good morning, it is 10:00 a.m. in arkansas, 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ ♪ ♪ our thoughts with the family of aretha franklin this morning as the queen of soul passes away at the age of 76 good thursday morning. i am carl quintanilla with jon fortt, morgan brennan. with us this morning, inside.com

founder, a lot to get to today we're going to begin with walmart shares surging after a beat on earnings boosted by 40% jump in online sales as e-commerce continues to see growth courtney reagan knows the story upwards, backwards, forwards and has more >> there's a lot of numbers. strong quarter for walmart across the board adjusted earnings beat forecasts by 7 cents revenues stronger than expected, too. the retailer raising guidance for earnings to above consensus. revenue u.s. comp. sales guided higher too check out u.s. comps, up 4.5%. consensus was for growth of 2.4. it was the best comp. reading in more than ten years. driven by grocery, apparel, seasonal items best grocery comp. driven by fresh food who is driving the growth, whose the shopper. he said as grocery pickup and

delivery options expand, it is attracting customers it is leading current shoppers to add to baskets. sales strength was across the country. and in both private and national brands really not calling out one particular area. walmart e-commerce sales grew 40%. strongest in three quarters. not the strongest in ten years but strong on the media call, the ceo said they expect e-commerce losses to be higher than last year confirming the retailer's comments earlier this year when they warned of e-commerce losses could be higher. now they're saying they will be. the cfo says it is a combination of the customer responding to the unique ways walmart is serving them and a really good environment, and improved weather in may gross margin is down 17 basis points, in part due to combination of walmart's continued decision to lower

prices and higher transportation costs. walmart says they're big enough to manage through it, admitted those are higher than last year. back to you guys >> courtney, does this mean when you look at the gross margin decline particularly in the u.s. and look at the statement where they say we are going to invest more in e-commerce and the stock is up 10%, does that mean that walmart conditioned the investor there will be investment cycles here and that can work into the way walmart is valued? >> it can. you may remember the initial shock when they told the analyst that at the meeting in the fall several years ago and gave them the financial layout what that would look like, and there was a knee jerk reaction lower until senses came about the street when they realized investment is necessary and now being rewarded for that e-commerce growth is expensive, a lower margin business. but if that's the growth area and that's where you need to be

competitive, i think investors are finally getting comfortable with that. and really this is a strong quarter. the shares really hadn't grown much so far this year. so you have that going in favor, too. >> courtney, a busy week for you, you had a number of retailers reporting earnings and it is not done yet. >> i know, right >> what are the key take aways at the different reports a lot of different retailers in different parts of the market have beat. >> i think one reason we can point to for the strength has to be the strength of the u.s. consumer, whether it is looking at home depot, walmart or macy's maybe you have a consumer that shops all of those, maybe you don't. maybe there's not a lot of overlap. in general, if consumer balance sheets are strong and feel good about positions to make these discretionary purchases, i think that has to be something that we consider also look at the weather april was cold and wet that turned in may, home depot results turned around and they

talked about how it made a difference for them in particular with a clear correlation, garden had the best quarter in some time or a record at least. i think those are two things, the weather and strength of the consumer >> plus, court, people remember last year during the strong holiday season people were saying the comps in '18 will be tough. then depot, walmart, macy's raising the guide for the second half. >> that could be a concern, carl, when looking ahead we've gotten a lot of companies raising guidance, but there's still a little concern that they're going to meet that or beat that. like you point out, that strength started, the retail sector started to turn and get stronger in the fourth quarter we're getting closer to having to comp. the comps that's a little bit of a concern. >> thanks. >> you got it. and moving on to social media and tech, twitter ceo jack

dorsey speaking with lester holt on "nbc nightly news" last night. dorsey addressed the temporary ban of alex jones and info wars, as well as twitter's actions on regulating content on its platform take a listen. >> do you have regrets about how you acted in terms of some of the sandy hook allegations, that it was a hoax? >> i do feel terrible at what parents had to go through. i think we have felt behind and we have felt that we have moved too slow in a lot of our actions. >> jason cal can is join us for this conversation. i notice over three weeks ago, july 24th, you deleted twitter from your phone. i see a lot of tweets since then does that speak to the love, hate relationship that users seem to be having as twitter seeks to clean up its platform >> yeah.

twitter is a rage slot machine, it is highly addictive, you see many people from the president to elon to journalists taking breaks from it or embracing it too much, and it is highly addictive obviously. i deleted it off the phone, i use it on the desktop from time to time, and when i got off air after being on cnbc, i have about 50 tesla troll accounts attacking me every time that i have to deal with. it is quite toxic, ridiculous for jack saying they can police any speech on twitter. you can only react to what people have said the idea of policing billions of tweets will be impossible. the entire magic of twitter is that anybody can mix it up with anybody. if the president posts something, i can replay, put my message right under his. if i want to call the president an idiot and he wants to call omarosa a dog, that's why twitter exists for that kind of full contact debate. now, jack doesn't really use his

own service that much, he is a quiet guy, not out there mixing it up. he wants to pretend they're going to make it a civil place twitter is not designed to be civil, it is designed for people to mix it up and everybody to be on equal platform. if they try to reverse engineer twitter into being like facebook where you can't just put yourself on somebody else's wall, you can't go on to a journalist or celebrity or author page and challenge them, that kills the reason for twitter to exist but twitter is a nongrowth company, right making $2 billion a year, they haven't grown. they had 300 million users in 2015, they have 330 now. the service reached its natural audience, they're at a critical era trying to figure out how to make it grow again shouldn't figure out how to make it grow because it won't >> the inverse of that argument is there are people who otherwise would be on the service, find it too uncivil,

and with more protections on board. you don't think that's possible? >> you could do that, then you lose the magic of twitter which is i can go under carl quintanilla's amazing tweets and challenge him. >> as you often do >> which i often do. that's the idea. what twitter could have done to make a meaningful business and totally screwed up was buying smaller companies, and using the 300 million strong fervent opinionated influencer social network to build other services, vine and periscope were amazing assets they totally destroyed. what's the point of being public if you can't use that stock to build other brands and build your service twitter is lost. it is not a stock you should own. jack is not probably the right guy to own it. the ad network doesn't work. the ad network pales in comparison to facebook and google

i would say this is like a prisoner's dilemma if they want to make these changes, it will remove the entire fabric of what twitter is supposed to be there's one thing they could do maybe to stop some of this, which is get rid of anonymous accounts if they got rid of anonymous accounts, it would change the whole nature anybody that's opinionated or a woman or an african-american woman on twitter, they will receive so much harassment from anonymous accounts, it is insane i don't know why they don't do it beyond the fact it would tank the stock. whenever they take the medicine and get rid of bot accounts, the stock tanks. shows you how dysfunctional long term thinking is in a public stock. >> speaking of twitter users, let's talk tesla the company reportedly being hit with a subpoena from the sec over ceo elon musk's tweets. you're a big fan this is where you get to have 50 twitter troll accounts come

after you. what elon musk did is potentially serious. it moved the stock at the same time, people say even at the worst crackdown from the sec is going to be a slap on the wrist. what's your take on the significance of this and should elon musk take a lead from you and delete twitter from his phone? >> elon should get off twitter for sure it is a distraction. intelligent people like to debate, so they are suckered into crazy debates with trolls he should get off twitter 100% in terms of his tweet, i like the way he phrased the tweet am considering taking tesla private. he is letting everybody know at the same time. if he had done this in the background and started to hire bankers, letting them know he is considering this, well, those people would have an information advantage over everybody else. so i like the idea of everybody getting the information at once.

>> considering is one thing, security is not. >> the saudis are building up a 3, 4, 5% position. they offered multiple times to invest in the company, help them take it private. as we all know, tesla had a long dance with google, apple made overtures. there are two or three dozen sovereign wealth funds and companies here and in china who could easily write 5, 10, $20 billion checks to take the company private. i think the funding secured is accurate if the saudis are offering it, then it is accurate. and he's considering it. he framed it perfectly it is all of the tesla shorts that are trying to spread fear, uncertainty and doubt. when you look at the facts about tesla, "the wall street journal" said the model 3 is a thrilling modern marvel. they went to doing 5,000 a week. people can't shut up about how much they love the car the monroe associates folks that

ripped the cars apart piece by piece say it has 30% margin and are wildly impressed by it the fact that this company and the saudis' interest and apple's interest in it and google's interest in owning it shows that this is a company for the ages there are balance issues on the margin, but the shorts are 100% wrong and they're toast. >> short sellers aside, jason, when you have reports that the sec is putting subpoenas out there, you have investor lawsuits and you actually, short sellers aside, have a company that's been able to basically tap unlimited funding from the public markets, does it make sense for tesla to go private? will it go private >> you know, i'm going to put my odds on it going private, since when elon is a very competitive, driven person, we are personally friends, i don't trade the stock, i have known elon since before tesla, this is not the type of executive you want to

give extra motivation to when all of the shorts start making his life hell and spreading fear, uncertainty and doubt constantly, it motivates an executive like elon musk to overperform and sleep on the factory floor and hit the numbers they need to hit you've basically taken a person that doesn't need motivation and given them extraordinary motivation it is a horrible, horrible way to work a short position it would be like telling lebron james he is going to lose and is horrible he will come out, score 50 points that's what elon musk is doing he is coming out and dunking on everybody. i would like to see elon take spacex, boring company and tesla, put it into elon inc and take it private. once a year, maybe every six months, allow them to trade shares much better way to build the future >> little bit of credit. >> he is a great individual

player not a team player, but a great individual player. >> next time i'm not going to ask you to draw parallels in that at all. next time we have you, try to bring strong opinions, i don't know >> see you on twitter. >> yes, you will thanks for joining us. coming up, a lot more to come in walmart's big quarter. shares up almost 10% first, let's check where we stand in the markets now a broad based rally, up 345 points in the dow led higher by st w, d eiiscoanbong ayith us your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money.

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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. welcome back markets rebounding sharply after the s & p saw the worst day in over seven weeks dow up over 1% the s & p barely a percent joining us, keith learner and brian jacobson thanks for joining us today. >> thank you >> keith, i want to start with you. looking at notes from you, you say we expect stocks to break out to new highs later this year talking about a lot of risk recent days. why do you think that happens? >> first of all i think if you look back at the correction, it has been so much like the historical script we have seen after sharp corrections. it has normally taken 6 to 14 months for stocks to make new highs after deep corrections seven months in. with all of the news we had, negative headlines in the last few weeks, look where stocks are. less than 2% from all-time high.

i think stocks have been resilient so far >> brian, do you think u.s. stocks are attractive here or would you be telling clients to put money elsewhere? we have seen huge pull back or correction in emerging market. does that look attractive now? >> i have to be perfectly honest, i thought emerging market were attractive even before the correction. i have been wrong on that clearly, but i think that still they represent some very good longer term value on the basis of price to sales, price to free cash flow, whatever metric you want to look at, i think emerging market have and continue to look very attractive relative to domestic peers obviously there's more risk entailed with emerging market as being evidenced over the last few weeks, if not the last few months however, i agree with other guests as far as the idea that even u.s. stocks can break to new highs, as soon as we get through this trying period that's currently looking like it

was recently triggered by the t as long as the fears of contagion don't become a reality, i think that sets up a good foundation for a move higher >> keith, what should the smart investor take away from walmart. it is one stock but it is a big, important one. the consumer has been strong but at the same time margins at walmart, particularly walmart u.s. effected by hey, they're lowering prices to juice the top line what's the overall message that an investor should be paying attention to >> the bigger picture, including walmart is that the consumer is in good health retail sales yesterday up 6%

year over year atlanta gdp now simt abovnow up you have good earnings reports from walmart and cisco i think the general message should be that the u.s. economy, despite tariff news and head winds overseas is humming along right now. >> brian, i know you mentioned fears around contagion regarding turkey and the fact that that situation seems contained, it is more or less a one off situation there. you have a note from goldman yesterday flagging italy and italian debt as we shift to this more quantitative tightening approach in europe seems to me there's a big light being shed on high debt levels in a number of different countries now. is that a worry? >> in certain countries i think it can be a worry. a lot of people are now honing in on the idea that having twin

deficits, high current account deficit and also high budget deficit for governments isn't exactly a great combination for those countries over the long term, but that's where it is important to draw the distinction between the country and companies that you can actually invest in for a lot of our active strategies, it is investing in countries as opposed to country level debt not to say country level debt isn't important to watch, but when you look for more of the opportunities, we favor as a team focusing more on say credit risk, looking at corporates opposed to country risk by looking at sovereign issues. now, the situation in italy, you know, that's kind of a recurring theme. anytime you get bored and don't know what to write about, you can write about debt levels in italy and debt levels in china it is kind of a go to excuse for if you have nothing else to worry about. but these are longer term structural issues. i believe that the european

central bank will be so gradual with its shifting from quantitative easing to quantitative tightening that if anything, they can pull back on the throttle if it causes stresses in the sovereign debt market >> gentlemen, i'll leave it there. thank you for joining us shares of cisco getting a boost as the company beats on both lines issues upbeat guidance good growth in the software business leading the way >> we laid out a strategy a few years ago where we were going to continue to evolve and add more software assets to the company, deliver more technology and the way the customers want to consume it as sass offers, and the strategy is working the way the results are out there. as customers navigate the new multi cloud environment that

they're operating in, the product innovation we deliver to help with the next generation infrastructure is clearly resonating with them we saw the infrastructure systems up, applications up 10, security up 12 the transition in place from software perspective is working as well. total build and unbuild deferred software revenue is up, and product orders up 7% year over year overall it was a good quarter, the strategy is working and the transition is actually moving forward. >> shares up obviously as we said gave him a chance to weigh in on em and macro issues like trade aware but didn't take the opportunity to express much concern about it >> i think for investors the major themis hybrid cloud. cisco's enterprise business was up 11% year over year. lot of people didn't expect that if you thought everything was going public cloud, that shouldn't be happening

this has read throughs dell, other companies, oracle, it was a surprise to many people their quarter not so great recently in part because the move to the cloud not as straightforward as many investors were led to believe. time for everybody to go back and refigure who they expect to have the advantage at a time when a lot of cloud players have to do partnerships, and maybe the old guard, not as much as it might have appeared. >> speaks to the fact we're seeing old guard as you put it try to pivot and transition into software as a service and some other higher margin, higher growth software businesses and really re-invent themselves now. some doing it better than others. >> cisco has been trying to do that a long time the key is a shift in who's got the leverage in the enterprise ecosystem when that happens. >> keeps changing. cisco, the second best dow

component. dow up 347, puts us at the best day since june 6th "squawk alley" continues in a couple of minutes.

good morning, i am sue herera here's your cnbc news update at this hour. some sad news to start with. the queen of soul, aretha franklin, has passed away. she was a church trained pianist that often accompanied herself in concert she was called the most influential vocalist of her generation, first woman admitted to the rock and roll hall of fame she died this morning at age 76 from advanced pancreatic cancer. the investigation continues into the italian bridge that collapsed tuesday, killing at least 38 people. prosecutors say they're now focusing on possible design flaws. meantime, authorities are worried about the stability of remaining sections of the bridge, prompting evacuation of nearby apartments.

elsewhere in europe, u.s. f-22 jets simulated dog fights with norway's f-35 planes today it is an exercise aimed at strenl strengthening the nato alliance. large parts of canada are engulfed in a haze as wildfires burn in british columbia more than 3,000 have had to evacuate homes, another 18,000 people are under evacuation alerts you're up to date. that's the news update this hour back to "squawk alley. carl, i will send it back to you. >> sue, thank you very much. let's get to seema mody. >> european stocks staging a modest rebound as turkey takes more steps to stem the free fall and its currency turkey's foreign minister hosting a conference call to reassure investors that policy makers are able to tackle the currency crisis. the minister saying the country will not hesitate to support the

banking sector, but emphasizing turkey has no plans to seek help from the imf the lira extending gains for the week, due to the pledge yesterday to invest $15 billion in turkey. while qatar may seem like an unusual player in this, it has a long-standing relationship with turkey, when the saudis and other gulf nations -- turkey came to the rescue with troops and aid. in italy, another big story, the fallout continues from the deadly bridge collapse in genoa that killed at least 38 people shares of international toll operator, whose subsidiary owned the section that gave way tuesday, dropped more than 20% as the italian government said the company could be heavily

fined or stripped of its contracts. and finally, reuters reporting on amazon's potential entry into the uk insurance market, on shares of admiral, go compare and money supermarkets back to you. >> a lot of focus on what that pressure could do to premiums if they got a price comparing offering after the break, a big part of the rally in stocks, walmart jumping on earnings beat and strongest u.s. comps group in more than a decade more than 40% rgin oine sue nl sales as it battles amazon we're back in a moment i'm april kennedy and i'm an arborist

with pg&e in the sierras. since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is

ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. walmart shares continuing to rise on upbeat results and guidance the dow posting a 40% jump in sales and strongest comps growth in more than a decade. who better to join us, jan niffen with us here at post nine thanks for joining us. shares up 9.5% now seems like it was a very strong report biggest take away for you? >> i was stunned how good it was. it was good across the board sales were fabulous. margins were solid yes, they gave out gross margins, expenses in line, still bought back a ton of stock this is one company that can invest a fortune in the business

and buy back stock like crazy. it's amazing what they can do, they're such a strong business from the point of view of cash flow they told us four years ago we're making investments and the stock cratered, nobody believed it would result in bigger performance and we're seeing it materialize. they have all the stores you can drive through and pick up, about to have by end of the year 2200 of them to drive through and pick up. they have towers and 125 stores, going to 700 stores by the end of the year, they've got all they're doing and it is not hurting earnings at all. >> of the big swings, right, we remember the wage hikes. >> they were first. >> they were first on that we remember the grocery and delivery what's the biggest bang for their buck so far? >> i think the biggest bang for the buck as far as stock goes is the purchase of jet.

i don't think they would be doing 40% growth had they not bought -- i think that component of growth online is, yes, that's mark lawry that's not driving the real business though. what's driving the real business, walmart is doing a better job in fresh grocery, a better job on in stocks. they've taken inventory down, nine quarters in a row, without going out of stock they're running the stores a lot better you look at the online growth, that's driven by all these initiatives. you can go to the store, go to the tower, drive through, it is all driven by innovations online >> i realize online is still a small part of the business are they making money on it? >> i don't know. it will be about $16 billion business which is tiny compared to amazon, but second biggest online player in the country it is still a big business my guess is you would have a hard time figuring out if they're making money online.

we don't know what it is doing for the store, we don't know how much of it is being driven because you can pick up in store and drive through. i don't know that you could sort out costs for that, but clearly it is working for the stock price and clearly working for the customer i mean, that's all that matters. it is not that big a piece of total business talking 500 plus billion dollar company here. >> are we buying walmart as a growth story now is the question because in the past as you mentioned when walmart talked about investment, the stock went down now it is right around that near $100 level where it tended to top out in the past. you look at a 12 month chart, it peeked above that, but hasn't been able to sustain now with the stock up 10% post earnings on news that yes, margins are down but top line growth is down, is this a new era stock wise >> is it a new growth company if

it is 20 times, no is it better growth company than it was, no do we believe they can compete with amazon? yes, we do i always said it is a two horse race, amazon and walmart. >> been a few months since we talked about flip cart do you think walmart is a domestic play or international play and is it changing? >> flip cart needs to work and i think it will work i think when you see the 40% growth online, people go oh, maybe flip cart will be okay at the time they got it, people were very skeptical. they were really skeptical when they bought jet. they were skeptical with other brands all these things generally seem to be working reasonably well for them, and then the base business is working really well. >> a busy week for retail earnings we have nordstroms after the bell and target earnings and a number of other players in the sector thoughts what do you like >> i got hurt on macy's, i still

like them, i would be a buy on macy's i like macy's, i like kohl's, walmart. nordstroms will be okay, those are the winners in the space we know who the losers are, seeing them get washed out dillards was not strong, penney in the tank. there will be winners, i think i named them top to bottom in the space, until you get down to dollar stores. they're continuing to win. i say all the time, if you're not off price, online, local, you're losing market share that space is all still winning. there can be individual winners in any of the categories, even department stores. >> always great to get your thoughts thanks for joining us. what a week. then there's apple keep an eye on this. apple continues to pull away from the overall market. 213.53 is the high for the

secretary. has huge impact. "squawk alley" back in a minute.

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all at noon on half time about 15 minutes away. see you in a few >> see you soon. thanks, scott. let's get to the cme and rick santelli for the santelli exchange hey, rick. >> reporter: good morning. many of course pay close attention to all the volatility in markets, whether you look at the vix or for awhile the dollar index seems to be a surrogate, although it slowed down. maybe a by-product of the fact that markets are doing better, and not necessarily thinking that everything is calm again because there's a lot of issues to be worked out in emerging market and on-going liabilities that have to be addressed. maybe the realignment of how this effects cost, financing and positions may be working its way into the market. coming up with more of an equal librium. we have to see one after shoot is nloticeable, the yield curve, bills against tens or twos against tens is

flattening again the reason it is flattening could be a couple of reasons when u curve is flat, it can happen in a lot of different combinations in this instance, we did see that as the curve flattens, it is both the short end and long end. i had a guest today who said we had weak and referenced treasury international capital flows or tick data. no matter how you slice it, the real issue is the curve should flatten. the fed might take some notice of this. in the past, the strong dollar and how it can be a catalyst for issues on finance and emerging market is something to pay attention to with regard to treasury international capital flows or foreign ownership of our securities, a lot of nervousness made on this issue on a couple of hot button topics of the day, china and russia i would caution that with about 6.2 trillion of our securities,

short and long term in the hands of foreigners, the numbers aren't that dramatically changed. remember, we're talking billions of dollars against 6.2 trillion. so whether russia or china or some of the larger holders, japan have started to give up treasuries, it doesn't make a big difference and domestic demand seems to make up for it the third largest trade surplus with the u.s. is germany only 70 billion of that 6.2 trillion next time somebody says trade deficits are needed for foreign investment in our treasury complex, think germany because it goes against that particular notion we're going back to "squawk alley. >> rick, thank you rick santelli in chicago let's look at markets right now. it is a broad based rally today. the dow up near session highs, 369 points best day since early june.

s & p and nasdaqp u1% more "squawk alley" after the break. 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. 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. stocks bouncing back today, big rally. stocks up 367 on the dow bob is watching things on the floor. >> futures moved on word that china talks may be restarting. that was good enough, sitting at highs for the day.

the dow movers you have some help here, additional news. boeing would always move, up 12 on the upgrade at ubs. it would move on tariff news cisco up a couple of dollars walmart up 10. you put great earnings and walmart, up 10 three dows, that's where a price-weighted index will get you caterpillar also moving nicely as a beneficiary of the china talks. we've seen apple and merck and lily at a new high a couple of banks, suntrust, new high and ingersoll rand and china, big things moving, it's been remarkable to see on the strong dollar. on the overall concerns about

slowing growth internet stock in china, gold miners, the steel, emerging markets costs. all of this dropping like a rock quick movement here. selloff was really fast, i guess on the hopes of a china talk china tariff talks, but movers on the upside. exactly this group moving to the upside there's your steel stocks. there's your copper miners there's the china names. and other stocks up on the china internet move. they're the ones that move because this group has been so dramatic oversold. anytime we get any news on china tariffs that particular sector moves. the key point is, overall, the turkish fears have been an international story. not the united states. remember, guys, we're 1.5% from a historic high on the s&p 500 back to you. >> thank you, bob. when we return, tesla's former head of engineering, dave

lions is with us his take on elon musks tweets. and still ahead, the dow up nearly 1.5%. that's 368 points. we'll be right back. eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any of these types of plans, they pick up some of what medicare doesn't pay. and could really save you in out-of-pocket medical costs. call unitedhealthcare insurance company today to request a free [decision guide] to help you better understand what medicare is all about.

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reportedly, the target of an s.e.c. subpoena. would it be enough to derail elon musk as he considers taking the company private. joining uspolitan technology dave lyons he's the former engineer of tesla where he led the development of the roadster, model s. dave, it was a good era back then, 10, 15 years ago, really, when tesla was the subject of a lot of doubts and whether it was ever going to be a real thing. what did you learn about elon musk then that sheds light on perhaps his mind-set now and his tweeting habit >> sure. well, in my experience, tesla was a different company at the time, as you said. but elon, i think, is pretty much the same kind of person that he's been most of his life. he's one of the most driven individuals i've ever met. he's got incredibly high

bandwidth. but he's got zero tolerance for any hint of bureaucracy. and he often asked us to take special forces methods to get our jobs accomplished. and i can imagine -- >> what does that mean >> well, it meant, basically, try is not good enough you need to do and basically, results matter. and to not let things get in the way that most people would be stumbled by or snagged by. so, you know, we broke through any red tape with a machete. and we had a great deal of incentive to make sure we were accomplishing what we were set out to do. and what his vision was. in that case, it was electric week power train and new to the world battery technology now,s, you know, whatever the challenges are, whether self-driving or other alternative, you know, modes of transportation so, you know, he's just feeling

his oats these days. and i think the concept of having the public scrutiny of the submarkpublic markets has g wear on him and he wants to soar >> so, on this view of special forces help the viewers understand, if there say line between that sort of get it done mentality and recklessness which is obviously what his critics charge him with >> well, i think that's in the eye of the beholder. and oftentimes, it's pretty difficult to tell. i think back to, you know, the 1976 winter olympics and watching franz klammer run the downhill where he was on the edge of sheer collapse and destruction at every gate. elon runs his life a lot like that but he also had a tremendous experience, you know, ended up on the podium with the gold medal. i see that as the same kind of

mentality here so, pundits can find anything that can feel particularly reckless but in the end i think it comes down to whether or not, you know, whether or not you believe that the line's been crossed but he probably doesn't. >> you mentioned that, you know, this idea of cutting through red tape and disdain for bureaucracy. what's i guess kind of ironic about this tweet and everything we've seen thus far in the last week and a half is that it almost seems like that tweet, specifically funds secured and now reports that the s.e.c. is probing the company about investor lawsuits, et cetera, that he's actually brought in more red tape and bureaucracy to the company in recent days how would you expect this to play out and is there a scenario in which elon musk stops tweeting and the way? >> that's an excellent question. you know, i'm no expert in

s.e.c. or anything i'm a technologist but ultimately, you know, i think he saw, and we all see an example in this, in the current administration, that this is kind of maybe a new way of getting things done. i think he's tested the waters here, whether or not he's crossed the line that's going to get him into trouble i can't say anything to that but what i can say is that he's a pretty smart guy and i don't think that he would continue to cause himself pain if it really was, you know, not in his best interest >> well, with these outsize personalities with outsize achievements, you never can tell but it's great insight from you, dave lyons, co-founder of peloton and engineering at tesla. the dow up 77.

earlier today, this was the best day since june 7 you got to go back april 10 to see a day that dow was up 400 points. >> yeah, led higher with earnings on sysco and counterparts we'll see what the video says tonight. let's get to "half." welcome to "the halftime report." i'm scott wapner our top trade this hour focus on the fundamentals a big bounce from stocks society on the back of strong earns from walmart and sysco, raises those issues whether those talks from turkey joining us now, joe brown,er is rat sethi, and jon and pete najarian josh, the dow's bft day since