good morning, it is 8:00 a.m. at google headquarters, 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ ♪ good tuesday morning welcome to "squawk alley." i am carl quintanilla with morgan brennan at the new york stock exchange jon fortt is off we begin with the market dow is continuing to rally off the highest close since february the nasdaq crossing 8 k for the

first time ever yesterday. question now is what comes next? mike santoli joins us onset. >> summer winding down, earnings season basically done, we're on the verge of election season and we have this new high. i think the way we got to the new high is relevant it was a hard one breakout below the january highs for seven months when that happened generically speaking, that's been a good thing if you had a long repair process after correction that's a two year chart of the s&p 500. you almost just resumed the up trend in the same angle from mid 2016 with just a biggie rupgs to t -- big eruption and all that looks good. you have this kind of breakout after a long sideways period, positive are more positive than on average

up this much year to date, that's good, between 5 to 10% in august i think the question is how much of the good stuff we have already figured out, will the market remain difficult to please when i say difficult to please, earnings up 20 to 25%, s&p 500 up 8%. market is bracing for the possibility it trails off from here and just the sheer brute force of all of the good news, with all of the dividends, buy backs, repatriation, treasury staying lower than expected, credit markets remaining flush. all of that got you to 8% year to date return, nothing to sneeze at. it maybe indicates it will be all about 2019, what growth looks like then and the fed and all the rest of it. >> that's a key point in terms of what's next when you turn to september and onward in terms of major catalyst for the market, looks like there's midterms. you have more time until the next earnings season.

>> i think midterms, most of what has to happen is for the election to be over. that's usually the pattern the market gets some anxiety ahead of a known event like election obviously the result matters but it is more about getting past it i will look back to last year, it was fascinating august is when the market lifted and accelerated to the up side you couldn't point to anything in particular except it was pricing in the tax cuts likely to come. everyone keeps pointing out the market is cheaper than january pe basis, 18.5 times then, and 16.5 times now, right? why was it 18.5 times then the market knew you would have a once in a lifetime huge increase in earnings late in economic expansi expansion which you almost never see. just the durability of the cycle, i don't think it is about to end i still think the up side or the

weight of the evidence lies, it just may not be a rapid gain you could look at january and say that was the momentum peak, optimism peak, that was kind of the best moment how it loorkd easy for the ultimate peak >> undone by a spook in wage growth in february which you could see again. see if the result is the same or close. >> that's why at this point in the cycle, people say cycles don't end of old age what happens is the economy has a hard time putting to work scarcer resources at a profitable rate of return. that's what goes on, including labor. >> talk about this through the lens of tech kate mitchell joins us, timothy lesco. happy tuesday. good to see you both i want you to expand on your

view that the divergence within tech we're seeing, even among the high market cap names. >> i think he laid it out nicely, you have a fire burning awhile, fueled by lower rates since the financial crisis i think we're hoping the economic growth becomes the fuel to the fire as expectation is lower rates begin to ebb we could have had a market in serious trouble if we saw rates go higher as many expected or wage inflation go higher so far it is a bit goldilocks, perhaps we have more room to run as those head winds haven't come to fore. but as you mention, may see it coming in the future >> i was going to say, does it feel goldilocks to you >> we're having a typical foggy summer in san francisco. but markets are still pretty high yes, it does seem that way

i will say we start to see a tale of two cities good companies, public and private are still doing well because the fundamentals are doing well apple, amazon, et cetera, apple is about to launch new products, iphones this fall, there's more up side. you start to see two things. companies like tesla that hit bumps, facebook, get severely hit. we see the same on private markets as well. if you're doing well, everybody loves you and they may overprice you. if you're not doing well, you'll be pretty severely punished. the other thing is what's going to happen with the chinese market, what's going to happen with the european markets, what happens with trade barriers, what happens with brexit any weakening would be something to be careful about. otherwise, things remain pretty sunny. >> i want to dig into that more. invested in companies that are

focused on enterprise and business, got strong consumer sentiment reading this morning what are you seeing through the lens of being invested in these companies in terms of business confidence >> i'll tell you business confidence is surprisingly strong i think you see that in the fundamentals of the customers. we invested in box and docu sign sales force will release earnings soon, workday is doing well businesses continue to use technology to save costs, to give more technology to workers. you see what's happened with slack. talk about their staying private in a minute. but you see overall enterprise is confident that that's good for tech stocks and amazon with aws, microsoft and so many others >> mike, i am curious, we had a conversation this morning about the best august for the nasdaq going back to 2000, and we talked about what august was like in 2000 a viewer reminded us it was a

mid quarter warning out of intel that helped derail a lot of that is it hard to envision something like that happening again? >> hard to envision something like that triggering as big a debacle. you don't have as much built up excess and really this unwieldy mass of market based on little fundamentals also you have this fake corporate earnings treadmill we were on. not saying you have anything like that now, but every company we talk about is reporting an adjusted earnings figure now you're getting it in small pockets of the market. no, i don't think that it is as fragile as it seemed then. >> tim, would you go along with that >> i absolutely agree. certainly back then you had so many more companies gaining large market caps with no revenue and no earnings. and right now if you look across the space of what people think are overvalue, you continue to

have revenue growth. i would echo what kate said. if you begin to see these overseas markets weaken more, that's part of the total adjustable market for the highest fliers that may cause rotation from the highest fliers to those with better revenue and earnings domestically. >> before i let you go, i want to follow up on a comment about slack. closed another round of funding. the idea that you have -- >> slack is an amazing company i don't know about you, my inbox is unwieldy. if i work with people, it is more efficient to communicate inside or outside my company using slack. there's a good reason for the paying customers and some of the largest companies in the world, and not surprising that they have a choice where to get capital now. everybody is looking for return. they don't need to necessarily go public. he looks at challenges that elon

musk is facing, people making as much off elon's errors, unforced errors maybe, as they are in tesla's growth, and i think if you're stewart butterfield, you think it is better to plan for long term growth if i stay private and so much capital knocking at my door, you see that across the unicorns >> interesting contrast going into a year where you expect high profile ipos. thank you guys coming up, president trump looking to scrap the nafta trade deal, and more than one sector is not happy national retail federation matt shay is with us after the break. hi i'm joan lunden.

today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments

in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back industry groups putting pressure on the white house to expand the trade agreement with mexico to include canada national retail federation issuing this response to yesterday's deal coming to terms with mexico is an encouraging sign but threatening to pull out of the existing agreement is not. the administration must bring canada, an essential trading partner, back to the bargaining table and deliver a trilateral deal joining us, matt shay. great to speak with you today. >> hey, morgan good morning sf >> so we have this deal with

mexico >> i go back to the earliest comments to u.s. trade representative last summer in june of '17, and our observations were we agree we need to modernize, update nafta. it is 25 years old, the world has changed, commerce changed, we live in a digital world we need to update and modernize nafta and bring it to the 21st century, but our specific comments were we needed to do it quickly, create certainty for businesses, do it in a seamless way, but needed to include all three parties, and it had to do no harm. i guess our observation would be this is the largest free trade zone, a half billion consumers, three countries, very complex, sophisticated, highly efficient supply chains between the three countries. getting all three parties together is important. this is a great first step we're encouraged

obviously better to have them talking to each other than talking trade war. this is a good first step. >> matt, i want to dig into that notion about supply chains a little more. we certainly have these conversations about the asian supply chains and impact of tit for tat tariffs, threats of those expanding in china in terms of integration from a retail perspective between the u.s., mexico, and canada for that sector, what's the economic impact have you measured that >> 14 million jobs are generated because of trade by the nafta agreement. 14 million americans are employed because of benefits of nafta in terms of creating those complex supply chains and lowering prices for consumers, creating opportunities for capital to be invested in the most efficient ways. and the potential for $16 billion in additional price increases on u.s. commerce if

nafta goes away. so there are some benefits that are specific and unique to retail, and there are other benefits that are broadly spread across the economy because of the jobs created in other industries that benefit from nafta. i think if you look at you have been talking today about retail earnings, how healthy and strong they are going back to last week, two weeks ago, many conversations with retail executives talking about overall health of the economy, strength of consumers, benefits of tax reform and regulatory reform from last year, which were really a down payment on what we see this year. i think we have to look at this in total and say while there are unique benefits to the retail industry, there are broader economic benefits that generate positive results for retailers because we are reflective of the overall health and strength of the economy. right now we're in a strong, healthy economy. commer consumer confidence is highest since 2000 very strong numbers.

let's keep the momentum going. seeing the u.s. and mexico come to some agreement gives us more momentum hopefully we get canada to the table and continue that, and we're set up for a healthy 2018 for the rest of the year >> speaking of that, i wanted to ask you, you mentioned earnings we talked about the last few weeks. we know this is the time the holiday season is set up in the chain. in terms of inventories or spending on e-commerce, how do you think the action we are seeing now translates into what we will see come black friday? >> carl, you know, the way the timing of inventory works, a lot of inventory for the summer season was ordered a year ago. inventory for this fall holiday season is already on container ships and much of it maybe already in the united states in warehouses, being distributed. we know in that regard we are probably pulling ahead some

activity that occurs, consumer transactions later in the fall retailers, their supply partners have been working on this more than a year. we talk about potential tariffs on china, things like that, even what's happening with canada, mexico, the u.s., that's not likely to have a huge impact on the supply chains for this year. might have an impact on consumer confidence and consumer psyche one way or the other we know last year tax reform was done before the holidays the benefits of tax reform in a practical way aren't being felt until now or later this year, next year. consumer confidence and holiday season were strong last year people felt good about the economy. similarly with regard to what happens with u.s., canada, mexico, even europe and china, if you feel there's positive momentum, we know as consumers, shoppers, voters, we all know we feel better about the way things are, even if real benefits aren't going to impact us until somewhere down the road.

>> certainly seeing strong freight numbers as we come into that peak holiday season matt shay, thanks for joining us. >> thanks, nice to talk to you. when we come back, why the city of miami thinks it has home court advantage when it comes to jeff bezos and the amazon hq 2 more "squawk alley" continues in a moment dow is up 50 nce if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪

welcome back to "squawk alley. we are watching shares of thompson reuters that they're going to close a deal to sell financial and risk business and will use $9 billion of proceeds to buy back its own shares those headlines are starting to

drive the shares higher. carl, you can see they're up 3 to 4% in mid morning trading back to you. >> dom, thank you very much. amazon is keeping everyone guessing about the site of the hq 2 project nor more word on the finals of the facility and 50,000 jobs that go with it. scott cohen is in miami, the next stop on the amazon race tour it is getting exciting, scott. >> reporter: sure is, the suspense is building miami would give amazon balance. it would have corporate headquarters on opposite end of the country, seattle and miami, though there's no indication that's part of the company's calculus here's something that is transportation miami has that in spades, with three international airports in the space of 70 miles, extensive mass transit, including a rail network that will go all thewa to orlando with a station here at the miami world center project where we are this project is already under

construction that could be a possible site. one of the things being offered here if amazon as we think it does wants to expand its presence in latin america, this would be a great jumping off point. >> we're in great shape with respect to transportation both national and international transportation via air as well as what you need to do locally as workers start to get established here, are looking to commute to and from work >> so that's a positive in our location section of the amazon race report card where we use the 2018 america's top states for business data and other government statistics to grade all of the finalists based on amazon's stated criteria miami gets a b plus for location that grade dropped a bit by high cost offsetting some transportation advantage a plus for population. b plus for stability and business friend leeness, c plus for talent because amazon has a

distinct shortage of tech workers, although miami did produce one very important, very successful tech worker, jeff bezos, 1982 valedictorian of palmetto high school maybe that's a home court advantage. we'll see. we'll talk later on power lunch with miami-dade mayor carlos gimenez. we have report cards at top states.cnbc.com. >> jeff bezos, valedictorian in high school also talked about space and colonization in that graduation speech. couple hours away from the space coast and is there any reason to believe some other ventures of bezos could play into where he decides to go? >> reporter: a lot of speculation surrounded washington, d.c. because of that because he owns "the washington

post," has a home there. we really don't know, for example, how is amazon going to divide the responsibilities between the two headquarters if, for example, it wants to look at latin america as we referenced, maybe this is a good spot what if people have to go back between seattle and hq 2 quite a bit. do they want to make the long trip to opposite ends of the country. we don't know because amazon is not saying how it is going to divide responsibilities, exactly where the priorities lie beyond the four main criteria that the company laid out last year when it first announced this. a lot of it is a guessing game everybody is guessing. inl mia in miami, they think they have a shot. >> the guessing continues. we love your reports from the different cities scott, thank you for joining us from miami. let's go to seema mody for the european close. >> signs of progress on the trade front following a phone call between president trump and

german chancellor angela merkel is helping the european stocks ftse up and trade as soon astive, stocks, minors leading the index higher anglo american up 3.5% in the currency market, the euro with the highest low against the dollar 1.17 the euro is still down 2 to 3% against the u.s. dollar in 2018. in britain, government officials continue on-going negotiations surrounding exit from the european union. theresa may saying leaving the eu without a deal will not be, quote, end of the world, dismissing warnings about a no deal brexit path keeping an eye on the pound. uk trade minister liam fox reiterated that the british government is prepared to walk away from negotiations if the

country did not get a good deal for brexit fox said he preferred a deal be reached but added the country's economic outlook was stable. and one james bond car maker moving closer to ipo aston martin will announce a listing of what would be one of the london stock exchange's most prominent ipos in many years looking forward to that. back to you. >> thank you coming up, the impossible job as the president targets tech over content regulation policies we take you inside facebook's decision-making process. is this a problem that can ever be solved? the dow is up about 50 points stay with us hi, i'm joan lunden with a place for mom,

the nation's largest senior-living referral service. for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-living communities are better than ever. these days, there are amazing amenities, like movie theaters, exercise rooms and swimming pools, public cafes, bars, and bistros, even pet-care services. and nobody understands your options like the advisers at a place for mom. these are local, expert advisers that will partner with you to find the perfect place and determine the right level of care, whether that's just a helping hand or full-time memory care. best of all, it's a free service. there is never any cost to you.

senior living has never been better, and there's never been an easier way to get great advice. call today. a place for mom -- you know your family, we know senior living. together we'll make the right choice.

hi, everybody. i am sue herera. here's your cnbc news update home provides are rising, but gains are starting to shrink the s & p found prices rose 6.2% year over year in june, down from a 6.4 gain in may. a federal judge blocked the trump administration from

allowing public release of blueprints for 3d printed guns, it extends an earlier restraining order. people are lining up in detroit waiting to pay respects to aretha franklin she died earlier this month at the age of 76. a viewing is held at the charles h. wright museum for african-american history. a diving team discovered what could be buried treasure off the coast of an island between italy and croatia. a team exploring a sunken ship found a safe they suspect is filled with gold that's the news update back downtown to you, they think the ship could have tens of millions of dollars worth of gold in it >> wow, that's quite a story sue herera as we watch that report, elon musk has been on twitter, somewhat subdued recently, responding to an article how he cried during an interview with "new york times. he tweeted a few moments ago, for the record my voice cracked once during that "new york times" article, that's it.

there were no tears. in fact, the times did characterize the conversation on the phone as emotional said he cracked up several times i think. >> either way, he is saying he cracked up at least once again, i guess an honest tweet from elon musk not sure investors want to hear that >> twitter secured the nasdaq crossing 8,000 for the first time yesterday courtney reagan joins us with the market update. >> we hit a record the first time yesterday, crossing 8,000 on the nasdaq composite. we're gaining steam, adding to what we saw with the nasdaq composite about 28 points above the 8,000 mark that we crossed for the first time it took about 8 months, a little less, to move from 7,000 on the composite to 8,000 we talked a lot about faang names. you look at what had the biggest

percentage, between 7 and 8,000, january 2nd to now, netflix was number one, gaining 84%. amazon number 3 at 61% other names we don't talk about, align technology and amazon. the nasdaq composite is leading major indexes, up under 5% could close higher for the fifth straight time. then the tech spider etf, that's stronger, that's up about 6% so far. and if you look into the action today, chips, interesting both the leaders and laggers for nasdaq 100, we have some upgrades and down grades that's the reason you're seeing split action there if i can point out one outperformer, moving up sharply, brooks automation. this company selling cryogenic business to a swedish company, and that's the reason you see

the shares popping higher by 27%, marking its best days in about 18 years carl, back to you. >> court, thank you very much. courtney reagan. the president tweeting criticism of social media, calling into question the legality of regulating content, alleging the process is quote rigged this as facebook and twitter are taking down accounts that violate policies joining us at post 9, the verge editor and chief and jason kebler who published a book on facebook's decision-making process on questionable content. what they've done in myanmar, banning the military chief for the first time ever. >> facebook moved into myanmar in 2011, it was clear at the moment that they didn't have the moderators needed to handle

burmese. i recently went to facebook, talked to them they said artificial intelligence can't parse it, because it is not in unicode how the computer would read text they pushed into this market, suddenly they're blamed for facilitating genocide because hate speech proliferated there really they went in blind. this is a consequence of that. >> how do you think the president's comments and google's statement is being received today. >> i think the president and republican party tied themselves in a knot here, right? they overruled net neutrality. we know internet providers in this country have local monopolies in the business one level up, you have facebook and google which tells you competition is one click away. companies like yelp saying that's not true. you need to regular google like verizon. this administration doesn't want to regulate verizon or at&t. they're very interested in

regulating the application layer of the internet. i think there's a major tension in that position and i think google in this case has more right to say if you don't like it, go to binge. it is easier to go -- to bing. you can say the market needs to solve it >> i think that's the point. you can go to other sites, but they don't have breadth or size or scope of in the case of social media say a facebook. you spent a very long time researching and reporting on the metrics they're using to determine things like hate speech a lot of criticism is that it is an opaque process. what have you found? >> facebook has public policies that say you can't harass people, hate speech is not allowed. but how it is defined is held close to the chest we have leaked documents that says facebook allows white nationalism and white accept ra

tichl, and if you talk to black history scholars, they say white supremacists used white nationalism as a cover for white supremacist views. you take that, and multiply it times thousands of rules in hundreds of countries and hundreds of different languages, and you can see the scope of the problem. >> we have been having a conversation about what regulatory framework would be if google fell under regulation on algorithms is it the fcc's purview? you're a former attorney >> this fcc stuff, i don't think it is that there's an idea of nondiscrimination. there's an idea of antitrust where you have huge companies, they're getting bigger, have dominant positions in the market we should look at the behavior to make sure they're not discriminating against competitors, against view points one of the major things we need

to shift thinking is regulating individual pieces of speech, regulating behavior is probably a better approach, where you can say people are consistently behaving in a way that goes against our values and we don't have to write ai that flags words, look holistically at the behavior none of the platforms seems ready to do that, not willing to articulate strong values they stand for, twitter seems to be very hands off mark zuckerberg is talking about facebook court those are legalistic interpretations. i think they're not going to work unless the companies have strong values they believe in and the government decides it wants to pursue a nondiscriminatory approach versus fcc regulating. >> maybe it is not the fcc, but they have given more power to the ftc. >> i think one, they're making false promises, and it is hard to define what the promises to consumers are. google says we're going to give you the best information

they said a lot how they want search results to be vetted news sources, not fake news they're making promises, they're trying to keep them. are they perfect we all know they're absolutely not perfect. they have a lot of work to do. >> i think that's a good point i think the problem with facebook and google and twitter is that their values are they're pursuing scale if they take a stance against a certain content, stand to anger someone on one side of the issue and stand to lose users. that's something that they won't come out and say, but in talking academics or content moderation, this comes up over and over again. facebook has strong values but its values are growth for the company, growth for the platform, and mark zuckerberg talked about forming a single lar global community that's never been done before. >> as focused as we are on the conversation in this country, it

is the same conversation in 100 other countries. a hall of mirrors when it comes to this debate we'll leave it there we'll learn more next week with dorsey and sandberg on the hill. thanks, guys coming up, new tech play for ups. but first, rick santelli, what are you watching today >> yesterday's agreement with mexico not only helped equities get over key historic levels, it pushed interest rates up we're going to talk about that agreement and some issues that may be positive or negative in the future after the break

(indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level.

only with td ameritrade.

i am scott walker. here's what's coming up top of the hour has the summer sizzle for stocks left anything worth buying debating those that can still pay off big time. the stock moves not getting attention. where breakouts are likely to happen. and jon najarian, all at noon on half time. see you in 15. >> thanks. let's get to cme group and the santelli exchange. s & p has gone red >> s & p has gone red. it will be fascinating to see how yesterday's news about mexico and how it helped push the market to historic trading areas, seem how much it holds and monitor if canada comes into the fold what i find most fascinating in this agreement isn't done yet,

not implemented yet. i concentrated on my guest this morning with regard to how labor will be treated in mexico. globalization by its very nature, one of the great things for most of the big process of globalization helped give us everyday low prices around the globe and in the u.s. specifically is areas where labor is cheaper and plentiful things like manufacturing and making certain types of widgets, the u.s. economy be more tech driven, manufacturing jobs, lower profitable areas of manufacturing, ship those elsewhere. what we found is it leaves a void and eventually if you take globalization to the endth degree, the type of jobs with

wage scale in the u.s. in particular, the benefits and minimum union rates or minimum wage if not union are so much higher well, that's logical, right? but if you make 40 to 45% of those auto parts, have to have a minimum floor of $16 an hour which is currently in mexico around 3.50, the united states around $22, according to most research i have done on auto part makers that work on the manufacturing side what it ultimately does in the bigger picture is creates distortions, income disparity, parts of the population disenfranchised. the point is this could be thrown out because it may raise costs. then again i keep thinking, let's look for historical context. back in the day henry ford raised the level of pay for production workers so they could afford the product they were

making he grew a market i think the process may be bumpy, but ultimately the same logic may apply. >> rick santelli, busy day for you. thank you very much. can our corporate leaders be trusted? why our next guest says when it comes to silicon valley, the phrase winners take all is more accurate than we think more post 9 after the break. is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.

is silicon valley tech saving the world using mark zuckerberg as an example, pointing out facebook compromised our election and leechd the news business now mark zuckerberg wants to heal our schools, homelessness and diseases we wouldn't let a bank grab that much power it is the subject of a new book out today titled "winners take all the elite cha raid of changing the world." joining us at post nine is the authority, contributor and former "new york times" columnist, anand thank you for joining us today. >> thank you for having me, here of all places. >> strong title for a book tell me what you mean? >> we live in an age that has been abundant the innovations, in great companies, abundant in profits, and yet an age that has been punishing for working and middle-class people.

the one thing the majority of americans can agree on is the system feels rigged to them, it feels to most people the they cannot simply study go to school, figure out a job and achieve the american dream the odds of out earning your parents have fallen from 90% born in the '40s to '50s a crap shoot today and so the question is, how does a country that has managed to produce so much innovation, almost all of the world's best companies, so much dynamism, so -- how has that country been mice early with sharing progress if progress is defined as i hope it is with advancement for most people. >> how has it been mize early, the giving pledge from warren buffet and bill gates, corporations looking to donate towards causes and philanthropic causes why is that a bad thing. >> martin luther king had a line about philanthropy itself is

laudable, but we cannot ignore the circumstances of economic injustice that make it necessary. that is philanthropy solving deep, systemic problems? or as i argue in "winners take all" is the philanthropy actually part of keeping people just calm enough, feeling like elites are helping and actually perpetuating a system that allows the winners to take all, to monopolize progress today the top 1% of americans, here we are, corner about 25% of the nation's income every year from the 40s through the 80s, they cornered about half that fraction >> sure. >> was america broken in that time america still worked, but that's just a lot less of a monopoly. talk about the tech guys there's very clearly questions about anti-trust and monopoly with facebook and google to start with i actually think in many ways that's a metaphor. the 1% at large in america, are

monopolizing the future. there is no shortage of future in this country. but when the future rains on us, the very privileged have a very -- done an excellent job of cornering, of harvesting the rain water and we need to think about in this country how do we actually, whether it's mitigating if you want to mitigate the rise of the extreme left or right, why is it that so many americans are falling prey to extreme politics, are falling prey to conspiracy theories of every kind why? they feel correctly that the game is rigged >> when you say that, how do we square it with just picking an example in the last few hours and that is confidence numbers at the 18-year high, right, both future expectations for the future, plans to buy a major capital good, how does that exist with what you're saying? >> people may have plans to buy a major capital good i spent a lot of time out in the country and i was in eastern ohio recently, i have no idea

whether the people i met were planning to buy a capital good or not but for 30 or 40 years they've been pretty clear that people who run this country don't work for them. they feel that about the government, about corporations the reason there are no steel jobs left in that part of the country after all the -- those companies promised they were there for the workers forever and then left, and then donald trump told them not to sell their home because the steel was coming back and coal was coming back to west virginia that didn't happen, maybe people want to spend money on capital goods and some report consumer confidence but this country is broken if you drove from a major prosperous city we all see it. >> how do you fix it >> you fix it by changing where we go to change the world. okay mark zuckerberg and elon musk and frankly all of the philanthropists out there want us to believe that you change the world first through companies and then through the profits that companies generate in wealth and give it back

why did they want that why do they want that? that's a world in which they will be left alone while making the money and then left alone once they're wealthy what do i think the alternative is creating a society in which we go back to the public sphere to make change. women don't vote today because men donated a few scraps because we built movements and changed the law. we don't have civil rights in this country because white people donated a little justice. we had to fight the structures of power and change the law in the courts and in legislatures to make that happen. no change worth having comes with the privileged tossing a few scraps. >> on a practical basis, we're running out of time and talk about this later >> i'll give you a simple practical thing, next time you see a problem in society, rich philanthropist or regular person, look for a solution that is public, universal, democrat and institutional that solves the system at the root instead

of mitigating some of the effects and allowing a cruel system to many, many millions of americans to go on >> all right we have to leave it there. many more questions i have so we hope you come back. >> thank you of having me. >> anand, thank you. >> thank you well, "squawk alley" continues next

ups launching a new tech company called where to go, a cloud based digital platform aimed at connecting small and medium sized businesses with warehouses and other services to create what's basically a one stop shop for business to business e-commerce. guaranteeing two-day order through ups, it's app based and it will exist under the broader company umm but will be its own management team and board, business-to-business e-commerce, companies ordering office supplies or supply chain components, medical devices for hospitals, this is seen as a big growth opportunity they're expecting it to become a $1.2 trillion market in the u.s. alone by 2021. there are some services already out there and exist in the marketplace. you can point to amazon or fedex or others, but ups believes and

this is the reason they're starting this company, that they are the only ones that are actually offering this one-stop shop alternative to companies looking to do more with e-commerce. >> interesting move out of brown. we'll watch that meanwhile, markets, s&p has gone down 3, dow lost almost all of its gains. let's get to the judge welcome to the halftime report i'm scott wapner our top trade the summer stock surge, new day bringing new records for most of the major averages and questions for investors, if a major move higher is in the cards, what can you still buy and why? here to debate that, joe terranova, stephanie link, john na -- najarian and the chief investment officer of chevy chase trust. stocks making new highs today. courtney, i asked the question at the top, 37