wyoming, 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ ♪ whatever it takes because i love the adrenaline in my veins. ♪ i do what it takes because i love how it feels when i break the change ♪ whatever it takes, you take m to the top, i'm ready for whatever it takes ♪ because i love the adrenaline in my veins. >> happy friday. welcome to "squawk alley." jon fortt. morgan brennan, david faber. we have a lot to get to this morning. we begin with the fed summit at jackson hole fed chairman jay powell wrapping up his speech. steve liesman is there live in wyoming, joins us with his reaction good morning, steve. >> reporter: good morning, jon, thanks very much fed chairman jerome powell in his first speech as fed chairman at the famed enclave in jackson

hole, put on by kansas city federal reserve. striking a dovish tone, that's the way the market has taken i want to lead with market reaction, the 210 spread down below 20 basis points. last one was 19.7, 19.9, below 20 basis points first time since 2007 as the ten year fell down i have a 282 reading a few moments ago. what did he say that the market took as dovish, is the market right here i'm going to get to a hawkish comment he made at the end first, let's look at the comments the market is focusing on doesn't seem to be risk of overheating. that's the comment that's -- we're going to get to that full screen later, risk to the economy. he says doesn't seem to be risk of overheating second, says the u.s. economy strengthened substantially and most people that want a job can

find them, and strong economic reforms will continue. he said we'll do whatever it takes if inflation expectations become unhinged either way, up or down. there's no clear sign of accelerating above 2%. what risk to the economy we had it a minute ago put it back up real wages have grown slowly, economic mobility declined federal deficit on unsustainable path productivity is low. says not much the fed can do about it there's something some fed observers say is a bit of a hawkish line in the speech i'm going to read it to you. in the run-up to the past two recessions, destabilizing excesses appeared mainly in financial markets rather than inflation, thus risk management suggests looking beyond inflation for signs of excesses. well, what does that mean? it seems to signal look to financial markets and things perhaps like corporate credit spreads, evaluation of the market, and saying maybe we

shouldn't follow inflation as the gauge of excess, maybe it is elsewhere in financial markets that caused the last couple down turns. >> interesting wrinkle as we parse the language thank you, steve liesman all of this happening as the nasdaq and s & p hit record highs. let's bring in jpmorgan chief u.s. economist michael fa michael farrole. they said inflation is up 2%, no sign of acceleration above 2%, and doesn't seem to be elevated risk of overheating. is that what the market is cheering about >> that seems to be what the market is cheering about as steve pointed out, this speech like most is a bit of a rorschach test i viewed it hawkishly as steve mentioned, inflation isn't a sufficient indicator of whether

the market is overheating. leaning heavily on a fed report that said the appropriate past to policy is hike rates to 3% or above, more than the markets expect i guess i saw more hawkish elements than dovish elements. >> michael, the fact you have the spread between the two and ten year notes now narrowing to less than 20 basis points, is that concerning you, do you think the market is pricing in risk associated with it? >> look, i think we would agree we are in the mature phase of expansion. i would expect it to be flatter than three or four years ago i don't think it is sending imminent recession signal. if you look two to three years out, there's obviously things to worry about in terms of whether the economy is overheating and whether the fed will need to go to more restrictive policy i don't think sending too worry

some a signal in the next 12 months. >> if we were to get to a point the economy is overheating, i use the word if here, given fed chairman powell's comments about the fact inflation would show up in financial markets first, where would you expect to see that >> i think steve was right to think that credit spreads are something that the fed is very focused on you can move on to things like equities everyone has an opinion on that. >> what's your opinion >> i don't think it looks unreasonable now certainly destined to be good momentum see where things are in a couple months for now, the fed is on auto pilot, certainly in december things get more interesting next year we have to see where financial markets are and see if wage inflation stays where it is or starts to -- it has been gradually accelerating i think that continues and next

year the debate gets interesting. for now, the fed probably gets 250 or more in the fed funds rate before they seriously talk about a pause. i didn't see anything in this speech, whether you want to take dovish or hawkish side, there's nothing that signaled a pause is coming imminently. >> thanks, michael michael feroli want to get to john harwood in washington for breaking news this morning john >> david, breaking news and sad news senator john mccain, war hero from service in vietnam spent years as a pow, became a congressman, senator, and candidate for president, republican nominee in 2008 has announced through his family in a statement that he ceased treatment for brain cancer he has been home in arizona for some time. he has been suffering brain

cancer for the last year or so he of course took some legislative action, including casting the deciding vote to kill the obamacare repeal in the united states senate last year but he has not been in washington for some time and he is not going to come back because he announced today he is ceasing treatments now, that probably will not trigger a special election this fall, a second election in the state of arizona jeff flake, his colleague is retiring that's because john mccain remained in that seat until after the end of may, and i believe that that is the legal trigger for when you would have a special election democrats may try to contest that in court but the news today is that john mccain has ceased treatment and everybody's thoughts and prayers are with senator mccain now >> certainly i think we both speak for many, many americans when we say our thoughts and

prayers are with the senator and his family john harwood, thank you for bringing that update the battle over content and misinformation on social media continues to be waged. google is the latest to say it removed dozens of youtube channels, and accounts linked to iranian state broadcasting they were designed to influence u.s. elections this comes on facebook's admission earlier this week it identified and deleted more than 600 accounts linked to iranian and russian influenced campaigns. also this morning, a source close to the situation telling cnbc facebook invited representatives from twitter, google, facebook, amazon and others to twitter headquarters today to share tactics and prepare for the upcoming midterm elections. joining us now at post 9, pulitzer prize winning journalist and writer for "new york times" magazine, charles duhigg that joins us good to see you. >> good to see you. >> it has been another whirlwind

week around social media and misinformation. >> what's amazing to me, there's a lot of consternation that twitter and facebook and companies are having a secret meeting to discuss upcoming elections. what's important to realize, the reason they're doing this is because the federal government hasn't stepped in and do what it should be. the integrity of our elections shouldn't be dependent on a bunch of 32-year-olds finding time to have beers together. this is something the federal government should be doing. >> i think that's a key point you make in the reports, no signs that -- and we saw a meeting that involved the federal government in may, then saw reports that these companies were discouraged by the way the discussions went. they don't seem to be invited to the meeting today. how do you read into that? >> i read into it that the government is not sharing information or setting up the meeting. you're right there are representatives of the federal government invited the last time a meeting this happened, but that shouldn't be the dependent variable the dependent variable should be whether the federal government

has a concerted plan to stop meddling in elections to protect from cyber attacks for years, there's been conversations about the fact we need a cyber security czar and haven't seen momentum on this. if you talk to congress, they say there are a lot of bills, they're right, they're pushing for this truth of the matter is the only way you get concerted protection is if the white house, the president steps in to push for appointment of a new position, a cyber security czar that can coordinate the good work happening in lower levels. >> they want to do that, right aren't they pointing to homeland security already having oversite even pushed back against the recent legislation. >> absolutely. seems like the white house is a little distracted by other things going on, not eager to talk about risks posed by meddling in elections. truth is, we're seeing in other parts of the world huge damage can be done.

wired magazine has a great piece on the attack in ukraine, knocked about a quarter of the country's computers off line, but spillover effects, one of the largest shipping companies incurred billions of dollars of damage merck because of a virus targeting ukraine went wild. until there's concerted effort to coordinate protection on this, it will continue to happen and it will get worse. >> charles, there's an argument to be made that social media was made to meddle in other people's business that's what we're all doing on it is this fixable? what can they really do to keep people from meddling in other people's business politically? >> it is absolutely fixable, but not fixable by the companies themselves great thing about social media and the internet is that even a dog on the internet, no one knows you're a dog anyone can do anything it is a great cartoon. that's right this is why we love the internet i can sit in my pajamas in my

living room, tell the ceo of apple what i think he should do with his company truth of the matter, so can foreign actors in other countries tell me how i ought to vote. >> you know who seems to be the winner in this, fire eye stoc stoc stock is up, now google and youtube pulling down pages fireeye seems to be the company that discovered this with all of the money that the social media companies are putting towards trying to police their networks now, the fact that they're still relying on outside security companies, what should we think of that. >> there's a question of how much money these social media companies put toward the problem, right this is not a business problem for them doesn't make sense to spend money on solving this, this is a political and optics problem they need to spend enough to keep regulators away but you're exactly right it is shocking some little company we never heard of in the bay area discovered this

incursion before facebook did, before google did. should also be noted that one of the things google brought down, they took down 32 google plus accounts which probably had a total sum of 32 people looking at them. this wasn't the most sophisticated attack on the face of the planet. it is worrisome we're not hearing more about things like this being detected because i guarantee you there are thousands if not millions of other accounts that are laying in wait for when they get activated. >> i want your thoughts on president trump's tweet on social media social media giants are silencing millions of people can't do this, even if it means we must continue to hear fake news like cnn whose ratings suffered greatly people have to figure out what's real or not without censorship you can make the case it is a gray area, in a slippery slope, start to censor whether a private company or not on the flip side, how are consumers supposed to know what's real and not, and get

educated, when your vetted news institutions are called fake >> it is not inappropriate for the federal government or authorities to try to shut down foreign actors when trying to influence an election. that's not exactly censorship. the president is making a reference to a conspiracy theory that conservative voices are being shut down online what's important about this is that we need more coordinated attention. what's interesting is that reddit, you don't see a lot of misinformation and that's because their users are sophisticated, spent years if not decades how to root out what's true and isn't. the concern now is short term concern. that many that use social media are relatively new to digital information and we're going to evolve and get better with this just as we have with videos and television news, but it will take time. as that learning curve occurs, we need authorities to step in and help us. >> to the extent the federal

government would start to, if they in fact follow what you're discussing, the risk they would somehow play editor in chief of some of the sites, isn't that a risk we may not want to take as well >> i don't think there's a real risk they're going to shut down sites. they could say they're coming up with penalties when we have clear government interference in dissemination of information and we do it all the time. right now, there are regulations who can run political ads. if you're a foreign government, you can't run political ads. i don't think it shut down the political discourse in the u.s there's a way to bring a sensible approach to the policy, but means we have to bring an approach to the policy. >> all right i have a feeling we'll be talking about this so much more in days to come. great to get your thoughts on difficult topics charles duhigg. when we return, brad smith is with us, after announcing he is stepping down from running

init lertuat this year he joins us exclusively next "squawk alley" is back after this break with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

fidelity. thanks, janet. it's welcomemy happy place. store. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. take a look at shares of intuit, slightly higher in morning trading. strong quarterly revenue the stock rebounding on news that the ceo brad smith is stepping down by the end of this year after 11 years as chief executive. brad smith, ceo of intuit joins us now

brad, good morning >> good morning, jon, great to be back with you. >> 11 years at the helm. profits tripled, revenue doubled, intuit closed at $27.93 i believe, first day of trading, today at 213 bucks i want to ask about the health of small business because you guys have quite a read on that in light of what the fed is saying about things not overheating, how hot is that important segment of the economy right now in small business from your perspective >> small businesses are feeling very optimistic about the economy. we can see that show up in terms of charge volume they're getting from their customers as well as a number of employees they're hiring and the hours the employees are working. on the flip side, we know small businesses tend to be optimist one out of two fail in the first five years they're sure it is the other person that doesn't make it. when you look at whether

businesses are strong, businesses are getting stronger every day. >> tell us about the momentum of your software as a service business, that's particularly important in the small business segment. used to be years ago after the big turbo tax quarter last quarter, people were like just ignore intuit. they're going to bump around you have a growing online business driven by sass. what is feeding that, how much is the gig economy adding to that momentum? >> well, jon, we're seeing what many other companies are seeing, the shift of the cloud to mobile devices, that's showing up in the consumer's life, showing up in small businesses, in accountants. and small business sector in particular, we have 8 out of 10 customers that choose cloud offering over the desktop offering in fact, cloud subscribers grew 43% this quarter we have over 3.4 million

customers in the cloud, and it continues to accelerate every day. the gig economy is a big part of that we crossed about 800,000 customers, freelancers, uber, inventory lyft drivers, and that's growing at a faster clip. >> want to ask you about operations i was in your office a couple years ago, i remember we were talking about starting to move to aws talk about exactly how that's helping you financially and efficiency wise, where should investors look for the impact in how quickly you can scale or lack of capital spending you have to do to achieve some of these ambitious goals you guys have set. >> our partnership with aws has been amazing it unlocked the ability to innovate quicker, meet customers' needs and much more

efficient. we process 100% of turbo tax through aws at the end of last tax season we have a large majority of small business cloud products in aws and fully plan to be in aws in the next 12 to 18 months. what that allows us to do is innovate quicker we now sold our own data center, doing a lease back now we sold the data center, got it off our books. we're all in on aws and couldn't be more pleased with that performance. >> i want your thoughts on tax reform and what you are seeing in terms of impact i imagine near term there are folks that have questions about changes to the tax code and thus will be looking to your company for advice and services, et cetera but longer term if you have a tax code that's more simplistic, does that boost demand or take from it? >> morgan, great news for us as a company and for the consumers overall. we have long been advocates of tax simplification

you have 90 million people that go to someone else to get their taxes done, pay hundreds if not thousands of dollars we have software that can do it for free, for as little as $40 now the tax simplification, we believe tens of millions f people will shift into the digital category as long as we have the best offering in the market, we think we'll have the opportunity to benefit from that shift. >> finally, brad, i want to ask you about succession, not ceo succession, but other moves that you have in the sweep. new cfo recently, and new cto. seems like you're getting more gender diversity in the c suite. talk about the long track record both of these new c suite executives have had within intuit and how that gender diversity in the top of the ranks is changing the company. >> we're very proud of intuit's diversity. it has been a 35 year track record from the day scott cook

started this company at a kitchen table. half of the intuit senior executives are women we have people of color, people that come from every sort of ethnicity, and we're excited about the fact we recognize diversity as a fact but inclusion is a choice. we made that choice 35 years ago. the cfo has been with the company more than a dozen years. had a storied track record at general electric and moved through multiple businesses. the cto, taylor stancebury is standing down. over the last decade, he transformed this company moved us from a desktop company to the web, cloud and onto mobile devices, transformed us into a platform company with artificial intelligence. most importantly, groomed a strong bench and in doing that prepared his successor you'll see mariana was a captain in the israeli army.

she's going to take us to new heights when she steps into that cto role. >> you're staying on as executive chairman look forward to getting out there in california, visiting you again. brad smith, thanks for being with us. >> thank you, jon. coming up next week, do not miss the premier of cnbc bitcoin boom or bust special with melissa lee, monday at 6:00 p.m. restern time mo "squawk alley" after the break. dow up 120 points.

let's get to the european close. >> david, european stocks are edging higher to close the trading week you can see behind me, on track to break three straight weeks of losses night bullish moves. basic resources, that sector is among the best performers in

this european trade. that group of stocks has reversed the downward trend, still on pace for being down more than 5% this month in august with few signs of a break through in trade talks between the u.s. and china, jay powell's comments at jackson hole are very much in focus yu -- euro hitting the highest level this morning meanwhile, in italy, several bank stocks moving to the up side on reports that trump may be willing to buy some of the sovereign debt next year trump reportedly offered assistance points to the italian prime minister during their meeting at the white house three weeks ago, according to local italian media outlets citing government officials italian bonds have been under pressure recently among that government promise and cooler stance towards the european union. ten year yield surged more than 30% in the past three months, morgan back to you guys >> dom chu, thank you.

now over to sue herera for a news update. >> good morning, morgan. good morning, everyone here's what's happening at this hour senator john mccain has chosen to discontinue medical treatment for an aggressive form of brain cancer a statement from the family said, quote, the progress of disease and advance of age render their verdict, end quote. the family thanked thousands of people that are keeping the senator in their prayers. hurricane lane is currently battering the state of hawaii. 20 to 25 inches of rain have fallen on some parts of the big island flood waters, land slides blocked roads. officials warn heavy rain and storm surge are biggest threats to hawaii's infrastructure. a new study found using e cigarettes every day can double your risk of heart attack, according to researchers from university of california, san francisco. the study found people that use both e cigarettes and regular cigarettes are much higher risk

of heart attack than people that use one or the other. it is that time of year again. the cdc issued updated flu recommendations for the upcoming season they suggest that you get the vaccine by the end of october. after a two year hiatus, the nasal spray is approved for use this year. you're up to date. that's the news update this hour, guys i'll send it back downtown to you. david? >> thank you, sue. let's get back to steve liesman at the fed summit in beautiful jackson hole, wyoming. steve? >> reporter: yeah, dave, thanks very much. one of the things we didn't talk about are things that powell didn't talk about. we listed risks he cited before, talkedabout the yield curve which we talked about this morning, the yield curve coming down to the 19 area there, below 20 first time since 2007 as markets took a dovish view of it didn'tmentioned that as a risk didn't mention risk of contagion from turkey and other emerging

markets, not an issue he spent any time with. i think pointedly didn't take the opportunity to say anything back to president trump who has spoken quite a bit about federal reserve, criticized fed policy of raising interest rates. he said we're raising rates gradually if the economy goes the way it is going. and no mention of trade. that's been mentioned several times by several federal reserve presidents as one of the risks out there. mo powell said real wages have grown slowly economic mobility declined, federal deficit on a sustainable path, low productivity are risks he did mention doesn't meanest not concerned about things i mentioned earlier but why not high on the list when he talked about inflation, he saw inflation going beyond 2% range, doesn't see risk of overheating, and that's the phrase that the market seems to be keyed on. you can see a pop in the s & p, a pop in the dow on powell's

statement, as well as the comment about being gradual in rate rises >> steve, stay with us for viewers that are tuning in, the other screen on the left-hand side, we're waiting for fed chairman powell to make an appearance. meantime, bob pisani is here at post 9 record highs for s & p and nasdaq how are markets responding. >> we're waiting for fed chairman powell to jump out behind a bush there. >> when did this become a thing. >> i love watching the wild animals. >> beautiful the market loves powell, they get it they can understand what he is saying you can read his statement today, discussion about inflation. they would say i understand what he is saying we're going to raise rates gradually. it is appropriate to raise them gradually. doesn't seem to be risk of overheating in the market.

and then you have colleagues somewhat coming out, reinforcing that mess ter, gradual rates are appropriate. all this says to all of the traders that don't want to read it, they're going to be slow that's what the market likes steve, i wonder, he didn't address the idea kaplan brought out about raising to neutral rate which i presume is two more rate hikes and stopping. do you think he didn't want to address that, he doesn't want to give more forward guidance he has been reticent about that, maybe he doesn't agree do you have thoughts on that >> you're right about that, bob. he didn't raise it because he doesn't have to. the fed has to get to neutral. powell does spend a lot of time in the speech giving economists a bit of humble pie in the sense of you said neutral was this

before, you said the rate of unemployment was this before and you were wrong, wrong about the natural rate of interest we need to be careful making policy based on perceived constants that turned out not being constant he points out that when unemployment rate was allowed to dip further than the perceived natural rate of unemployment, 1.6 million people got jobs. he says that so i don't think powell -- kaplan can say that, that's his view wants to go to neutral and look around powell says he doesn't have to he probably thinks let's get in and around the place we think is neutral and hang out, take a look around. if we have an inflation problem, we'll deal with it. >> the other thing that's important, i don't know how you feel, but steve, he was quite willing to address what i consider fiscal policy, not monetary issues. had a whole thing about wages being stagnant, economic mobility declined, economy has to break out of low productivity

mode budget deficit is important because as a larger share of population increases, that's a clear shot at the bow on the entitlement issue. why is he willing to address broader fiscal policy questions rather than monetary policy? >> bob, that's a tradition of several federal reserve chairs and chairmen they noted that unsustainability of the deficit, they pleaded, cajoled the administration and congress to get it under control and they said repeatedly the sooner you do this, the less pain will be involved in doing that it is worth pointing out, bob, the four things you listed, main risks noted by powell, he goes on to say, maybe says it before that, these are not things the fed can do very much about don't look to the fed for the reason why real wages are not rising or to solve that problem.

he's basically saying get on the issue from the fiscal side, not necessarily from the fed side. i think one of the things that powell wants to do is to de-emphasize the perceived role of the fed in the ability to solve all our economic and financial problems >> we've got a lot more "squawk alley" coming up after the break as we await the fed chairman major indexes near session highs. be right back. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

the time honored tradition of the fed chair taking a walk through a beautifully verdent area in jackson hole this is jerome powell's first visit as fed chairman to this annual conclave. let's bring in steve liesman for the great significance of watching this walk steve? >> reporter: yeah, it is hard to overemphasize the significance of the walk, in part because i can think of none, other than the idea that the chairman is in front of the cameras now, walking with john williams, the newly appointed or newly named president of new york federal reserve bank, ex of the san francisco federal reserve, and the kansas city fed president you saw on air yesterday doing this walk for the cameras

and just to show he is here and part of the maybe perhaps emerging transparency of the federal reserve i guess has been going on ten years last year though, maybe one thing worth noting, last year walked with car owed a from japan, and they're not here this year trying to run down, and why bang of england is not here -- bank of england is not here and the year before that i believe it was fisher, vice chairman and dudley, president of new york bank worth noting, guys, there's no vice chairman of central bank now, because although named by the president and approved by senate banking, not been approvedby the full senate and that's supposed to happen in september. perhaps if this walk takes place this time next year, there will

be a vice chairman of the central bank that's not to denigrate or not mention that, vice chairman of supervision, but regular vice chairman position of federal reserve hasn't been appointed. there you go a minute and a half over something that didn't need -- i'm not sure i provided any analysis there maybe the absence of -- sorry? >> next year next year we make it bigger, steve. >> i have one quick question. >> we can get a drone, perhaps, for next year. >> yeah. >> steve, i have one quick question the fact you mentioned that we have heads of a number of major central banks not present this year, how unusual is it to see something like that? >> they're usually here. and what's interesting is i normally send requests for interviews well ahead of time, nobody wrote me back this year i was taking it a little personally they usually write me back to

refuse my interview request, this year didn't write me back at all that's a note to michael there at the ecb and my friend there at the bank of england i don't know the significance of it they're not here there's a lot of interest. i will say, morgan, later on today we have an interview with the governor of the bank of canada which i'm looking forward to, relations between the u.s. and canada are very interesting now. i think that's going to be an interesting interview to talk about. i intended, hoped to bring more international flavor to the reporting because of all of the international, economic issues out there. one of the things we have been talking about are vast differences. had they been walking together with powell, there would have been a gaping 200 point basis point differential in their benchmark rates between them that would have been of interest but they're not here to talk about that this year, guys

>> all right this is a replay of what we've already seen of the powell walk. >> this is not live, yes. >> this is not live. should mention that draghi is not there, language in the speech reminiscent of his remarks about the euro when powell said he'll do whatever it takes to make sure they tame inflation if it shows its head more "squawk alley" still ahead for you. no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

i am melissa lee in for scott walker

a record breaking day, the s & p, nasdaq, at new highs. time to take profits or stay in the game. and one big call on netflix. is the 15% drop in two months an historic opportunity to buy in and pete najarian is back. that and more at the top of the hour david? >> i want to alert viewers to shares of papa john's, embattled pizza chain. stock is up. reuters reporting hiring of some bankers. we can confirm that. they hired lazar, bank of america. the founder stepped down last month. doesn't mean there's a deal anytime soon some would like to think so. certainly you can imagine in the case of potential buyers whether they be private equity or

strategic thinking it might be opportunity given how much the stock suffered in the course of the last year. but what one might imagine is if you're the company, you're still dealing with 28% holder, the man who founded it, and you may want to get your house in order before considering a sale. hopefully having done that, you can sell off a far higher price. want to note papa john's up on those reports. morgan >> thank you. elon musk has a plan to reduce traffic congestion in los angeles during dodgers games his boring company is proposing a tunnel to ferry fans to and from the stadium, called the dugout loop. joining us, dodgers chief financial officer, tucker cane good to speak with you >> good to be here, thanks >> you had an announcement recently but it is light on details when would you expect this to be built and given the fact it is 100% privately funded, are you going to contribute to that?

>> the expectation right now is that we'll have approvals early next year and get started building the tunnel, hopefully have it opened by the end of 2019, in time for 2020 season, which is when the dodgers are hosting mlb all-star game. hopefully a great opportunity for our fans to take advantage of the new, innovative transportation option. and the tunnel at the moment is going to be fully financed by the boring company, something we're excited about, appreciative of the work being done by the boring company on projects like this to help l.a., help traffic, help dodger fans in particular take advantage of these types of opportunities >> 2020, it sounds like you're already incorporating this into longer term models for the stadium, i would imagine you're considering what the financial impact could be, how you approach infrastructure based on that >> yeah, absolutely.

i think this is a key part of what it is going to take for the dodgers to continue to delivering the fan experience we're hoping to for our fans we are doing this with the boring company, obviously we also announced a pretty innovative gondola project to connect union station up to dodgers stadium and surrounding areas. something that is important to us to make sure we alleviate some of the friction in the fan experience traffic in l.a. being one of those, and giving people alternative options, and doing this all in a clean way where each of these options are clean technologies, helping alleviate some issues on the parking and traffic side >> tucker, how do you financially justify a project like this at a dollar per passenger. say you're moving 3,000 passengers per game, is your

expectation to do your calculations this will boost stadium attendance because it is easier to get there? if so, how many attendees do you think you're missing now because of the traffic issue >> yeah. i think think the economics -- e beauty of business like the boring company and their ability to vertically integrate the tunnelling process and really bring costs down a place where those economics really do make sense on the tunnel side and then for us at the dodgers, obviously giving our fans more options, less friction getting to the game. we're confident that will drive more utilization, be able to fill our stadium more frequently we're already the highest-attended sports venue in the world at the moment so we're trying to capitalize on that, give people more options, make the broader los angeles marketplace, give them the opportunity to really come and

experience dodger baseball which they may be less prone to do to the extent traffic is a major issue as they try to get to the stadium on a nightly basis. >> most attended that puts everything into perspective. we'll have to leave it there but we'd love to have you back on to talk about the other stuff you're doing, tech initiatives, sports betting, et cetera. tucker, thank you. >> thank you very much. >> and the dow is up about 150 points more on the markets next but first after the break -- >> the 1961 ferrari 250 gt california my father spent three years restoring this car it is his love, it is his ssn -- >> it is his fault he didn't lock the garage. to rent a movie?

showtime. or buy the hottest shows. even here? we've got you covered.

now they are all yours. to take on the go. on any screen. bingo! alright! and watch whatever you buy. wherever you are. head to xfinity.com/stream to start watching. simple to rent, easy to buy, awesome to go. let's get a check on where we stand in the markets. s&p and nasdaq, the dow is up 150, 253 points. all indexes closed higher. we'll have more "squawk alley" after the break. 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.

yes, that ferrari that ferris bueller drove can be yours as the pebble beach car auctions in california kick off this morning robert frank is in pebble beach with more. anyone robert robert >> oh, yeah, john. for movie lovers and for car

fans, the real star of "ferris bueller's day off" wasn't matthew broderick or mia sara, it was a car. >> the 1961 ferrari 250 gt, california my father spent three years restoring this car it is his love it the his passion. >> it is his fault he didn't lock the garage. >> one of the cars used in the movie is about to come up for auction at mecum they didn't use real ferraris for the movie, that would have been too expensive they use three replicas built by a california company that used ford engines and hand-built chassises. one round up in the ravine, one is in private hands and this one was actually in a garage for 30 years before it was discovered and purchased last year and the owner of that car, who's now selling it, said that fans

across the world instantly recognize this car >> they yell out the window, they pull me over, they'll follow know a gas station, i take it to a car event, it's inundated with people, it's a lot of fun everybody knows the movie and that car >> and we know that it's legit because the guy who built the car and sold it to john hughes showed us yesterday some evidence from the movie. this dent here is from when cameron kicked the front of the car in that scene where he's raging over his dad. and i actually got to drive this yesterday and to quote the great ferris bueller, it is so choice. guys >> robert frank, thank you some of us gen xo eors remember that movie fondly. the dow up 161 points, s&p up

more than half a percent let's see. that will just about do it for "squawk alley. you're still here? it's over. i it's time for the half time report ♪ don't stop me because i'm having a good time ♪ ♪ having a good time, i'm a shooting star -- ♪ >> i'm melissa lee in for scott walker wall street is booming a record-braching day for the s&p 500, the nasdaq and russell 2000 we have been buffeted this week, jim, with so much news out of the political realms, news that you might have thought would have provided a head wind for stocks we had jerome powell speak saying all things are a go for rate hikes what do you think? >> i thought he was just a touch more dovish than you sounded on it but in terms of what i think about this market,