shortage it's friday, august 17th "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. ♪ >> good morning. welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at u.s. equity futures on this friday morning yesterday the dow was up almost 40 points thanks mostly to walmart and help from boeing this morning ret arrows across the board. s&p is off by 2 points the nasdaq had a gain of 32

points down by 13 this morning. in asia, the nikkei up by a third of a percentage point. hang seng stocks higher as well. the shanghai down 1.3% in europe, you will see right now it looks like there are mostly losses across the board italy down by 1.25%. the dax down by 0.4% let's look at the trish easury yields this morning at 2.846. >> elon musk finally speaking outgoing on the record he said this year -- this past year has been the most difficult and pacinful year of my career. he gave more details on the tweet about taking the company private. that's now put him in a bit of hot water. elon musk said it was an attempt

at being transparent he admitted that no one saw it or reviewed it before he posted it he did it as he was getting on a private plane to vegas to visit the giga factory and said he knows the number 420 is associated with pot, but the actual number he was planning on bidding was 419, he said he rounded up because it seemed like better karma. but musk said twice i'm not stoned i wasn't stoned when that happened he said being stoned is not good for productivity >> is stoned just pot? >> well there's ambien use, which is a big issue for him he's been sleeping in this factory on the floor, taking ambien often the am bbien doesn't work and he's staying up at night tweeting at night while on am

be ambien in this case the tweet itself, financing secured, i don't believe he or anybody else say it was the result of am bbieambn he was asked do you regret tweeting it? he said why would i? >> is he capable of ever admitting he may have been wrong on anything? >> he said he's willing to give over the reins to anyone who can run the company and do it better that's the kicker of the story i have a contributing line to this story, i didn't do the interview myself, the board is aware that he has used recreational drugs in recreational settings. there's not a concern at the

moment that he used recreational drugs while on the job and that that was -- >> isn't he on the job all the time honestly he said in this interview he didn't get to go to his brother's wedding. he worked on his birthday. so he used it in recreational settings but it sounds like he has not had a recreational setting in a long time. >> ashley vance wrote that great book about elon two years ago talking about recreational drugs. to the extent the board is aware that he used recreational drugs, it's used in the past, not using it now and something they're concerned about in terms of his performance. >> kind of board that the boards are considering issues like that >> remember the broadcom incident all these guys are human that's a wide range, recreational drugs >> yeah. >> wide variety of outcomes.

>> either pot or something more serious. >> couple other points in the story that are worth talking about. there's been lots of questions where does he raise the money from for taking it private one possibility is spacex could be one of the investors in a tesla. >> how would that work >> same way the solar thing worked >> the solar thing -- >> that there is -- >> that doesn't cover funding issues >> the question is whether that would be one source of funding >> suck the funding away from spacex >> spacex now has become a cash machine. so the thing is actually a profitable enterprise. >> profitable or cash flow >> i think it's a profitable company. huge government contracts and

huge corporate contracts the question is whether you could use that cash orsome stock component to buy this. the other piece is there seems to be an active effort to find elon musk a number two, a sheryl sandberg, if you will, who could help him manage the situation. >> our guest host -- never mind. i can't remember if that was on air or not never mind >> nonetheless, those are some of the various pieces in this piece. there is more tesla news to tell you about the s.e.c. is reportedly pressing tesla's board for details on their communications with elon musk the "wall street journal" says regulators want to know how much information he shared before tweeting last week about a potential deal to take tesla private. sources say the s.e.c. is probing whether musk intentionally misled investors on hurting short serls llers by driving up the stock price

tesla made 2700 model 3s in 2017, well below what musk had predicted when production began in july. the company could face sanctions if regulators find it misled investors about the cause or extent of production delays. and tesla could face sanctions if they lied about the cause of those delays and carl hanson was a former member of tesla's internal investigations team. his attorney says he is accusing the company of spying on workers at the giga factory and failing to act after learning a mexican drug cartel may have been dealing drugs at that plant. wow. this gets weirder by the minute. stocks to watch. after walmart we were waiting for nordstrom. and then it was a bizarre afternoon for me i got a tweet that said sorkin admitted the trump economy, that you had been wrong about it?

did you see that then i found out you were on closing bell phenomenal job phenomenal job that format for you -- >> you think >> you were fantastic. >> appreciate that >> i'm doing "closing bell" today. >> i'm sparing with compliments. >> i know. i appreciate that. you watch the whole time >> no. but you did do the closing bell. >> i did. >> was nordstrom up $10? >> nordstrom was up. >> did that get you to say -- >> no. we had come in -- we had larry quud l kudlow on the show >> right >> he had those commentsabout the economy. >> yeah. >> those seemed to be a dress rehearsal for comments he made later in front of the president. then inside the white house on tape in front of the president he said the same thing we came back from a commercial break showing that tape. >> mm-hmm. >> i said, you know, who would

have thought i was wrong >> true. >> i said a lot of people are wrong -- >> you're right now. >> that i was wrong? >> yes, you're exactly right right now that you were wrong. >> at delivering alpha we talked about 2% growth is all you could get. >> all right can we -- >> that the the history of that. >> i have to warn you when we'll have fun from now on is it okay if i bring the momentum moose in now? everybody likes the look why do people like meese you know they're a form of deer? >> no. >> i think they are. >> i didn't know that. >> that's not the momentum moose tape we used to have it's moose on a loose instead of bulls. >> because it rhymes >> yeah.

s exactl exactly. that simple. >> you're falling into producer tricks that you constantly mock? >> that's enough back to nordstrom. if you need the moose, you can borrow it. we have two guys coming on -- >> is that the bullwinkle music? >> nobody remembers that or yogi back to nordstrom, you're doing it again today on a friday >> no. i was fill-in. trying to help out, be a team member >> i know. i'm just going to tell you, you'll be asked back >> my performance was that good? >> i'm not kidding >> was it something? >> yes >> while we're meandering, can i mention this straw >> plastic straw >> paper straw this is a paper straw. >> is it soggy yet >> no, i put it in ten minutes ago. we have the ceo of the company

that just bought ard vardvaraar maker of paper straws. >> how is it >> it's thicker than i expected. >> i am the bad guy. i have my starbucks iced coffee. >> i want to see if it lasts for three hours. >> there's all this push back that straws are not the problem. >> everything matters. to me it's probably the water bottles that we use constantly >> i'm expelling co2 right now there's different gases, i think, depending on -- >> any way, nordstrom report better than expected results same-store sales rose 4% and it raised its guidance for the year applied materials beating its forecast for the latest quarter but the chip equipment maker's guidance was weak.

you can see those shares are down 17% don't usually see a move that much nvidia reporting results that beat analysts estimates, but forekas say current qua s f quarter sales are below estimates. nvidia falling 4% in extended trading. what is bitcoin doing today? right at your level. >> ready to buy? >> below 6,000 where are we at now? 6,500. bounced off six. >> brian kelly says it is a great entry point. >> does he >> he's been saying great entry points along the way >> 20,000 was a bad entryway did it really hit that >> it hit that, but you could have never sold it at that

the point is, even -- the problem was anyone who had it at 20,000 was on coin base drying to sell all their bitcoin. >> liquidity issues. >> exactly google employees are demanding answers about the company's plans in china after a report surfaced that google is secretly building a senscensore that version for the country hundreds of employees sending a letter to google's ceo saying it raises moral and ethical questions. google workers were told the company was not close to launching a search product in china, and it's unclear if it ever will. the rise of the employees is an interesting situation. also door dash raising another $250 million in its latest round of funding. the foot delivery startup now valued at $4 billion that competes with grubhub, seamless and uber eats it raised $978 million to date

the door dash ceo will join us at 8:30 a.m. eastern time. earnings in from deere deere earning $2.59 a share, short of the estimates of 2.75 revenue did beat the steetreet's forecast instant reaction, that stock up by 15 cents. >> chris and hans have been waiting here patiently chris retzler and hans olson hans, the momentum moose could be a top indicator because we have not brought it back in a while. for you i think that would play into what you're saying. i need to specifically figure out what you think investors should be doing here >> you don't tangle with a

moose. >> you're not impressed with the market your crappy range for the market is 20 points where we are on the s&p and 20 points below. >> yeah. >> why don't you tell all your clients to sell everything why sit in this market that in your view is not going anywhere when there's so much downside risk based on tariffs, china, who knows, black swan events out there. a lot of things are well documented why stay in it and when is the last time you were telling people to buy stocks with both hands i don't remember it on this show >> europe for sure >> i don't mean europe >> in the u.s. >> sure. >> small cap, beginning of the year i was positive on small cap, which turned out to be nice. >> domestic -- >> productivity has been strong. but i think to your point, it's not just about u.s. stocks

we're cresting on the business cycle and probably the market cycle behind it. >> we heard this viewpoint a couple times recently. earlier this week, we were talking to people. they said the good news is in. now we worry about profit margins because of rising wages, inflation, peaking of the business sector. >> rate of return. >> yesterday wasn't it weird, we had all that talk early in the week, then there's not much left, then walmart -- there was a reason for it walmart, maybe some china things. >> and to your point, if you look at the national federation of independent business, the read there this week was the second highest in the 45 years that they've been measuring this stuff. you look inside those surveys, you see small businesses are planning to hire, raise wages, and invest

this is part of a larger collection of data that suggests the economy starts to accelerate >> this could be a bad thing for stocks which is counter intuitive >> it is you have to come back to fund males. you're starting to get a real return on cash we're almost there >> 2.8 on the ten-year >> fed funds rate will be 2 next month. >> yeah. i would rather take my chances chris, do you feel the same way? >> from a professional level i love it when the summer ends we have better ability to trade out there. meeting with companies, confidence is high volatility is creating opportunities. applied materials which you mentioned earlier. >> you like that >> i like they're out with

numbers and putting out the negative news. it probably creates opportunity in a space where intel and samsung this summer pushed out long >> you are already long, so you are eating that 17% drop >> not significantly long. no i think there's a lot of opportunity in that space. markets are functioning differently than they did over the last eight years where not everything is going straight up. as an active manager we're excited by some things we see. zte coming back to the market created opportunity in the optical space. you have to pick your areas. do your due diligence. there is some concern about the flattening of the yield curve. the fed will probably continue to raise we're later in the ball game but, you know, find those opportunities where volatility is creating good entry points.

>> i made a point where it's a third, a third and a third i can see where people have gotten to -- they're not in love with the bull market anymore they could miss a huge move. most people are saying that. but no one is saying we'll go down 25% that's the other third that's always a possibility. then there's what you guys say, more of the same for the broad averages over the next year. not much advance, by not a pullback is that what you would say >> as a small cap manager i see value out there. >> the overall averages will have trouble making headway or not? >> i think there's going to be rotation you may not be able to buy the market, maybe buy the sector >> hans, i'm selling everything based on what you said

>> for the balance of the year >> what do i go into go into cash >> you can still collect the dividend >> i have to stay long the stocks may go down 20% why should i stay long in something that's not going up? >> trying to trade a correction -- >> is that all it's going to be? >> yeah. in the short-term. we could see that in the fall. >> i was thinking about that this morning, there's only about four months left in the year >> it's three months >> four and a half >> yeah. that's right the quarter is over in september. >> yeah. chris, hans, thank you dapper dapper we can count on that thanks you, too >> thank you up next, when kids with severe allergies go back to school they need to take an epipen with them, but parents

are running into a problem at pharmacy, meg? >> for parents with kids of allergies it's a routine part of back to school season, but now they're going to the pharmacies this year and sometimes they're not finding epipens. that story coming up

does your business internet provider promise a lot? let's see who delivers more. comcast business gives you gig-speed in more places. the others don't. we offer up to 6 hours of 4g wireless network backup. everyone else, no way. we let calls from any of your devices come from your business number. them, not so much. we let you keep an eye on your business from anywhere. the others? nope! for a limited time, when you get fast, reliable internet, you can add voice for just $24.95 more per month. call or go online today. call or go on line today.

. welcome back epipen pen supplies are lacking just in time for that rush of back to school season when parents are seekingthese thing along with other school supplies meg has that story >> this august parents are going to the pharmacy and finding out they're not finding something they need to send their kids back to school with. >> reporter: allissa's-year-o allissa's 6-year-old son hudson has a severe nut allergy and as he goes back to school he needs epipens. >> i went to the drugstore, and i was told the epipen generic was out of stock. >> reporter: she's not alone manufacturing disruptions for the allergy drug has resulted in pharmacies around the country

running low on supply. >> in my pediatric clinic there's a number of pains calling in wondering where they can procure their epipens. >> reporter: in calls to two dozen pharmacies, cnbc was told almost every single one had no epipens or a few in stock. mylan says it is exploring options with its manufacturing partner pfizer to stabilize supply pfizer says it is experiencing delayed shipments due to process changes. epipen is not the only option on the market there's also others, but it is by far the most dominant >> the school prefers the epipen that's what they have trained their staff in how to administer >> love you. >> reporter: as hudson prepares to start first grade, it's epipen is one of his most important school supplies. we just did get some news late yesterday that the fda approved

a new generic competitor to the epipen >> that's what people have been waiting for, too >> that's right. the expectation that teva could price this lower and if it's a different supplier, maybe it will ramp up supply teva said yesterday it is looking forward to introducing the product over the coming months so it's not clear this will alleviate the back to school stresses >> we have epipens for our kids. one issue is they expire in a year so you're in a situation where if you risk it, it's better to send that than nothing >> a lot of moms are saying she got an epipen pen that only lasts seven months, and she would prefer one that lasts the whole school year. she hopes when she goes back in february or march she gets another epipen >> are the delivery systems only good for seven months? >> it's a year >> why are you sure a 15-month epipen

doesn't work >> they do work, right >> yes but there's variability after that year. mylan is working on a longer lasting version. >> mylan, i remember when we did the stories, they were making so much money >> the margin on it was crazy. >> are they making no money anymore? are you sure there's no feet dragging because they're not as psyched to make it anymore >> it's not clear. pfizer manufacturers the drug for mylan. >> process changes >> pfizer got a warning letter from the fda at that plant, it said it did not impact things at the time, and they say there's supplier issues. >>how profitable is this generic? i assume they look at mylan price, knock it down by 20% and say here we are. >> or even more. when you asked me yesterday, i said maybe more. >> how far down do you think

>> it depends. there's already the mylan authorized generic in the market >> what are the margins on that. >> on the branded one it was like a 50% profit margin i don't know what the authorized generic margin is. and we're not sure what the teva price will come in at. >> prices have come down significantly. that's the story they were doing last night >> that's the good news. >> the authorized generic is half the price people are finding they can get the branded version but the insurance only covers the authorized generic so they have to pay 300 bucks for each pack of two >> meg, thank you very much. coming up, currency check. we'll talk about this morning's move in the dollar, and a wild week for the lira. and today one big earnings report i hope the tv is not on at home. you know what dogs do when they

hear this word >> deere good dog >> i tried to spell it you say d-e -- they know >> i can't spell elmo. she knows. >> you can't it's phonics i'm hooked on it we're going off topic again. we'll dig through the results with an analyst in the next hour as we head to break, here's yesterday's s&p 500 winners and losers ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪

add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.

welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back among the stories front and center, elon musk says he has no plans to give up his role as chairman and ceo of tesla. musk sitting down in an hour-long interview saying this past year has been the most difficult and painful year of his career much more at the top of the hour >> the interview was by telephone. >> okay.transcribed. i guess if you wanted that -- >> it's written. >> an editor is looking at it. it's presented in a certain way. does he know that in advance,

that's the way it's going to work is this a more -- >> from what i understand, it came up more contemporaneously it wasn't a planned situation. >> all right this is all news i can use to try to evaluate the whole situation. google employees are demanding answers about the company's plans in china reports have said google is secretly looking to build a censored version of its search engine in china. but google's ceo said the tech giant was not close to launching a search product in china. it's unclear if it ever will and shares of nordstrom up 9% the company reporting better than expected results. same-store sales rose 4% u.s. equity futures, the dow is up 5

nasdaq down 10 the s&p is flat. let's turn to the latest on turkey's lira and the currency market joining us now is kathy lee, co-founder of bkforex.com this is an interesting week to be watching the currency markets. you wrote a piece asking if the dollar has peaked. do you think it has? >> not at all. if you're looking at some of the drivers of the u.s. dollar pullback this week, which is the easing of some of the tensions globally, nothing that changed the lira is back down today. the lifeline they received, it's a fraction of what they need to turn around their economy, pay down debt. we have been excited about the china/u.s. trade talks, but at the end of the day they're low-level talks. china is bringing in a tough negotiator it's not sure if they can get those tariffs paused at the end

of the month there's still a lot of uncertainty. looking at the economic backdrop, the u.s. economy is doing well fed will raise interest rates. >> if you're trying to figure out where the dollar is headed, look at the strong economy here and wonder what our fed is doing versus other central banks it's hard to imagine a scenario where our central bank is not the one leading the way. >> exactly i think today we have a confidence number that will show americans growing more and more secure in the outlook for the equity markets, stocks performed well yesterday so i think, you know, regardless of how much we fear that some of the geopolitical risks or tensions will hit back on the u.s. economy, we've seen little evidence of that as a result that won't sway the fed to shift their course. we need to see some more consistent deterioration and data for that to happen. >> what do you tell investors to

do >> the dollar is still the best trade. as we get this pullback, it could give us an opportunity to buy at lower levels. there could be short covering, but they're going to be shallow. if you stay the course and look at the course of the u.s. economy and what's happening with the rest of the world, easing back into u.s. dollars is still the best trades. if that's the case, i realize you're forex, but the implications of what that means for the broader markets, a lot of guests come in saying they like emerging markets. they like overseas stocks, they're telling people to put their money there. if you're a u.s. investor, if the dollar continues to rise, that can be a risky place to be. >> it could be emerging markets are interesting because they've fallen so much we're still talking about currencies, but the hong kong dollar has fallen significantly. many people wonder whether the peg is going to break.

i think central banks have much deeper pockets than they used to those emerging markets still present opportunity. we're not going to get the same type of crisis because of turkey as we had in the past years. >> you're convinced of that? you think that's a fixable problem? >> turkey is a small economy that is going to be the case >> kathy, thank you for your time coming up, stocks in china ignoring the u.s. rally, declining again overnight. we'll get a live report from beijing next. and if you want to profit from the trade war put your money where your mouth is. we have stock picks in the food sector that could be poised for a gain. at the top of the hour, more highlights from the "new york times" hour-longntvi w ierewith elon musk.

time for the executive edge. netflix has signed kenya barris to a multi-year deal weeks ago he had negotiated an early exit from his abc deal because of a falling out over

blackish the fallout was over an episode of the show that would have been about athletes kneeling during the national anthem. abc did not move forward with that episode if you're planning to get married tomorrow, guess what you're not alone according to the website theknot, 8/18/18 is the busiest wedding day of the year. chipotle is going to restrain all of its -- retrain, i guess. did i say restrain retrain them it's me. i'm seeing things. retain its workers nationwide on food safety. this is after the latest high

profile food safety incident at a restaurant in ohio tests revealed the outbreak was caused by food being left at an unsafe temperature >> did you read the story yesterday about how they determined it really was -- >> 700 people got sick, i think. >> they were specific on what they tested to go back and find out. >> no, i did not read that do you want to fill me in? >> no. it was on cnbc.com >> are you channeling me somehow? >> i'm just trying to lead you to water that you're not going to drink check this out tim cook tweeting a time lapse image of the massive sliding doors at apple's new headquarters he said lunch time at apple park got more exciting. that's cool. apple's headquarters is nicknamed the spaceship. >> why >> looks like the supper conductor collider >> it is neat. when we come back, how to

profit from the trade war. we'll talk about some stocks in the food sector that could benefit from higher tariffs. also some stocks that should rally if or when the trade war ends right now as we head to break, the biggest premarket winners and losers in the dow. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool!

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 &. & this shipment will be delivered...

tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today.

liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪

check this out for the latest candidate for the darwin awards, we'll take you to darwin, australia. a man was caught on surveillance video charging through a gate at an entrance to a parking garage. the gate, though, was a little stronger than it looked. police are trying to track down the man to charge him with criminal damage. >> you would see those movies where people would drive through the gates. >> easier to do it with a car. >> yeah. we've heard stories on how trade tensions with china are hurting some american businesses, but that doesn't mean there are not companies that could benefit from a trade war that could end up as a good

investment with an american deal with china tearializematerializs good morning so everybody is anxious that a trade war will do bad things you think there's some winners >> there are >> okay. agriculture is actually the u.s.'s largest export. companies like adm have benefited from exporting soy bean beans to china before the trade sanctions hit. now they'll benefit from storing a record u.s. harvest. if we do get a trade agreement with china they'll benefit from shipping soybeans to china and potentially ethanol. >> can i throw out one complicating issue >> sure. >> we talked about the strong dollar with larry kudlow yesterday. >> yes >> how much of that is an overhang for this issue relative to the trade war issue >> you're seeing the strong

dollar impact protein prices the prices that we are shipping are pork, chicken, beef out of the u.s. that's being depressed by the strong u.s. dollar that is hurting the profitabilities of protein companies. >> what do you think it's worth? >> we think the stock can trade to $57, so there's 15% upside in that name. >> who else do you like? >> we like the andersons, which is a local grain company in the eastern corn belt. they're going to benefit not only from rail and grain >> anybody else? i know you've got a whole list. >> we do we like bungi. >> what's bungi. >> an agricultural company that has a global footprint and again is a grain handler and is benefitting from crushing soybeans into meal. >> is there anybody outside of the soybean world?

>> so you have soybeans and corn and wheat. the andersons are benefitting from wheat because the u.s. has a great supply of wheat. you're seeing wheat burn up in the eu and in australia. >> what about the idea -- i can appreciate there are some companies that can store some of these crops. other crops you can't store. what happens in those situations i think about apples from washington or other places if those fruits aren't harvested now, there's not necessarily an opportunity to wait until this all blows over. >> so some of the fruit companies are facing challenges but then there's also opportunities. becky, i noticed you were putting lemon in your water. we cover a water called limonara stock is up 30% in the last three months because they have had a very good harvest whereas in california they have had tight supplies they have also faced some

tariffs but been able to pass them along because demand is very strong. >> where do you stand on tyson >> we're a buy on tyson. we think tyson is cheap here clearly the stock is down and they have missed earnings because of these trade earnings, but we think there's 20% upside from current levels if you can get some of these trade deals done now, we're looking forward to potentially having a deal with mexico on nafta. mexico is our largest customer for protein. down the road, we could potentially get a free trade agreement with japan or china. >> one thing that's not a trade war story but maybe an activist story which is campbell's soup what do you do >> we don't cover campbell. >> you don't >> we don't. we cover more of the agri business companies. >> bungi we used to do -- we used to have -- we've been doing bungi once again back to 25 -- yeah, well known yes. soybean. >> and soybeans and soy crushing

is a tremendous opportunity right now. we have record crush margins because again soybean prices in the u.s. are very low. >> thank you for coming on i'm sorry i'm not -- >> that's okay. >> educated on bungi. >> do you have offices in arkansas anymore >> we're still headquartered in arkansas. >> a big presence back here as well. >> exactly >> do you ever seen warren does he come in occasionally >> he's very, very involved in the business. >> he's a dashing figure, isn't he when he comes through -- i've seen him around. he's a golfer. >> he is. >> very good golfer. >> very good golfer. and passionate golfer, i would say. >> don't need to take it any further than that, but thank you. stocks in china overnight didn't mirror thursday's rally in the u.s the shanghai composite sinking deeper into bear market territory, down 19% and 24% respectively

i've been looking forward to talking to you because we've been talking about these articles that are sort of coming out about some criticism of president xi that makes it through the censors over there it's hard to keep down now you're -- i don't know -- there's two schools of thought you might be too close to the situation, like too close to the trees for the forest or you may know completely more than any of us what's going on do you feel a perception that china thinks they're losing this trade war? is that starting to seep into the mentality over there, would you say? >> well, you're starting to see in the state media much more fierce talk about how they're not losing in the trade war and how they -- that the economy is doing just fine, so there could be quite a bit of sensitivity there, as you had noted in the state media. but we did see a lot of impact in the stock market over the

past several weeks but particularly today we saw the shanghai composite drop another 1.3% and that now brings the index down to a two and a half year low. as you said, there is nothing but bad news for this market on the one hand we hear that there's more and more widespread belief, that people believe the economy is slowing down. there's also jitters over the trade tensions finally, there are just more specific industry news for example, today there is a scandal that has -- well, the scandal erupted a couple of weeks ago over this vaccine and some faulty vaccines, so that hurt health care stocks. but also beyond that, what we're seeing is these concerns really affecting chinese shares -- chinese companies that trade in other markets. so jd, for example, alibaba, tencent, all of those companies have become significantly off their highs. going toward it's not really clear as to when there's going

to be a turn-around. for the chinese, we've seen the authorities here loosen credit to try to prop up the economy. also there have been plenty of announcements. yesterday they said they were going to approve 17 new infrastructure projects. that was in july and they expect to see many more, again, to try to boost up the economy. and yesterday authorities said they were going to try to bring more foreign investors in the stock market they're making it easier for foreign residents in china to invest in chinese shares by next month. so the bad news could keep coming because expectations are still low for those lower level trade talks next week and that's just going to continue to roil the stock markets here guys. >> i don't know if anyone has ever been laid off in china, they just keep -- they find a way to keep the production going, but that may happen we're hearing. >> they have been, people have been, but maybe that's for another day. >> thanks. coming up, we're going to dig through deere's earnings eaport with an analyst straight ahd.

the stock right now basically unchanged so far today

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.

riding the rally the dow coming off its best day since april. today's big drivers straight ahead. hacking america. scary warning from the fbi that cyber criminals are preparing a global atm cashout we'll tell you how ibm is trying to keep your money safe. plus, skip the straw a movement sweeping the nation this summer, but what do you use in your cold drink we'll have a morning iced coffee with the only u.s.-based paper straw producer, as the second hour of "squawk box" begins right now.

>> announcer: live from the beating heart of business, new york, this is "squawk box. good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kern en and andrew ross sorkin. the futures have been a little mixed this morning not much movement but this comes after a huge day for the markets yesterday, especially the dow which was up almost 400 points right now the dow up 11 points, s&p indicated up fractionally and the nasdaq down by about 6 points heavy equipment maker deere out with quarterly earnings this morning. the numbers not what the street had been anticipating. deere earning $2.59 a share, the estimate was $2.75 revenue did beat forecasts but continued cost pressures were noted from materials and freight. the stock right now down by about 1% we do have one economic report on today's calendar. the university of michigan

releasing its mid-august consumer sentiment index that happens at 10:00 a.m. eastern. it's expected to be virtually unchanged from the last reading at the end of july and a setback for the federal trade commission in a lawsuit against directv. a california judge rejecting significant parts of the nearly $4 billion government suit against the satellite tv giant which is a unit of at&t. the ftc is accusing directv of deceptive advertising regarding lower promotional prices the judge said that the ftc has not established that the ads were misleading. the big other story of the morning, elon musk going on the record in an hour-long interview with "the new york times." he said the past year has been what he said in his own words as the most difficult and painful year of his career he also gave more details on that infamous tweet about taking the company private and, quote, funding secured. musk said it was an attempt at being what he called transparent. he also admits no one saw it or reviewed it before he posted it

on twitter as he was making himself to a plane he had driven himself to the airport to get to nevada where he was going to visit the giga factory that day he added that he knew that the price that he was offering, $420, that number associated with pot the number that he was actually going to offer was $419 but he rounded up because it sounded like better karma. musk specifically said several times that he was not stoned and that being stoned was not good for productivity given that he needed to be productive, he was not using marijuana. other highlights from the piece, "the times" reported one consideration is for spacex, this is important when we talk about how this could all work, that spacex would help bankroll the tesla organization and take ownership in the car maker he said friends are concerned

about t about his physical health. musk also said he isn't aware of any active job search. musk also told "the times" he has no plans to give up his role as chairman and ceo of the company that he founded. lots of little tidbits throughout and worries of members by the board that he's using ambien to go to sleep and it's not working and he's on twitter during the night he's been sleeping at this giga factory and they're aware in the past he's used recreational drugs. they don't believe that's an issue from what i understand currently at the company a lot going on. >> you said a lot. you just said a lot. i mean a lot of crazy stuff. why is it -- just a lot of crazy stuff that you wouldn't think that we'd necessarily be talking about in the normal ceo discussions that we have why is it better karma than 419? how do you even come up with that in your mind? see, it sounds like you're

stoned if you even come up with that rationalization anyway. i'm not sure what. what does that even mean >>isn't 420 just one more -- >> yes, but why is that better karma? >> you're looking at me like i know. >> well, you posited it like it's not weird. >> i would not pay an extra buck for the company. >> unless you're appealing to -- >> it sounds like the type of stuff when you're reverse engineering a story. >> i guess i got some interesting things on this that we could launch into, like nvidia. this is like a cryptocurrency. >> by the way, elon was tweeting with nvidia last night. >> because he has enough time to focus on other stuff. >> the one thing that i don't understand is the twitter piece of all of this at some point -- and by the

way -- he says, by the way, two things that were fascinating i just want to say one, he says that he did not get angry calls, he says, from the board members. which by the way doesn't totally square with the reporting that i've done on this because there's been deep frustration by the board members. >> and they may not express that frustration. >> maybe they don't express it to him in which case he has a lot of yes men around him. >> it's redundant when you're talking about a board normally they're always like that. >> the one thing i'll hand him is his own personal branding and his own personal messaging has been largely responsible for much of the success of the company too so i can understand him not wanting to stop tweeting on these things. >> and this idea that he was asked whether he regrets the tweet which has launched this entire conversation, by the way, which will launch all sorts of lawsuits, legal fees tens of millions of dollars in legal fees even if you win every case you're going to spend tens of millions of dollars.

>> and it's a huge distraction. >> just replace trump or elon in any of this discussion no one looks at the president's tweets either. anyway, the reason i thought nvidia, the weakness because of the outlook, they mentioned weakening demand for cryptocurrency, so this just brings up the whole bitcoin story, which all of a sudden it's down at 6,000 and change. but nvidia shares, we'll take a look at the chart. and then i love applied materials. nvidia shares dropping despite better-than-expected results it says cryptocurrency demand has dried up it would be nice to know that -- >> they say it's dried up. does that mean it was a frenzy before or does that mean -- >> do you use cryptocurrency, the price of bitcoin to figure out the price of nvidia?

and applied materials beating forecasts in the last quarter. but the guidance is it sees some near-term adjustments in consumer spending. i think the cfo has a little rolodex. i'm going to go through it what the hell does that even -- he's seeing some adjustments in consumer spending. what does that even mean >> it means some of his end products >> you just pull that out when you -- i don't know. >> you're saying that's boiler plate? >> i think he's got a collection this quarter, i used that last quarter. just pulls that one out from like mckenzie. >> you won't need ray ceo if you just have a.i. write your press release. shares of nordstrom rising sharply. same-store sales raised 4%, raised its guidance for the year, and that was a big story,

that breakout edition of "closing bell" yesterday >> okay. door dash raising another $250 million in its latest funding round. the deal now valuing the food delivery startup at $4 billion door dash competes with grubhub, seamless and uber eats and has raised $978 million to date. the doordash ceo will join us at 8:30 a.m. eastern time. there's move to the broader markets right now. joining us is dan sazuki, also jody gunsberg head of u.s. equity as s&p dow jones indices. welcome to both of you this morning. >> thank you. >> you sat very patiently as we went through a lot of the top headlines of the morning dan, you bring this up because you think part of the problem with investors right now is they're spending too much time paying attention to concerning headlines and not seeing what's happening in the market? >> i think they tend to be too focused on the tweets as we were just talking about if you just looked at the tweets

and headlines, over the last three or four months you'd think that things would be worse but we've had four consecutive sessions of positive returns next week we might even make new all-time highs but the people who look at the tweets will be missing all that. so you would have been concerned about trade wars, you would have been concerned about turkey and missed out on these returns. that's typically what happens at this point in the cycle is that people don't focus on the fundamentals. >> they're nervous, kind of exhausted by a long bull market and i think it's an interesting point. you think this is not just what's happened in the last four months, you think this is going to continue for the rest of the year there's still some pretty strong potential upside. >> i think that's the opportunity. if you focus on the fundamentals, the fundamentals are really good. what we focus on at rba are profits, liquidity and sentiment. we're seeing accelerating profits growth you're seeing liquidity that's super healthy in the u.s

in fact lending centers are actually easing which gives me confidence that there's no end in the very near term and sentiment, people are extremely bullish. i think every wall street house on the street is bearish in some form or another. that's really positive for markets. >> one of the questions and this is not just headlines but if you extract the idea that we could bow in a trade war, that tariffs are coming in, the extraction is for companies' bottom lines it's going to be a problem because their costs are going to go up all the way around, their margins are going to get eaten into you don't think that's the case? >> the margin story has been what people have been harping on margins are at record highs and something will cause them to collapse they're either going to mean revert, costs are going to shoot up or tariffs is the latest story. what they're missing is that pricing power is back. whether you're talking about machinery, you're talking about beverages, you're talking about diapers, toilet paper, prices are going up across the board and they're not just in areas where their demand is strong,

they're actually happening in areas where demand is weak but they have to raise prices and they're able to raise prices i think that's the story people are missing out on here. >> jody, if that thesis is correct, i'd say it would be a little dangerous not to be in stocks if we're facing inflation again, your munoney sitting in cash is less and less valuable. >> we look a little more at the macro factor so i'm looking at things like the dollar and inflation, interest rates, gdp growth these have all been very favorable for the small caps in particular now we're seeing year to date the biggest outperformance, the biggest small cap premium, third biggest in history, the biggest since 2008 and 2001. so those two numbers, those two years ring a bell, right is that a warning sign i think in itself it's not one key difference right now is that the large caps are still positive in those years when the small cap premium was there, the s&p

500 had gone negative. so we still have strong -- strong fundamentals. bulls don't die of old age you need things like a fear of recession, rapidly rising interest rates or a lack of consumer confidence and we don't see that with the stronger dollar, that's really helping the small caps. >> jodie, i know you can't talk about individual stocks, but are there sectors that you think are really poised? >> the health care sector has been driving the performance, and i think that they are well positioned because they have so few of their revenues coming internationally. so, for example, like technology has about 60% of revenues coming from overseas whereas health care has less than 20% of their revenues coming from overseas, so that's been really helpful for small caps for health care in general, but more small caps because of the deal-making, the

mergers and acquisitions, the better innovation, and they're more insulated from the policy for that industry. >> dan, how about you, i know you're positive overall but are there areas, sectors, stocks that you think are standouts >> for a while now we've been overweight equities, overweight u.s. and overweight cyclicals. right now we're particularly overweight late cycle type of cyclicals that benefit from improving nominal growth. >> what are we talking about >> energy, materials, industrials, technology. all of those sectors are really -- not only are they cyclical but they do well late in the cycle i think inflation is something investors are underpositioned for, both in equities and from a fixed income perspective is probably the bigger risk. >> dan, jodie, thank you both for coming in. coming up, what's moving dee deere. find out what the numbers tell us about everything from currencies to a trade war. stay tuned, you're watching

"squawk box" on cnbc

i'm a small business, but i have... big dreams... and big plans. so how do i make the efforts of 8 employees... feel like 50? how can i share new plans virtually? how can i download an e-file? virtual tours? zip-file? really big files? in seconds, not minutes... just like that. like everything... the answer is simple. i'll do what i've always done... dream more, dream faster, and above all... now, i'll dream gig. now more businesses, in more places, can afford to dream gig. comcast, building america's largest gig-speed network. welcome back to "squawk box. they say nothing runs like a deere. the tractor and farming equipment maker just rolling out quarterly results and morgan brennan has more on the numbers. >> yeah. i guess earnings don't run like a deer either. we had mixed results for john

deere after adjusted earnings of $2.59 a share. that was a 16-cent mix. >> like a deer in the headlights. >> there's a lot of puns we could go through but the gaap number was higher and that's factoring in the benefit of tax reform. total net sales better than expected, $9.29 billion and the maker of construction equipment reaffirming it expects net sales and revenues to increase 26% equipment sales also projected to grow by 30% net income also the same at $3.1 billion. ceo and chairman samuel allen noting, quote, farm machinery sales in north america and europe made solid gains while construction equipment sales moved sharply higher, thanks to an acquisition that deere made last year. but we have continued to face cost pressures for raw materials and freight, which are being addressed through a combination of cost management and pricing actions. very similar comments to the

ones we got last quarter deere is seen as at risk to this broader trade conflict between the u.s. and china has china has leveled tariffs on key agricultural exports from the u.s., like soybeans. the thought process is you see lower prices for those, potentially less demand for deere's products they have also been dinged by higher steel prices that the tariffs there have helped push up as well you've seen that playing out in the shares for deere they're down about 19% over the past six months and down premarket another 2% this morning, although i should note for 2017, huge gainer. they're up 50% last year. >> it's like a microcosm of what we worry about because the sales of soaring in this strong economy. but then it's a profit margin problem. if you looked at the chart, it's like the stock peaked eight months ago, even the sales were up huge this quarter they're indicated to be up huge next year. why were sales -- how can they do 30% increase in sales what is that

is that agricultural based >> the majority of their sales are agricultural products, farm equipment. they do have this construction unit that's growing pretty dramatically one of the other things they said in their s.e.c. filing is it's being driven by large equipment sales despite the global trade tensions and other geopolitical risks and right now they are continuing to see demand and expect to see that through the rest of their fiscal year. >> let's bring in ann. n is it as simple as that, that it's an expense or input problem with prices going up and therefore profitability is going down on the revenue side it seems like these are the best of times for deere. >> you raise a great point for long-term investors what you want to see from somebody like john deere in a recovery psych 'em is what we call incremental profits around 30% so you're dropping all those increased

sales into profits today deere reported 21% incrementals on their agriculture equipment. if you're this early in the cycle and can't deliver on the profits, what's a long-term investor supposed to do from here. >> is there more than one reason why they only did 21% there? is it input costs or what else is it? >> i think you nailed it there it's higher steel prices and also higher freight costs. it's suppliers in the supply chain trying to catch up because when you have demand strong in agriculture and construction and all of these other end markets that some of our other companies supply into it, it's hard for suppliers to ramp up this quickly. >> would you start to look at the overall -- at the broad stock market itself and say, wow, consumer confidence is great, mibusiness confidence is great but eventually costs are going up and margins will be squeezed is there some broader theme that you can see here

should we be worried >> actually we look at input costs rising for the group and pricing power. pricing power hasn't really kept up with input costs and that's hurt a number of companies in our coverage we're getting incremental squeezed and that's deep value only investor when they're looking at cyclicals. >> ann, last quarter deere talked about the potential to raise prices is that something that's still going to play out moving forward? if so, how much room do they really have to do that, especially if you see something like tariffs really, truly impact commodity prices? >> great question and that's one of the key questions we have for management when we get on the conference call a little later if you look at the construction business, they noted that one of the items that hurt their margins was indeed higher sales incentives so there is a struggle out there to maintain market share, to

keep your volumes going through your factories and still try to offset some of these higher input costs. so it's a tricky balance for management and one that investorscare a lot about, so we are seeing bifurcation against different industries some industries are able to get pricing and some are not. >> there's a truck driver shortage too they're paying higher priced expedited options because of the truck driver shortage. higher prices, logistical challenges all factoring into it today there's a piece in the journal they're going to make the trucks longer, which scares me because when it goes by i'm already sort of turning into it. >> i avoid the truck lanes whenever possible. >> that's exactly right. if you're at the peak of the cycle or you're in the sweet spot of demand and can't get pricing power at this point in the cycle, you're never going to get it and that's the concern that investors have in these cyclical stocks. >> too much of a good thing.

that's where the -- i guess that's why there is an expression for that because it can happen ann, thank you, appreciate it. morgan, awesome, thank you nothing runs like a deere. who came up with that? somebody in advertising. larry white came up with that? darren steven, what about nothing runs like a deer, right? >> from "bewitched"? when we come back, president trump's plans for a military parade have been delayed we'll tell you y -- why.

coming up when we return, can the bulls continue to ride a rally? the dow coming off its best day since april. stay ted, u'unyore watching "squawk box" right here on cnbc.

your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

good morning, everybody. welcome back to "squawk box" here at cnbc we are live from times square. among the stories front and center, oxycontin maker has hired a restructuring advisor.

the privately held firm is said to have taken that step because of potentially swelling liabilities relating to opioid addiction lawsuits president trump said yesterday that he wants to bring a federal lawsuit against the opioid makers, not just stand behind the state ones already in play. food delivery service doordash is valued at $4 billion in a newfoundi funding route it is not yet profitable but plans to expand into new cities and develop develop new products. and fed chairman jerome powell will speak in jackson hole, wyoming, next week the symposium begins on thursday powell is scheduled to speak on friday and my guess is that we will find steve liesman there. a little bit of news out of washington this morning. the veterans day military parade ordered by president trump in the works for 2018 has now officially been postponed. opportunities are now being explored for 2019. cnbc had reported just yesterday

that the parade was going to cost about $80 million more than initially estimated. in the meantime we want to get to our trading block this morning we are talking currencies and commodities joining us is a senior market strategist from fx street. can we just go -- can we talk fx for a quick second i want to get your take on what's happened with the turkish lira this week, what it means and frankly then what you think it means to what larry kudlow likes to call the strong dollar right now. >> that's actually the background of what we're seeing is that the dollar has been getting stronger for nine months and so it's now having its effect on smaller currencies, the so-called emerging markets currencies but what you're seeing is you're seeing a split in the type of effect if you look at the malaysian

ringet, you can see there's a general effect from the strengthening of the dollar. but if you look at the turkish lira, even the mexican is a slightly different story it's much more dramatic because of the internal problems within these countries. >> i can't believe this tweet i just saw, sorkin donald j. trump,president. >> the president >> in speaking with some of the world's top business leaders, i asked what it is that would make business, jobs even better in the u.s. quotation marks. stop quarterly reporting >> wow. >> and go to a six-month system. that would allow greater flexibility -- this is him now that would allow greater flexibility and save money i have asked the s.e.c. to study. >> wow. >> that would mean -- you know what that would mean twice a year we'd only have to do that -- this guy -- more and

more stuff -- sorkin, you're going to endi up loving this gu. i'm telling you. >> the business roundtable is pushing this. >> the business roundtable has been pushing no guidance or pushing guidance away. >> but long-term thinking rather than short term. >> i'm very curious who he must have talked to about this particular topic >> elon musk. >> that's a fascinating tweet. >> i mean it just -- i think about that friday when we get jpmorg jpmorgan, citi group and wells fargo. my life would be so much better. >> a very different question, do you think six months -- >> you're going to get real serious about it i'm talking about how it affects me. >> i understand that but is six months the right -- >> i don't know. that is a good question. >> there's people or both sides. >> a long time ago back in the

'80s, the late '80s when the japanese economy was beating everybody to the world, one of the things that was said is the japanese firms could plan for the long term. >> how did that work out >> not very well >> it's been 20 years of -- they don't even own pebble beach anymore. >> that was always one of the focuses. >> i'm talking about -- we don't want to emulate -- there was a time when we thought -- >> is their market efficient and does the market provide a corrective and a balance to executives or not? >> there's an offset between transparency for investors and for long-term objectives for ceos. >> i think it's different on a company by company basis i can throw up companies on either side of this argument that would say you need to have it every three months or every six months. >> and it really depends where they are in their own cycle. this goes to the elon musk story. he thinks right now he would prefer to be a private company, doesn't want to have to deal

with these things. >> you know, i think it would actually benefit long-term planning i don't see how it could not have a positive effect if you take that immediate focus. in order to produce short-term profits you have to do slightly different things with your products, your product line and your usage of cash. >> if there's anything that's going wrong, the wheels are going off the bus, there's a bad management team, that covers up any of those problems and doesn't expose them for a much longer time. >> there's always a tendency to look towards what can we do to improve the next report. >> six months, not bad i have to say my initial gut reaction is i like the idea a lot. >> wow. >> how do you feel about that, joe? >> i just think that's a monumental -- this is a red letter day something trump said you have not immediately like thrown up. >> mark it down. >> that's awesome. >> steven short, do you have a view on this >> absolutely. we're looking at to the point you don't make long-term inve s

investments, you're always worried about the short-term gain we saw this when refiners had to get out of one of their businesses, the refining industry, because that was thought to be a dinosaur of an industry shortly thereafter that industry completely turned around and you wanted to be a refiner i think a lot of that was prompted pie the fact that you had investors looking at the short-term gains they were looking at an anomaly in the market where they couldn't get oil to the refineries on the east coast so they were forced to get out of that business. therefore, now given the margins that refiners are making, that is certainly a business that should have been heavily invested in at the time when they were being forced to get out. >> one of the points that the president makes in his tweet is the cost savings that would be involved how many less -- if you were running a public lly traded

company, how many less people would you need in the main office putting these records together if you only had to do it two times instead of four >> that's bad on the jobs front. >> in the old days when news cycles could be quiet, we used to look forward -- we always had something to do every three months for an entire month as a business network we'd be inundated for a month where we'd be so busy. the news cycle seems a little more active now. i'm not sure we need to have that annuity >> although it still goes back to this idea, i understand the argument for long-termism versus short-termism. but again, you need to know when the situation changes and how big macro events are also impacting bottom lines whether it's goodnews or bad news. >> can we get our buddy on, mark

weinberg, he runs one of these accounting companies no, this is horrible, a terrible idea i want to do it every month. for accounting firms, they'd have less business, wouldn't they >> or maybe they'd need additional help figuring out what to do on long-term planning >> i don't think the president consulted mark on this. >> i want to know who these business leaders are a lot of business leaders have been making this point and comment. remember, the president just had that dinner. >> maybe that was a topic of conversation there. >> i wonder if that's where some of this germinated. >> did we ask if oil was going to 100 or 50 >> hey, you've got ten seconds to tell us where oil is headed. >> if we're going to 50 the time is now because demand is about to peak, we're going into the fall refineries are going into their turn-around season and we'll be driving less miles in our cars so we're at that seasonal dy over dx moment where demand is falling. if you're going to see weakness

in oil, the time is now. >> guys, thank you and thank you for playing into the breaking news. >> you can't compete with the president and tweets there's no way around it. >> and it's not historic, even though his name is shork. >> thanks, steve thanks, joe. >> no problem. coming up, skip the plastic straw. i've got a paper one here. i don't know if i like it, andrew we'll have a guy on that can talk me into this. >> this is probably an unfair test it's been in here for an hour and 40 minutes. >> is paper a good alternative we'll ask the ceo of the company that bought the only u.s.-based paper straw producer stay tuned, you're watching "squawk box" on cnbc ♪

a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.

welcome back to "squawk box. the fbi issuing a warning that cyber criminals poised to carry out a global atm cashout watch out, guys. that could fraudulently withdraw millions of dollars from atms. charles henderson is the global head of the internal hacking lab that works with corporate clients on security concerns and

this one is a biggie good morning to you, charles. >> good morning. >> so how exactly would this work >> so there's really two factors in this attack that are really important. the first is that they are getting bulk aggregation of account data and pins so that they're able to do the attack on scale. the second, and this is really key, is they're raising the daily withdrawal limit on those accounts, so they're getting a higher return on an investment per attack if you can think of criminals, they run a business, right they're really interested in return on investment just like any business is, so they want the maximum return on investment per action >> and from a very selfish and personal standpoint, there are people who are going to be watching this segment right this minute and think to themselves is my account at risk. so that's the question is everybody's account at risk and what do they do about it >> well, there's two factors

here is your account at risk? any time you're using any account on the connected world today it's at risk but keep in mind, most banks, especially federally insured banks, your account is protected. so even though your account is at risk, your money is not because it will be backed up but that said, to be sure, call the number on the back of the card and check with your bank to see what your protections are. >> is there anything, though, specific beyond just making that phone call that someone can do >> yeah, you know, there actually is. any time you have this kind of problem out there, it's sort of a wake-up call and maybe a reminder to do things that you should have been doing this whole time, like checking your account balance periodically, looking over your statement, looking for withdrawals that you don't recognize or charges that you don't recognize. but as well, that same number on the back of the card, call them and ask what your daily withdrawal limit is.

if it seems abnormally high, go ahead and lower it to a number you can live with. and also, if from one call to the next that number changes, that's cause for alarm maybe you have a conversation with the bank about that. >> charles, we've had this debate on this show before do you printout your statements or get them in any kind of printed form >> i do not. and that's not because of environmental reasons, it's just that i don't want documents floating around with my financial information on them. i just -- i'm a very private person in that regard. >> i don't know if you're going to be able to answer this question because i know you've got lots of clients in the banking business are there particular banks that you think have superior technology to others and ones that are specifically less capable of dealing with something like this? >> so, you know, i turn that

question a little bit. look, we've got -- we deal with very large banks, very small banks. the common denominator on banks that can deal with threat is the banks that have a strong and comprehensive testing program. if you think about what my team does within ibm, we play the part of a criminal i run a team of hackers, right and the banks that hire us or hire someone to go out and simulate and to predict that hacker attack or that criminal attack before it actually happens, those are the teams that are best prepared it isn't how big or small the bank is, it's how forward-thinking they are about making sure that the first time their atms, their web apps, their mobile apps are tested, it's not by an actual criminal generally they're not going to

succeed against an attack if the first time they're playing that game they're doing it in live action. >> one final question. regulators, including the fed, now monitor banks from a regulatory perspective around their cyber security and what measures they have in place. do you think that the fed and other regulators have the capabilities, the technological capabilities to actually properly measure whether these banks are doing the right things >> so look, regulation is great for getting a minimum bar, for compliance purposes. but in order for security to succeed, you can't aim for the minimum bar. you can't be the slowest gazelle in the herd, so to speak we need to shoot for a much higher bar and look at things like best practice, look at trying to excel, not merely survive. >> charles henderson, ibm x

force red. ibm always has the best names for its groups x force red is pretty cool. >> we love the name. thank you. >> appreciate it >> i got excited, there was another trump tweet but it wasn't -- >> what was that >> this is about cuomo it's actually pretty funny he says how does a politician, cuomo, known for pushing people and businesses out of the state not mention havingthe highest -- not to mention having the highest taxes in the u.s., how does he survive making the statement we're not going to make america great again, it was never that great but then he says which section of that sentence is worse, which is kind of funny we're not going to make america great again, that's a bad cal pain slogan and then it was never that great you're going to see your governor -- that tape is not going away. >> i told you, we said that yesterday. yeah, that tape is it. >> that's a crappy slogan for 2020, i think. i don't know who he -- >> not making the buttons right

now? >> what was his final line he actually did have a line. >> i know what he was -- >> i understood what he was saying. >> but how clumsy -- there's just no -- >> we'll see it in a lot of commercials. >> when we come back, we are all told that plastic straws are bad for the environment, but is paper answer we will ask the only u.s. producer of pepar straws that question, right after this imagine traveling hassle-free with 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. make it simple. make it ship sticks. at fidelity, our online u.s. equity trades are just $4.95. 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. i'm a small business, but i have... big dreams... and big plans. so how do i make the efforts of 8 employees... feel like 50? how can i share new plans virtually? how can i download an e-file? virtual tours? zip-file? really big files? in seconds, not minutes... just like that. like everything... the answer is simple. i'll do what i've always done... dream more, dream faster, and above all... now, i'll dream gig. now more businesses, in more places, can afford to dream gig. comcast, building america's largest gig-speed network.

welcome back, everybody. disposable tableware manufacturer acquired the only u.s.-based straw producer two weeks ago. to catch up on the demand, the wisconsin-based company has already set plans to boost paper straw production within the next few months joining us with more on the acquisition and the plastic-to-paper shift is rory lavin, the ceo rory, thanks for being with us today. >> thanks very much, becky it's great to be here. >> this is a great time to be the only u.s. producer of these paper straws we've heard from companies like starbucks and a handful of others that they are going to be banning plastic straws and it comes right as the movement across america, more awareness about what it's meant for the environment to have all these plastic straws out there is that what sparked this for you? when did this acquisition plan form and was it before or after some of these major companies said they wouldn't be using plastic straws anymore >> we actually started our own internal program to launch paper

straws back in the first quarter of 2018. then our conversations with aardvark really kicked off in the april-may time frame and came to conclusion just a few weeks ago. so really there was a lot of things all happening at one time that led to the transaction taking place >> and what is demand at this point? how much demand increase have you seen over the last few months >> well, it almost seems like demand keeps doubling every week quite honestly the biggest challenge for the marketplace right now is that there is not enough supply to keep up with demand that's something that we've immediately started to address we have a plan to increase the amount of production out of our facility in ft. wayne, indiana, by 400% over the next four months that involves investment in new equipment, which will be installed over the course of

that time frame. and then we're also looking at a continuous improvement program where we're able to get more production out of the existing equipment by eliminating as much waste and down time as possible. >> i've been using one of your paper straws all morning long and it's probably not a fair test because i've been using for two hours one of these straws. it's definitely higher quality than the straws i've seen in the past you can hear it's got some heft to it. >> we believe, and one of the things that attracted us to aardvark was the fact that they make a better paper straw. the number one issue that people have with paper straws is durability one of two things happen, it either becomes soft and soggy or starts to unravel. at aardvark we use a proprietary process that makes the straw last longer. i think two hours is probably a little bit of a stretch for a paper straw but most consumers -- >> for the first hour and 15 minutes it with stood and kind

of had its structural integrity, it's just been in the last 20 minutes i've noticed it collapsing or so. >> the paper doesn't have the same feel on your lips as -- i can get by i can get by but it's not quite as -- it's a little rough i don't know, something makes it not quite -- >> we're old and not used to change, that's part of the problem. i admit it doesn't feel the same but i could probably get used to it. >> it's definitely a different tactile feel between paper and plastic, but you're absolutely right. after a few uses, you're extremely comfortable with a paper straw. >> okay. >> rory, i want to thank you for being with us. obviously you're competing with other makers i think this cost about 4 cents to make, maybe some of the chinese versions cost a penny to make do you have -- are there companies that are coming to you? what about starbucks, are you dealing with them? >> so i'm not going to comment on any specific customers. there have been a lot of large

end users that have been mentioned in the media and we're certainly engaged with a lot of those folks in terms of conversation we think that ultimately the best paper straw is going to be the straw that wins in the marketplace and we think that's an aardvark straw. >> okay. thank you for joining us. coming up when we return, the tweet from president trump that's going to have corporate america talking today. why he's asking the s.e.c. to study scrapping quarterly reports from companies, instead look at reporting every six months we'll have that conversation when we come back right here on "squawk box. you always pay your insurance on time.

tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪

stunning moves in the retail sector with precipitous drops from macy's and j.c. penney and huge gains for walmart and nordstrom. we'll tell you what's separating the winners from the losers. delivery startup doordash securing new funding doubling its valuation to $4 billion. the ceo joins us first on cnbc the average price of the most popular pickup trucks in the u.s. is approaching $50,000. we'll tell you what's behind the price increase of the automaker's most profitable models the final hour of "squawk box" begins right now

>> announcer: live from the most powerful city in the world, new york this is "squawk box. good morning and welcome back to "squawk box" here on cnbc live from times square. futures right now are indicated down it's red across the board, down about 11 on the dow jones, nasdaq indicated down 12, s&p down 2 points right now. don't forget, 400 points gains yesterday in the dow because of courtney, because of walmart. >> it's her fault. >> no, that's giving her credit. >> that's right. >> giving her credit, not fault. credit and the treasury yield, take a quick look i thought those might be ticking up today i don't know what controls the 10-year at this point, but you

see a risk on a day like yesterday, but still 2.85. it's not up. president trump making news this morning he tweeted in his words in speaking with some of the world's top business leaders, i asked what it is that would make business, jobs, even better in the u.s. and stop quarterly reporting and go to a six-month system which a lot of the world already does it that way that would allow greater flexibility and save money i have asked the s.e.c. to study. so a lot of places do not do quarterly results. do we know what percentage of the other developed countries do -- most of them do six months >> the idea that you can tell within a penny or five pennies where your earnings are going to be three, six, nine months down the road seems kind of crazy i'm still trying to figure out how i feel about this because

transparency, we always argue for more transparency, so i don't know. another tweet just now from president trump. this one about news that the military parade he wanted on veterans day has been pushed off. the president tweeting the local politicians who run washington, d.c., poorly, know a windfall when they see it when asked us to give us a price for holding a great celebratory military parade they wanted a number so ridiculously high that i cancelled it never let someone hold you up. i will instead, dot dot dot, and we wait for the rest of that tweet. yesterday cnbc reported that the parade was going to cost $80 million more than initially estimated. and elon musk going on the record in anhour-long intervie with "the new york times." he said the past year has been what he called the most painful of his career. he also gives more details on that infamous tweet about taking the company private. musk said it was an attempt at being transparent. he also admitted no one saw it or reviewed it before he posted

it on twitter. he woke up that morning and literally drove to the airport shall was headed to nevada to the giga factory, sent the tweet, got on the plane and didn't really expect or said he didn't expect what came next musk also told "the times" he has no plans to give up his role as chairman and ceo of the company he founded, but we should say specifically the two issues that i thought were the most fascinating was denied drug use. however, the board is concerned about his use of ambien which has kept him up late at night and this issue of past recreational drug use. >> so ambien doesn't work on him? >> i've taken ambien and i've stayed up. >> does it have the opposite effect >> i've had it when it's worked and had it when it hasn't worked. >> you can sleep walk on it too. and it's like an aphrodisiac to some people too. >> really? i don't know about that part.

>> supposedly. i've never -- you know what, i get near a -- if i can sleep, i sleep. >> we get up so early, if i have five minutes i can fall asleep. >> i can be in mid-conversation and it can -- >> so we've noticed. >> exactly >> we get up so early that i never have a problem sleeping. >> we've talked about denying the drug use so much was there a reason that we thought that there was drug use involved >> no. so there were two issues if you remember when he first came out with a 4:20 and then he talked about in the article it was about the karma of the number 420, that he wasn't stoned. said boy the way, being stoengd -- stoned is bad for productivity and i like to be productive then you had azelea saying that he takes drugs and she saw him

in this house scrambling for dollars and whatnot and that blew up and was picked up by all sorts of news organizations. >> so the question is out there and floating around. >> i think that was floating around, exactly. >> we have a few stocks on the move to tell you about deere shares under pressure after a mixed quarter for the company. heavy equipment maker earnings for the fiscal third quarter came in below estimates, although revenue was above the street's forecast. deere has been pointing to cost pressure, especially with raw mer materials and freight. the recent slump for dean foods continues in the premarket trading. that stock is down 30% already this year in the premarket trading. it's now down 7.5% pointing further -- falling further after an analyst downgrade. jpmorgan cut the stock to underweight from neutral and then there's walmart's earnings report and guidance that really drove the markets yesterday. we saw that huge move in the dow

after those numbers from walmart, which is a dow component. the retail story will march into next week with more companies on the earnings calendar and courtney reagan joins us with more on the retail details. >> it's been a big week and we've got more to come the retail recovery really started in the last holiday season and it's continued so far this year, but there really is still a lot of retailers left to report home depot, macy's, walmart and nordstrom all beat on profit, revenues and comparable sales loading all four to up their forecast tapestry was mixed coach comparable sales were in line kate spade much better than feared but they issued mixed to light guidance j.c. penney disappointed across the board, missing on all estimates and pointed to higher than expected discounting after merchandise failed to register with shoppers. the retail etf is flat for the

week macy's shares, for example, had gained 36% in the three months since the last report. then shed 16% on the strong quarter on what most call profit taking walmart shares were up just 5% from the last report and then they gained more than 9% after the strong quarter. next week, though, there's more. we've got kohl's coming on tuesday. tgx and urban outfitters the same day wednesday, target, lowe's, williams sonoma and l brands then thursday the children's place, ross stores and gap footlock er is on friday. >> let's bring in a couple of analysts to talk more about this brandon fletcher and katherine hopkins is women wear's daily financial editor thank you both for being here today. brandon, why don't we talk about

the winners and losers we've seen this week it's been crazy to see a pbig stock like walmart up 10% but to see moves down by 20% in other names. what do the winners have in common and the losers have in common >> we think there is a major strategic difference between winners and losers if you're likely going to be a winner, you're serving categories of products that customers care about price and assortment where you can see that if you can get a low enough price on critical assortment, you can gain incredible share from others, which amazon showed. >> amazon or walmart >> amazon has shown that can be possible and walmart replicated that strategy. the other category is price and convenience. walmart has dominated that space with investment in grocery and pick up today. so if you're in those categories, you've got a chance. if you're in a service and assortment category, which we used to think about a department

store or other places we walked into and they helped us pick our clothes, et cetera, that's a problem because service has been redefined. service is in my house i pick my own items, try them and return what i don't want now you're left with an assortment if people don't stay exclusive to you -- >> you mean if you're a nike or designer. >> and you say, wow, i don't want to lose the opportunity for walmart.com, amazon sales, et cetera, then you're not exclusive to your department store and now you're in some trouble. >> that sounds like the death of department stores. >> well, there are paths left. our favorite department store is not a department store because we don't cover department stores, we cover target. we think target is the last department store standing, and here's why they do private label. one way to defend assortment is make sure that you can only get it from that store so they have developed 12 of their own proprietary brands, which most have done exceptionally well it allows them to receive the sales whenever kohl's has a bad

day or j.c. penney's has a bad day. >> and those are things that they built up in some cases over a decade. >> and they have refreshed a lot of the brand components recently, but that muscle they have is relatively unique among anything else in retail. department stores f so long were cur ating who's the coolest designer target says do you think you're a better designer than the designers? if so, come work for us. >> we've talked for decades about the death of the mall, it's the death of the department store. is it for real this time >> i'm not sure because i think at the moment it's definitely a tale of two retailers and some are doing really well and some aren't walmart is a prime example basically everyone is trying to find a way to compete with amazon right now and walmart is a prime example of a company that is managing to do that. it's put a lot of money into its

shops that people actually want to go in there it's really beefed up its online offering and that's starting to pay off. but j.c. penney is a store that hasn't been able to do that and that's really struggling. >> can i ask a fashion question. for so many years we talked about how fashion was dead, nobody cared about clothes, they were using their money to buy iphones and experiences and all this other stuff and it was the fact that somehow designers weren't inspired anymore. >> and millenials had very small closets because they all lived in the cities. >> there were like 100 reasons why this retail stuff was not working. was that a myth? >> well, i think fashion is always a discretionary item. so when people are feeling a bit squeezed, it's always one of the first things that they cut back on at the moment consumers are feeling a lot better off, we've got a strong labor market, wages are rising so now they're feeling like they can spend more and fashion is coming back. >> fashion is back

>> yeah. >> what's the hot fashion right now, by the way? >> what is the higher fashion? >> higher waistlines and also shorter short lines if you've noticed, right >> it's so weird. >> a lot of guys aren't into the high-wasted mom jean look. >> i'm not commenting. there's no upside -- >> i think that's a smart strategy. >> that is a smart strategy. >> courtney, thank you great to see you brandon, kathryn, thanks for joining us. coming up, we've already talked about the bear market for chinese stocks up next, we'll talk about the prospect for china's economy and also some of the comments from larry kudlow from yesterday's show. then later, speaking of jeans, doordash -- oh, no, doordash sounds like jordache. >> this is not that, it's doordash

anyway, it's securing new funding and doubling its valuation. we'll talk to the coans mpy'ceo first on cnbc. stay tuned

i'm a small business, but i have... big dreams... and big plans. so how do i make the efforts of 8 employees... feel like 50? how can i share new plans virtually? how can i download an e-file? virtual tours? zip-file? really big files? in seconds, not minutes... just like that. like everything... the answer is simple. i'll do what i've always done... dream more, dream faster, and above all... now, i'll dream gig. now more businesses, in more places, can afford to dream gig. comcast, building america's largest gig-speed network.

welcome back to "squawk box. yesterday larry kudlow had some choice words about china's economy during president trump's cabinet meeting. >> business investment is collapsing in china according to the numbers. industrial production has fallen and now it's plateauing at a low level. people are selling the currency. there may be some manipulation but mostly i think investors are moving out of china because they don't like the economy and they're coming to the usa because they like our economy. i'm not a china expert, although i'm boning up as fast as i can i would just say right now their economy looks terrible >> okay. we want to get a read on china's economy from a guy who is a china expert, damian mah good morning to you. >> good morning. >> you heard what larry kudlow had to say, he said he's boning up on china. clearly the stock market in china has struggled of late,bu what about the real economy there? >> well, i don't think the economy is anywhere near

cratering. it is certainly weaker than it was and it's going to continue to get weaker. part of what they're looking at is because the credit has been tightened for a number of quarters, starting in 2017 they have just actually pivoted to a more accommodative monetary policy so we're now looking at a catastrophe in the chinese economy. it's going to be a little bit slower growth still came in at 6.8% in the first half and they're very likely to meet their full-year target of 6.5% growth, so none of that looks like cratering to me. >> what about the comment that larry said money is flowing out of china in a very big way >> i don't -- i don't see evidence of that very much the chinese still have imposed pretty strict capital controls they might let that loose a little bit later in the year, but for the most part we are not seeing the kind of capital outflows or the pressure on the currency as you did in the 2015

period a lot of -- irrespective of what kudlow said, a lot of the pressure on the currency is actually market driven the central bank hasn't intervened as much as it has previously. >> speak to the larger question and issue of a trade war clearly the market's up in a big way. there were some earnings reports yesterday but the big news is the possibility of a beginning of a conversation here do you think a trade war will ultimately be avoided, and does it mean that trump put china in a box to actually even have these conversations? >> you know, i think these talks are perhaps not as much as one would think. i think it's sort of to have talks to decide if we're going to have further talks. i'm not sure that we're going to get any concrete deliverables out of these rounds of talks, so i would expect probably more escalation. >> so you don't look at it as a positive step? the reason i ask is the markets

reacted remarkably yesterday on this assumption that the beginning of these talks was a meaningful at least first step towards a resolution on this that's not your take >> it's certainly a positive step, but in terms of what the trump administration wants out of the deal, their goals are things like rolling back china's industrial policy made in china 2025, that's just not going to happen from tariffs. they want china to stop ip transfers, ip theft. that is not going to happen from tariffs. so the goals that the white house wants won't really come from the current tactics being employed so it is absolutely a positive step, but it's probably not going to achieve what the white house wants. >> speak to the timing, though, of the chinese on this trade war issue in terms of how fast do you think they could react one way or the other on "closing bell" yesterday the

idea was posited that on our side, the u.s. side, there would be some effort that a trade war is off the table ahead of the midterms, that some of this might even be political. >> i think that is possible. i think the chinese are waiting and seeing what's going to happen with the midterms i think when it comes to a war of attrition, if you will, the trade war, the chinese are certainly willing to wait that out and continue a war of attrition and i think they believe time is on their side so i wouldn't expect the chinese to quickly back off there's been a lot of talk about how the chinese won't be able to retaliate in kind because we do not export as much to the chinese, but there are other ways that they can hurt the united states. for example, on services, which we run a $50 billion surplus, and they can certainly go after those exports. >> damien, we'll leave the conversation there damien ma. say hello to the former treasury secretary for us.

>> will do. >> we appreciate your time this morning. when we come back, a major restaurant chain making changes to its food safety procedure we have that story next. then we'll talk food delivery the ceo of doordash joins us in a cnbc exclusive interview to talk about the company's new $4 billion valuation. ike one from t when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

welcome back to "squawk box" this morning take a look at futures right now. the dow off about 20 points, nasdaq off 20 points, s&p 500 off about 3 points we are getting the second part of president trump's tweet this morning about the military parade that's been cancelled i want to bring you the full message. it starts here the local politicians who run washington, d.c., poorly he writes, know a win fall when they see it. when asked to give us a price for holding a great celebratory military parade, they want a number so ridiculously high that i cancelled it never let someone hold you up. i will instead attend the big parade already scheduled at andrews air force base on a different date and go to the paris parade celebrating the end of the war on november 11th. maybe we'll do something next year in d.c. when the cost comes way down now we can buy some more jet fighters earlier yesterday cnbc reported the parade expected to cost $92 million. that would have been $80 million more than previous estimates

so president trump -- president trump making some news on a lot of things today. we've got the parade, we've got a whole new plan on company reporting, which i think is actually very important. >> an interesting idea for our audience especially. >> and what was his third one? cuomo. >> cuomo, making america great >> i don't -- do you see that on cnn, do you know whether they cover that much? >> oh, come on, i'm sure they do. >> okay. i'm just positing the -- >> i'm sure they do. >> at night too? >> in the morning, during the day, during the night. >> it may not be quite as front and center, i don't know i don't watch. you know >> chipotle is going to be retraining all of its workers nationwide on food state of tee. this comes after the latest food state safety incident. tests revealed that the outbreak

was caused by food at an unsafe temperature. coming up when we return -- sorry, i was drinking a little bit with my plastic straw here it's going to be an extinct item here. >> do what i say not what i dor. >> the ceo of doordash. >> paper/plastic. >> now you're using two. you're wasteful. >> that's the other problem. you're going to use multiple paper ones the ceo of doordash right after the break.

good morning again, welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. among the stories that are front and center today, a takeover deal this morning in the restaurant industry. zoe's kitchen is being acquired by privately held kava group

that's about 33% higher than the closing price yesterday. the group operates mediterranean-themed restaurants and is backed by ron shake who is the founder and former ceo of panera bread yesterday's rally notwithstanding, investors pulling billions from world stock markets this week, according to new numbers from funds flow data provider epfr. equities saw $3.6 billion in outfloes tech funds the their biggest outflow since a february sell-off. tyson foods is making a $2.5 billion acquisition. they are reportedly buying keystone foods keystone is based in the u.s. but owned by a brazilian meat packing company. that company said it expected to sell the unit within a few weeks. >> did we have zoe's kitchen on? didn't we have them on, or not >> i think we did, yeah.

steve liesman did. >> steve liesman remembers it was fresh made mediterranean -- >> yeah, it was cool. >> oh, you're right, you're right. they made an excellent spread. >> it was good. >> i think you're right. >> i saw this earlier, and it's still important, but it was like, wow, i haven't mentioned -- when i read it earlier, i haven't talked about power, the fed, in a while. >> the way it ought to be. >> not everyone goes to this but he's going to go so i guess you're all psyched fed officials are going to gather next week you might even take a break from the fly fishing. >> i'm hoping if it's not a big deal and it's quiet, i get more fishing in this could be a huge boondoggle for me. >> the central bankers will be out there framed by the majestic titon mountains at jackson hole where steve does get -- you do fish at least a little. >> much less i have to say when i first went

there back in '03, it was a -- do a little bit of tv and you had a lot of time to fish. >> you're not supposed to admit this. >> i don't mind. >> it's okay to be honest. >> people sort of think it's a good thing if you can i've taken several central bankers fishing and doing my job. over time, august has gotten to be a more and more intense time and the meeting has gotten more and more intense i'm going to read my beautifully written script it's the kansas city fed's 42nd meeting at jackson hole and jerome powell's first meeting as chair just before the ten-year anniversary of the financial crisis the unwind of the crisis will be high on the list of issues for powell who will speak friday morning on monetary policy in a changing economy he has that right. powell will be the fifth chairman to attend since the meeting moved to jackson in 1982 leading central bankers around the world will gather along with economists and other policy makers the official topic, the very sexy title, quote, changing

market structure and implications for monetary policy but specifically central bankers will think about the rise of very large firms and market concentration in several industries kansas city fed saying in a statement these shifts should concern central bankers since they likely have important linkages to lower cap pal investment, a declining labor share slow productivity growth, slow wage growth and declining dynamism here's some of the issues on the table. tariffs are out there as a big unknown. fiscal stimulus, i think that's the big issue for the fed right now. emerging markets and how they respond to the fed tightening as well as issues of large amounts of corporate and government debt, especially dollar denominated debt around the world, not to mention, guys, meeting with president who thinks less strongly about that

line about commenting on fed policy than his predecessors did. >> so you think that will be the discussion not around the water cooler but the fishing hole? >> there will be less fishing and more water cooler talk. >> but that's the kind of conversation that takes place when people are at their most relaxed, right >> it will be a topic of conversation, definitely a topic of conversation. this was a place where back in i think it was '08 they had to set up special communications equipment because the market was kind of melting down at that time >> i remember your shots. >> every year it seems like august becomes the focal point for global concerns. i think that's because kids with acne are running the trading desks right now and the smarter, more stable people are on vacation. >> when was the last time the chairman was in jackson hole >> didn't go >> did go, because they skip sometimes. >> yellen had an every other year idea. >> this has got you all excited, i can see that

we're going to talk more about it do you want to ask some questions of megan. >> i'd love to ask questions of megan. >> do you have that jacket prepared >> what jacket >> that fishing vest >> with lures and stuff. >> one of those hats with the hooks on them and stuff. >> you know, there will be some interesting fashion this year, i believe. >> let's bring in megan green. i'm sorry, megan >> look the part if you're going to go out there. >> thanks for joining us you know, i'm always glad when we only talk about the fed maybe once a week instead of we used to talk about them like once an hour but will anything come out of this, do you think, other than steve getting another paid vacation >> says the man who does how many golf trips a year >> sorry, megan. >> that's okay look, no major announcement has been made at a jackson hole fed conference since 2010 when bernanke made a big statement. and it's not like we haven't

been hearing from members and fed regional presidents ad nauseam so i don't think we'll get any major changes that are signalled to us. that being said, i think steve is right the official topic is changes in market structure and the impact on monetary policy i think officially they'll be talking about shifts to passive investment, what that means for liquidity in a downturn and things like that, but around the water cooler or fishing hole, i think there will be a lot of talk about the yield curve as well, probably a lot of talk about tariffs. while the fed will never comment about the currency publicly, i think there will be talk about strengthening u.s. dollar, tightening financial conditions and what that means across the em space in particular. >> and i'm not saying the fed necessarily looks ahead because in recent years they have been sort of looking behind, but if they were to listen to deere which said they got input costs that are up and their logistics are compromised by how hard it is to get a truck to go where

they want to go. there's more jobs than there are people to fill the jobs and wages, there's a lot of things that seem to indicate a little bit of a -- the beginnings of a sea change for what we've seen over the past at least 10, 15 years. do you think they're aware of these things and will change anything based on that >> they're definitely aware and you're right that input costs and transport costs in particular have gone up. but for all of the inflationary forces we have in the economy there are bunch of disinflationary forces that include things like the gig economy and the fact we're adding most of our jobs in services producing sectors demand shock on the u.s. economy. that all puts downward pressure on prices which is counteracting some of the inflationary pressures, so there is a never-ending conversation at the fed about what's happening with inflation. it's looked quite a lot better

over the past couple of months but that's because of statistical quirks more than anything structurally changing i think the fed is aware of that too so that will certainly be part of the conversation that is always at the fed but i'm not convinced we're on the precipice of a sea change in terms of inflation. i think there are a lot of disinflationary conditions in the economy. >> i have a question but was told not to ask it what should i do >> i typically don't listen. >> megan, there are going to be central bankers sitting next to each other the german guy is going to be there with a 10-year yield, 250 basis points different from the american guy is your forecast here that these things come together or do they remain far apart just give me a 30-second answer, if you could. >> so i think they'll remain pretty far apart until the ecb starts hiking rates which probably won't happen until next yore at some point, even further down the line if turkey turns

into a wider emerging market debt crisis with contagion to the eurozone i don't have it going up over the four-year forecast period but german bunds will be pretty low until the ecb gets out of negative rates. >> megan, thanks steve liesman, thank you it was just a little bit longer than we were planning. i think we are okay, andrew. in the meantime, doordash just securing $250 million round of new funding, more than doubles the valuation of the san francisco-based company at $4 billion. joining me is doordash ceo and co-founder tony xu good morning to you, congratulations. >> thanks. it's nice to be here thank you for having me. >> tell us what you're going to do with this money >> well, in many ways it's an extension of what we've been doing. when we announced our series d earlier in march we stated three goals. the first is to serve every city in the u.s. and canada we stated a goal to be in 1600

cities by year end we're ahead of target and will be ending the year closer to 2,000 cities second, we talked about adding to the restaurant selection that already is leading the industry. we started this year with an exclusive partnership with wendy's. since we've launched partnerships with chipotle and an exclusive partnership with the cheesecake factory and added ihop and others. and finally, we've extended our doordash drive platform. that's the service that allows merchants to offer delivery directly through their own channels in april we launched a partnership with walmart that delivers groceries from their online stores. we now do this for over 300 stores in walmart across 20 states >> in terms of these exclusive arrangements, how long do they last and is there -- what's the financial arrangement between these restaurant chains? >> so these arrangements are very strategic in nature in that

they span multiple areas the goal is really to bring delivery for the very first time from some of these very large establishments to all of their customers. when you think about wendy's or when you think about chipotle, these businesses have thousands of stores. and so we have to first perfect the operations second, understand how to go to market in each city. and finally introduce services that connect their customers to their stores as well as customers they acquire through doordash for delivery. >> that's what i was going to ask. in terms of customer acquisition, how much of it is coming via these other brands and how much of it is coming via your own >> it's largely coming through the doordash service, but if you think about where we are, today only 6% of restaurant sales are delivered. you know, if you exclude pizza

pizza today is half of delivery. 40 years ago pizza was only 4% delivered. if you think about the future trajectory of where non-pizza, many of these establishments that doordash has built relationships with, this is very, very early days. >> speak to the price point and the margin right now are you profitable >> we are profitable in our earliest markets as a company we are contribution margin positive and been that way for six straight quarters, which means we pay off all of our variable expenses and all that's left are the fixed costs. >> and finally, just in terms of price point, peizza is one thin. it sort of has a lower price and people are willing to pay a couple of extra bucks to get it delivered. what about on the higher end or not even the higher end, people paying $25, $35, what's the average price of a delivery these days for you >> the average price is a little less than $5 >> for the actual -- that's the

delivery fee >> correct. >> no. how much is the total bill typically? >> the total bill is 5 on top of the cost of the food and the customer can also give a tip >> okay. fair enough. >> still not answering. >> tony, just real quick, what i'm suggesting, is it a $50 meal plus the $5 effectively shipping fee to get it, delivery fee? >> yeah, so if it's a $50 meal, it would be $55 including the delivery fee and any tip on top that the customer would like to pay. >> okay. tony, we appreciate it congratulations and good luck battling it out. we haven't really talked about the competition because there is a lot of it, but we will talk to you and hopefully see you soon thanks again. >> great thank you so much. >> see you soon. when we come back, we'll talk to the ceo of a metals company that made a major

acquisition of battery component cobalt because he bought a tesla five years ago an it made him a big believer in the future of electric cars. he will ins,exjo u nt.

some precious metals have lost some of their luster in some trading recently. gold hitting a new low this year, this week for the year for a closer look at mining and metals, let's welcome randy

smallwood, a wheaton precious metals pretty big company, $7 billion market cap or so. >> yeah, it's taken a little bit of a beating with precious metal prices, but yeah we've got a good company. >> what's the makeup in general? because we're going to talk about cobalt and the recent acquisition, but when you talk about wheaton precious metals, what are we talking about, gold? >> gold, yeah. probably 50, 55% of our revenue comes from gold. we started off as a silver focused company but most of our recent acquisitions have been in the gold space. >> canadian? >> yeah, assets all over the world. >> so cobalt is interesting. it can't have an electric -- a battery without cobalt or else the biggest fear we have of overheating comes up explain that, cobalt is used. >> yeah, it's a component of mainly electric vehicles that's where we see the biggest growth but it's batteries it's lithium batteries cobalt is a stabilizer, so it stops these batteries from overheating. you know, we see it as being a

long-term component and we see a phase shift into electric vehicles so we are focused on precious metals, but we saw a great opportunity with a great asset the thing that i think appealed to us the most is that cobalt comes out of a canadian mine through a canadian smelter so it's probably some of the cleanest, greenest out there most cobalt comes from the congo and has all sorts of other issues so we wanted to differentiate this product. >> when you're talking about green, you're not talking about cobalt itself but the process. >> it's probably the soundest, cleanest out there. >> and there are other places in the congo. >> 60% of cobalt comes from the congo. we do think that there's going to be an increase in demand for sourcing on where the best cobalt comes from and trying -- >> well, do you sell to tesla already? >> well, we don't start taking delivery until 2021. we're funding a project that starts production in january of 2021. >> do you expect to benefit from -- >> i hope so as you said earlier on, i've

been driving a tesla for five years and i love the car i do think there's a phase shift in tesla, but there's a lot of other vehicles shifting that way. i do believe the electric vehicle phase shift is coming. >> would you say that your stock prices -- a lot of ceos would like to have it totally out of their totally out of their control. gold is not going down because of supply and demand for the met metal. >> there's no doubt. what we are dealing with a long-term, we look at precious met aals as a safe haven as long as we continue investing that the good long-term -- our average life is about 30 years we have another 30 some odd years of resources it's a long-term, stable precious metals company and now

we dabbled a bit in cobalt. >> thank you for bringing us up to date. you have the model s, i assume >> yes. >> i think the 3s are nice. >> i'm waiting for the roadsters. >> the new ones are a bit of a step up. >> all right thanks whether we return, the price of some of the most pop ought lars pickup trucks approaches $50,000 dlrsz are. we'll talk a look. we're right back in just a moment

the pickup truck is one of the most popular vehicles in america, now the price is picking up, too. phil lebeau has more on pricey pickups. i feel like these are already the most profitable vehicles for these auto companies, but that's even before we see the price hikes. >> it's not uncommon to find somebody who has maid $60,000 for a high-end pickup truck. even the average pickup truck will be over that $50,000

barrier, the new chevy silverado, just rolling into showrooms, the expectation is, yes, you will see the average price for the silverado top $50,000. msrp stops at almost 49,000 to begin with we have seen advancing higher prices over time this is the average for the big three pickup trucks right now. the silverado coming in at just under $44,000. many believe that would jump up when you add the new features. edmunds believe this is what we're seeing, because you see more and more buyers coming into this from a lifestyle point of view. >> the lifetime buyer is looking for a lot of appointments coming from the suvs, indeed with the pick uptrucks, there's luxury that outstrips some of the suvs that chef,, ford and ram will have as alternatives so the big question is, what

does this mean for ford and the f-series ford is the dominant pickup truck in this market they have about 40% of the pickup market in the u.s. sales this year, in a flat market, actually a down mark they're up almost 5%, expected to sell more than 900,000 guys, you are right. these are the profit drivers for the automakers forget about cars, forget about distance, those are money losers that's the problem these guys have been slow to get out of cars and sedans. >> but when we're talking about the average they would have to produce in terms of fuel economy and those standards? i don't know how you get there without small cars being part of the mix. >> you'll have to cup up with creative ways. >> don't be surprised if you see the automakers increasingly as they move more and more towards truck. you have the capped fuel economy

standards, that they can go back and say, look, as they sales increase, perhaps you'll have to change things a bit. >> phil, thank you great to see you. coming up monday on "squawk box," don't miss white house council of economic advisers kevin hasser he will join us live stay tuned we'll be right back. d. d. it's all so... smart. but how do you work with it? ask this farmer. he's using satellite data to help increase crop yields. that's smart for the food we eat. at this port, supply chains are becoming more transparent with blockchain. that's smart for millions of shipments. in this lab, researchers are working with watson to help them find new treatments. that's smart for medicine. at this bank, the world's most encrypted mainframe is helping prevent cybercrime. that's smart for everyone. and in africa, iot sensors and the ibm cloud

are protecting endangered animals. that's smart for rhinos. yeah. rhinos. because smart only really matters, when we put it to work- not just for a few of us, but for all of us. let's put smart to work.

only time left to see if the momentum moose is going to run today. markets down 12 after the big gain yesterday across the board, but we'll see. we won't know until 4:00 we'll see everybody back on monday make sure you join us, please. "squawk on the street" is coming up right now. good friday morning with michelle caruso-cabrera, sara eisen is here. jim and david are off today. futures are pretty steady after the dow's best day since april