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hello. >> we have a lot to get to we are beginning with the markets continuing a record run with the s & p approaching all-time highs stocks on track for a fourth straight positive session. joining us, jeffrey kleintop, charles schwab, chief global investment strategist, brent bill, managing director with jeffries thanks for joining us today. brenl we see this quarter with bifurcation in tech names. amazon up 11.5%, alphabet up 9%. on the flip side, facebook down 11%, netflix down 14%. is this telling us something about this dominant leadership position we have seen in faang thus far

>> yes things outperform massively, up two and a half times of the nasdaq year to date. we think there are diversions given outperformance you mention facebook at the breach when they had the unfortunate incident, the stock was 150, then ran 35%. we think this is simple profit taking these are great franchises we have over 10% up side to many of the names in the internet space. we're still recommending investors stick with those big pillars. we don't see any fundamental challenges ahead valuation is the biggest concern. we like google, given valuation support at 12 times. four call options inside the business beyond the ad business that could kick in the next several years. >> yes and jeff, we are coming up on a major milestone tomorrow depending who you speak to, longest ever bull run in history. tech has been a big part of that

move since 2009, tech sector contributed 22% to the gain in the s&p 500. does that continue >> we think maybe it is time for tech to take a breather. we just went to a market weight to overweight that we held for 8 years, just did that last week the reason isn't micro economic, it is not about the fundamentals of the ompanies, it is about slowing global momentum. those companies are dependent on continued acceleration in growth you may have seen the peak for the global economic cycle already. that means areas like technology, sensitive to pace of growth, may begin to lag a little bit going to a neutral waiting in tech after eight year overweight >> brent, we talked about netflix being down but still if you look at year to date, it is still outperforming pretty much all of the others. how much of this is a valuation

issue perhaps and perhaps people are feeling more comfortable with fundamental value >> our bd analysts cover the big internet names i think look around, my kids consume netflix and fortnight, that's all they're consuming at home, in addition to also doing homework those are the two primary platforms i see young kids effectively what's happening where time is spent on entertainment. i think the ad related names, facebook and google, have lagged the subscription names like netflix and to some degree amazon prime have thrived. you're seeing a lot of institutional push back around ad funded models, and they've again -- there's a common core relation, what's happened with subscription models doing well sales force.com, adobe, subscription names are thriving now. >> jeff, the problem with your

argument is that some of the stocks have not been correlated with global growth one of the reasons people liked them over the years of the bull market in times of crisis or worries about the european debt crisis or the u.s. economy or political shocks is that they have fairly stable businesses that continue to grow 30, 40% revenues, despite what's happening globally the lower interest rates in response to the slower growth has been quite helpful in terms of money finding their way to growth names. >> i'm not quite sure we can call them consumer staple stocks yet. obviously they are insulated from concerns about manufacturing growth around the world, but still very much tied to consumer attitudes, consumer spending we may have seen the peak in terms of momentum, job growth within the u.s., starting to see that overseas as well. that's critical to consumer inspection ultimately there will be decisions. we may be a year from an inverted yield curve, perennial

sign and potential for recession. we're not saying growth is ending, we're saying momentum behind it may be looking to slow the next 12 months and favor maybe other sectors at this point. >> to wrap this up, where would you be advising investors to put money now? >> if growth momentum has peaked, peak of the interest rate cycle, sectors like real estate and utilities are boring, but may be poised to benefit if interest rates have or are close to peaking for this economic cycle. >> wow it is amazing. think back to beginning of the year, talked about 3%. recent interviews, 4%, 5% on the 10 year, here we are back at 2.85%. gentlemen, thank you for joining us and the president is continuing his criticism of social media companies last night in an interview with

reuters in which he referred to twitter self regulation of content as, quote, dangerous his second attack of social media platforms after calling into question how and which content is regulated in a series of tweets. joining us with his take, walter isaacson, advisory repartner, former cnn ceo always great to have your thoughts on these things, criticism from some quarters about not using enough judgment in types of content allowed on the platform, interesting perspective from the president, saying they're putting their thumb on the scale too much. how do you think this changes the debate, does it change at all the pressures that companies face to do or not do something >> what's somewhat amusing is he is saying at the same time as his wife, the first lady is

decrying what some of social media has done to younger people, i think you have to try to figure out this balance of being a platform in which you don't have any real say over what content gets put out on your service and being a publisher in which you curate things. since the prodigy case in 1995, when section 230 of the communication decency act said you can't be held liable if you have a platform that allows people to post things and you don't try to curate it nowadays we're getting into the mix where companies like twitter and facebook do have to take some responsibility for what goes on to their service and it makes them halfway between a platform and a publisher. this is delicate area to be in i don't think it is helping when

trump says you shouldn't do that, you should allow anybody who wants to to say anything they want to on your service >> what are the business implications if they choose to try at least to be more like the kind of platform the president is advising. is that more dangerous from an advertising perspective or is it more dangerous to be seen as having a bend one way or the other. >> i think it is dangerous if you cut back on trolls and engagement that means your user base will go down. we have seen it with facebook, we'll see it with twitter. also, algorithms of twitter and facebook tend to promote content that causes people to get excited, to get engaged. that's usually controversial and wild and sometimes paranoid content. if you get your algorithms to favor content that's more sane, you probably lose some

engagement now the real question is since you're mainly advertiser supported, do advertisers get sick of being on a platform or service that's filled with trolls, indecency, lies and everything else, i think this lack of decency in online platforms makes it a turnoff to some advertisers >> i know in the past debated regulating the platforms, whether lawmakers should step in here one of the big criticisms of the platforms now, and i know folks like jack dorsey have come out and said we're evolving, it is a process, there doesn't seem to be a lot of transparency or clarity around what guidelines are that the companies are actually putting forth to impose what's okay and what isn't >> right

i'm somebody as you know who doesn't particularly favor government coming in and telling people how to run publishing or services or platforms. i don't think the president of the united states should be telling twitter how it should curate or guide its own service, and i'm not that eager for congress, whether senator mark warner or others with bills to try to micromanage what the companies do therefore, i would love to see the companies take real responsibility for making sure they're not polluting our nationaldiscourse, they're not libelling people and harassing people, but try to be neutral when it comes to political viewpoints and that's what i think the communication decency act, back to years ago, a bookstore is not liable of content of books they sell, we want some people to

take responsibility for making a service that helps the country and is good but not having government come in and tell them how to do it >> you know, one of the points i would argue against regulation, walter, it is sara, it doesn't feel like they're all speaking the same language when it comes to regulation. half the politicians are upset at facebook for censoring conservative voices, the other half want it regulated by congress it is totally incoherent is there anything congress can do should investors take this as a threat or partisan noise when it comes to bashing social media? >> i think investors can rest assured congress will not get its act together and be able to do anything. you're exactly right, sara it is people coming at it from all sides. the president coming on one side saying to twitter, here's what i want you to do, you have other people coming at it from other sides. in best of times back in 1995 or

1992 to '95 when the first internet regulations came out of congress, that was done in a bipartisan, nonpartisan way, and it worked out pretty well. but we're not in the best of times now and these politicians have no clue about how they would regulate twitter and facebook, we have to hope that jack dorsey, mark zuckerberg and cheryl sandberg figure out ways to make their services somewhat totally politically neutral but still try to reflect some decency and not be destructive >> walter isaacson, an important issue we haven't seen the end of thanks for being with us when we return, under the hood of tesla's model 3. why one analyst says the company is losing up to $6,000 on every base model it sells.

he will join us to discuss his new findings after the break stay with us on "squawk alley. dow is up 71 points. dent. 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.

welcome back let's get to julia abnormboorstn >> snap shares are down after losing 7% in the last five trading sessions that brings the stock down nearly 12% since the morning after snap reported earnings earlier this month, sparking

concerns with its first ever decline in daily active user numbers. since the earnings report, george soros revealed he was selling snap stock, buying facebook with twitter and apple, and snap was losing its hold on premium content. nbc's stay tuned, a show exclusive to snapchat announcing it is expanding to instagram as well guys, shares are down nearly 2%. back to you. >> another rough post earnings move julia, thank you ups going under the hood of tesla's model 3, doing a complete tear down of the car, finding they would lose up to $6,000 on each vehicle sold at the base price of $35,000. this as "the wall street journal" is reporting tesla suppliers are growing concerned over the company's financial strain joining us to discuss, colin langeden you took down the car, compared it to competitors of electric

vehicles what's the big take away for investors? >> i mean, ubs is a team we work with, they hired a team of engineers, spent four months ripping apart that car, tore apart chevy bolt, we have a detailed cost analysis that was performed. the model we tore apart was $49,000, it was a profitable model. when you look at taking away options of long range battery, trim, the base is $35,000 that would imply negative $6,000 operating loss per vehicle this car needs to sell in the low 40,000s to break even, and i think they're a long way from the 25% growth margin target unless they can sell it well over 50,000. i think that's a key take away obviously we compared it to other vehicles they had a better dollar per

kilowatt hour than others. i don't think it is surprising they're ahead of where gm was with the volt last year. >> covers the company and covers the industry, he was saying teslas don't sell for $35,000 base price what they're making is ones in 45 to 55 range and in fact once the federal tax credit runs out, it is never going to be as affordable as the company originally planned >> that's absolutely true. one of the reasons we think they may be profitable in third quarter is because now if you want to configure the car, the cheapest model is $49,000. and you can configure it up to $80,000. i don't think those price levels will be sustainable. you get cars delivered in two to four months according to the website. as you normalize back down to the 40 range which is where comparable models, bmw 3 series,

mercedes, they'll take a hit which is a concern highlighted in the report. >> colin, is this more than tesla's marketing strategy than about costs? sure, elon musk came out and said the car is going to cost this much base price, but lately he said it will be a long time before we sell it anywhere near that price, and seems to be what all of this ramp is about, why he is stressed out, having his worst ever year. does this say more to investors how we need to parse tesla's language ahead of launch of a new car more than it says about their profitability? >> i mean, i think there's two key questions here if they can't make a lot of money in the mid 40s, there's a question of how many vehicles can they sell if you have to sell at over 50,000, comparable models are cheaper there's a pricing versus demand issue that investors need to think about. they're good at marketing

themselves and their product we'll talk in further reports about some of the other issues today we announced a report on electronics, i think they're good there we will look at other issues as we go through tear down data >> before i let you go, it sounds like you expect that tesla is going to have to raise more cash. >> i mean, we do think in q3 they'll generate a little cash down the line, given the significant cap ex, they need for the model y, to expand superchargers and dealer network, very likely that will be raised in the future. >> not even getting into whether it will be private or public colin, thank you >> thank you very much and as we head to break, look at some of the online brokerages, shares of charles schwab down 2% e*trade down three td ameritrade down 6, following

an exclusive report on jpmorgan's new mobile app, offers free stock trading on a mibasis. the reporter that broke that story joins us next. stay with us

welcome back cnbc.com out with exclusive, reporting jpmorgan is set to launch a new brokerage app to let users in invevest for free. they can trade for free the first year jamie dimon was inspired by jeff bezos and amazon prime joining us at post 9, the reporter that broke the story. thanks for joining us today. we have td ameritrade, charles schwab and e*trade trading lowe on this report seems you have a stall wart banking company looking to disrupt the disrupters. >> they're the giants. jpmorgan has relationships with half the households in america

there's got to be some people that have money at van guard and schwab and e*trade who also hav a chase account. what are they going to do after this, potentially move money, test it out, see if they like it, see if options and etfs are the ones they want, that it is unconflicted advice. after that, maybe they move the money. >> who are they targeting? >> they're targeting two groups. one are people that never invested before. i saw some stat that 54% of americans have zero equities the other group are people with money at schwab or e*trade or t ameritrade, and frankly jpmorgan investing tool before this was not very good. >> is this a bait and switch 100 trades the first year. what happens after that. i paid for amazon prime, then everything is free after is there some kind of well, as

long as you have a checking account with us or credit card with us, then you get free trades after the first year? >> exactly, john according to them, their research is most people that are casual traders, not like high frequency day traders, they want about 100 trades they're going to buy and hold. that's one tier. that's free for everybody. past that, if you have a premier checking account, 15 grand, even i have a premier checking account. >> okay. >> so that means you get 100 free trades indefinitely the rest of your life hopefully. and beyond that, if you have more money, i think the suspicion is there will be introduced more tiers, 200, 500, so on. chase private client, these are people with at least 100 k, unlimited trades forever. >> is there a broader move by big banks, bulge bracket firms to do this and steal customers from charles schwabs and e*trad

because they have other things to offer. >> that's the concern for morgan stanley potentially, ebay, they have a similar problem, fee compression. you'll see the amount that they can charge for services go down. ultimately i think the biggest reaction is from people trading off today. td, e*trade, schwab. there's a reason they're trading down they have to react to this. >> i can't help but think this is all part of a broader trend we are seeing in banking to target consumers and the retail investors. everybody is employing their own ways of doing it, whether it is black stone, goldman, jpmorgan seems like there's a focus on retail investors as the next big growth area. >> i agree with that it feels as though there's a winner take all mentality. if you're jpmorgan, you want all of the relationships if you're amazon, you want all of the relationships that

somebody has i think this is increasingly what we are headed to. scale matters, digital matters, mobile matters >> thank you for joining us here with your exclusive. let's get to don chu for the european close in about a minute. >> european markets are closing mostly in positive territory a lot of green on the screen ahead of trade takes between the u.s. and china later this week and beyond with the euro hitting the highest level against the dollar two weeks at this point, a white house study on whether to impose tariffs on imported autos pushed back wilbur ross telling "the wall street journal" that on-going trade negotiations europe, mexico, canada are delaying completion of that report. that delay is bolstering shares of several european automakers volkswagon, daimler, bmw, usual suspects are up by more than a percent or so as secretary ross declined to set a new timetable for the study's completion

meanwhile, glaxo smith klein attracted new buyers for the indian based nutrition business. they've joined several food and consumer product companies in the running, including nestle, pepsico. they started a strategic review in march seeking initial bids by mid september for the business which is expected to fetch more than $4 billion shares of gsk were higher, as much as 3% since have come down off some of those highs, jon back to you. >> thanks. let's stay at hq and go to sue herera for a news update. >> good morning, jon and good morning, everyone. a speech by afghan's president interrupted by two taliban rockets fired towards the presidential palace. one landed near the palace, another landed near the u.s. embassy in kabul no injuries were reported. the eagles greatest hits

album has officially surpassed michael jackson's "thriller" as best selling u.s. album of all time, according to latest certification from the recording industry association the eagles album sold more than 38 million copies, knocking thriller down to second at 33 million. a marketing company in minneapolis offering a new perk for pet owners fur-ternity leave. the company says several employees requested to work from home while new pets adjusted they decided to formalize that benefit. another animal related news, more than a century behind bars. that's the old box the beasts on the boxes of animal crackers will be free animal rights group peta called

on na businebisco to change that the animals are walking on the savannah, rather than cooped up in circus cages. guys, you're up to date. i picked one up this morning this is the new box. >> that's great, sue i believe reports indicate they're still getting their heads bitten off first most of the time >> oh, stop. yes, that's probably the case, jon. but if you have the old one with the cages and the little white string, i have one left in my pantry, might want to hang onto that the parent company has only redesigned the box once or twice. and only temporarily they did it for an endangered species box and zoo box. this is the first complete redesign pretty cool. >> did you know that barnum's animal crackers are 115 years old. i got a statement on this. no mention of peta,

interestingly enough they say now is the time to make the brand relevant for years to come, the next evolution in our design now showing the animals in a natural habitat >> natural habitat they would never be all walking in a line like that. completely unnatural. >> getting along so happily. >> well, it is amazing to me you have these crackers more than a century old, the circus itself has gone out of business. >> as a matter of fact, a number of states banned circuses. actually to sara's point, it is a way for the company to stay relevant when i picked these up this morning in my super market, there was a big sign that said new design on animal crackers, perfect for back to school keep in mind, in a lot of states kids go back to school next week the timing is very good for the company. >> animal crackers will be relevant no matter what's on the front of them. >> i would think, but you never know >> sue herera, thank you. t. you got i more on a record run when

"squawk alley" returns dow is up 57

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the record run in stocks turning 113 years old. stocks climb another day today s & p in striking distance of another all-time high. russell hitting an all-time high this morning we are joined by bob pisani and mike santoli, as we look back in amazement, wonder what's left.

>> the strength of the rotation. every time something falls back like tech and smemi conductors, something moves forward. retail is on a tear. health care, biotech, pharma are hitting new highs as well. every time we fall back, the market seems to hold up well until something new goes into the fore that shows underlying strength the market does not historically turn down dramatically with advanced decline line at new high technicals are encouraging the real question, how long is this going to go on for. >> i would say there's a couple of ways you can make the case, you're seeing the age of the market, wear and tear. nothing critical, i don't think it is anything that says this is a top. back in january we had a huge momentum move and then you fell sharply off that everyone said, us included, that's not how market peaks

happen they don't run up in a vertical way and crack from an all-time high and it is over. usually you have reapproach of the high, less participation, defensive rotation in the market you could squint and look at some of that happening without recession on the horizon, anything that's a trigger point -- >> and trigger point is the word you look in the credit market or bond or currency market. it is no coincidence, haven't seen the 10 year above 3% this entire period. >> you can't argue that the fed is getting too aggressive. what kills bull markets, the two things are number one, you get a recession, or number two, the fed gets too aggressive. so far the fed has managed this in a manner nobody has been overly shocked what they have been doing if they start to move quicker than anybody anticipated, that will be a problem. there's no immediate recession on the horizon stock market tends to turn down as mike knows long before recessions happen. it is a good predictor of

rescission we -- recession. people are reasonably optimistic nobody is sure we'll be a lot higher, drop 20% into a bear market, that's not on the horizon now. >> contrary to recession, dow transports hit a new high. seen the airlines rally for certain weeks. long seen as early economic indicator for the market, is it telling us something >> it is telling you there's enough cyclical strength to keep the market engaged on the strong economic growth trend. i would say u.s. consumer plays give you a similar signal, even if industrials struggle with trade war and slow downs overseas i think the market gives you enough to say the game is still on to bob's point, we don't know

how much higher from here, when they get late stage, they become less generous. if you start getting optimistic when unemployment is 4%, consumer confidence is near record highs, longer term returns are not generally the best when those conditions are your starting point. >> wasn't this supposed to be a global market? how long can the u.s. outperform on its own >> that's a good question. we have been helped by tax cuts, but that's not the only thing. look at this quarter 24.5% growth in the second quarter, looking that way in third third quarter as well. only 8 percentage points of that you take out tax cuts, still have 15, 16% growth. europe had 9% growth we are continuing even with tax cuts out, we are continuing to outperform overall the u.s. economy is continuing to outperform the global economy. our rates are continuing to

attract people all over the world. one of the reasons interest rates are holding up well and bond market is holding up well is the demand for our product globally, particularly on treasuries this is confluence of great events that happened strong economy, tax cuts, outperformance of the united states compared to everyone else in the world i think on certain levels things like emerging market are oversold if you want to talk about trading stuff technically, there's been oversold indicators in most emerging markets for several weeks now. i think longer term, i think longer term overall the markets look good. >> recently, the economic index for non-u.s. started to outpace the u.s. it is a budding trend. part of the answer is how does tech do because the u.s. is much more concentrated in big tech than most other markets are, even though chinese internet companies have a huge sway in the emerging markets index.

>> that made up most of the return by far, biggest chunk of the return for thirteen months >> thank you coming up, ceo of ridesharing startup getaround joining us but first, rick santelli, what are you watching >> watching the interest rates in general can't help thinking about the president voicing his opinion once again on where the appropriate level of fed funds and interest rates should be that's what we're going to talk about after the brea k.

today on the halftime report, we are on record breaking watch we are seven, count them, seven points shy of all-time high for the s&p 500. if we cross it, when we cross it, what will take us higher and what's the biggest threat for market fall we answer both questions at the top of the hour. and debating the ten most popular stocks held by top hedge funds. these are big cap names. you know them. we rank them for you, all coming up on the halftime report at noon eastern you know that by now over to rick santelli. rick >> i'll do that, brian, thank you. let's get to cme and rick santelli. >> thank you hey, i got two introductions today. what level of fed funds is appropriate? you know, this is a discussion that's as old as traders in the

marketplace, whether it was with greenspan this president was clear on this some of his opinion goes back to a previous life when you're in the development business, i would surmise that lower rates are better better for business. but is that always true? sometimes when the economy hits big slumps and speed bumps like the credit crisis where credit isn't moving, we can argue about issues of central banking. there are times when a jolt of adrenaline is much needed. the problem is not the crisis time periods but rather generically. it is always beneficial to the economy. i would surmise that there's an appropriate level of rates that isn't as easy or generic to describe

i would look at it more as the level of rates versus the path of rates, especially in the current environment. so let's round out things. if i look at the board, i see we are in the low 280s for ten year note yield we can debate where you the viewer believes inflation is when you take that ten year rate and subtract inflation, how much is left? that's important real rates are important rates described by ten year yield versus inflation protected securities, the break even rate, that's important but ultimately, ultimately the level of rates was distorted because central banks as you see on the next chart, this is a fed target rate starting in 2000, the issue is that long flat period we had from 2010 to december of 2015 when we did the first increase, raising the level from zero to 25 to 25 to 50 now we sit 175 to 2, and we have

had 7 rate increases the latter is the issue that bugs the president because the path of rates has been 7 increases. however, i would caution the president on the left side, you could put the rate increases, on the left side, put things like manufacturing jobs in an all-time high. tax cuts paying for themselves, although we have a spending problem, and jobs continue to be created almost at a pace we can't find enough people to fill them so in the end, what really bothers the president is that we keep increasing rates. but guess what if jay powell bent to the president's will, what would happen if we saw bigger inflation? listen, markets might be managed, but market driven rates, inflation driven rates, global investor driven rates still matter and they would make the ultimate decision and it would be much less pretty.

morgan, back to you. >> rick, thanks for putting that in context for us from the cme in chicago rick santelli. coming up, car sharing company getaround closing a $300 million round of funding this morning. the ceo joins us first on cnbc ghafr e eak. stay with us rried. we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management.

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. get around announcing $300 million in the series d round of

funding led by soft bank today joining us now is sam, a cofounder and ceo of get around. great having you here at post nine so, seems like you guys raised about is $00 million before t s this you guys have been around for almost nine years. door dash, which is in the delivery business involving transportation, raising a bunch of moneyf fmoney. is this acceleration money to try to pull yourselves apart from the pack of other people trying to be in the space? >> yeah, i mean, it's a growth around and it's you know we're really at stage now where we can take that capital and we know how to use it and we can put distance between ourselves and many competitors it's exactly that. it's about how do we get to more place, more city, more countries around the world and really bring the experience >> car sharing, the whole idea here that you put cars that are already on the streets the use thus cut demand for future

vehicles and take those off u the road why would toyota be investing if you? >> great question. everybody knows we have too many cars toyota is a very forward looking company. they see the future where you have more cars that become more connected, b more autonomous and we're not going to have to have some many cars we park 24 hours a day. get around can get a head start on their competitors and get into the this new world of mobility tha very visionary of them >> can't figure out if you're more disruptive to the traditional automakers or the car rental xaengs. who are you going after here >> wrounit's a great question. what we think about it is wee trying to do what's right for the world and for the economy and for the environment. you could say we're trying to take cars of the road.

that is core to our mission. if you take cars off the road and use the cars you have more frequently, you'll still have a high turnover of cars. so you might not really be disrupting the car companies, just exchanchanging for people n over cars every two years. this really changes the dynamic and we think much like the iphone changed how fast innovation happens on phones and devices, same things are are happening with cars! i remember talking to a vv about you guys i think he took hi old car, which he would have sold in san francisco and put it on get around it was an excuse for him not to sell it. tell me about user behavior. once they get over that hump of putting their car on or renting somebody else's car, how does

their rental activity accelerate >> you find ways to shift demand we've seen people who will be like i was going to do this xwroesry run on a saturday, but now on thursday and make my car available so i can rent it out to somebody else for the weekend. economically, that's much better for them, but it means someone else is not buying a car tog away that weekend. now they can use your car or someone else's car and you know, reduce -- >> for cars. >> it would be like air bnb if you never had to meet the owner. one of the great things we've done, when you rent a car, you can instantly rent it, locate it, unlock the door, drive away and do it all from the phone

>> one of the other questions this brings up is the regulatory landscape. car rental association has urged lawmakers to make car sharing subject to the same fees that they are why shouldn't you? >> a lot of those regulations would not apply. >> you might have counters where you might have to have cash paymentsment except to have a box where you mail in cash a lot of those rules and regular laces don't aplay. our position is really that we want to have effective conversation around what should apply to our model and what shouldn't. >> got to leave it there

certainly useful for a city like new york >> dow's up 97 "squawk alley" continues next.

with the major indices in the green.

the dow up just over 100 points and netflix, boy, having quite a morning up nearly 4% quite a start to the trading day. >> small captious mid caps sh transports >> oil's up. dollar's weak and energy is the best performing sector so we'll see if that continues. >> should be an interesting market close back to headquarters and the half ♪ >> interesting music the march to new highs ko continues. we're four points shy of the record that is your number to watch we're at 2,869 we are, it could happen this hour here now to discuss it, analyze it, debate it and to tell you why it doesn't matter is josh brow j