good morning, it is 8:00 a.m. at tesla headquarters in palo alto, california 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ good morning, welcome to "squawk alley. i am jon fortt, with me, morgan brennan, david faber joining us, kara swisher a lot to get to this morning we begin with looking at tesla

shares off the lows of the session, jpmorgan cutting price target on the stock to 195 from 308 where it had raised the target, following musk's funding secured tweet earlier this month. the firm saying it is reverting to valuing tesla shares on fundamentals alone, giving that to take the company private, funding appears not to have been secured. all of this in the context of debate on short termism, fueled by the president's tweet friday to consider only requiring companies disclose earnings every six months musk looking for disclosure maybe never, at least public disclosure to investors, depending how it is structured who knows. kara, is tesla exhibit a why some in silicon valley may favor reporting less often >> no, no. i think he's just -- doesn't have control of his twitter. i think that's the story there i don't know beyond that

i think a lot of silicon valley people want to be public without being public, they would like to control their shares like google or facebook and then not have any accountability to shareholders i think that's probably the issue. in elon's case, it is very complicated, there are emotional things going on when you read that interview, there are issues around him wanting to tweet, there are issues with his fight with the short sellers which has gotten to a ridiculous point at this point so i don't think it is related at all. >> we have seen some silicon valley teams good at communicating with wall street, jeff bezos seems to have people in the mindset of how much to invest, tim cook, the rumors sometimes have impact on stock price, now he has enough cash he can buy when that happens. what's the difference between those that can weather the storms and control the weather it seems sometimes and those who can't. >> i don't know, they're adults and they want to behave like adults like the ceos they should be when you take a job like that,

you have that responsibility you want to go public or stay private, i think that's the inclination of a lot not to go private quickly because of the responsibility and of course they don't like the personal attacks sometimes people in silicon valley are like hot house flowers. you say one negative thing, they react as if you've taken their marbles and run away i experience it all the time. >> jon mentioned two largest market cap companies in the world, but neither of them, cook has no control, bezos owns a lot of stock but doesn't have control either, as opposed to zuckerberg or snapchat, all of whom are ready why does this continue to be a theme we keep hearing about. >> because investors let them, indulge them, act like they don't have responsibility. when we were doing interviews with mark, everybody was like will he be able to withstand

questions, and i remember i talked about this idea, he is a father of two children, he is in his 30s, a multi billionaire by a ridiculous amount. i think we sometimes treat them like they're made of paper mache and can't withstand a thing, but they have taken these jobs, they want to go public, they have to deal with the public markets you can change them and talk short termism, but that's a different topic that you can't conflate here. >> do you hear anything in terms of musk's mental state >> i wrote a column about it i said he wasn't crazy he is overworked, likes the image of that. he is on the factory floor, exhausting himself i don't know if that's the greatest thing in the world, it is like cramming for an examine college, you do that i don't know if that's the best way to run the company probably needs help like at spacex. >> a lot of people that worked for him have left. >> it is interesting, some people can't take it, some people love it, some can't take

it, leave, and come back it is much more visionary than most ceos. he has a reputation for being tough. he drives himself, too so it is an odd -- not the way i would run a company, that's the way he feels like that's how you get things done. he has had a lot of accomplishments, let's be clear. >> that point about we heard with the "new york times" story last week that they're searching for a coo, have been doing it for the last couple of years surely there have to be folks out there that would want to take that job, no? >> i don't know. if you're a strong minded person, that's a tough person to work for i don't know if he wants one necessarily. and that's the whole thing you have to get along with elon, you have to do -- i think it is his company. there was a great column by matt levine in bloomberg where he sadie lon musk is the only possible ceo of tesla. elon musk isn't coo.

you have a control over them boards in silicon valley are largely rubber stamps. >> more so than the general -- >> i think they all are. they all do in lots of ways, but these are founders in a lot of cases, so you have a very different relationship can you imagine managing henry ford as a board or any of these companies that were founded by these people they're much more almost like religious, their visionary is religious, it is not a professional ceo coming in. >> the fact that tesla or elon musk would want to go private, may be better as a private company ceo, one of the greatest irons is perhaps he is not able to go private. meaning you have this report that the saudis are drawing up a term sheet to invest in lucid,

lot of questions whether spacex is taking a stake, whether that could happen where is he going to get the money, the capital could it actually happen when you have the sec probing, et cetera. >> the sec stuff, i suspect it will be a fine, i'm not an expert in that area. but what's interesting, if you believe these cars are the future, how much do you want to pay. 20 years, it will be like that was a real deal. they are making cars, selling cars they have a huge brand it is very expensive now i'm the one that thought facebook at $15 billion was crazy, so i don't know you know what i mean i was thinking on the way over, lucid does not have a car. they have a car they're selling. >> all these car companies that don't really have cars who doesn't want a tesla >> i don't, i have a ford fiesta >> you want swap it? >> no, it is fine. >> are you going to buy one for

me >> i'm not saying, if it were that or ford fiesta, i don't know burning dinosaurs or -- >> my goal is never drive a car, i am with all of the millennials. what's the price of the future if you think like that in long terms and you're the saudis, you have to think is it worth that i don't know if this is the right bet, but it's an interesting question. >> speaking of interesting questions, let's move to social media. the president jumping into content regulation debate over the weekend in a series of tweets, calling out continued proliferation of fake news and what he called censorship, saying networks are impossible to police as twitter ceo jack dorsey continues his tour to explain the decision to only temporarily ban info wars' alex jones. >> our system works by people reporting content so we don't --

we're not in a place to proactively review everything, and we act when we receive reports. that's consistently enforcing our approach and our roles people may disagree with that approach people may say you should be a lot more proactive around all the content. while we could do that, it requires so many resources i mean, hours and hours and hours of looking through video content. >> seems to me, kara, if you're only going to watch a few twitter accounts, info wars and alex jones might be one you might think might maybe -- >> he talks really slowly and pretends they don't have control of the system. it drives me crazy it is like it is really hard to do i think that's what he just said well, he built it, he made lots of money off it, they're all very wealthy off it and don't want to police the system. that's one part of it. the second part is that it is impossible to police they created a situation, they

didn't build enough tools, build the system in the way to police it, and now it is a mess i don't know the excuse is well we capital do that now, that wasn't our -- can't do that now, that wasn't our way. >> it is like twitter has gotten out of twitter couple weeks ago i saw people on twitter saying they wanted to burn the t-shirts jack dorsey wore, because he was easy on the conservatives. the conservatives are saying they have been shadow banned by twitter. liberals are mad they're too nice to conservatives and conservatives are mad that they're not nice enough to conservatives, how does twitter win. >> they don't. the problem is, what's fascinating to me, people that say they can't speak never seem to shut up there are plenty of places to talk on the internet it is kind of interesting. again, people make this argument that twitter is not a company but a nation state almost. what was interesting, i asked

mark zuckerberg this specifically, people think you're a nation state when i did the podcast with him he said no, we're a company. if they're a company, they should have responsibility over the platforms, and people are trying to conflate the idea of private companies with government and everything else, and it creates a giant mess. fact of the matter is they could police and do police it, they rank people down you could call it censorship, i don't, they kicked off people in the past they can do it >> is anyone doing a good job of it i think of google or alphabet, youtube. >> they've slipped under the radar. >> they have to a certain extent. >> probably people are focused on twitter and facebook, google has big issues, too. 100%, they do. they have the same issues when you search certain things, find different things, abuse of it. i think they have sailed under

the radar. snapchat, he does curate not everybody gets on there. that's built, that's a system that was decried at the time for being a giant sexting platform, and now is the most controlled of them. then that one is going down in growth. >> our earlier conversation, shareholders have no votes there. zero >> "the wall street journal" had an op-ed, better way to regulate social media, suggested a content congress, the idea of multi state -- you don't think that's a way to be considered? >> we're doing well at having normal discussions these are private companies. they can do what they want to me, ultimately the products will suffer and people won't use them that's how it is going to end. they become places people don't

like to do every three days someone rights a giant he essay. ultimately products will suffer will be terrible places to be and it will get replaced. >> maybe social gentrification, like times square, nobody wants to be there any more, and the new crowd will move in, spruce it up. >> that would be nice. who knows. i don't know but they have to build tools to let people do a better job of doing that right now, it is all up to the user. >> i wonder if you're an advertiser, has to be a conundrum as well. >> we'll see if they do that people are engaged in the way you want them to be engaged but constant state of anger is not conducive to selling, i don't know, coca-cola i guess. >> not good for anybody.

love is the way. >> love is the way oh my god. >> tweet that out. >> great to have you here. >> i didn't expect that. okay all right. >> been on tv over two hours now. >> whenever you're in new york, come by post 9. >> thanks. apple hitting another all-time high before pulling back the stock is up more than 13% since the last earnings report why do 40% of analysts have a hold on the stock? next, we debate where apple goes from here. stay with us 's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. 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.

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click, call or visit a store today. welcome back apple hitting another all-time high earlier in today's session, turning negative now, down about 1% 40% of analysts that cover the stock currently have a hold on it joining us for bull versus bear debate, shareholder, and head of the team at new street research currently, biggest apple bear with a price target of $165 a share. gentlemen, thanks for joining us pierre, i'll start with you. you're that rare species on the street, an apple bear. price target 23, 24 down side why? >> yeah, so what we see is -- we think the iphone x has been

successful, millions of consumers to bring forward the refresh of the iphone. you had 65 million consumers buying an iphone in 2018 we think up to 20 million would have normally bought a new iphone in 2019, that's going to create this in 2019, lower number of high end phones being sold that year we expect actually shipments, iphone shipments to meet expectations and we slice expectations because iphone x is a high price point. >> ross, why do you agree or disagree i realize iphones are a big part of the revenue stream here, but services everybody is talking services. >> right where pierre is wrong is not in his premise for the iphone but what apple is today. and apple is not really focused on trying to make something

bigger out of a phone than already exists, there isn't anything more you can do with the phone. really it is about bringing asp up through the iphone x, and adding memory and other features so the average selling price will creep higher as sales stay the same still have a big replacement cycle on iphones the real game is monetizing users. apple is starting to do that beautifully with 30% growth in accessories and services when you look at the potential growth of the two markets for apple in the user base, it is basically unlimited. this company is a cash flow king i don't see any scenario where it goes down to 165 other than total bear market. >> pierre, here's the part of that argument i don't get. iphone x was supposed to be a flop until numbers came out, people raeealized enough are buying it, paying big prices for it undoubtedly, wasn't a super cycle.

seems like your argument supposes there was a super cycle that pulled sales forward. numbers show there are in fact quite a few people in the installed status of apple that haven't upgraded you have to believe the high end did upgrade earlier than possible, and mid range and lower end of iphone user base will wait longer why should we believe both those things at the same time? >> thank you, jon, that's an excellent question and excellent way to frame it. the street was expecting the iphone in 2018, and now consensus thinking is that cycle didn't happen. mind you, it actually happened two numbers to help you with that this year i estimate apple will have sold 65 million iphone x. in addition to more than 30 million iphone 8 plus. the high end phones are selling

for something that is going to be close to 100 million units, okay in 2015 that we remember, the iphone 6 drove so much forward, how many iphone 6 were sold in 2015 69 million we are in a super cycle. the difference between 2018 and 2015 is that the underlying for the iphone came down for a reason we understand replacement cycles, people still love the iphone but stick to it longer, less innovation in the pipeline and because iphone is losing share, consumers spend on apple watch, on home device, things like that wearables. we have seen a trend of refresh

cycles coming down over the years. but we had shipments stabilizing. that's hiding the super cycle. it is triggered off the weaker base, and i am concerned about 2019 shipments >> ross? go ahead >> sorry no, i mean, i really feel there's no super cycle if you look at a crowd of let's say 20 people, most of them are holding a cracked phone, iphone 6 or 7 there's so many upgrades still to come. i think we saw the worst of it in the last couple years where the phones lasted way longer than apple thought and now it is starting to catch up with the people replacing phones into higher asp phones. so i think we're more at the beginning of the upgrade cycle than the end by any means. that elongation we had to deal with the last two years, i think your premise is just off you're not completely wrong but you're missing the bigger story

which this is literally a cash cow. we had a long segment on privacy and the way our phones have been used against us. apple is one of the only companies defending our privacy and protecting it of all the tech companies, and the last point i would like to make, i think samsung is struggling here, they're not gaining share, losing share to apple. chinese phone makers are not exi existent they're taging -- taking more of the phone market the big question is what's next. what's the next big thing. i'm telling you, tesla is the duck waiting for apple to save it this is tim cook's gift of all gifts. if he doesn't take this, i literally will cry i won't do it on television or for "new york times. >> if you cry, please do it on

television >> i have one ceo to take care of already, okay >> you don't really think apple is going to buy tesla, do you? >> i don't apple should buy , 10% of tesl to get ios on the tesla screen part of the tesla story is that screen in the middle of the car, and not having apple on that screen is going to be a huge problem for them we spend a lot of time in transportation >> computer on wheels one person described it as. gentlemen, thank you for your opposing views this is what makes the market. thanks >> thank you. >> thank you after the break, pepsico is buying soda stream, worth $3.2 billion, this company continues to transition towards healthier alternatives what it means for pepsico as the ceo wraps up her tenure there. a lot more "squawk alley" to come

is growing faster than bottled water. it is buying into exposure in international markets that would like more scale, in western europe, japan. it is buying sustainability. the better for the planet idea which is becoming more appealing to consumer companies. sodastream markets itself this way. reusable bottles, less plastic, beyond the bottle as pepsico called it. that's why it is buying

sodastream in a $3.2 billion beal 10% premium to the price which doesn't tell the story, it surged after a blockbuster earnings report. it is 30% premium to the average price in the last 30 days. it will be keeping sodastream as operating as an independent company out of israel, run by the current ceo. i talked to him last night he said he sees it as a good cultural fit between pepsico and sodastream i asked hugh johnston why now, there are years of rumors you would take over the company. you even had a partnership he. he said they saw what they needed, they had a tremendous come back. he feels the portfolio is in the right place now, especially off the quarter they had double digit growth all over the world. >> stock isup 145%, sodastream in the past 12 months.

couple years ago it was a company struggling with slumping sales and demand in the u.s. what a turnaround story. >> this was a $12 stock beginning of 2016. it was soeld for 144 a share the reason pepsico shares are moving, it doesn't have a major financial impact on pepsi, $3 billion is the biggest deal in several years, but not a huge deal as far as overall market cap and they're paying in cash for this they see it as a growth opportunity in channel and product. make it yourself beverages, sparkling water, two hot areas >> in a way it sounds good, but cu keurig was an easier way to make coffee this is an easy way to make soda how big a culture change for this to be justified price wise? >> there's a small subset that like to make beverages at home, but it is small. if you remember there was a lot

of chatter about this in 2014, 2015 when coca-cola took a stake in keurig to make cold beverages at home. it was a complete flop and was pulled from the market it was reignited, the debate in this trend, when dr. pepper, snapple jab private company from europe went after keurig to combine the companies. now they're saying consumers maybe weren't ready when they tried to launch the cold machine. there's obviously a trend. people like to make hot beverages with pods coke has the freestyle machine in restaurants, maybe looking to test that for at home. as consumers, we're not there yet. it gives pepsico a new channel may catch on people don't like having so many water bottles. >> i am for it

i hope we get there. >> it would be a major shift here's pepsi trying to go in that direction look what's happening with plastic strau plastic straws big business is catching on, consumers are demanding it. >> thanks. over to michelle caruso-cabrera with the european close for us. >> hello, david. european markets joining a global march higher. banks and basic materials leading the way to the up side basic material stocks up more than 1% today. you can see all of the major averages in positive territory, and basic index there, higher in the last two days. turkey financial woes are front and center lira falling against the dollar under a report that the trump administration rejected a proposal from the turkish government that would free pastor brunson in exchange for relief for one of its largest banks. turkey asked the u.s. to drop on-going investigation into one of the biggest state owned banks

and mired in controversy the european union approved the merger between a german company linde and praxair. this is after concessions that anti-trust regulators say asset sales adequately addressed concerns now the focus shifts to the trade commission to make a decision on that deal. finally, worth highlighting today, this is the day that greece officially exits its nine year bailout of more than 274 billion euros. you recall massive protests that engulfed greece for years, they protested budget cuts, pension cuts, tax hikes, et cetera uncertainty whether the greeks would follow the bailout rules led to a lot of volatility in

markets. european banks would move, dow would move 4, 500 points in those days what does success look like for greece gdp is $192 billion, down from $354 billion in 2010 unemployment at 20%, down from 27%. population is down by a half million, due to a brain drain going on, and they still owe 248 billion euros, but have a primary budget surplus ten year yield was 4.33% peak was 27% in 2012 morgan, back to you. >> that certainly puts it in context, michelle, then and now. i'm sure there are key questions about how they're going to restoke growth in greece moving forward. we're heading to sue herera for a news update. >> good morning, morgan. good morning, everyone here is what's happening at this hour rescue operations under way in southern india as that region

deals with the worst flooding in a century. more than 350 people died in the raging flood waters, roughly 800,000 others forced from their homes. health insurer anthem announced a new collaboration with walmart that program allows medicare advantage customers to use their plan allowances to purchase over the counter medications and health related items at walmart. anthem says that will reduce out of pocket costs for customers. a terrifying crash at the indycar race after robert wickens' car went into the fence at pocono raceway. all drivers walked away from cars except for him. he is treated for injuries to his extremities, spine, and lung. and simone biles took home gold at the u.s. gymnastics championship over the weekend in every event, came out on top in the balance beam, uneven bars,

floor, and vault last woman to sweep every event at nationals was dominique daus in 1994. congratulations to her that's the news update this hour back to you. >> thanks, sue i sat behind dominique in freshman history class. >> you did >> that's cool that's the inside story. >> that's all i got. thank you, sue coming up, former tesla board member steve westly and jim can tretrell join us after break.

tesla shares are down this morning, although they have been all over the map, after jpmorgan cut the price target on the stock. the firm saying it believes funding was not secured for the private transaction. what comes next for tesla and the ceo, elon musk joining us two people with close ties jim cantrell, and steve westly, former tesla board member, early investor in the company, managingpartner of westly group. mr. westly, some have taken to criticizing the current board for not exercising perhaps

enough control over the man at the helm of the company. what was your experience with mr. musk and do you feel as though perhaps it is very hard to manage elon musk? >> well, look, elon is one of the most extraordinary entrepreneurs in the world today. like all great entrepreneurs, he is brilliant, harassable sure, he can be challenging. don't lose sight of the fact, tesla is growing from $9 billion in revenue or 11 billion last year to 19 billion this year the company is still growing way faster than any auto company in the world. it is on a path to becoming profitable in q4 if he can accomplish this, all the other concerns are an asterisk the board is strong. lot of smart people on the board. i think they'll do just fine. >> do you have concern that some shared with mr. musk's mental state, i can that because of the

"new york times" story last week, kara swisher on air earlier talking a bit about that, certainly lack of sleep here seems to be one contributor. but do you have any overall concerns or advise yce you might give to the current board on how to deal with him >> no. he is under a lot of stress, he is running three companies, it is not a surprise. growing at break neck speed. keep this in mind, tesla was manufacturing about 500 cars a week at the end of last year now they're manufacturing and delivering 6,000 cars a week the biggest selling car in the united states last year was honda civic. 377,000 units delivered. people don't realize that tesla model 3 is about to become the biggest selling car in america that's an extraordinary accomplishment is he under pressure for sure i think what the board will likely do is bring in a strong number two so elon can do what he does best which is to be a

visionary. >> jim, i wonder what your take is on the elon musk management situation. he said in "new york times" interview last week that if there's anybody that can manage, who can run tesla better, he would be happy to step aside, implying that there's nobody, not only who's better qualified to be number one, but he is not looking for a number two either. how is that sustainable do you think? >> well, elon is an extraordinary person he is unusual. he is not like majority of the people out there and he is extremely capable. he has high standards. anybody that you bring into a circle of trust would have to meet a high standard i suspect he has not found that person yet he did with gwen shotwell at spacex but it is important to realize what he is trying to do with

tesla is more important than he did with paypal and spacex he took on the banking industry with paypal, took on the aerospace with paspacex now he is trying to create an automotive company, the equivalent of general motors and ford, and it is a difficult hill to climb in common terms, think if the libertarian party managed to find a presidential candidate to beat one of the major democratic or republican candidates, that's the kind of hill that elon is climbing i think he is one guy that can probably do it i for one am not too worried about him. but i share the view he needs a good strong number two and there's probably somebody out there. it is a matter of finding them. >> jim, i am surprised to hear you say that as the saying goes, space is hard auto manufacturing is even harder >> i had my feet in both camps i originally was going into the automotive industry. i left the space industry to start an automotive engineering company, and yeah, automotive is

hard, profit margins are lower the vehicles are actually more complicated than a lot of rockets out there, and energetically they're quite different. to build this infrastructure and build all that goes behind a car company is a really, really tough problem. i told that to elon in the only conversation about tesla was he's got a big road ahead. and i think he knows it. and the fact that he is struggling is not a surprise it is a tough thing to do. >> mr. westly, to put it mildly, seems the tweets about going private were half baked at best. do you think it is a real possibility? >> look, as i said before i don't think trying to run your company or for that matter the company by twitter is a smart thing to do. having said that, mr. musk has a unique relationship directly with the customer base, part of what makes him successful. i like to see public companies

i like to see that because there's more transparency for the investor, more corporation for governments. i understand what mr. musk is thinking it is hard to hit aggressive manufacturing schedules and still have to worry about short sellers and public markets he is thinking if he could take the company private, his hands would be untied to continue to pursue bigger bets like he did by creating the giga factory which has given tesla a huge cost advantage over other auto companies in the auto industry i think he has built the dominant auto brand in the world. if he wants funding to go private, it will probably be there. but that will be up to the board to decide. >> gentlemen, it is an on-going story, one we're obviously following closely. appreciate you sharing both your thoughts on it when we return, why tariffs are rocking the boating industry "squawk alley" continues next.

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i am brian sullivan. today on the halftime report, with the s & p 19 points from a record high, some activity that will make you want to make a move. and we're debating nike after wall street gets aggressive on the stock. it is already up 50% since last summer how much more does it have to go and the sector strategist on the sectors she thinks are about to run for the rest of the pack.

all that in about 12 and a half minutes. for now, back downtown jon? >> all right see you then let's go to rick santelli. >> back in the days, thursday and fridays, report released by the cftc has always

generically, it's one of the biggest short presences in 26 wreers but if you'92. if you concentrate on the

is this. is that the thipg that making markets move is that the underlying financial structure of positions gets changed quickly. that's what can be going on now. central banks and issues that i've just described keep interest rates low, the fact of the matter is that done deal trade everybody knows is around the corner and i don't disagree. rates will be going higher will be going higher when is the problem and the time it takes to finance that for sure position a lot of strange things can happen along the way. dollar index especially is something to considering and the other one i find amazing is that for the first time in 17 years, we have a a short bias in the gold market. many saying gold market is acting funky that's one of f the main reasons. not being held in the same way it used to it might be giving us a new set of signals once the dust clears. david, back to you >> thank you, rick santelli.

>> well, you think you've heard enough about tesla we don't stock continues to fall, down less than 1% contessa brewer is in tampa, florida, with a look at what's coming up after the break. >> well, this is the baby of this particular yaucht line and runs a cool managillion you won't believe how foreign buyers are balking at a 25% tariff tackeded on to the million. i'll explain how the trump tariffs and global trade war are driving down overseas sales. ahead on "squawk alley." how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop

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and purchase a new samsung phone. visit your local xfinity store today. dow is up over 100 points. s&p up six squawkalry continu"squawk alley.

american boat makers feeling at sea as a new wave of tariffs continue to rock this sector contessabrewer is in tampa, florida with more on why tariffs are sinking the recreational boating industry i use a lot of terms, but it's very serious situation for this industry, right? >> you took them right away. not going to use any here. here's florida's boat iing industry getting hit with a triple tariff whammy and as the problem that could sink the $200 million this industry does just in florida alone just in overseas trade to say nothing of the $70 plus manager in yacht sales yet you've got sales sinking so to speak. two european buyers have put

their purchases on hold. they're balking at the additional million dollars the tariff tacks on to their $4 million 61 foot purchase >> bertram has not had any sales to europe and as an industry, it's a show stopper. there will be no sales in europe until these tariffs are lifted >> mexico, canada, the eu, the biggest overseas customers all with retaliatory tariffs and the triple threat. the tariffs, steel an aluminum costs have skyrocketed then the tariffs on these little pieces of hardware all come from china. they cost more per piece and the biggest now is on fiberglass all of this imported from china. all of this adding to the cost so even though the domestic demand is strong, the economy is strong, price hikes are are coming here, guys. >> all right, con tus brewetes r

eric thanks. as we head to the noontime mark, keeping aung eye ing an eye on the markets. the dow up about 100 points. watching tech overall, sonos, fitbit, go pro higher. >> then the fed later this week. >> back to headquarters and the half thank you all and welcome to the halftime report. on this busy monday. i am brian sullivan. your number to watch today is this 2872 why? that is the record high for the s&p 500. we're about 17 points away or 0.5% from that all time high lot to talk about. joining us on the desk, joe, jim, josh, steven and pete i'm kidding. that was for you, pete guys, all right, welcome