how fast i'm in and out of mcdonald's. i think they are really clean, but i guess it's not enough for a lot of people. >> down 8% for the year. >> i think it got ahead of itself the internationals has been incredibly strong. i like the world of easter brook. i think he is terrific once again i said that home depot would be down. people just are disbelievers of everything cynics home depot, related to turkey. >> icahn backing down on sig cigna express scripts, saying there is no point in fighting

just to fight. >> there is no gun on the other side he needed to see -- i cost corps danny wasn't enough. it wasn't ackman i think carl icahn makes the game exciting. people say how can you refer to his game this is nvesting, this all about college endo iments and you really can make it a game. >> yes. >> but look i think that carl, i think he knew he didn't have the votes. that's not what you go after. >> after glass lewis yesterday. >> yeah, look, there are different kinds of styles. when singer from elliot gets involved, he doesn't use emotionally charged words the way carl icahn -- he gets the job done starboard gets the job done. i like these so-called -- i interviewed singer, and he's the kind of guy if he gets involved he's going to make something happen and he never shoots from the hip. >> yeah. >> and i know that carl shoots from the hip that doesn't make him bad. carl icahn shoots from the hip and musk shoots from the hip

there is a lot of hip shooting >> he we live in an age of hip shooting no doubt. >> my friend buddy powell was talking today about how twitter is not a good way to disseminate. reuters is come on. millennials, do they read reuters? >> we had a former s.e.c. official yesterday say twitter and that blog post that's probably more effective than traditional wire service release. >> i totally agree mother, anthony nodo, one of the greats, how has twitter done since he left. he talked about the notion of what a great method of dissemination. why should reuter's be the method >> yeah. >> do you think a millennial knows what a right righters is reuter's wreath rooter they like frozen food, video games, they like to set there and text, they like candy crush and they like twitter. they don't like reuter's hey guy let's tune in to reuter's.

>> there is an interesting debate going on regarding ford's dividend morgan stanley staying they can no longer afford 15 cents. shanks says it is not at risk. the family gets $42 million? >> the family always wanted that there is a piece in the paper. demura piece lower eps, tp cut to nine. i read that and say ouch that dividend has to be at risk here they are doing everything they can to make it profitable remember, they wanted to be in every region and they are struggling. wow, are they struggling if you are in it for the dividend, think twice. go buy dominion. >> bitcoin cracked below 6k. the entire market is testing the lowest since november. a far cry from where we were

about a year ago. >> yeah. i think that -- remember the $20,000, obviously that was the blow-off short period. these keep going down. i had the ceo of cyber or 52-week high yesterday he is saying here's what is happening with bitcoin state sponsor terrorists and smart guys are getting into the company and using the electricity to mine a lot of bitcoin. i'm thinking this thing is becoming an outlaw currency. i think the tide is turned against them so i know i happen to like nvidia very much people didn't like the fact that i dog about my dog too much. they have a new chip out i think nvidia is not a play on crypto i think crypto is going to be a very bad play in quarter

nvidia is going to be up three cents tomorrow and people will say when a hack i am i think the sun seems to be setting in at this level maybe we get back to level where it actually is 800 or $1,000. >> nvidia, two month high, six week high, back above 261. >> people will say if it doesn't report a good number it is not going to be a double top and you have to short it i would come back and say nvidia is a company that has the fastest chips. do you know that musk put up this note which said that -- it was on his conference call, that the chips that nvidia has, i love nvidia, but their chips -- his chips are ten times faster he was using the old chip. the new chip is 100 times faster it sounded like jensen wong, a visionary, he put together inindividual yachlt what has he done made it for gaming, for movies, made it for autonomous cars.

he has the best chips and the fastest and they run with less heat, which is what really matters. people want -- the people who use the chips are environmentally friendly they want less heat really important remember what millennials want less heat. i don't know -- >> and they don't read reuter's. >> yeah, they don't read reuter's but they turn around -- when they buy something the first thing they turn it around and look how many ingredients there are, if there are more than eight ingredients they say no millennials are fickle i spend a lot of time thinking about millennials. >> i know you to do. >> you have to they are everything. i want to do a two for one split so i can be a millennial. >> dow is up 61. let's check in with seema mody and see what's moving on the floor. >> after two days of selling market staging a comeback. the dow up about 70 points nasdaq higher by a third oil up, brent at 73.70 traders on the floor say that's

due to the stabilization we are seeing in the turkish lira they have three options to respond to the plunging currency raise rates, institute capital controls or look to an exterm company like the imf for financing. emerging markets are getting a lift zpoit soft economic data out of china rupy touching a low. bombback seeing a gain in europe stocks are lower growth in europe expanding half a percent led by germany the economic story still mostly intact despite the turmoil we are seeing in countries like turkey remember with turkey a lot of foreign policy experts say it's not just the economic troubles it is the geopolitical importance it has to the united states and nato. it stores a number of u.s. nuclear weapons and borders countries like iraq, iran, syria, seens a key player in counter-terrorism efforts. you have to wonder how worsening relations with the united states

impacts that story back home the consumer story in high focus home depot beat on earnings saying a number of measure is transactions jumped during the quarter. tapestry also trading higher helped bynd brands like coach and kate spade square moving up by 2% here. a bullish note out of knew mora says cash app exceed be venn mow. and marriott getting an upgrade at raymond james to outperform analysts say the selloff in shares post earnings are a good sign despite concerns about slowing sales. can it outweigh or over shadow the international concerns around turkey n. less that two hours the u.s. national reserve releases household debt. that could present more evidence on the health of market

consumer >> let's get to the bond pits. rick santelli at the cme having already brought us interesting import/export prices. >> year over year numbers on import prices moving higher. if i look at the yield curve we see that two year notes are up one basis point. most of the other maturities are awfully close to unchanged keep in mind if you have been watching the intraday trade since all the market turmoil ensued at the end of the last week we are now closer to 290. rates really are firming they are just not doing it in an an aggressive way. they have given up the flight to safety slide if you look at italian tens. bund to some extent. treasuries, french paper, they are flight to safety not so with the italian paper as it hovers slightly before 3% at levels very much that we haven't closed at since around april of 2014 we are not quite there yet but we are getting very close. if you look at one week of the

dollar index it is all about foreign exchange even though the dollar index is mostly unchanged now. at the end of the session yesterday it was mostly lateral. the significant point is it held its gains. the gains with the 96 handler are incredible because they take you back as the next chart shows to june of '17 close to 14-month highs. if you look at the pound versus the dollar it is pretty much at 14 month lows. if you look at the euro versus the dollar it is only a couple weeks behind, lowest levels since july of 2017 jim, carl, back to you >> rick, thank you very much rick santelli. when we come back later on today, walter isaacson will weigh in on tesla, which is now forming a special committee of the board to evaluate musk's proposal to take the company private. as we go to break look at some of this morning's s&p gainers. and the dow a up 81 points s&p is up 11, back to 2833

at ally, we created a savings account with a great rate. but if that's not enough, our app helps monitor your spending too. and if that's not enough to help you save, we could start a carpool. look at this traffic. don't worry. ok, if that's not enough we'll start a trainpool. oh i have a meeting in five minutes. and if that's still not enough... i got it. we'll just create a shortcut. we'll do anything, seriously anything to help you save. ally. do it right. talking 4th quarter? yes. the digital divide is splitting this country. we have parents who are trying to get their kids

off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is.

the beauty of shorts is if office good quarter, if you do your job then they have to buy back the stock at some point i would sit down with them and say upset about shorts, the more people that short your stock, the more the more buyers you have in waiting and so i think that's kind of the attitude someone has got to get to him. again, this is a guy sleeping in the factory. a guy pushing, pushing, pushing. >> that's mark cuban yesterday on the half talking about his positions on various companies. >> i love that analysis. once again, what he's really telling you is, in isn't a regular guy. i mean, the ford management is not sleeping on the floor. they may be if they cut the dividend not opening up the engine there. so what his whole thesis is, stop worrying about the shorts,

they'll take care of themselves and i think there's a lot of common sense to that but look, i once told elon musk something and mortified. he doesn't take a lot of advice. he takes council of himself. a lot of those people are considered to be like minded. >> you keep talking about him bending to his own rules but it's public money, right i mean, he went public. >> absolutely, if you listen -- mark cuben was saying that steve jobs bent to his own rules i totally agree if it's public money we expect a certain standard and he does not abide by that standard but until -- but sell the stock. sell the stock. >> he would say sell my stock. he has said that. >> bms, that was buy my stock, a great symbol he wanted to change the symbol to sms, sell my stock. >> if he's listening --

>> he doesn't listen drives me absolutely crazy. >> david blain doesn't listen either blain is amazing so is musk >> blain should be having a public company if musk has a public company. >> dow is off the highs of the early session, up 48 back in a minute equity trades . so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you'll only pay $4.95. your digestive system has billions of bacteria, but life can throw them off balance. re-align yourself, with align probiotic. and try new align gummies, with prebiotics and probiotics to help support digestive health. the nation's largest senior-living referral service. for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you,

today's senior-living communities are better than ever. these days, there are amazing amenities, like movie theaters, exercise rooms and swimming pools, public cafes, bars, and bistros, even pet-care services. and nobody understands your options like the advisers at a place for mom. these are local, expert advisers that will partner with you to find the perfect place and determine the right level of care, whether that's just a helping hand or full-time memory care. best of all, it's a free service. there is never any cost to you. senior living has never been better, and there's never been an easier way to get great advice. call today. a place for mom -- you know your family, we know senior living. together we'll make the right choice.

you know your family, we know senior living. this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's.

♪ >> really interesting piece this morning, morgan stanley this is the first news on sales force since keith announce co-ceo. what it basically says, sometimes price targets really matter this is a huge boost from 153 to 178 saying basically you have the makings of a whole new sales force platform the stock was up a couple early on and now the market is getting a little soggy you have to expect that. it's all of that usual nonsense but i think that sales force -- mark is doing a lot of right mark -- i'm talking about mark but i thought that he overpaid for mule soft. that had been the conventional

wisdom this morgan stanley piece saying he absolutely didn't overpay, it's going to be terrific. very interesting didn't expect it. >> interesting we're getting 13 fs on a related note gets into microsoft along with alibaba and -- >> it got too high, can't have that positions like that be too much a part of your holdings i have, tonight, i have tapestry on and we can make all of the jokes we want, but luis is delivering and i think people have to understand this is a retail market, meaning that retail has been the leader and a lot of that because it's domestic no turkey, no china, strong dollar but a lot of it is employment. and employment means go buy something. we have that small business index today -- >> nfib, yeah. >> almost 108. capex plans up, hiring plans up. >> you're on the wrong side of

that trade i do think very much that employment is the most important tell for our economy. >> that does cure a lot of ills. >> exactly right >> and home depot is down because they had issues about cost and freight i say, go ahead and sell it. make my day. a little bit of a clinton market here. >> jim, we'll see you tonight. when we come back, we'll get more reaction to this morning's developments around tesla and elon musk's push to take the company private. dois8 nts. w up 70 ll, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com

everything was so fresh in the beginning... but that plug quickly faded. luckily there's new febreze plug. it cleans away odors and freshens for 1200 hours. breathe happy with new febreze plug.

♪ >> good tuesday morning, welcome back to quts squawk on the street david faber is off today dow is up about 60 points here busy morning as we get some relief on the front of turkey and the lira, best day for oil and gas in about a month. >> our roadmap for the hour begins with elon musk, disclosing the banks and law firms advising him on his bid to go private now the board is forming a special committee. we've got the details and

analysis straight ahead. >> stocks making a comeback here, the lira bounces back and global markets in the green as currency crisis fears ease for now. >> two big retailers report, we'll dig through the numbers of home depot and tapestry. let's start with the tesla saga, the board of directors creating a special committee to evaluate elon musk's proposal to take the company private. special committee proposed of three board members, brad bus, robin denhom and linda johnson rice this comes as the board of drer director was surprised by the take private tweet one week ago today, some saying they were blindssided by it. joining us at post nine, kate kelly. good to have you here. >> great to be here. >> so we get this news today that there's going to be a special committee. in light of your reporting how surprised the board is, where is

this board in terms of what they knew when about elon musk's plans. >> according to musk, on july 31st, he had another meeting, one of at least two, maybe multiple ones with the saudi sovereign wealth front and posted the board a few days later on the nature of the conversations and privatization possibility with them, providing some of the funding. however, he then dashed off this tweet as we now know, a few days later saying that funding was secured. whether that was the case or not, how secure it was, he tried to explain yesterday but the board it seems had no idea he was going to dash off that tweet and didn't think this information was ready for public revelation and so that was news to them as well as to many investors. >> so are we to believe azalea banks in thinking that he was xrounking for investors after he realized what he had done. >> if you look at her tweets,

they suggest he wasn't in his right mind, he was under the influence of something, when he posted that tweet. so hard to say i mean -- >> she's pretty controversial. >> she's controversial -- >> no confirmation that that happened. >> sure, from what i read, she's not always a reliable source however, yeah, i mean it stands to reason. one point, i've been to saudi arabia and done a brunch of pieces on the public investment fund and the process i can say that from my understanding, it's a very laborious kind of multilayered process. prince salmon is personally involved in the decision-making, chairman of the group. it looks as though the managing director was musk's contact and he's a very important figure at the public investment fund he's running it day to day but i would guess there would be many, many discussions over an investment like this. >> and the other thing we heard yesterday, there's no diligence being done on the saudi side they have not hired a financial

adviser. there is not a term sheet. we have kind of a pausety of these elements you would expect to see if musk's tweet were strictly true. >> one of the other questions i've seen raised and love to get your thoughts, while the saudi fund is quite large, a lot of that money is already dedicated to state companies to black stone to soft bank and there are questions about if it's safe -- >> right. >> i think that's a key point, morgan and something i've been wondering about too. they had a good piece addressing some of this i think they were counting on some of the proceeds of the aramco ipo which you know has been postponed and postponed and now it may happen in 2019. it may not happen. it may not be necessary as the price of oil recovers. so the thinking was that some of the proceeds of that would go into the public investment funds could havers and faenable them o do more and more they may not have the capital at the ready. >> is there a way to confirm silver lake's involvement in

this, goldman's involvement? >> working on that interestingly, all of these parties have hunkered down even the public investment fund has said nothing -- yesterday the response i got from them was we're giving no comment, we're providing no guidance. we're just -- we're not addressing this right now. and goldman and silver lake so far have been very, very quiet. >> that's different in standard procedure where a firm retains these firms to do work, that's easy to figure out. >> right and again, the disclosure that these firms had been hired, i don't doubt it i think it's probably right. but at the same time, it was a reply to a tweet that elon made. it wasn't even a tweet. >> as is a lot of information he gives. >> it seems he's trying to put legitimacy behind the initial funding secured and maybe take the heat whatever the fcc is looking into. >> i have no doubt the advisers will make a game effort to explore this and try to make it happen if possible

another point he made yesterday, which is probably worth noting, is that our back of the energy calculations in the media were that it would cost 66, $70 billion to do a traditional leveraged buyout of the company but the times reporting and others pointed out, include being musk, there's another way to do it where you raise 10 to $20 billion through a tender offer and it wouldn't require quite so much capital. >> i have a point about elon musk it's confusing because he's the ceo of this company and chairman of the board he's a 20% shareholder in tesla and making a bid to take the company private. it seems like a lot of sort of conflict of interest and a lot of questions that the board will have to deal with. >> sure, a lot of moving parts, it's a nine person board of which his brother is a member. there's not enough independents on the board so that's another thing they'll grapple with hopefully with the setting up of this committee and the fact they run a real process, there will be more transparency at least for those involved with the company and more organized

communication so that the investment community can make more informed decisions. >> reports that the sec is now probing the company. does that potentially throw cold water on any deal? i don't know you would have to ask a securities lawyer, but my speculation would be maybe it makes it more urge end to do a deal, to give sort of retrosp t retrospective credibility to the tweet. i think what we saw in musk's post yesterday was an effort to kind of explain in more detail the thinking behind every word there and give us a sense of why he felt confident saying funding is secure. here's the back story. here are the meetings that i had. >> one thing he did emphasize in that post was conversations with large investors, it's one of the rf reasons he said he tweeted in the first place, didn't want to have a conversation with some and not let others know about it do we know what other large people who have been in for a

while? >> i don't apparently those discussions are going on but i don't have a lot of insight as to how they are feeling about it. >> his ability to say i think two thirds of people would do this through equity rather than debt, right? >> i'm sure he's in touch with investors who think that i would be surprised if that was totally off the cuff and not backed up. on the other hand, i think one of the issues that may emerge here is people make a good faith sort of effort in conversation to say, that's an interesting idea, sure, we'll explore that yes, it would be nice to be freed from the shackles of public trading and yes we would be interested owning more of tesla and investing in its future but you can't always interpret those things as actionable words zbls one of cramer's points in the last hour was sort of a message to the shorts, saying don't rely on regulatory pressure on the sec or the threat of suits from the sec --

>> some of which -- >> to justify your trade can you sympathize with that argument these things take time >> absolutely. i think that's a good argument i do think there is shaking confidence though right now in this name. and if the deal doesn't come together, you would have to think it's going to punish the stock. >> finally, who should we be watching on the board? what should we look for next >> certainly the board members, also james murdoch of the murdoch family is a board member which is a interesting thing, i would keep an eye on him and i think i would guess that the extent this board has been low profile, they'll have to take more public leadership. i don't know this to be true but wouldn't be surprised if we eventually heard from them directly -- >> they have to assert their independence, right? >> exactly, in an effort to show they are running an organized process here, they understand the demands of being a public company and engaging in proper

disclosure, it's interesting that elon doesn't appear to have been muzzled yet, right, based on for example -- >> last night. >> him telling us who the advisers were before that was officially revealed. so for the moment, he seems to have a good degree of ought tonmy. >> like president trump where all of the advisers -- >> he's taking a page from that, right? a very similar feeling. >> kate kelly, always good to have you here. >> thank you. >> of the "new york times." >> we'll look at the big movers on this tuesday morning. we have a big miss from switch and two big names in retail. home depot had a roundtrip today. we'll watch that along with tapestry with earnings as well, with the dow up 37 at&t provides edge-to-edge intelligence, covering virtually every part of your business. so this won't happen. because you've made sure this sensor and this machine are integrated. atta, boy. & yes, some people assign genders to machines. & with edge-to-edge intelligence,

you'll know your customers love this color, & don't love this one. never getting grape again. & you can adjust in near real time. & if someone tries to breach your firewall in london & you start to panic... don't. you've got allies on the outside, & security algorithms on the inside. & if it's jammed up here, & it's hot in here. & you know both those things, you can do this. & your flowers won't wilt. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when her patient's blood pressure drops, she can share the information with...

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops.

oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. let's get to turkey and the currency crisis, after a brutal beating over the last few sessions, the liraxts is trading higher there's the dollar down, lira up almost 5%. friday it lost almost 14%. the moves today though just seen as a technical bounce. nothing has improved on the ground president erdogan is not backing down but stepping up the fight with the united states urging turks to boycott apple and other u.s. technology companies when buying phones and electronics. and it's not just a localized reaction here, we've been

watching the contagion factor. china, south africa and russia top the list also watch mexico. because it's seen as a big proxy for overall emerging markets and could get dragged in and that would indicate more indiscriminate selling arnie merging markets. all look better today. that's the dollar down, they are all up but it's not good news overall the indian rupi hit a record low. the spotlight is on countries with trade deficits that borrow a lot from overseas. india's numbers are rising the upshot is the con tagion factor is still alive, to spread pain beyond the borders of turkey, but we're not talking about an overall emerging market crisis, nothing severe in terms of the stress in the system, but until turkey moves to address the currency's free fall, central bank moves and potentially releasing the pastor, which is the big problem with the united states some of the emerging markets are

vulnerable and we'll have to monitor to see how bad it gets and how much money comes out of these markets as a whole if you've got economic and political problems right now, you're under the microscope. >> i mean the argument that the economy is small or trade is small, it's sort of offset by this idea that they are structurally important geographically between russia and -- >> energy lines -- >> that's important. but also exposure to european banks, obviously, that's going to be important and who it could mean for turkish banks and businesses, if we start to see rolling defaults, are we going to see other countries that are much more economically and financially important like china and russia and brazil. targeted on the sort of speculative attack on emerging markets. >> meanwhile though, sara said for the time being, dow up 62, bouncing back after four days down on the s&p 500, the longest

stretch since march. we're joined by the washington crossing adviser david lutco-vich, economic strategist. good to see you both. >> good morning. >> kevin, it's not just em but dollar strength and trade war and seasonal weakness and midterms and reliance on faang how much of this is worth watching i think it's all worth watching but the big change this year has been a move from a consistent trend in just about all of the data we look at, moving higher, getting better and this year it's been choppier and less even. you see it in global growth pat tefrns and different market plagss and you've got corporate spreads widsenning, for example, other areas the economy we still -- market we still see a lot of risk appetite you're getting a choppier thing here we've moved from significant overweight in the portfolios we

manage to a less of an overweight and we're looking to see what happens next but you have to pay attention to all of these risks. >> david, it kind of sounds like where you're coming from in terms of being neutral on risk assets but you point out neutral is not the same as being bearish. >> exactly it's a pretty similar position i think the bull market remains intact we have very strong corporate fundamentals on the one hand profit growth has been some of the best in the last several years, revenue growth is really what's driving it and companies are responding by opening up their purse strings and reinvesting in businesses. they are suggesting this momentum will continue as we've been talking about, there are risks out there, the biggest one we're watching is trade. we could see an escalation of trade tensions so we think a more balanced approach in portfolios makes sense, especially with u.s. markets relatively close to all time highs. >> david, to that point, everything we're seeing in terms

of risks around trade, this weakening of emerging market currencies against the dollar in recent days, how much of a risk is the stronger dollar to markets in the u.s. and he ceq y equities >> it's one of the factors that is a risk i don't think it matters too much for corporate profits, u.s. companies have sob yusly some exposure to a stronger dollar but it's really more of a signaling question about how much does a strong dollar then lead to a reduction in growth in some of the overseas markets so it's definitely something we're watching closely and that being said, the dollar looks pretty expensive and the scope for a significant appreciation in the dollar from here seems limited. i think the risk is fairly low but it is one of the risk factors that we're watching. >> what does it take to scare the u.s. equity markets? if it's not a trade war and not a bubbling up emerging market

crisis, what is it out there and what do you attribute this sort of underlying bid of buy the bad news and climb the wall of worry to >> the second part of your question is easy, david just hit it on the head, you have revenue, not earnings, earnings are up 20% or something for the s&p but revenue is up 10%. not because of buybacks but strength in the overall economy. so the the main reason that stocks have advanced over the last two years has been a reenlivened growth post toour. as you look forward from where we are, we're still seeing some very good signs of growth but the tail risks are always the things you have to be concerned about. when you look at turkey, turkey in itself is not particularly an issue except that it's an example of this same kind of issues that other emerging markets may have down the road you've had a lot of emerging markets pursue growth at any cost through an investment led

growth model, with insufficient savings and now have led to too much debt in their system. that is a problem and risk hard to quantify but those are the kind of things that could tip the balance here you have to watch them carefully. sfwl that's what people are trying to quantify even as we speak guys good to see you. >> thank you. >> when we come back, home depot and tapestry, kicking off a big week for retail results and coca-cola making a bet on sports drinks backed by big nba star power. we'll tell you with who and what when "squawk on the street" returns. don't go away. ♪ experience the versatility of utility. at the lexus golden opportunity sales event.

get up to $2,500 customer cash on select 2018 nx 300 models. experience amazing at your lexus dealer. stop fearing your alarm clock... with new*! zzzquil pure zzzs. a drug-free blend of botanicals with melatonin ...that supports your natural sleep cycle... ...so you can seize the morning. new! zzzquil pure zzzs.

let's look at other countries. dom? >> i know you are talking about this idea it could be a spreading type factor but the u.s. markets have been insulated from the broader effect of what's happening in turkey and more broadly in those emerging markets overall. the i shares emerging markets ticker is trying to at least

post its first positive day over the course of the last five. and while shares of the fund are down nearly about 4% over the course of the last one week, individual stock markets in addition to turkey are getting hit pretty hard. let's look at some of these ones over here, among them, you've got at least etfwise, the i share s indonesia o etf and indonesia is around 2% of the emerging markets index and ishares ticker eza down 7% down the span as well you can see south africa is nearly 7% of the ifrn dindex th ticker ewz has fallen 5% brazil is 6% of that waiting traders will be watching many of these types of markets and etfs closely outside of turkey for any possible signs of stress or

contagion, something a lot of folks are doing in terms of the etf market. >> some relief today, thank you. >> dom chu. >> two big retail names in focus reporting results, courtney reagan has been digging through numbers of home depot and tapesry. what can you report? >> good reports for both monday saw home builder weakness, home depot reports the highest earnings in sales in history, beating estimates on 21 cents. the retailer upping its full year expectations even though the second half will be a little harder it's global comparable sales grew 8%. u.s. comps 8.1%, it's the strongest result in nine quarters now may was home depot's strongest month. comps of 10.6% in the u.s. there, recovery from seasonal sales lost in the first quarter from bad weather is the reason for that spike now shares of the dow component were higher. we've slipped a little bit on the call executives say the

housing shortage is causing home price appreciation in the u.s. and that home affordability still remains comfortable overall, at least compared to historical levels, they are staying where they are and renovating when it comes to tariff for washing machines and lumber, home depot saying costs are manageable with 25 basis points of cost pressure there from both shares ever tapestry those are higher, kate spade, also reporting better than expected earnings in revenue. full year earnings guidance is bit short of expectation, revenue forecast slightly higher coach grew 2% but north america was strong there comps fell 3% at kate spaid. sounds bad but that was considerably better than 7% analysts forecast. accessories low single digits and strong dollar is helping coach. margins also a strong 68%. that's above both last year and

the street's consensus and that's a good number to be watching as they continue to pull back on your discount back over to you, guys. >> thank you for that roundup. for more on home depot's earnings and kickoff of retail earnings season, joining us now, wwe ceo and jp morgan retail hard lines analyst, thanks for joining us today, jan, i'll start with you we've had pretty strong prints from the retailers what does this tell us about the consume sner. >> the consumer is the strongest he or she has been in the last 25 years and shown up in numbers even at brick and mortar because the transition to online has not changed. sts it is still happening. we're doing ship to store, ship from store, return to store, pick up in store, all of those crazy things we've had to develop over the last few years to be competitive, it's all happening and shown up in the numbers. we're also seeing strength in brands so it's not just tapestry, we'll

see it with michael kors and ralph lauren and right through the brands it's a strong time for brands right now and none of us thought that was coming back, did we we thought private label was taking over the world. it's not. >> there's been a number of malls in different parts of the countries, been surprised how busy they have been. what do you think? do you agree >> i mean, if you take at look at this rising tide that jan referred to with accelerated wage growth and tax reform driving high confidence levels, you're seeing the consumer shift, home depot and lowe's have been strong for a long time if youlook at the acceleration when the ichb fleks occurred on the wage growth side, you're seeing smaller ticket discret n discretionary pick up. electronics picked up. i would say decorative home furnishings and it is helping the mall we cover a name like williams sonoma with a lot of mall stores and seen a nice acceleration including in their brick and

mortar base. >> selena gomez has more twitter followers than president trump coach is cool again. do you give the management credit for some of these brand turnarounds or just see this as an overall macro story. >> it's like tommy hilfiger, it became cool again. if you can get the attention and also turn out a nice product, you can get the consumer back. that's why these strong brands are doing well, learning to usz things like that to catch the attention -- >> who's doing the best at that? >> i think tommy has the best thing going as far as that goes right now. one of the strongest brands in the world at the moment. and it was dead, what, 40 years ago. >> just men's underwear, right, chris? >> what do you think is doing the best job >> you're seeing a lot of improvement across retail. i think from -- you see what's going on at target, brian corn elturning that ship around with things like buy online and delivery and click and collect

his private label brand transformation, they are adding 12 new brands over a 24-more time frame they are doing a very good job you know, i think we need to be careful does this ago greg ate how much macro and company specific covering retail for a long time. when it's good news, it's company specific and bad news it's macro and weather clearly here in the second quarter, the weather has been very helpful that very strong may that courtney talked to was really just a balance out of april because it was so cold and wet and flipped to the warmest may in 27 years. >> you know what we're not hearing is handwringing about gas prices or mortgage rates or overall merchandise inflation. are you watching that at all is it on your radar? >> absolutely. we're also watching possibility we're going to see inflation and wages, right, start effecting these guys but overall, nothing is really changed enough to be say

problem. the tax benefit has been so great and the ability of the consumer to use that money that the retailers really given back to them, rye, they are taking it in better sales as opposed to taking it to the bottom line. >> is it happening on a spike and revolving credit -- >> not seeing a bad spike in revolving credit or anything that looks scary as far as the ability to continue to spend it's about the healthiest consumer we've seen in a long time. >> what about the potential of trade? you're seeing tariffs of imported handbags from china potential potentially. is that a worry? >> everybody wants out of china anyway we've been grads you'lly getting out as fast as we could because the costs have been rising anyway i don't think the tariffs will be a big deal. i absolutely think even if they get implemented it's not going to be destructive to retail. but i think we're also just trying to get no tariffs and if we get to that, it's even better >> we'll leave it there.

we'll see. thanks for joining us today. >> thank you >> let's get a news update for that we'll turn to sue herera at hq. >> it's a busy news day. here's what's happening at this hour of the london police now say a car crash outside the house of parliament this morning is a deliberate act. the vehicle plowed into pedestrians injuring at least three people and the driver has been arrested on suspicion of terrorist offenses and he's currently not cooperating with police >> a tragic story out of italy, a bridge collapse during torrential rainfall in the north port city of genoa, 20 vehicles involved and dozens believed to be dead and that toll is expected to rise turkish president erdogan called for a boycott of u.s. made electronic products but did not however say when the boycott would start or how it would be enforced all of this is part of the latest escalation in the rist

between turkey and the u.s. >> green light capital cutting the stake in twitter by 36% in the most recent quarter, holding 1.6 million shares in horn took a new stake in best buy. that's the news update i'll send it back downtown to you. >> sue, thanks very much when we come back, advice for erdogan, how the next guest thinks turkey's president can save the lira. dow's session high up above 100. right now up 7pots7 in s&p is up 12

welcome back morgan brennan live from post nine at the new york stock exchange a little over an hour into trading and things are looking up the dow is up 85 points. this is coming off of four straight days of declines for

the s&p and dow. we're straight for the s&p since march up and turkish lira higher and that's certainly adding to the better tone today. >> yeah and turkey does remain front and center for the global markets despite that bit of relief live from istanbul with the latest >> reporter: one of the reasons for that relief may be a promise made by the new finance and economics minister and president's son-in-law he would talk on a conference call with more than 1,000 global investors later on this week no clarity whether he'll take any questions from them. he's not been very much in the public eye until recently but he's front and center of this crisis and his father-in-law tells supporters that president erdogan that he was keen for them to focus on buying more lira he talked again and again about enemies overseas and said that if local companies delay decisions on investment, if they switch to foreign currencies and

their regular transactions that would be giving into the enemy he called on the audience to boy scott u.s. goods, including the iphone they should buy samsung or a local teleco mt s manufacturing here in turkey he acknowledged there would be short term pain but those inflicting the pain a clear reference to the united states would face up to its own costs the american pastor at the center of trump's latest tariffs announced last friday, his lawyer has requested he get released from house arrest and the u.s. charged affair meeting today. no clarity on whether that arrest will be lifted any time soon but that is certainly one of the reasons for those tariffs and those are certainly one of the major triggers for the recent slide we've seen in the last few days. >> i want to get your sent from the ground. given the fact that erdogan suggested a boycott of apple trokz and other electronics. he has urged citizens to trade in their euros and dollars to help support the lira, are folks

heeding him? >> not here in istanbul based on my conversation. people seem to think that will work and dollar is being strengthened by unseen forces but the businessmen i've been speaking to here, very clear they are going to hold off on investment decisions and hold off on making big purchases. they are seeing a very immediate impact on the bottom line and not at all happy with the way the government has been organizing this. >> wilem marx, thanks. also steve hankie, professor of johns hopkins university just penned an op-ed how erdogan can save the turkish lira, you've advised so many governments, especially at times of currency

crises what's your recommendation something tells me it's probably not telling the people to trade that dollars and euros for lira? >> no, it certainly isn't. what could be done immediately to stop this chaos is to make the lira a clone of some anchor currency or probably more likely gold and you do that with a currenc board arrangement. you issue a lira and the lira trades at the fixed exchange rate with an anchor currency and backed with 100% anchor currency reserves and in that way, the local currency in this case the lira would be a clone of whatever the anchor happened to be, it's the dollar or euro or gold. >> just sort of to stabilize thing. there's no indication that president erdogan is following this or following interest rates or looking for bailouts or something else that the market

would like to see. in the meantime, what's the damage going to look like beyond turkey >> i think turkey -- outside of turkey, the damage could be limited. we know that there's a few european banks who have a large exposures to turkey. there's also the channel of trade i think europe has about 100 -- sells about 100 billion dollars worth of goods to turkey exports will get hurt. over time the weakness of the turkish lira it sounds the professor wants to prevent further weakness, that that current weakness will help correct the large deficit. instead of focusing on the financial aspects i would focus on the policy. turkey is pursuing policies that repel investors and if you want capital to come into the country, the best thing to do is pursue policies that investors want, orthodox policies. look what happened to argentina. 500 basis points by surprise didn't do the argentina peso any good. >> they already have crazy high

interest rates how does this look to you versus some of the other currency crises we've experienced i was looking back at the '97 crisis in asia and that's the scary prospect that this ripples into a broader economic crisis do you see any similarities? >> there are obviously will be some ripple because the trend is strong dollar, weak emerging market currencies with some of them actually crashing, i mean mark mentioned argentina, the peso tanked before the lira did actually so this is the context the carry trade is unwinding as the dollar gets strong and u.s. interest rates go up the trend is for weakness in these emerging market currencies and then you've got cases like argentina and turkey, where they have periodic crashes due to terrible mismanagement of monetary and fiscal matters.

we had a complete meltdown in 1994 in turkey then we had another one in 2000. now we have this one and today, i measure inflation with high frequency data and the inflation rate in turkey is 101% on an annual basis that's the first time it's been over 100%. now that means that the real yield on being in turkish denominated assets of any kind is hugely negative right now so if you keep the regular system that they have, they would have to raise interest rates over 100% per annum to stabilize the lira that's why you have to do a currency board that's the only way to do this we did this in bulgaria in 1997, inflation was running 242% a month and we stopped within hours. it completely came down when we

made the clone of the deutsche mark >> mark, we can debate the contagion possibility of turkey, 17th largest economy, et cetera. one of the bigger things i suspect we'll talk a lot more about is the fact this is shedding light on the fact that the search for yield in a low interest rate environment in recent years has contributed to ballooning debt in the emerging markets and what that could mean as we see derisking more broadly. thoughts >> as the professor mentioned as well, in an environment where the federal reserve is raising interest rates and dollar is strong, that tends to be an emerging market. but there's an original sin here the original sin you see this really allowed in turkey, when countries borrow in foreign countricies, if it was turkish denominated debt there wouldn't be a problem like this that's not something that's created by the federal reserve or another foreign sen electrical bank but it's domestic i want to say, domestic central

banks, domestic officials have it within their own hands to avoid this original sin. every so often, you have these crises that goes back to this original sin borrowing foreign countricies because it saves money in the short term, you pay long term. >> decorated qe, that's qui the currency crisis they argued could become america's problem. >> i'm not sure america's problem. america sells a lot of goods to emerging markets but so far i think the fiscal stimulus we have in the u.s. is enough to offset this in the near term. i don't see it affecting trade per se turkey per se. trade tariffs are a different story. >> we've got to leave it there. >> we could talk about currency boards all day mark, chandler, thank you. professor steve hanky. good to get your take as well. >> sometimes we do when we come back, battle of the sports drinks, coca-cola adding to the portfolio today and take a look at shares of switch, getting hammered after reporting a miss on the top of the bottom

lines. lowers guidance for the year a quarter of the market cap sliced off dow is up 101 close to session rhtacgh beig bk.

with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com

shares of inindividuviinvid stock is doing something that could signal bigger gains ahead. we'll explaitoy n daon trading nation more "squawk on the street" coming right up.

let's get to the cme group in chicago an santelli exchange. good morning, rick. >> good morning, carl. i'd like to welcome a very special guest this morning, dr. charles blahouse, thank you for joining me today truly everybody at the beginning of the month was talking about your piece in the journal, even doubling taxes wouldn't pay for medicare for all doctor, everybody wants to have its citizens every country have the best health care but how you do it and what it

costs means something. explain how you arrived at the price tag of over $3 trillion a year over 30 trillion over ten years for medicare for all >> well, i did it and thank you very much. i did it simply by following the literal text of the medicare for all bill if you follow that text and basically grant the assumptions and stipulations that are made in that text, you come up with base he canalically a lower bout in addition of federal costs over the first years of implementation importantly, that's not the total cost of medicare for all that would be the additional federal costs above and beyond everything the federal government is paying for health care >> now, doctor, a lot of your work has some as terisks there and part of that is that the notion that if this did occur, that the general cost of things like medicine and care would drop down towards medicare

levels, which are much cheaper than what many insurance companies and doctors and hospitals currently pay. would that dynamic occur in your opinion? >> probably not. and this is a very, very important point. that $32.6 trillion estimate lira nvidia it follows the literal text of the legislation in which health care providers are brought to medicare payment levels which are 40% lower than paid in private health insurance if you made the assumption that instead we continue to pay health care providers at something close to current law levels, total cost goes up to 38 trillion over ten years. >> i see now bernie sanders, big advocate of this, and he represents the socialist wing of the democratic party, says there's nothing wrong with that, people can vote however they want. my final question is senator sanders brings up other countries, other countries how can you reconcile the notion

that our price tag seems unreasonable if quote, unquote other countries are giving similar type care? >> well, i would stipulate, suggest that the experience of other countries is not that instructive in this regard you can say, for example, other countries have a national government that's in some ways maybe more efficient than our having a federal government and state governments and local governments around the country nevertheless, it would still be incredibly expensive and cumbersome for the federal government to take on all those functions of state and local governments. getting from here to there would be difficult same with health care. it doesn't matter what other countries' experiences have been, our costs are what they are. we are where we are, and having the federal government take over the vast majority of all current health spending would be an incredibly expensive proposition. >> doctor, thank you for your time it is obviously a big issue. very few voters would turn down something that sounds so good. it is voters that have to pay

for it that have to rethink. thank you for your time, back to you, sarah. thanks with the dow up, a rally going on jon fortt has a look at what's next >> good morning. could this be amazon's next monster profit center? one analyst thinks the advertising business could inuble in the next couple years. gog to talk to him coming up on "squawk alley." laws to keep s safe and happy. but if things go wrong and an employee takes action against you, legal fees to defend yourself can be huge, even if you're not at fault. employment practice liability insurance helps cover these costs. trusted choice independent insurance agents represent multiple insurance companies and customize coverage to help protect you and your business. announcer: to find an agent, visit trustedchoice.com

beverage wars are heating up in sports drinks coca-cola buying stake in startup body armor cnbc caught up with the ceo and mr. bryant in october. >> in 2025 we want to be the number one sports drink. that means we have to roll up our sleeves and we have to get after it and make sure that the market and other athletes understand there's a better for you option out there. >> this is a big opportunity for body armor they're in the coca-cola bottling system. a one, two punch at coke, pepsi and dr. pepper

here's how the sports drink market looks in this country gatorade is the big player, dominant, owned by pepsi 74% of the market. coke has 20% with powerade brand. also a punch at dr. pepper, they had a 15% stake in body armor. coca-cola is the number two shareholder. the founder created vitamin water and smart water, sold it to coke for $4 billion both those are global multi billion dollar brands. a small deal financially but a big deal when it comes to cok a coca-cola strategy it also has opportunity in this deal and path to buy the brand outright going to grow it, going to leverage the distribution globally. >> was it minelli made a killing

in vitamin water >> that's another point. athletes make money and the entrepreneurs make money a lot of food and beverage startups bought by the big see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. fiftycould be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation?

it's just complicated. step-by-step options trading support from td ameritrade

you might or joints.hing for your heart... but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials

to improve short-term memory. prevagen. healthier brain. better life. good morning it is 8:00 a.m. at tesla headquarters in palo alto. 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ good tuesday morning, welcome to "squawk alley." i am carl qu