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

europe's addic to some weekly losses ten-year 286 today our road map begins with futures slipping as the dow comes off the biggest one-day game. president trump borrowing a page from others calling on regulators to look into possibly ending quarterly reports. and 11 days from the infamous tweet, elon musk say the last year has been one of the most difficult of his year, and the worst is yet to come, as he chokes up several times. markets are stabilizing after yesterday's really in what has been a roser coaster week. today there's a no-man's-land between 2800 and the high of 2872 we're basically in the middle that. >> we've been stuck in that

trading range for some time. there are days when it seems like turkey is the excuse to puffer us louser, and then we're pushed higher. got the flow data from the last week from bank of america, merrill lynch, the headline is here come the defensives are we witnessing some sort of changes? it was noticeable in that -- most of the fang stocks were lower. so if it is a continue ways of a stock market rally, will it still be led by the growth stocks unclear. >> we've seen that definite rotation bob pisani has pointed it out several times. you can argue when the market lags a different sector steps forward to push it higher, and

weakening for the first time in three days, so to your point, blame it on turkey. >> there's definitely a correlation with german stocks peter boockvar pointing that out today, because you start to work about what's going on with the european bachging system. >> and the broader emerging markets basket this wee they had a rough week commodities had a rough week, that index up near bear market territory. >> we've been watching e.m. all week, and today about an hour ago, president tweets -- i asked what is it that would make business jobs even better in the u.s. stop quarterly reporting and go to a six-month system said one, that would allow greater flexibility and save money i have asked the s.e.c. to stud, -- this is not a completely new idea for the markets. back in june there was an op-ed for the journal arguing that

quarterly guidance should come to an end. >> forward quarterly guidance is very different from eliminating -- >> quarterly earnings. >> exactly. >> personally i think it's ridiculous, you want more information, not less, you're talking to somebody who thinking the s.e.c. shouldn't actually exist, so what would companies do if they had no direction whatsoever i would argue that companies that report more often would be given a higher multiple in the market, otherwise everything else being equal. >> wee have retailers stopped given monthly comps? >> it would be an interesting question to see what happened to the multiples. what happened to the volt tilt in their stocks? we don't get monthly guidance

from walmart bam, yesterday a huge move, because we haven't seen what's been going on along the way. >> there's long-term implications for jobs maybe, for investments, it's something the law firm brought of years ago, something that hillary clinton brought up when she was running to be president. i don't say that to be partisan, but to point out that president trump -- she called it quarterly capitalism as developed, and neat legally required or economically sound, it's bad for business, bad for wages, and bad for our economy. >> not necessarily an original thought. joining us for a closer look john rogers is here at post 9. welcome. happy friday. >> good to be back. >> take that quarterly guidance thing, are you a fan of that idea what would the impact be if you are? >> i would agree there would be

much more volatility, for sure, making investors a lot less comfortable, but i think there's positives, for all of us doing stock picking, doing research, it will mean active management will become more and more important, because we'll be doing our home work. >> does it ice out the individual investor? does it ice out mom and pop? because they can't pay for that incremental edge it would be harder for mom-and-pop investors. they have to wait longer for the data they don't have access to management as we do as professional investors. >> we ask this in the context of a company who wants to do well, but if things are going badly, if it takes that long to figure out how bad things are, certainty that completely detrimental? i just got to think company's in trouble will use this to suck money out in a way they wouldn't

be able to otherwise. >> i think you're right. manage that's not doing well, people get big shocks, stocks down 20, 30, 40% in a day, it will proebl be much, much greater if you have six months of bad news, but us active managers will hopefully take advantage of the inefficiencies, and make some active choices positive for our customers. >> is it so simplistic to say this kind of proposal would benefit kreismt:s? management teams and boards, but not necessarily investors? >> i think it would definitely help management. they spent so much time preparing for these meetings, getting ready for the television appearances, and they're not spending their time running business, so i think management will spend more time on making sure their products are great, and spend less time preparing to please wall street it would be good for management,

but again it will cause more volatility. >> when the rubbish hits the road, though, ben white of politico suggested the most that will come out is a white paper saying yes, maybe it's not so great. do you think this has tracks hundred? could it actually happen >> you never know these days but i think it's not impossible. anything that makes the capital markets, or makes the management teams spend time more effectively and efficiently, make they'll -- and a lots of business leaders. >> also, we're going into the mid terms. it's not that different from -- jim cramer had a conversation with senator warren this week, and the whole sort of broader question of are companies fulfilling responsibilities to their employees? to the broader society to the economy or are they just incentivized by

stockholders, their own equity it's a bigger debate as it's happening as we look for ways to increase wages and product activity, and i think we'll tiff to have this is conversations, don't you? >> i do. warren buffett has his big annual letter. he doesn't do quarterly guidance at the same time great investorses like joe monsueto at morningstar, they realize they shouldn't spend all their lives -- >> but if you're snap and you do public and investors have questions about how reyour company will be, can you imagine if they took away quarterly reports? >> that's where i would think you would see the mutt pal contract >> in the short term, but eventually markets would adjust. the quality of the business won't be affected, and

ultimately the stock prices will reflect the discounted values. >> i guess it's just you won't know for six months what the cash flow is, and if it goes knowing tiff, if it's not as good what if we waited six months on ge, right? >> our logo is a turtle as ariel. so we believe that long-term perspective, and patience wins. >> what's your overall sense of valuation here are these concerns overdone? >> i think the concerns are overdone i think they're very short term in nape. i think multiples are very, very reasonable here. i think we can make the cake with the earnings coming through so strongly, they're bargain priced, and i think there's a lot of opportunities to get in there and make great -- the defensive names making the runs

here, there's a story out of the bloom better about tech and momentum, sort of dovetailing again, you know, creating a would-be risk to the market. are you talksing ex-tech >> those traditional value stocks will start to shine and the managers focus odd that sector will do well. >> finally this time will happen what's different now >> i think these earnings, if they continue to show great cash flow, the markets will rotate back and people will realize that technology stocks have gotten expensive and there's lots of new competitive trying to disrupt the descriptors. >> we've been asking for almost two weeks are people worried about turkey there are people who look at turkey, argentina, maybe even

china and say this is just the beginning, the first whiff of the great under winding of the central banks, and turkey and argentina are just the tip of the iceberg. how rory are you about what appears to be the great unwind what does that mean for our markets? >> i think it will be short term in nature. a few years ago we were alps fixated on greece, and these things -- the markets come around, if you think long term, you get through these things three to five years out is what we always try to do. we won't be talking about turkey three years from now. >> greece exits its bailout on monday what's the jokes -- time heals hearts and finance over time >> the dynamics haven't changed.

dallas has gotten even stronger. these countries have huge levels of external debt and account deficits nothing has changed in that regard it's just another chapter in that. >> in the long run, we're all coming together, people will be able to do business together again. this is just a short-term issue, part of a negotiation, and i think as we look forward, everything will be fine worldwide, as long as we don't have some kind of military catastrophe. that's what you have to worry about, the power grid being attacked some kind of nuclear attack. outside of those catastrophic things, we'll be fine here. >> what's different during greece and now, you have a bit more unpredictable president when it comes to foreign policy. he's really commingling the economic policy and targetic things like other countries' currencies to inflict pain that's sort after different script for investors, isn't it

the. >> the good thing is he won't be president forever. whatever had damage he does in the short term, it will unravel. we've had presidents who have caused trouble in the past things change, they're out of office, you bring in new leadership. >> do you kerr his trade policy trouble? >> it certainly creates the kind of volatility we don't feel comfortable with we hope it's a negotiation ploy to get back to normal, but at the end of the day it will all wash itself out. and this week's news that a delegation from china is coming to the u.s., does it sound constructive is it or -- >> it sounds constructive. >> really? >> i think you have a chance of this market really melting up, with the great earnings, reasonable prices. >> john's not shaken by anything

he's mr. cool. >> we see a lot of up side here. let's go with the chicago bull >> john, good to see you. >> great to be back. it has been a turbulent week for elon musk. in an hour-long interview with the too many, he says it's been the most difficult and painful year of his career phil with more >> let's start off with the news that came out during this hour-lounge interview. the go private tweet, he says he doesn't regret it. he says why would i? he also denied drug use. there's been speculation and reporting that perhaps he'sing using drugs, he says that's not the case he also says there's no active search for a chief operating

officer, which is what some people have said tesla needs with regard to his future, he says if you have anyone who did do a better job, please let me know they can have the job. is there someone who can do it better they can have the reins right now. we should point out "new york times" also reporting that musk and members from the board of directors are preparing to meet with the s.e.c. potentially as early as next week i'm not sure the company would say, yeah, they're definitely meeting on x day, but that is likely the next step in terms of this discussion over the tweet, but this hour-on long interview between musk and "new york times," those were the nuggets that were in there with regard to him saying it's the most challenging, i'm tired, i'm worn out ask any reporter, you hear that kind of comment on a regular base from elon musk.

and it maybe by true because of all the hats he wears. i read that and immediately i thought, okay, weaver heard this before let's got on to the news here. >> i mean, i was not on weed, to be clear, weed is not helpful for product activity there's a reason for the word "stoned. that's a pretty good quote >> those reports have been out there, that he put 420 out there, because he was trying to get cute, maybe a reference to the drug culture, so i'm not surpri surprised he denied it. >> but it sounds like they probably asked him, the 420 walls a reference to pot >> no, i came up to 419, and it's so close to 420

he implied that it basically was about pot. >> he said it would be better karma. >> but he wrote the story to make -- you leave the story the impression that 420 was definitely a reference to pot, even if he didn't say it complicitly. >> right look, historically, within tesla over the years, there have been little references to interesting little things that make people chuckle, and as a result, that's why people thought perhaps elon musk was sending out a message with the number 420. >> yeah, for sure, you saw it in the responsive tweets he got from his fans on twitter thank you, phil. speaking of tesla, jim stewart and kate kelly interviewed elon musk. they'll both join us later also a tech innovator, hold ago robotics conference in mexico city? check out shares of campbell's

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glee cramer warned you about potential disappointment in the nvidia quarter yesterday in fact they did warn on current quarter revenue. both down between 2% and 4%. we'll talk about that when we

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so you can be confident you're getting the best price. giddyup! kayak. search one and done. take a look at deere, falling after posting a miss hey, morgan. >> here 'the big takeaway, john deere saying replacement demand is boosting sales even as profit missed estimates, thanks to higher unput costs so mixed results for the fiscal third quarter. non-gaap aarons, that said the gaap number higher by 19 cents

when you factor in the tax reform 9.3 billions for the quarter, and the maker of farm equipment reaffirming they expect it to grow about 30% net adjust that's the ceo and chairman noting farm machinery sales in north america america and europe made solid gangs, thanks in large part to the acquisition that deefr made last year, but we have continued to face cost materials. now, deere's been seen as at risk from the broader trade conflict between the u.s. and china, most notably recently the chinese tariffs on u.s. agricultural exports like soybeans, the idea you see weaker demand for their products, but they also have

been dinged by higher steel prices, so you can take a look that's played out in shares of deere. they're down right now premarket another 3%, but they did have a big run last year. >> thank you, morgan opening bell just about four minutes away don't go anywhere.

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you're watching cnbc "squawk on the street", the opening bell in about a minute. ♪ money for nothing >> familiar tune there, the vmas are opening the bell today. >> why do they have a moonman as their mascot >> that's back to the '8 ons, right? >> yeah, when going to space is much harder than it is now >> speaking of which, let's get to the opening bell. a lot of news happening this friday we talked about elon musk opening up to "new york times. what an interview.

obviously nvidia and deere are an issue, the president of pitching an idea of less frequently in quarterly reports. as we said earlier, the executives from mtv highlighting the upcoming music awards. and the mda, a nonprofit working on finding treatments for that disease. >> the falling bitcoin definitely hurting them. if you want to mine, you buy their stuff. and far fewer people want to mine at 6,000 than 20,000, so there's a real follow-on effect. >> i think there's questions about this group the chip stocks have been so hot throughout the bull market everyone was wondering when will

the cycle end, and there are some questions about whether that will happen >> some of that takeover premium has to come out of there >> yeah, dan niles is -- his thesis has largely been if you believe the trade skirmish is going to worsen, you want to be out of hardware and more into software services. though that didn't help facebook yesterday. what crazy price action wall >> down 3% netflix didn't do well it hand managed to come back, so punishments for earnings, though retailers have had a pretty nice weeks. walmart yesterday, nordstrom after the bell check out nordstrom shares, coming in 11% above forecast on the earnings front sales were also a lot better how about the comp store sales, analysts were looking for less than 1% there, so nordstrom had

been punished in recent weeks and lagged behind some of the other department stores. i think cramer has liked it and believes this has some catch-up room. >> similar to walmart. it did not have the big run-up so many retailers charged ahead. macy's a great quarter, and yet the shares fell, right but it had already been up 30% nordstrom hadn't moved that much, so you beat and then you actually get some move in the stock upward raymond james actually cuts walmart. still an outperform. their argument is that the quarter was outstanding, but flipcart is likely to weigh on consolidated results for several years. some of these price target cuts on penney's today, deutsche goes from 3 to 2, citi goes from 2 to 50 cents a share on jcp on what was devastating price action

yesterday in their quarter >> 500 million on 30 it's down another 5%. >> it's going to get to the point where it won't meet our standards for even talking about it on the air. >> half a billion. pretty remarkable. i think it's so interesting that google faces about whether or not to go back into china, and the internal dna when they ask themselves what are we about, and front page of the newspapers today about the meeting that sandar had with the employees to say we're not there. so everybody relax, but certainly the day that we were talking about apple hitting a trillion, you wonder if google had never left china, would we be talking about google being the first trillion dollar company. that's one of the most interesting business questions i think of the decade. what do you do when you're

google do you bow to the censors or forgo the revenue? tough call. >> especially china without open arms for u.s. business we saw what happened in facebook. >> and i think the political climate here in the united states, i mean, what do you think president trump would tweet about them if they were going definititwindefinitively ? >> punished? targeted >> yum china shares downgraded at open haimer they cite the big run-up that the stock already had from back in 2016, i think it's been a 50% rally or so, and there are risks when it comes to u.s. businesses operating in china >> and they are free cash flow

positive, so they could secure funding perhaps. they could be appropriate for a traditional lbo, no debt on the balance sheet. there's been rumors about that, but open haimer says it's not good enough. >> what do we make of these campbell headlines out of the cnbc, tapping goldman to examine some scales, weighing the sale of some of their cookie brands, fresh food unit. this is nbc citing sources. >> so we make that if campbell's is going this route, maybe not the route of an all-out sale of the company, which i think some investors were hoping for, including potential dan love, all these rumors and chatter and reports of campbell's being looked at very hard by 3g and kraft heinz. this might suggest that campbell

is in for smaller fish to fry when it comes to a strategic review, whiches company is in the middle of in the fall, just spinning off some of the underperforming brands might be a good step, pup not the transformative that people are looking for. >> incrementalism, and part of that is the board is still, you know, the family has a little less than 40%, in control, big question of whether they're ready to look at all all-out sales. remember how it took -- it took decades for them to come around, and then finally a huge price that he later wrote off, because it took so much money to dislodge them. >> absolutely true one limit in the nvidia call, a bit of track talk between nvidia and tesla, and now vice versa. take a listen to this. >> i appreciate elon's comments

about our company, and i also think tesla makes great cars i drive them very happily, and with respect to -- with respect to the next generation, it is the case when we first started working on autonomous vehicles they needed our help if it doesn't turn out, for whatever reason, doesn't turn out for them, he can give me a call and i would be more than happy to help. >> it shows you how much is riding on the car as a data source, right? when these things actually go live and scale, they turn out data in ways that few industries in our daily lives do. >> the other thing i draw from the story, despite all of this, the elon musk tweet is from yesterday at 7:30 at night he hasn't stopped. this is in response to elon

musk -- >> and he says he has no plans to stop, though the board has asked him to curtail it. >>where he was tweeting, the circumstances around the tweet they were able to confirm that he hadn't preroughed the tweet or run it past anyone. help woke up as normal, i think worked out with his girlfriend, and was driving his model 3 to the airport, sending a tweet not sure if he was tweetic and driving, which is a question -- >> maybe he dictate that had. >> they're self-driving cars, aren't they? >> remember, not fully. >> the other intriguing reference was about ambien you know, years ago when i was traveling during the european financial crisis, a road warrior, road warriors inevitably get to to the, do you tay ambien --

>> this guy says i stopped taking it, and i wake up the next morning, and my colleague says, what wasyour night line? i slept great. he said no, you didn't, you talked all night long. you harassed the flight attendants, he actually didn't sleep, so he stopped taking it after that it can cause some sleepwalking i stopped taking it, because i found it made my sluggish the next day on the air. >> and he has pressures we probably can't imagine. we talked about emerging marks andle rally on the stabilization and the china trade talks. ten-year really hasn't moved in the direction that would confirm that i think 284 was our last check the question is why didn't bonds react? >> and what was the yield curve about again yesterday? we saw higher yields, a weaker dollar form the chinese currency

actually gained strength, yes you still have that flattening yield curve, which continues to be a subject of debate over how much that tells us if it invertebrae as a recession indicator as a warning sign for stocks, or as rick santelli has been saying an impact from the rest of the world's central banks, which all manifest themselves the financials did get a boost yesterday and have been performing better, sort of teeing off the ten-year yield. >> you would think it would be widening at this point why is that happening? it could very well be if things continue this way in turkey, there will be a massive wave the corporate defaults >> what does that mean it's lost more than 40%, but debt rolls over over time, so

you have to way for the due dates, and there's so many corporates over one big sovereign. so its i think it will be slower, but predictable if the currency staying where it is i see no sign that erdogan will do anything -- the treasury secretary hada very long conference call yesterday and said some of the right things. >> think the bigger question is the contagion factor we'll continue watching chinese currency and others. we wanted to mention zoe's kitchen. it's going to get taken out by an investment group run by ron shake, former ceo of panera. hey, bob. >> good morning. happy friday, everybody. for all the this drama we're flat for the week. i'm going to show you some of

the sector moving. consumers staples are still doing well t they've had a good few weeks. energy is finally showing some activity materials are flat the semis are weak, and guidance was a bit below expectations, we don't quite have the asymmetry in the performance of the global markets that we've had in the last few weeks, but the u.s. is still outperforming the rest of the world. we're flat on the s&p. japan and brazil are only down fractionally, and china's just had a terrible time, down 4.5% overall. in terms of the outperformance, because the u.s. is the place to be let me show you where we stands here on investments, you know

what's going on. m & a has been strong, the value wayses are sensible, yes, you've got some narrow leadership, and you've got some china growth concerns speaking of china, i said another tough day. we're 2 1/2-year lows in shanghai right now they're down notably we had larry kudlow out yesterday saying china -- he might be looking at the shanghai the problem is a lot of people have noted that the chinese stock market doesn't necessarily reflect the state of the chinese economy here, so retail investors, this has been widely talked about, are 80% of the trading buy. they tend to react very short term, tend to be emotional and household allocation is fairly small. that's a fraction of what it is in the united states the bottom line, if stocks are

still not a large enough part of the household net worth to really make a difference the economy in china has growing year after year. finally, president trump talking about -- asking the s.e.c. to end quarterly reports. i think you should ask the question -- who wins when less information is available professional investors guess more access to more information. the analysts will still report, and if the companies don't provide the information, wall street will try to fill the vacuum i think the bigger issue is the mind-set of ceos, more of them are short-termers, the ceo compensation drives the behavior how about a conversation about that and maybe that will help things make the stock market a little less volatile. right now down ten points. >> tell us what you really think, bob. >> we'll talk about it more in a

couple hours. >> yes, on "closing bell." excited for that rick santelli at the cme group in chicago, good morning, rick. >> good morning, sara. bob hinted at it with the s&ps, two years down, ten-year down one, down one on the week. same for 30s, down two on the day, down two on the week. not a lot of movement even though those are closes, of course intraday we've had some swings, but for the ten-year in particular, we're not much above 290. you can see clearly we've lost some ground, it looks like a beeline much closer to 70 basis months one week of the ten-year note and it shows we have given up some ground

we failed at 3%. look at a month to date. the bund failed at 50 basis points, and look at the right side of the graph there, we are trading down below 30 basis points finally the epicenter of most of the activity, the dollar index and currencies the what's notable there basically almost toughed 97 finally looking solid, and this is an issue to pay attention to, as long as it moves up in a methodic fashion like it had been, unlike some of the big moves we experienced with the dollar shortage issues after the turkish lira lost value. that's what you want to pay attention to if the dollar index already a barometer. michelle, back to you. >> noted rick, thank you so much. time for a closer look at oil prices dominic chu is at the commodity

desk. >> oil prices are up higher but things don't look exactly positive we have on pace for a third week in a row for brent, wti is on pace for seven weeks of straight losses, as the fears of global economic growth weigh in, and ampling supplies of cruel, they sentiment dampeners. you add to that a bigger-picture trend of dollar strength, and as for the impact on the stock market, energy by far the worst-performing sector in the s&p 500, down this week by nearly 4%, entering that's trade, and we can see the markets are starting to slip a bit. back over to you, sara >> having a little comeback today. as you say, a rough week for energy overall dom, thanks. coming up taking a well-known ice cream brand to a new level.

we'll talk to the new ceo of ben & jerry's. "squawk on the street" will be right back with the dow down five points.

what a week it's been for retail and that continues today, some of the best s&p gains of the moment, "squawk on the street" continues in a moment. dow is down 14 so we can fit them into our unlimited wireless plan. who's first? no. this isn't permanent, right? ask him. [terry squeals.] get unlimited data, live tv, and your choice of an extra on us. more for your thing. that's our thing. visit att.com

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the following story falls into the news you can use category marriott merging it's loyalty program two years after-acquiring star >> one of the main reasons, starwood's loyalty program starting today, the rewards will finally combine into one single currency, bringing 110 million members into a unified program it's these members that are a critical driver of marriott's business and that's why wall street will be paying close attention to how customers respond. a number of travel experts have been reviewing the program the um sides, access to over 6,500 properties

no blackout dates for point redemptions, but expect to shell out more on popular nights marriott is introducing peak pricing in to 19 travel from spg says more travel members will be competing for a number of upgrades on a given night so getting access to suites may get more challenges and if you use points to rack up status, the card reduces the number of points from 3 to 2 hyatt three launched it's own credit card in july. so far this year, shares of marriott have been under performing it's peers, hyatt and hilton down 20% by 2018. next coming months will help wall street get a better sense of whether travelers will stick with a new program or look elsewhere, because with the hospitality industry, loyalty

matters. >> looks like a real tradeoff. many more choices and yet many more people competing for those choices. that's the bottom line >> that tease bomtd lip, and we'and - that's the bottom line, marriott had been trying to win over that customer and this new program will give us the answer as to whether it will work >> got a downgrade of hilton today. when we come back, jim stewart, m.k. kelly with this eye opening interview with elon mosque tesla shares down close to 6%. dow is roughly flat. back in a minute 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.

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♪ good friday morning, welcome back to "squawk on the street. here at post nine of the stock exchange dow is up 2, but a lot of stories swirling underneath.

whether it's endeara, or smear it starts with the worst is yet to come. that's elon musk in an interview with the times as we get the report on that sec probe the stock down 6%. trump ca and nordstrom joining other big name retailers with a beat on earnings that sent shares of the retailer soaring let's get to rick santelli and get some consumer sentiment numbers here >> let's start out with the july leading economic indicators, up .6%, that is better than the .4% expected tha that's sequential improvement. remember we toss this in a couple of weeks, 95%, which

follows the 97.9% which is the final july report. the one year inflation outlook increased from .6% tofrom .5% >> still lower, 285 on the 10-year. the president weighing in on ceos and corporate transparency via tweet this morning saying he would ask the sec to look into moving corporate reporting to a six-month system, instead of quarterly earnings results. let's bring in the chief investment officer at oppenheimer funds and chief investment strategist at charles

schaub >> you look at our port folios, nothing changes on a quarterly basis. so it's not a bad idea but we have to make sure that we maintain corporate transparency, that has been the hallmark of the u.s. capital markets for some time. so that's something that needs to be weighed in as well >> do you agree, reporting every six months instead of every three months >> it's not clear what that's like lly to have on -- we quite some time ago moved away from the cupid the kind of defined corporate guidance and that's what we take away from our investors and the investment community so we have moved away from the idea that short-term reporting

does have perils to it but moving from a sithree-montho a six-month isn't clear what effect that would have >> the motivation to investor the long run i think is very important. so if you look at u.s. corporate sector, the biggest challenge we have today is their ability to invest for the future. i think we should focus on all the things that can get that investment -- >> why is it hard for them to do that >> i think really it's kind of measured every day or every 30 days or every 60 days, i think that sort of has an impact on your mind, even if you don't admit to it. >> so take a stand, you're a ceo, right this is ridiculous, you have to be able to stand up for what you do and to remove this quarterly reporting, let me ask you, would you want more information or less information from a company? >> i'm not a ceo of a company,

so i'm not in a position to certainly discuss that as it relates to schaub, i think as investors, yes, there needs to be more information. but from a company's perspective, as well as it's shareholders, if the decisions are being made merely to hit the quarter expectations, which relates to shareholder value as well as employment, et cetera, i think it's trade off and i do understand the merits of discussing some of the perils of short-termism if it relates to if your sole goal is to meet the numbers on a quarterly basis, what are the implications that has on long-term planning. >> take walmart is a great example. we saw they're going to increase employment in the stores no one understood why, and now they're crushing it because

those investments paid off the big swings went over the fence. that's public life, why should we mess with that model? >> i'm not suggesting that we don't provide information. what i am suggesting however, is that just focussing on a quarterly number, which the markets have a tendency of doing, creates noise in an environment and may it will benefit and see if it is really needed >> they were talking about newt guidance, not getting rid of quarterly earnings reports, but here's what they said. >> some of the ills and progress of people making earnings forecasts, not transparency, not openness, not having quarterly reporting. management from the ceo down feel s obligated to deliver earnings >> what's imagi ee's magic abour we're in business for a very

long period of time. >> so that echoes your sentiments >> there's no reason why you can't still have quarterly reporting, but the guidance you give is more long-term in nature and that is the course we're taking as a company. >> we're talking about what's best for investors, what's best for ceos, what about what's best for workers and the economy? which is i think what president trump was getting at is there implications for the bottom line by focusing on investing more in your businesses, in your workers, in your plans and in the overall economy? >> i think it is the ability to invest for the long run is really the biggest challenge the u.s. faces today anything that we can do that helps and facilitates that, i think it's something that we should look at and debate.

>> liz anne, the other things that we're hearing from those defending this idea, is that the cost of doing this is onerous. can you make way for that argument >> it's not an area i'm involved with at all, so nerms of the cost structure, whether that gets better or worse, i don't know i would tie it back to investment time horizons and i think there is a relationship between the two. as companies have moved more short-term in their guidance and in their reporting, that i think has contributed to shrinking time horizons on the part of the investors. so when you look over the long-term and you use mutual fund holding periods and more recently with etf, that's how to shorten it again, that's tied to performance. i think time horizons on the part of investors may have an affect on time horizons and how things are moving. if not.

> -- if not, you want to lengthen time horizon. maybe this is a look at helping get away from that >> liz ann, what do you think of the market here? >> i think the market obviously looks okay, i think we're still in a secular bull market, but i think the shift toward more defensive leadership is changing toward a changing character in the market and we just recently changed our sector recommendations to move away from kind of a higher growth more cyclical type of bias, we downgraded financials just to mutual, but we moved up some of those more defensive sectors, so you're seeing maybe not a full on risking, but a change in the market with late type -- including this uptick in

inflation and valuation. i think we're okay still, but there's time for a greater amount of inflation and rebalancing. >> which sectors would qualify as defensive this late in the cycle? >> in addition to moving technology advances down to neutral, we moved utilities and investment trusts from under weight to neutral. so we have overall more of a neutral composition to our sector recommendations than we have had in quite some time. >> i also want to mention, philly fed, and now michigan low today. does sentiment matter? >> we have to be cognizant of the fact that we're coming off of a high peak the second quarter is one of the best quarters we have had in a while and things are going to slow down and in 2019, things

are going to be slow in fact to me, if things slow down, that's really a good thing rather than a bad thing. that sort of takes out the fed from having a big impact on the market by not tightening continuously in 2019 so i agree with liz ann, things are good, but from a profitability standpoint, from an economic growth standpoint and if we can take out the fed play in 2019, things can get much better than where they are today. >> long-term is up >> christian and liz ann, have a great weekend. >> thank you when we come back, the sec honing in on tesla as elon musk talks to the "new york times" in an extraordinary interview he's sti eetalked about taking company private on august 7. and pridt umesentrp is calling

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walmart just crossing the wires and immediately up 5%. >> the real standout, look at u.s. comps this is the best reading in 10 years. >> it's good, some of the best growth of any company large or small. >> america is crushing it right now. the world is investing in the usa. give us a chance to compete. we will sell a ton of exports to china.

. elon musk on the record with the "new york times," in the piece out last night, he said this month has been the most difficult and painful of his career joining us at post nine, pulitzer prize winning columnist jim stork is with us it there's so much news in this, whether it's about the chairman

ceo roles, the board's reaction to his tweet, the board's willingness to let him tweet or not. >> let's step back from the headline news for one moment first of all we're talking about one of the great entrepreneurs of our age, if not of all ages he is an extraordinary person. he's also, i think it's perfectly clear from this interview, he is a human being like everyone else he is not superhuman he is under tremendous stress, he's not getting enough sleep. he hasn't had a vacation in years. he barely made it to his brother's wedding, he spent his b birthday 24 hours at work not seeing anyone around him i don't think this is a cry for help, i don't think that's how he would see it. he has a great enterprise going on here, it has great potential. and as i say in my column, this

has a big psychological dimension, someone has got to help him here because no one can do this alone. >> critics, not even critics, observers would argue, having a job like this is hard, lots of people do it and they do it with help why hasn't he brought in a number two as is suggested in this piece >> that's a really good question the board has been talking about his need for a number two for a long time and it hasn't happened and he said to his knowledge, there's no actual surges going on i mean this is not uncommon in the case of visionary entrepreneurs, it is very, very hard for them to cede authority, to cede control over something they created in all of these great new technology companies, at some point that transition has to be made look at what happenedgoogle. another example that hasn't been going quite as well is the uber

situation. this is not an unusual situation for a visionary entrepreneur >> jim, do you have any idea why he spoke to you guys now in the middle of this potential, sec investigation, trying to take his company private, i mean all sorts of questions, why did he open up to you guys like this? >> i guess i could speculate about that, but i think only he could really answer that it's kind of like the question, you know, why did he do the tweet? i mean, this is not entirely inconsistent with that kind of behavior >> was it really planned >> i have no way of knowing that if i were him, it was a good idea to get a lot of these facts out. and certainly one of the arguments i have been making to tesla this week was that if the facts don't come out and there's a vacuum and there's intense public interest in the circumstances here, then rumors are going to mushroom and grow

and the best way to stop that is to end the mystery and i think he has succeeded in doing that >> i guess the spirit of the question was, did he do this on impulse? did he call you? is this like the tweet or is this some strategy put together by him and the board or his p.r. team or whatever to do exactly that can you give us any insight? >> i can't talk about this interview, other than to say that this was a team effort with some of my other colleagues at the "new york times. a lot of work went into this, i think sometimes people feel oh, sources call it out and start talking. me feeling is this never happens, or almost never happens. what his thinking here exactly, i think we have yet to hear the answer to that >> i think i heard that he

wasn't criticized and didn't hear from the board. and then there was another paragraph, he said one of the board members then said -- explain the chronology of that >> that is the chronology. elon musk said that one from the board has raised any issues about the tweet or complained about it >> about the 4$420 million tweet >> and after the story was published, the statement came in from the lead outside director that directly contradicted that. i mean there had been a lot of contradictions in this story and i don't -- i can't explain that. i think did elon musk just forget that? i don't know, i can't speak to th that >> you were clear during the interview, did you ask him about the ambien question? >> i can't get into the back and

forth. i think the interview does speak for itself he addressed that issue, it's clear that the board had been having concerns about that, and elon musk has been i think amazingly candid that there have been, you know, he has had issues with am bee ybien and hed he might be considered somewhere on that psychological spectrum >> my question is it helps people understand him. that makes sense but what do you say to those who say i feel for him, i emp thathe with him, but i'm not comfortable handing this company my money if he's fragile >> whatever his condition might be, he has to comply with the law, he has to comply with the securities laws, he has to be mindful of the responsibilities, the enormous responsibilities he has to employees and to every

haves. -- investors and people like him, like i said, no one can be everything to all people which is why they need a team behind them. they need a person behindthem. they need a filter they need someone who can make sure that their strengths are put to best use for everyone's benefit, including the potential buyers of these wonderful cars at the same time that the potentially destructive impulses are kept in check. and he's not alone in having to do that, but this is reaching a stage where it's very critical that something like this be put into place >> are you surprised to see the stock down 6% after your interview? >> not really, because -- i mean there are some very, to me, very interesting but also troubling revelations in that interview. like let's talk about the $420 prize. he said, oh, he just glanced at the to be price, tacked on 20% and then rounded it up to 420

because of quote, unquote, karma and that's national marijuana day. >> he acknowledged that? >> that's in the interview >> the way i read it, i don't think he explicitly referenced marijuana but it was written to draw that conclusion enter i think that's a farrakhan collusion. >> i think, you know, i can imagine, you know, corporate finance students across america who have spent years learning how to do discounted cash flow will look around andi insay, wh? >> what about the deal with spacex, this looks like a solar city redux, but this happens to be his most successful company -- he's also doing rocket science statement, it's pretty astounding. could that company subsidize this one or help out >> as the story says, that's a subject that's under discussion. my own sense is that all of these things are in a extremely

preliminary stage. i think if one thing is abundantly clear at this point, that this tweet was impull isim it was not carefully thought through. he was driving to the airport in a tesla when he wrote and sent the tweet. >> so what does the board do now, jim >> it's an extraordinary situation. i can't readily think of anything but his brother could probably have a great deal of influence but this is way beyond my expertise, but i think right away, i don't think it takes any great thinking to say that he needs some sleep, he needs a good night's sleep and i think he needs a vacation. >> the language in the piece that the conversation alternates between laugh terter and tears.

i mean the tears, did he literally cry into the phone >> i think i'll stick to what the story said that he choked up, he had trouble speaking he was clearly, i think, in the -- from what is in the story, you can tell, he was struggling with his emotions >> ultimately, when you read it, it still fits -- you read it and you conclude, retroactively setting up facts and reports to help bolster that tweet, right i mean that's the bottom line. all those statements, et cetera, are retroactive fryitrying to f that >> i think another red flag in the interview, is that he says he doesn't regret doing the tweet, and if he had to do it all over again, he says, well, why wouldn't i do it i think we all might be able to

answer that question for him and he also says he's going to keep tweeting. and then the director came in to say no, he agreed he would stop tweeting and something i pointed out in my column again, it's not easy to control people with this psychological profile. but he is going to have to accept some checks and balances. >> it jim, truly markabremarkabe just don't see this very often, thanks to the "times" for bringing it us when we come back, a look at chip stocks, nvidia and applied material, the whole group is down 8%, we'll be right back

both nvidi and applied materials disappointing this morning. and josh has more on the chip report and our etf report. >> nvidia has been a stock market star. it was up more than 30% so far this year, but this morning in the red, along with the rest of the sector

bernstein's stacy razgod said that guide daance was short fore first time in a while. selling here seems ill advised given that the core business is stable another stock on the move sharply to the down side, check out applied materials here, which makes the machinery used to manufacture semiconductors, it posted weak guidance here too. he thinks an attractive entry point could be coming in the next one to 1 1/2 months the etf sector shows about 9% off its high there's also the smh, about 10% off its high microdown nearly 30% off its

recent high, nxp too also off about that much. if you're looking for some green in that etf, take a look at amd, positive for the week, and up nearly 90% so far this year. back to you. >> josh lipton, when we come back, after ending the week with upbeat earnings, how might retail be affected by the impending tariffs. rick helfenbein will be here we'll be right back.

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hello, everyone, i'm sue herrera. oklahoma is cleaning up after severe weather rolled through the northern part of the state last night these pictures are from hard hit tulsa. heavy rain and high winds caused damage throughout that area. more than two dozen people in new york city were treated

for carbon monoxide exposure last night police say the victims were attending a concert in midtown manhattan when they were overcome by the fumes. officials say the source of the carbon monoxide was from a beverage machine, and the area has been isolated shut down and vented japan's main island is getting the first snowfall of the season, a cold front lowered temperatures to 32 degrees the snow there is the earliest since 1974 and australian police are searching for a man, ouch, who ran into a bit of trouble in a parking garage, surveillance video showing him charging through the gate at entrance, and falling to the ground. he did some damage to the barrier, but looks like he's okay that's your update for this hour, i'll send it back to you guys sarah, back to you welcome back, everyone to "squawk on the street," live

today at post nine from the new york stock exchange. an hour into trading, and let's show you where we stand, some modest decloines across the board, dow is down 20 points nasdaq is being hit the hardest. technology is most certainly the laggard, but technology hit hard the defensive stocks are charging again tech is the biggest loser. big week of earnings, nordstroms just the first leading the way, reporting strong online sales. take a look, another 10% mover here for nordstrom, 57.86 with a gain of $5.58. rick helfenbein is here.

welcome. whether it was macy ee's to the down side, or walmart to the up side what's going on? is this the strong economy they finally righted the inventory? >> in retail we look at three things, we look at consumer confidence, we look at believe it or not the price of gasoline and employment numbers taking those three things, we are rocking and rolling right now. remember, in apparel, in footwear, in accessories, we buy six to nine months in advance. so everything is just great right now. it's very distressing when the president tweets out tariffs are the greatest well, you know, tariffs are not the greatest >> what percentage of retail products have tariffs on them right now? >> it's rising rather quickly,

the rhetoric is rising quickly first we had $36 billion then it went 16 more to 50 billion, now there's discussions on 200 billion, now footwear and apparel will get hit in the fourth time, and how about getting hit in your own wallet >> y >> but retails are not paying it right now? they're just anticipating it >> they're anticipating it remember people are buying in advance, so if people are getting out of china, getting them elsewhere prices will go up. we will have that famous triple negative, prices will go up, jobs will go down. >> is that why volume at shipping port s is high now?

>> everyone shopping for school might want to buy two back bapa this year instead of one because prices will go up. >> how much of our handbags are actually made in china because so many are made in vietnam and indonesia. >> i give tapestry a lot of credit, i know them well, they have been working on this since five years ago, trying to relocate out of china. and michael corps is similar, relocating, planning for the future but that had a lot to do with cost rising in china but today, 31% of all apparel comes out of china 7 72% of all footwear, 83 percent of all accessories we are stuck, so you raise us 25%, i tell the consumer, watch out. >> are you more concerned about this, or we went to down on border tax for almost a year, how does this compare? >> i lost 10 pounds on border

tax. i will lose 20 pounds if these tariffs hit. it's bad enough to talk 10%, then you talk 25%, then you talk another 2$200 billion >> the president sees the results from these retailers and he's going to feel emboldened, if not now, then when? everybody's doing great, this is the time we can afford to do >> you got to be careful right now things are good. things could get bad, you can give the president a lot of credit for being ahead of the curve and bringing the idea of intellectual property and transfer of technology to the forefront, that's a good discussion but tariffs, we have always lost on tariffs >> just to build on that further, the president might say, you guys are all paying a lot lower corporate tax rates and most of these retailers are domestic and they are big beneficiaries of the tax cut, could that offset some of the

impact of tariffs? >> in our industry jargon, we think the u.s. government invented the five pocket jeans so they could have a fifth place to put their hand. this is just not right we are 6%, 6% of all imports in the united states and we pay 51% of all duties now. you're going to add to that? our retail industry last year had more bankruptcies than they did in 2008. we're a recovering industry, don't tax us more. this whole thing with tariffs, it's like punishing your daughter for something your son did. he was after the trade deficit, when the economy's good, the trade deficit gets bigger. when the economy is lousy, it shrinks. >> we have had many, many economists point that out. >> adam smith said the idea of balance of trades was ridiculous, and it is ridiculous so there you go. >> at least you lose weight when you're stressed. good to have you on, thank you

when we come back, iconic ice cream maker ben and jerry's welcomes a new ceo, we'll talk to him about why he wants to make a push r foactivism "squawk on the street" back in a moment, dow's down 2 points. doing more with systems you have in place. it can bring all your apps to life and run them within your data center. it is... the ibm cloud private. the cloud that's built for all your apps. ai ready. secure to the core. the ibm cloud is the cloud for smarter business.

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boeing is up nearly 50% this year some traders are betting on more ndins ahead. fi out why and how much. more "squawk on the street" coming right up.

hey, kayla >> we have been on tenor hooks waiting on a potential deal between the u.s. and mexico to be notched the president and all of his economic advisors have been teasing all week saying we're close. and this morning we caught up with the u.s. trade representative and asked him when a break through would

happen, how much longer? here's what he said. >> those are the things you never know in a negotiation. hopefully very few days. >> hopefully very few days we will see if that pans out this is something that the administration has been looking toward for some time you still need canada to get back on board with nafta, but mexico is the first. let's get over to the cme group in chicago get and get the santelli exchange. good morning, rick >> i would like to welcome my last guest of the week, peter tur. thanks for joining me, peter >> thanks for having me, rick. >> there's very little doubt, we've had an adjustment and recalibration in many markets. initial exchange seem to be the new battlefield. what do you think about the last seven or eight trading days peter?

>> we were getting a little bit of a ---corporate earnings were very good. high yield loans are still doing well i think there's some nervousness that those are priced to perfection but we're going to be watching foreign markets for a while. there's enough going on with turkey, mexico, brazil, and even italy which is going to be a big topic of conversation going forward. >> let's zero in on italy, because i agree with you, the cast list in some regard was what was going on in turkey, but pretty much after the dust settles, things are going to go on, but italy is a lingering question with a lot of question marks. explain to me your fear of how italy could turn out and the affects on the market place. >> back in may when the election occurred, we saw bond yeelgield widen. italy said the same thing and if you look more closely, you're seeing italian bond spreads grow

out as opposed to german bond spreads. i think you're going to see a lot of noise out of italy that's going to scare markets and look at how the euro has weighed out. >> what i find very fascinating is it's very normal to be buying in the best safe harbor sovereign, so bond yields find thechls themselves under lower basis points i think it's going to be a problem for the european central bank what's your thought? >> i think they have used utmost of their ammunition, now that you get these governments that really want more protection than is currently allowed, i think you're going to see more problems that's a bigger deal than anything going on in it tally or

to oor -- italy or the emerging markets. >> if the europeans end up having a problem and if italy is part of that problem, and the monetary tightening program is infringed upon with regard to the status of their economy, can the u.s. avoid some of that contagi contagion? >> we need the trade deal with nafta, we need nafta closed and we need china to come to the table, which looks like they are. if we can get a good trade deal with china, i think that can offset some of the emerging markets. >> let's send it over now to john port with a look at what's going on in squawk alley >> environmental technology, and the segue, he's going to join us from the site of a massive

global robotics competition involving teenagers. we're going to talk global competitiveness, china, maybe the stress of invention, that's coming up on squawk alley. are you taking the tissue test? yep, and my teeth are yellow. time for whitestrips. crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life.

ben and jerry's is famous of

course for it's unique ice cream flavors as well as it's many social activist initiatives. there's a new ceo at the helm who hopes to ramp up the ladde joining us for a first on cnbc interview, matthew mccarthy, new ceo of ben and jerry's joining us from burlington, vermont. welcome. >> good morning. thanks for having me on. >> it is always a fine line, matthew, between corporate activism, i get that corporations should have a conscience and effect change but how do you walk the line between going too far between alienating and angering important customers in a consumer business >> listen, i would reframe it. i think it is less walking a line between the two businesses are in business to serve people, whether you make products, get services, and you're also embedded in communities, you have employees, hopefully growing your employee

base the idea there's a choice to be made between being proactive as a business and not it is a bit of a false narrative. we are part of our community we serve our fans and touch thousands and thousands of people here and around the world so i think acknowledging that you are part of a community and being part of a social change that you want tosee come a par of the world you serve is actually part of business. i actually think that's in the dna of ben and jerry's, why i'm so excited to be part of the business. >> what type of issues are you looking to take on, how are you changing the focus and what are you doing about it >> i think first of all the business celebrated its 40th anniversary earlier this year. i get the privilege of leading a team and a business that's a four decade track record of not only making the best ice cream in the world but putting its money where its mouth is in terms of driving progressive change these stem from environmental justice, social justice, black lives matter, and really going

after systemic racism in ways that frankly i think business does have a role >> are you worried about losing conservative consumers it is a liberal agenda you've got there. >> i think that not everybody may agree with our position and the position the team and i have and that's something where it gets me excited, because i want to create more dialogue. this is not about one side fighting another on the issues never before have we had a lot of issues bubbling to the surface in the united states, where i think we need to come together as people around the issues and have more dialogue. yes, it is true to your point, some may not agree with the position that ben and jerry's, the team and i take, but let's have a dialogue and discussion on it. what we need is more dialogue and engagement, true for most business leaders and people. am i nervous, not really might we alienate some people?

perhaps. that's what it takes to step in and be proactive as a business and being part of the dialogue that frankly people we serve want us to be having >> some issues are maybe easier to decide on than others, right? you've got racial justice is one thing, starbucks was handed a difficult question about use of public bathrooms or bathrooms in the restaurants. where is the line between appropriate use and abuse. you're going to struggle with some of this down the road, i'm sure you realize that. >> listen, i think the big topic around social equity has got lots of layers and lots of facets i'm not going to pretend i've got all of the answers rather than thinking of it as a line you cross and not cross, i say it is a dialogue you want to be part of ben and jerry's has been part of it i'm going to continue moving that direction i think business is at a big inflection point i had the privilege of working the consumer package industry

for a couple of decades. i think what ben and jerry's has to offer on the product front with premium products that led the industry and on social justice and social mission, i think these are two huge topics where business needs to engage more on, so i don't see that there's a line to cross, i see it is more about dialogue we want to have, stepping in confidently. we won't always get it right there's sometimes where we need to be raising our own bar, so i don't mean to suggest at all that we have the right answers having the courage to step in is what business leaders need to be doing. >> what flavor would donald trump ice cream be if you made one? >> listen, that's a good question i get asked what my favorite flavor is. while i had one, each day i'm trying new flavors, all of the magic the chefs are creating. >> would you do one or no? you had a bernie one >> it is not on the docket right now. doesn't mean we wouldn't do it in the future. >> why >> i would be remiss if i didn't

talk about some of the yummy stuff we're creating >> can i ask you about that. there's a war on sugar sugar is the new smoking are you worried about that that seems like a threat to the ice cream business. >> i think developing great products that satisfy fans, that wow fans and delight fans, that's what ben and jerry's is all about. we developed a product with less sugar, less fat, less calories, but totally over the top flavor that fans love from ben and jerry's. it is a good question, and we're addressing it with things like this >> it is a crazy year for raw material costs sugar is one of the commodities prices have fallen, but cocoa was a different story. can you talk about what's offsetting what? >> i don't want to get into specifics of which commodities are changing one of the things i would say, when you're in the super premium ice cream business like we are,

focusing on costs and the value created through products and pricing associated with it is part of the equation costs are always going up and down and a lot of our products we are in the fair trade business, so there are some times where we're going to pay an additional premium for the quality and or fair trade nature of ingredients we bring in to your point, keeping a close eye on what's happening with commodities and through the p and l is key to what we do there's a lot i have to learn how we bring the magic of ben and jerry's formulas to the market, but managing commodities is a huge part of what the team is doing. >> mine isiko coffee coffee, buz buzz buzz. >> thank you coming up later today on closing bell, all over the tesla stock price, it is sinking we talk to gm chairman bob lutz. and coming up on "power

lunch" debating the president's tweet on short termism and that's on tesla as well. when we come back, inventor, dean kamen joins us for an exclusive interview. a wnlmt os8% "squawk alley" is next dkamen

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we take you to the white house. the president making some comments a few moments ago >> i'd like to see twice, but we're going to see this took place when i had as you know the world's top executives, among the world's top executives and head of pepsi cola, great woman who is now retiring, she said, because i asked. what can we do to make it even better, and she said two times a year reporting, not quarterly. i thought of it, and it made sense to me because you know, we are not thinking far enough out. we have been accused of that for a long time, this country. so we're looking at that very, very seriously, looking at twice a year instead of four times a