mean same identical i don't know i don't know about this. and the morning's biggest stock movers including sales force shares under pressure. it's thursday, august 30th these are the actual facts i'm giving you "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. >> inherently difficult? you could be right welcome to "squawk box" on cnbc we're live from the nasdaq market site in times square. as joe mentioned we closed at new record highs >> fresh, new, all-time record highs where the stock market has never been before. >> you saw that at least for the

s&p 500 and the nasdaq the dow closed at the highest level since february 1st if these red arrows continue, the markets would be down a four-day winning streak. >> could you tie a record high >> we did tie a record high on the russell 2000 >> that is possible. >> i see fresh new record high a lot. >> it's a triple redundancy. >> i want to repeat again -- i have a protest against these things >> as opposed to a protest

>> can you protest for something? >> you can for equal riteghts >> i guess so. if you look at things, the nikkei was slightly higher it was up by 21 points the hang seng was off by 0.9%. the shanghai closed down by more than 1.1%. in europe, as we continue to see what's happening there in realtime, red arrows across the board it looks like the biggest decliner is the dax in germany which is off by almost 1%. the cac in france down 0.4%. the ftse off by 0.6% look at treasury yields once again. you will see that ten-year is inching higher on the yield. still well below 3%. the 30-year, that's at 3.021%. well, campbell soup just out

with some news it's going to sell its international operations and its refrigerated foods business. the two units bring in 2.1 billion in annual revenue. campbell has been under pressure from activist investors to revamp operations, consider a sale it also has not ruled out a sale of some of its other businesses. separately campbell reported quarterly profit of 25 cents a share. 1 cent above estimates revenue fell slightly below forecast this is another poster child for -- what was the company trying to buy lol? >> procter & gamble. >> millennials can you imagine millennials going in and buying campbell -- >> andy warhol made it cool. >> they have to get kale-based -- i don't know what do they eat? >> it's a rejection of old consumer brands.

a rejection of the center aisles of the grocery store >> campbell's tried to diversify away to more fresh vegetables. the financials came down to too much of the business comes from soup too much of that from canned soup too much canned soup from condensed soup every segment they're more dominant in was on the outs with the customer base. >> is it too salty so many complaints >> will we have a revisionism that salt is okay? >> we already had that if you run or do anything, i never worried about it i think a lot of it is genetic a lot of bad cholesterol >> high sodium can lead to high blood pressure, but it may not be the most extreme factor >> i think one other issue, all the big companies want to buy the upstart organic brands it seems like you are almost locked in to overpaying. all the big companies are

bidding. >> not only that, i think often if a big company buys an early brand, then the people who are buying that brand think of it as being a sellout. if you don't stay hands-off, then you risk messing up afrn >> a prime example annie's macaroni and cheese. we don't do that we do kraft. >> if you don't do annie's -- >> my kids don't like it we have taken out some of the stuff in the instant mac, if you shake out system of that it's okay >> don't use quite as much >> yeah. >> do you like the spirals >> no, elbow let's talk about other big stories. president trump and canadian prime minister justin trudeau are sounding optimistic about

trade negotiations president trump set a deadline of friday for canada to join the deal we are watching shares of amazon, shares crossing $2,000 for the first time early this morning. yesterday amazon jumped by more than 3% after morgan stanley raised its price target and predicted a 1$1.2 trillion valuation for the company. amazon, apple, that pushed the markets higher yesterday right now amazon trading at 1,999.43 >> i'm laughing because someone shorted it at 1,000. go on. >> salesforce shares under pressure the cloud softwaremaker's latest results beat the forecast but they project current quarter profit below what the street is expecting as they spend to boost

sales and fend off competition the other stocks to watch, pvh reporting earnings rose 38% on higher sales of calvin klein and tommy hilfiger brands. the apparelmaker is raising guidance for the year. guess shares, they're jumping more than 10%. earnings there topping forecast on strong sales in europe and asia revenue came a skosh shy of estimates. the company says it is confident a turnaround has just begun. legts let's get to washington and the latest in the trade talks. eamon javers joins us live eamon there are some hopeful notes out of this. what are you hearing >> all of the mood music seems to be positive everyone sending signals that maybe a deal can get done by the

friday deadline. the friday deadline is in place because the u.s. and mexico out of the three countries negotiating here want to get a deal done so it can be signed in time for the current mexican president to sign it before he leaves office. they say friday is the last day they can do that and have the current mexican president on hand to sign the deal. so negotiators signaling last night they would negotiate straight through the night if that's what it took between the united states and canada the president signaling some optimism of his own about the negotiations here's what he said yesterday. chystia freeland was updating

reporters all the time about the progress of the negotiations no specifics on what's going on behind the closed doors, but she also signaled optimism >> i feel that both parties are coming to this stage of the negotiation with a lot of good will certainly that's what canada is bringing to the table. we understand each other's positions and what both sides need very, very well >> so not a lot of specifics there, but the mood music is good here in washington in terms of getting a deal. i'm told u.s. and mexican negotiators as they wrapped up that initial deal that was announced earlier on in the week made sure they included a number of items in that bilateral deal that they felt would appeal to the canadian sides they put a lot of sweeteners in the u.s./mexican deal to lure the canadians in to the deal we'll see if they get that by friday >> good news that there are the

sweeteners in there, that makes it sound like it would be plausible for both sides to walk away saying this was a victory for us this is a good thing what happens if there's not a deal any talk about that? >> the u.s. side has said they are prepared to go forward with a strict bilateral deal between the u.s. and mexico. everyone involved wants all three countries to be involved because the supply chains affected are so intersected between all three countries. the companies want that three-way deal, the countries want that three-way deal, but if not the u.s. and mexico say they will go it alone the question is if that will pass muster on capitol hill and if lawmakers will approve that >> all right thank you. joining us is john lynch from lpl financial also brad mcmillan from

commonwealth financial network you take your pick today the lead story in the "journal" is about corporate profits. earlier it was about consumer confidence corporate profits booming in the second half, up 16.1%. something occurred to me when our last guest -- or on "worldwide exchange," they said they're not going to be a tax cut next year, we won't have that wind. aren't corporations permanently more competitive from going to 21%? you can take that, brad, but it's not a one-shot deal shouldn't the whole structure of competing globally be in a better position from here on out after the tax cuts >> that's right. companies have more money to invest, more money to pay back to their shareholders. the rate of growth probably will pull back, but because of that improved competitive posture it will remain strong with valuations where they are right now we don't have to see

profit growth at this very high level to see the market move higher >> well, what won't be as good where will you see -- why do you say it won't be -- maybe the growth can't be as good, but we can certainly -- i don't see why we wouldn't match some levels seen now this sugar high, the notion this was a front-end stimulus that will peter out, we keep hearing it on this show. 2019 we're going back to 2%. 2020 we could be 2% or lower why is that a given. why can't we grow quicker, brad? deregulation stays, the new tax structure stays. >> it's not a given we'll go back to 2% i disagree with that when i say growth is going to slow, that doesn't mean it's going back to 2. i think we'll see 3 this year. you have the competitive boost you have more money in companies. you have more money in the average person's pockets the average level will stay

higher that's the important thing that's what says, okay, the economy is going to stay healthy. it will grow less year on year that's okay. we can't sustain growth at the levels we've had we're already close to full employment we're close to a full economy. we need it to slow down but not too much >> john, where are you on the prospects for the stock market growing and the economy? >> thank you i think it's important to follow up on brad's point that even though we're seeing 35% to 21% on the corporate rate, we can't ignore the importance of the repatriation funds and the immediate spending provisions. when you see businesses finally have an incentive to invest. we've seen a decade of businesses maintaining market share. now they have the incentive to attain new market share. you're seeing it in m&a, capex,

services increasing their spending by 6% as well as manufacturers increasing 10% we're projecting capex increase of 7.5% that will translate to improved productivity and that should lead to continued tailwind for inflation i think that will continue to support profits as well. >> you think that -- either one of you gentlemen, john, i'll start with you do you think the ten-year stays tethered to the rates on the continent or does our own domestic situation push rates sharply higher as the fed goes higher on the fed funds? >> i think jay powell and the rest of the fed have an unusual dynamic given the rate differentials between the u.s. and other sovereigns we've seen major quintupling of central bank balance sheets.

in spite of deficit concern or increased issuance, there's a bit if you think about relative differentials and valuations you can get a handful of basis points on the jjb, 30 basis points on the bund, 2.80 on the ten-year there will still be a bid for us >> brad, it's august 30th. the elections will come. do you think any of that back drop will play into the stock market or the bond market? i guess it's possible to get rid of tax cuts if the democrats come over. maybe not, he would probably veto it. does any of that stuff factor into your thinking or do you leave that to washington >> that's pretty much noise. one thing you look at over the decades consistently, noise from washington can lead to

turbulence in the market, certainly that's possible. the reality is absence significant changes, you don't see a significant stock market impact over time even if the democrats take control of the house and maybe even the senate, you know, to some extent that's priced in gridlock is priced in. there is not going to be significant policy change. gridlock is something we're used to and we might be comfortable with absent any short-term turbulence, i don't see significant effects. >> the short-term turbulence is something we need to be mindful of historically midterm election years are the most volatile, but also historically 12 months later the markets recover. we had the two 10% pullbacks, but history shows we typically get a 16% pullback, but 12 months on we are up 32% from the

trough >> this s&p number is really -- if you go back a year, two years, three years, nobody was at 2900 this early what do you have for 2019? >> still looking at earnings growing -- market growing with earnings so a 10% profit increase next year on top of the 20 or so we'll experience this year we're in our range right now of 2900 to 3,000. i think a number in the 3200 range could be appropriate >> brad, do you think so do you think we're -- no guarantee we go above 3,000. >> i think it all depends on valuations certainly you can defend a 3200 at end valuations are at the lower end of where they've been. if we go back to 18, that makes a lot of sense i am concerned because one of the real questions is what happens if we start -- if we do start to see growth roll over.

it's not going to happen this year but there's signs it might happen next year so i think there's more downside risk, though i think continued market appreciation for the next six months or so makes sense >> great thanks to brad mcmillan and john lynch. >> thank you i think my lpl levels are good do you follow that is that the good one or the bad one? >> do you tear an lpl? >> that's possible >> acl >> no. no this is good cholesterol i think i have good -- high good lest crimina cholesterol? when we come back, the top gun sequel has been pushed back. and later this morning don't miss our conversation with warren buffett that's ahead of his lunch with the winning bidder of the annual

glide foundation auction that's at 11:00 a.m. on "squawk alley. right now as we head to break, a look at the biggest premarket winners and losers for the dow it's absolute confidence in 30,000 precision parts, or it isn't. it's inspected by mercedes-benz factory-trained technicians, or it isn't. it's backed by an unlimited mileage warranty, or it isn't. for those who never settle,

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rather than july of 2019 the movie makers say they need to work out more time on how to present flight sequences i always liked tom cruise. the whole scientology thing, whatever that notwithstanding, watching him do the stunts, the latest "mission impossible" jumping out of the airplane. >> his latest "mission impossible" tom cruise inreal life is older than wilfred brimley was when he was cast in "cocoon. "top gun" came out in the '80s >> '86 >> val kilmer is back. that's good. john hamm who would look good in one of those dress whites. and ed harris, who is that scary

guy on west world, who is also in the firm. >> the good news is -- >> he was in "the firm?" >> he was the fbi guy. >> so the delay is they're doing real stuff they need actual footage. >> and they want a summer release. >> that makes sense. in sports news, there's a historic match-up set for tomorrow at the u.s. open. venus williams will face her younger sister serena. both women won their matches yesterday. serena holds a 17-12 lead in the series of matches against each other. >> and i don't want to get sad about this, but people are saying we need to -- while the williams sisters are still playing, we need to appreciate it i will go tomorrow night >> are you

>> yeah. they always played doubles together >> this is meeting in a grand slam this is as early as they've met. they met in 2017 in the australian open, but, you know, serena has looked brilliant. but at times she's looked a bit vulnerable, obviously because she just had a baby. >> i'm surprised it's as close as 17-12 venus came first >> i remember the first time serena beat her. there were all those questions, did she let her win? i remember the first time she beat her but serena has been so dominant for so long. >> we have alex on a lot >> right >> serena's husband. >> he may go over to the box hey, what's happening? >> alex could invite you in. >> he might.

>> then do i clap for serena >> i imagine in health news, changing when you eat could help you lieu weight british researchers studied the effects of time-restricted feeding. this limits eating to a certain number of hours each day that's a problem i graze. people who eat a later breakfast and an earlier dinner lost more than twice as much body fat as those who did not change meal times. they also tended to eat less >> i can't get below 9% body fat, can i >> you don't want to do that >> can't get below there >> the problem is when you work early hours and up early this is easy to do when you are asleep 8 to 10 hours but if you only eat between 10:00 a.m. and 6:00 p.m.

>> measure me in three separate units, i get 9, 9, and 9% body fat. adds up to 27. more than half said the schedule would be too hard to maintain. >> if you're working long hours, it's a difficult transition. we always talk about the "squawk" 15, how you gain 15 pounds when you begin here >> frequent small meals, that's what you want. i realize a long stretch of not eating is the key. >> are you -- you're in your 40s? >> well into my 40s. >> what's the deal with you? what's the secret? >> i think it's the genetics thing you mentioned before don't do anything stupid that's all >> he looked right at me when he said that. >> i don't do a lot of carb-based eating. >> you don't even have milk in your offee >> a little bit. >> three drops i'm amazed by that

>> i think age has something to do with it every year -- you remember "cape fear?" >> yeah. >> they said every year the average man after 50 gains a pound a year you saw him. >> yeah. >> exactly >> coming up, campbell soup shares dropping more than 4% we'll tell you why next. as we head to break, a look at yesterday's s&p 500 winners and losers the s&p itself a big winner.

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning among the stories front and center, campbell soup shares are falling in premarket trading after the company announced it would sell its international and refrigerator food units following review of its operations it plans to focus on core brands and use the proceeds to reduce debt campbell gave a full year's earnings outlook that was ahead

of forecasts. and cleanup is under way in iowa after strong storms and summer is racing to a close. it's august 30th, i think. for many that means labor day travel aaa reports that will be the most expensive labor day weekend in the last four years the national average for regular unleaded is expected to hit $2.84 a gallon that's 48 cents higher than last labor day. doesn't sound prohibitively expensive. experts say that spike should be temporary. u.s. futures looks like there will be a slight pullback. we'll see. you never know by the end of the session. in this news cycle, you need to

pay attention closely every hour on the hour. it could be a tweet or anything. a baby born today could rack up more than $3,000 in college bills and may not even attend traditional classes. for more on education technology and it's costs, we are joins by john katzman ceo of the noodle companies, and founder of princeton review you graduated from princeton >> i did >> you stole that name which is a good name for a testing company. >> it is a great name. >> what's interesting, in light of some of the other companies that you both founded and left, one of the things you did right at princeton was set your margins high premium product, premium price that way if there's anything -- any obstacles along the way, you're prepared to stay forever. you have enough money to get through those things >> yep >> that sounds capitalistic to

me that sounds like you embrace that one problem you have now with this whole industry, you need to define opms, you started what was the other one? >> to you. >> which sounded to me like a good idea. folks don't know, that's where a harvard wants to get an online course going, so they get someone else to do all the front-end work for getting online, right? >> that's right. >> but you think the middle men are making too much money at this point >> it looks that way >> even though you were one of the middlemen. >> i was the big middleman looking over the past couple of years, the big problem in higher ed is cost the online program managers are raising the costs of higher ed it's about 20% more expensive to study online than on campus. it's got to be the only industry where tech has made things more

expensive. >> that's counter intuitive. you think it's because the middlemen are charging way too much >> i think so. ten years ago it cost $15 million per program, and it was high-risk. could we build an online program that was good and could anybody take it? now it's 2$2.5 million, 30% of the students getting their masters in the u.s. are getting them online. >> a whole third amazing. >> yeah. people think higher ed never changes. it's moving along. so there's little risk there's very little cost >> why don't the universities push back? >> they're starting to, but they didn't have an alternative i looked at that and said there's a market opportunity here i can come in as the fast follower -- >> that sounds more reasonable i'll tell you why. there's a lot of rhetoric about how this is now moving to wall street players that are making money here shareholders are making money

here, companies are trying to make profits it's not about the students anymore. i think about is there any industry that we have in this country that is not well served by having a profit incentive because it makes you lean and brings in competition. >> competition is what he's talking about. >> why not let that happen instead of saying you're making too much money, it shouldn't be about rewarding shareholders or a profit incentive, have other opms come in that will do it cheaper and let the natural forces work instead of saying we need a not for profit answer to this >> i'm a not for profit guy. i'm a for-profit guy >> why isn't there competition here why can't that be the answer >> first of all, it is we are giving schools an option where they'll save $30,000 per student versus working with a traditional opm.

so i think -- >> i think shoe disruu you shout the industry you started >> that's what noodle is doing, but at the same time you're getting your mba, it's $100,000, 30,000 of that that you're paying to some great university is the profit of the opm that might stick in your craw a bit. >> the university is totally willing to do that because they don't have the time, they don't have the expertise >> they didn't have the option >> that's where competition comes in >> it seems like a lot of the criticism is not of the for-profit model but the companies set up to deliver pieces of paper that don't necessarily have great value you ride the for-profit degree granting gravy train, what do you have in the end? part of that problem seems to be employers who say you have to have more and more credentials,

whether they're worth anything or not >> it's not clear that employers bought into the for-profit degrees. you look at detail rates of the for profits, and the long-term default rates look to be over 50%. being for profit is not necessarily being great. somebody has to watch this stuff. education has a problem. it's hard to measure what's good and bad. people can get away with a lot of stuff before you notice i understand that, you need a hybrid, i think. you don't want for-profit fire departments. we can't go to that neighborhood that doesn't work in certain areas. >> especially the education department, i get loans from the 2k3w government or other institutions -- >> if you leave the status quo as is, there's got to be something better than where there's no accountability

really >> that's right. public private partnership, bringing kind of the capital and the innovation into the private sector, i have 30 investments in education companies. i'm a big believer -- >> you have made nthousands of investments over the years >> just personally there's been $20 billion invested in ed tech over the past two decades but you do have to pay attention. >> all right is there a noodle nearby is that a franchise? the lo-mein is my favorite >> i enjoy it a lot. >> that's not one of your -- >> noodles is an umbrella company, is it not >> my yad aftidea after the las companies was to create a studio if you look at the transparency of the education market, like in any sector, how do you pick a preschool for your kid or a college or find a tutor, just the marketplace itself is

terrible if we can fix it, if we can create platform businesses that create transparency in the education space, it unlocks innovation and a lot of good things >> thanks for playing along. when you first came in, did i wond wo you wonder if i thought you were the noodle franchise >> i have been watching you too long >> papa john's board firing back at the embattled founder the latest in the war of words is next. in the next hour, we'll talk about sports betting with the ceo of draftkings. and at 8:30 a.m. breaking economic news. stay tuned you're watching "squawk box" on cnbc

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right now it's time for the executive edge papa john's independent board members are firing back at company's founder.

john schnatter first faced criticism last year after poor sales on the handling of the player's protest and then this summer news broke that schnatter used a racial slur earlier this week schnatter said the board agreed with him that steve ritchie should leave the company and that the board wanted him back. not so says the special committee of the board the committee argued that schnatter is promoting his self-interest at the expense of all others and in an attempt to regain control the board also says that schnatter has gone against its wishes numerous times including a case in which he allegedly met with wendy's without bringing papa john's ceo. this is different than other former ceo issues because schnatter owns 30% of papa

john's in sports news, aaron rodgers is the nfl's highest paid player. the packers quarterback agreed to a four-year extension worth $134 million if he remains a top quarterback and the packers keep making the playoffs, that deal could be worth up to $180 million if you see a game on the line with him, it's amazing one guy, rodgers -- >> no other position in sport has that importance. plus so much money these teams have >> they do >> yeah. it's all front-loaded. tons of cash i will ask liesman if it will move the personal income numbers over the next couple of quarters >> big number. >> big number. sparks were flying in new york last night at the democratic primary debate for new york's gubernatorial race. andrew cuomo low is facing a challenge from cynthia nixon

the two candidates clashing on everything from new york city's embattled subway system to president trump. >> can you stop interrupting >> can you stop lying? >> as soon as you do >> new yorkers will cast their votes on september 13th. >> i know you are, but what am i? did you hear that? i liked when they got into the argument about how -- cuomo says america was never great. she goes not over was it never great, she says it was the worst. he says not only the worst now, but in effing history, and then she said not only that but the worst in the universe. >> a little heated >> they're both -- >> that was not in there >> i'm just letting becky know

>> okay. does either one of them have the slogans? have they copyrighted that america never was great and never will be? >> doesn't ring on a t-shirt >> good luck to -- who is the -- anybody running on the other side there's no point, right? >> they will bring somebody up eventually >> they should just run unchallenged in new york hopeless when we come back, tech watcher joanna stern joins us with a look at cool new gadgets that companies like apple could soon be making public. you're watching "squawk box" on cnbc at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business.

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. she and i will meet, we continue to be koots about the progress we can make this week. >> canada's prime minister trudeau apparently saying on the wires a few moments ago that there could be a deal by friday. >> everybody wants trade, not aide. there's not a farmer in america that would rather not have a good crop and a fair price than a government check. >> optimism on trade is the gift that keeps on giving. fall traditionally key time for tech companies rolling out new products. the edge to edge screen define the latest generation of smartphones and other milestones and gadgets included the fingerprints biometrics. to find out what's next we're joined by joanna stern. i'm afraid to ask you about one

of the things that we're talking about, why -- >> you're going to have to buy them >> no. why would i have to go get a 3d camera down to -- >> are we talking about -- >> yes, this mirror. >> this is my column that's in the paper today. there is a company called naked labs. they're making a mirror with cameras. they want you to stand pretty much naked in front of it, give you measurements of your body so you can track your weight loss. >> oh, its for health? >> yeah, for health. >> its almost like a fingerprint. >> its a 3d -- >> who do they give it to? >> they're selling it for $1,400. >> they were here. >> oh, they were here? >> was i here? >> you were probably in for joe that day. >> you were terrified and hiding under the desk. >> i heard they were going to be on and i didn't come in.

that's not the main thing we want to talk about. the main thing is -- iphone goes through major product transitions and minor ones and there are some things they do around the edges that still work but the one thing we know is they make a lot of money because they cost more, don't they >> they're going to be $1,000 phones we are now in that world if not more than that. i think we're going to see a range of that. last year we had the x, big year, this year we're predicting going to be the "s" year. unsure what they're going to call it but xs sounds odd. >> extra small >> they're going to be extra big. so the plan is from what we hear an x that's on the larger sky with a 6.5 inch screen. what we have now currently around that size may get a little bit bigger and then a cheaper or more affordable phone with a little bit of a bigger screen with the same design as

the x. seeing that come down in price, get the facial recognition. >> $1,000 wasn't as big of a hurdle as a lot of us anticipated that it might be. >> no. for most people, people are holding on to phones for longer now of the depending on what sort of audience -- you buy your phone maybe two to three years, maybe even a little bit longer. i was meeting with someone yesterday, they still had the five. a lot of people i see still have the six. so for apple that's a bet that they got to keep upping the price. people don't upgrade as frequently. phones are a big deal. apple's moving to accessories or into peripherals for our phones is becoming even bigger -- >> the buds. >> the air pods, the airpower, which is supposed to be the wireless charging. been slow on that. its been delayed as far as we know. no sign of that, but -- >> andrew, the aforementioned, was talking about -- its not just having great sound in your

ears with those things. it freeze you up -- it frees you up. that's a transformative item. >> i didn't predict the success. i thought these are nerdy, no one's going to wear them. i see them everywhere. i assume its not being tethered to the phone. >> if the peripherals the interesting thing now, does it mean that they're at some kind of a point with the phones themselves of making it difficult to have big leaps? >> i think so. look at this thing. where are we going after this? maybe thinner, hopefully better battery life. >> i thought we were already carrying around little computers. >> exactly. >> maybe you can get better split screens. >> if we're going to a 6.5 phone. we're already at the size of a

mini ipad. >> we'll have you back thank you. hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.

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stocks look to open lower as investors await the latest out of washington on trade. president trump takes on tech. google under fire about its home page and search results. gene muenster joins us and talks about the impact of possible regulation. and mansions at a discount. what's driving sellers in the lux are you home market to cut prices. that story plus your latest corporate headline as the second hour of "squawk box" begins right now. ♪

announcer: live from the beating heart of business, new york. this is "squawk box." good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in time square. i'm becky quick. along with joe kernen. mike san tolly is here helping us out you it see gains once again yesterday across the board. s&p 500, the nasdaq both closing at new highs and the dow at its highest level since february 1st. dow futures down by 52 points, the nasdaq off by ten. here's what's on our headlines this morning. shares of campbell soup are falling in the premarket trading. the company announce that had it would be selling its refrigeratored foods and international units after a review of its operations. its going to be concentrating on its core brands and says it'll

reduce the proceeds to reduce death. campbell's has been under pressure to tell the company, still, you can see that stock even with these plans announced down by 3.75%. california passed a bill that would require at least one female board member. they're expected to approve it as well. the bill needs governor brown's signature. the governor has not expressed an opinion publicly on this measure and ford's dead has been downgraded. ford's pushing back saying its effort to revamp are progressing and at some point the market will recognize that. moody's has said it thinks it will take some time for that to happen. the stock is off .5%. a memorial service is going to be held in phoenix today for senator john mccain.

his casket will depart the arizona state capitol where thousands paid their respects yesterday. a list of invited guests will attend the celebration of life service at north phoenix baptist church and former vice president joe biden is expected to be among the speakers scheduled to pay tribute to the former arizona senator. back to corporate news this morning. the intersection of business and politics, president trump escalating his criticism of google last night. president trump tweeting this video, let's take a look at it. you'll see that it appears to show the search engine promoting president obama's state of the union addresses and not president trump. google releasing a statement, quote, saying on january 30th, 2018, we highlighted the live stream of president trump's state of the union on google.com home page. we have historically not promoted the first address to congress by a new president, which is technically not a state of the union address.

as a result we didn't include a promotion on google.com for this address in either 2009 or 2017. we will speak to technology investor and analyst gene muenster in the next half hour. let's start with sales force. the cloud software makers latest result beat expectations. the company's projecting a quarter profit that's below analyst's expectations. the reason its going to spend heavily to boost sales and to fend off competition. sales force currency could be more than anticipated. you can see that down about 3.5%. guess shares beating estimates. the company says its confident that a turn around has just begun. amazon, alphabet and apple leading the gains.

and -- and mike santoli joins us now. he's been here, hasn't he? you know what? do you have to come up with this every day, a little segment? >> a few bullet points. >> would you like -- i would gladly have you read some of my teleprompter stuff and then you don't have to do -- you don't have to do this other stuff. >> we still need his incites. >> we do. he can to that on the fly. you don't need to script something. this is a pain. >> you're saying i don't deserve a formal introduction. >> i'm saying you're so comfortable and so necessary here and we count on you so much to be here -- >> you're taking a minute of my time right now. >> we're actually upgrading it. you need to be introduced at the top of every hour as the guest host and the host who's here with us as an anchor. >> i want to you start reading thissome -- some of these.

>> he's been doing it for the last couple weeks. >> sorry. >> he's just trying to rattle you. >> look at the s&p 500 year-to-date. here's an interesting thing about year-to-date numbers for the s&p 500. it snuck up on us. as of yesterday's rally at the close the total return for the s&p 500 nosed above 10% for the year you see how it looked very precarious in there in february. also back in the spring and april, we thought it was going to be a bit of a failed recovery attempt. didn't happen. a lot of things working in the markets favor not just the earnings and the buybacks and the very good moderate rate of growth for the overall year but also i think you have the sense here treasury yields have remained lower here's a few points. starting in the past few days after this nice action to hear the meltup phrase thrown around. its way premature. meltup is what you saw the last couple of months of 2017 in

through january where it was relentlessly up. the market's not all that stretched to the upside yet, not that really overbought. what's interesting is, you didn't really have a lot of people at the front end of that meltup talking about it. there's a lot of jumping ahead of the story a bit. the dollar dow seesaw is a pattern. the dollar came down around 10:00. that's when the market got a lift. i don't think that's the role forever. it seems like a lower dollar says two things. one, we're not going to get some kind of crazy trade disruption but also the feds not going to necessarily be overaggressive. right now that's been the pattern. i don't think its all about trade personally. i think trade has been mostly served this year to create the wall of worry and to give you something to be concerned about and to mute sentiment and obviously, yes, a resolution is better than no resolution. i don't think its the make or break melt-ups.

>> you know what's on the other side of the melt-up is its too stretched on one side. its go there's no melt-up. >> i think not yet. obviously it remains to be seen. fourth quarter, who knows what happens? >> okay. >> he's awesome. >> we love mike. >> and 140 pounds, too. six feet, 140. >> 140. no. call the doctor. let's talk more about the markets. terry is joining us. gabrielle santos who is from jpmorgan funds welcome. gabriella, let me ask you this because its something i see on twitter and hear people talking about it. is it too late are we done with these buying opportunities of these pullbacks? what are you telling individual investor who's been sitting on the sidelines and not

participating in the recent rally? >> the story we've been telling for this year, actually, is one of a bit of a tug of war going on between the fundamentals which have shaped up largely as we've expected, growth has been good in the u.s. and around the world. earnings has been stellar here and around the world as well. while we have sentiment really being weighed down by a lot of these trade tensions. we've seen a lot of multiple contractions here and around the world and we've seen that associated dollar strength. we've been telling investors to focus more on the fundamental picture in terms of buying opportunities. i think we've come a long way here in the u.s. but that sentiment is still very, very negative around the world. so if we're speaking to investors who are still very allocated to the u.s., the buying opportunity we see very much is actually in things like emerging markets in europe which are still very much weighed down -- >> in other words, just to put that in a consign term, its too late. >> its not too late. we don't think this is it for the market that we're up 10% and

now its all downhill from here for the next few years. not at all. its a matter of your starting point. if you're starting from a portfolio that's already heavily invested in the u.s., perhaps you take a little bit off and allocate more to international. >> carrie, what do you think >> i think -- we look at things for tactically. and when i look at the markets, i don't think that we're in a melt-up to touch base with what we were talking about earlier. the last time i heard that was back in january. its been trendless volatility was all we were talking about through the second quarter and that's certainly shifted more recently and if we want to participate in those trends which we do, we're comfortable right now being long on the markets. we are looking to see what could shift that going forward and make sure we get out of the way before its -- >> what do you think could >> i think that, you know -- its hard to say what could. there's four things that we are looking at. i think that the stock market

snifz out a recession before economists do, being a classically trained economist. its hard for me to say that. the stock market sniffs that out. there's four horsemen of the apock list is that potentially kill this market. the first and foremost being that inverse of the yield curve. you talked a lot about that on this show as well as if there was a didn't in consumer confidence or leading economic indicators or housing starts. if we see two of the three of those, that's a problem. >> most people say trade. its weird, though. we're starting to see -- i thought nafta was going to be a disaster. now trudeau, really? i'm just saying -- >> i think the genius is making something that everyone was -- >> instead of the half empty

view that something really bad could happen with trade it keeps happening the other way which -- >> its not -- >> misinterpreted whether its a negative for the market or could actually end up being a positive for the market when it -- i don't know what happened with china. that's the big one, obviously, but can you believe that suddenly canada's saying maybe we can do this by friday was that in your -- >> no. that's now -- >> or mexico -- >> that's conventional wisdom for the market this week, too. >> remember the new guy in mexico is going to be even more left than the last -- i don't know. its just pretty amazing. >> gabriella, what do you think about trade? >> i think sentiment had gotten so negative as we talked about. the dollar had gotten so strong that a lot of that negative risk regarding trade was priced in. that's the good news. any sort of incremental positive step we take there, that's enough to spark a rally. i would agree that the situation with nafta is largely accepted at this point. we've seen a nice rally the past

few days. really what could spark a further rally would be some resolution with china and especially for a emerging markets which has been beaten down by that cloud of uncertainty. >> despite the fact that we focus so much on the four horsemen, you really do think there's more upset potential for the market. >> right. i'm speaking specifically about the u.s. on that. when we look at trade, obviously, there's a lot of noise that's out there and its -- you know, what we're trying to do is distinguish whether its an actual trend versus when is it noise and sometimes its just a lot of noise that we're seeing. i can tell you emerging markets that was our most productive asset class in 2017. earlier this year when the dollar started to rise and we saw, you know, downward trends that was enough to spark the sell signals for us. we're watching it now. we haven't seen the upward trend yet but that's something that i think has room to move, but not quite yet for us.

>> thank you very much. good to see you both. we're just a little over a week away from the kickoff of the nfl season draft kick expecting big things now that sports betting laws have been revised. a company striking a deal with buffalo wild wings for a fantasy football partnership. we'll speak to the draft kings ceo about the move after the break. tech under fire. president trump slamming google and other big tech companies. gene muenster will join us to discuss the president's concerns as well as the sector hitting all-time highs and perhaps even where you ought to go now with ayur money. st tuned. you're watching "squawk box." y? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this?

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stocks coming off the boil after couple of record setting days. s&p 500 set to decline about five points. that was at a record yesterday. the dow looking at a 62 point decline right now and the nasdaq which has been the leader recently with a opening down 12. aaron rogers is now the nfl's highest player. four year extension worth $134 million with maximum potential value of $180 million so no matter example that football smaller big market team doesn't matter. >> you have the television

rights and that makes every one of these teams very wealthy. >> yep. let's continue this conversation. the sports betting industries is gear up for a big nfl and college football season. joining us now, jason robins, draft king ceo and cofounder, i'm thinking about -- let's start with fantasy and eventually what if they legalize sports book betting and here you are and you're already -- you're already here, are you not? can't you become the book for this entire sport and for all sports >> you know, we definitely are excite that had we can add that product to our product suite. >> how much bigger is it >> we have a mobile app in jersey now. i'm sorry? >> how much bigger is it now you're already growing revenue 30% a year, right, and now you move from fantasy -- you got -- you haven't gone international

as much as you could yet either? i mean it just seems like a vast frontier. what did the new legislation -- what did it mean to you? >> well, you're right. this is why we got into the business. we think its a huge growth market. we think the trends, you know, you're seeing out there with direct to consumer and, you know, the laws around sports betting loosening up, i think all of that is positive and we sort of hypothesized when we started the business in general we thought there would be more and more of an opportunity as time went on to offer different games to our customers. i can't say i expected it to play out exactly as it did but here we are. >> so it doesn't mean you're not going to continue to intro some new fantasy stuff. >> oh, yeah. >> i've never done it. that was during -- it debuted for the super bowl alone. it was popular and now its going to be all yearlong. how does it work can you explain it

>> yeah. what people have to remember is, outside of new jersey and probably a handful of other states in the fechlt few months there isn't going to be anywhere that you can actually bet. so fantasy is still a huge focus for most of the nation and i think that we're trying to really innovate in that area for two reasons. one, it is the thing that most people can still play and, two, it is a different game. it provides you the ability to put in a few dollars to win thousands or even a million plus dollars in a single day. the showdown game you mentioned, it just lasts one game for the thursday one week from today the kickoff nfl, somebody's going to enter for $10 and win a million. we have a contest going. 2.5 million total prizes. even if you don't finish in first, you can win something. its just thursday night. by the end of that game somebody will be a millionaire. >> wow. you also got in addition to the other fantasy stuff, how does

flash draft? how does that differ and team pi pick em? how do they differ from what you're doing all along >> they're actually both pretty different but definitely an extension of the same daily fantasy products. flash draft is a quarter to quarter game and its quick. you get listed players and you have to pick in just about ten seconds i think from five of them and then that next quarter of the game, your scores will be tallied and by the end of the quarter you could be a winner or not. the team pick emone is a free promotion we're doing to get people that aren't legalizing sports betting to get familiar with the concept of picking teams and picking against the spread. its free. to start off for week one we'll

have a big prize pool of a million dollars that people will be able to enter for free and if they pick enough right they'll win a share of that. >> okay. does anyone ever pick any bengals for anything do they get any -- >> yes. yes. a.j. green is quite a popular pick for us. >> he is good. >> yeah. >> think about it, it could be you were a fan of the browns. it could be worse. >> that's a different bet. you get bud light if they ever win a game. >> actually, the browns are going to bounce back this year. >> what? >> i missed that. >> the browns? >> he just called the browns the outperformers. >> oh, yeah. >> is it budweiser doing that thing where you can crack open the vault if they actually win a game >> yeah. >> jason, thank you.

i don't know how big -- i wish i had a stake like craft. you see kraft and jerry jones have small stakes and well positioned -- any way, also president trump has just tweeted the news from the financial markets is even better than anticipated for all of you that have made a fortune in the market or seen your 401(k)s rise beyond your wildest expectations. hang in there. he didn't say that of the more good news is coming according to @real donald trump. when we come back, getting ready for that holiday weekend, we'll tell you what you'll be paying to fill up your tank. that's next. we've been under pressure this morning against four days of gains. the dow looking at its highest levels since february 1st until you see the futures this

morning. dow down 62. s&p down by five. the nasdaq down by 13 and "squawk box" will be right back. announcer: time now for the trivia question. which business had the highest number of instagram followers in 2017 the answer when cnbc "squawk box" continues. aflac!? no-good break. gooood break. i'm so sorry we can't make your barbecue. i'm just sick about it. aflac!? different kind of sick. if i can't work after surgery, how am i gonna pay my rent? all these bills? aflac! oh, aflac! and they pay you cash in just one day. see how aflac helps cover everyday expenses at aflac.com.

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now the answer to the trivia question. which business had the highest number of instagram followers in 2017 the answer, "national geographic." coming up, farmers and free trade, how tariffs are playing out for our nation's food supply. we'll hear from the head of americans for farmers and families after the break. take a look at u.s. equity futures. they're improving a little bit. down not as much as they were earlier. 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.

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good morning, again. welcome back to "squawk box." we are live from the nasdaq market site in times square. retail earnings are among the storefront and center this morning.

take a look at shares of significant net jewellers. signet posted a same store sales increase of 1.7%. analysts anticipating a 4.5% decline. 14% jump in the shares today. we'll keep an eye on that. stock up by almost $8. there's arts and craft retail store michael's. michael's earnings 15 cents a share for the second quarter. 2 cents above estimates. the revenue both fell below what the street was expecting. its current quarter earnings forecast is below the street's expectations and michael's shares are down by over 6% this morning. we have several economic reports that are due out in just about an hour's time. we'll be getting the labor department's weekly look at jobless claims. the government will be out with personal income and spending for the month of july. and for those of us

traveling on the u.s. roadways this weekend, you can brace yourselves for a spike in gas prices along with probably a lot of traffic too. this is going to be the most expensive labor day weekend in the last few years to fill up your tank. that is according to triple a. the national average for regular unleaded is expected to hit $2.84 a gallon. 48 cents higher than just labor day weekend. >> how was i supposed to feel? canada's foreign minister can't -- let's move on. canada's foreign minster -- you know what? tapes last forever. you need to remember that. i guess -- tape's worse, though. >> people don't air them to embarrass me, though. >> over and over. although my embarrassment levels pretty high, i think. its my threshold.

my threshold is -- it has not been -- >> what would actually embarrass me >> you're on tv, so, you know -- >> i have a pretty high threshold for what it would take. >> you said a lost funny things on tv. >> a lot of stupid things. >> like reese's -- i said canada's foreign minister saying nafta negotiations were at a very intense moment and that our country was looking for compromises that were win-win for all sides. freeland met with trade representative lighthizer and negotiations went well into the night. for the latest and the impact on farmers, let's bring in a seventh generation farmer also, casey, you were a missouri state legislator, a representative who's now spokesman for americans for farmers and families. thanks for joining us. >> thanks for having us. >> its rare that -- farming was

also a legislator. what is your reaction to this what we know so far about the mexican side of things of nafta and what's going on with canada, positives for farmers? >> yeah. this is the timing couldn't be better. this is exactly what we need right now of the we need certainty. we need to be able to look toward the future with optimism because the last few months especially has been a real roller coaster. farmers have been dealing with low commodity prices with this uncertainty and on top of that all the weather that we have to deal with, whether its drought or really good weather, this timing couldn't be better and we're hopeful that this will put canada back in talks with our administration because canada and mexico, for american producers on the farm and all of the jobs affiliated are our top

trading partners. and nafta's been such a win for our farms, so much so we have taken it for granted and now we've seen what it looks like with the potential of losing those trade agreements. we're very happy to be seeing a lot of this news come out. >> you're not soy beans, you're beef. you're a beef farmer mexico's an important export market, your largest, right? what could have gone wrong if this had gone the other way, what were you prepared for, what could have happened? >> yeah. so my family's in the beef business and we sell beef both on the market and also my father raises bulls to sell to other farmers for their herds and what happens whenever there's uncertainty and whenever we lose markets we've seen our customers selloff their breeding stock and my grandfather had to make a decision to sell a trailer load of his breeding stock and those

decisions affect a farmers operation not just for the short-term but for years to come because you have to either makeup for that loss or you just have to sustain that loss and when prices are so low, that's really scary and that's whenever you see farmers get out of the business. we know some of our customers who are our farmers who have gone out, some of them probably won't get back in the business. so this is -- when i say its timely, i mean it is very timely that we're able to get that certainty back in the market and we're hopeful that -- that the move forward will only build and allow this to sort of be the standard for negotiating trade deals with not just canada but other countries. >> because its -- you have written in the past that you support president trump and i think you cited polls that say most farmers do which is -- i don't know if everyone would immediately assume that, because we keep hearing that farmers are

on the front lines for the trade wars and are affected most. >> other farmers we've spoken to say they support him but they don't have a lot of patience is the message -- >> is that what you're seeing? and did it help that there's a relief package -- would you support him if he didn't propose a relief package or you're willing to take a little pain in the front end if you think that the goals are something that you'd like to see and you're willing to forego immediate gains? >> sure. farmers are the ultimate realists. we have to deal with realty on a daily basis. we understand we've been targeted unfairly by china, especially, in these trade wars and we also know that what works and that is these trade deals. that's why we've supported the president as long as we have and when we did because we needed someone who's going to fight for us and understands that the realities we have to deal with on a daily basis.

that being said, with the trade -- or with this aid package, we want long-term solutions and those aid packages only make farmers dependent more on the government and we don't want that. we don't want to have to wait till the end of the month for a paycheck. we want this certainty. so this is a breath of fresh air and something we need badly. >> casey, we know the deadline that -- self-imposed deadline is for tomorrow to get nafta wrapped up. what deadlines you're dealing with as farmers? you need to start thinking about this sometimes in terms of planning for next year, spending for next year. what are the deadlines that farmers face on these issues >> yeah, i mean, on a farming operation you're making decisions on a daily basis for the next year. so you only have one crop that you can harvest every year. we only have so many cattle that we can sell every week. you have to make the best decision every day for the next year our deadlines are daily

basically. whenever you're dealing with regulation and these trade policies that come out of washington and the weather and the markets, you have very little control over any element of your business. so whenever we see someone like president trump get elected who's giving us get regulatory reform and has -- we've seen great tax relief, its exactly what we needed because farmers are a 16 year low for income and we're projected according to the usda to have another 8% loss this year. you can only afford to lose money so long before you start seeing farmers get out of the business and i was a kid in the '80s. i remember being raised on a dairy farm in the '80s and they call it a farm crunch for a reason because so many small to mid-sized farmers got out of the business. we fast-forward to the '90s and it was a huge difference because 95% of the world's consumers live out of the united states. we know that if we have access to those markets and if we can get our products to the people who want it, we don't need

anything from the government. we can take care of ourselves and prosper and there will be an eighth generation of my family in the business. >> well, the guernsey cow is not named after you, isn't it? that's pretty convenient for you. -- >> i wish we could claim that. we did milk guernsey cattle. we actually came from the same island. >> i knew it sounded familiar. all right. we appreciate your time today. >> thank you. >> and good luck. i love farmers, obviously. they feed the world, so its -- i think we owe them. any way, thank you and we appreciate. >> my grandfather and great-grandfather were both cattle farmers, indiana. they had cattle farms, my

great-grandfather was a cattle driver and drove them into chicago. he's got a supreme court case that he took them to. come by it honestly. >> we need to move on, i think. when we come back, gene munster on the president's attack on social media and in particular google, plus nasdaq hitting all-time highs with apple, amazon and alphabet leading the way. gina's our guest right after this break. later, mansions for sale at a deep discount. is now the time to snatch up that dream house before rates start to rise? robert frank joins us with a look at the luxury housing market. "squawk box" will be rightac bk. let someone else do the heavy lifting. tripadvisor compares prices from over 200 booking sites to find the right hotel for you at the lowest price.

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guernsey. welcome back. new this morning, campbell soup will sell its international operations and its refrigeratored foods business. campbell has been under pressure to revamp its operations and consider a sale. it also hasn't ruled out the sale of other businesses. campbell reported quarterly profit of 25 cents per share. one cent above estimates. the revenue fell slightly below forecast. that's about 20% of the business that they're looking to sell on a revenue basis. >> and the business being the

fresh business which -- i guess that tells you if you're not going to try and go it alone, that would be preparing itself for the sale because what they're doing is diversify away from all these packaged goods. >> selling what they can, obviously. and a lot of people didn't think there was a great market for selling the whole company. a lot of debt on the balance sheet. >> right. the one big number to watch today may be 2000. amazon hitting lofty heights for the first time ever this morning in premarket trading. shares closing up more than 3% yesterday to a record high. it went from 1,000 to 2,000 quickly. 2,000 is twice 1,000, right, so basically it doubled from 1,000. >> rubbing it in, are you? >> after morgan stanley raised its price, $1.2 trillion valuation for that company. the tech sector looking to washington next week. executives from facebook, twitter and potentially google

are expected at a hearing on social media's response to foreign influence operations. joining us right now for the potential business impact is gene munster. he's managing partner and gene thank you for being here. >> thank you, becky. >> you have your own special music. gene -- >> i love it. >> what can we expect next week? we know these hearings are coming. we hear comments from the president which all of it together raises the inspector of some sort of regulation. how realistic do you think the idea of regulation is and what would you be doing with these stocks ahead of this meeting next week? >> regulation is realistic. keep in mind politicians want to feel like they're doing something moving the ball forward. that's a wonderful way they can do that is form committees of oversight. i'm sure it will have a grand political type of name that will

emerge from this in the future. its the tale of two cities. on one side facebook is going to show well in part because sherl samburg will be representing the company and she does an outstanding job and the second, the company has done a lot around election interference. they've added a lot of a.i. and 20,000 people, they've added transparency to some of their ad units. we tried yesterday to set up two fake accounts on facebook and with 30 minutes had a machine had asked us for us to send in a picture to verify that, in fact, it was a real account. so facebook is going to show well because they're doing real things here. on the other hand, you have twitter and google who aren't doing as much and i'm going to approach this from a politician standpoint and i think from their perspective this concept of free speech is getting to be in a gray area and twitter is standing by their mission to be a free speech platform which undoubtedly is going to get some

criticism from senators next week and google is being a little bit difficult here not sending their ceo to this. instead messaging that search is not impacted or cannot impact and i think that is not the case. you can use search and influence search to have an impact on thought and so i think that that probably isn't going to go as well for google. we think good for facebook, not so good for twitter and google. >> gene, this is also one of the very rare instances where you see agreement from both sides of the aisle both left and the right that some of these companies are muting them or not allowing free speech entirely or making sure that their voices aren't heard. that's not something you see very often in washington, an issue where both sides can agree. >> yeah. issue both sides agree and that's why you'll see some sort of committee that's going to emerge from these hearings. >> already to your point about google not sending the ceo,

senator mark warner has said he thinks that's a mistake. what do you think happens? it just drags this out and they continue to push for that? does it make it a longer story for google than the other companies? >> probably and maybe just a quick perspective on search and why this is going to be potentially a little bit of can of worms for google. google's saying search is different than facebook or twitter. there's no accounts per se with google but the search platform can be influenced and specifically there's businesses called search engine optimizers which go and can change different keywords and buy different advertising to influence search results. i think that that concept -- their approach right now saying search isn't simply something that can influence an election, that is understandably going to come under some heat. i think its best for google to send their top people and to just be very clear that you can use search to influence thought.

>> gene, is this an issue that you think has long-term implications and i just mean from a stock holder? you're telling people maybe to sell google or to sell twitter as we head into this next week, what do you think longer term if you're looking at a year or two years out? >> you think longer term -- i think longer term google is in a great spot. facebook and twitter not as good. in terms of google, its the oxygen of internet. we can't really live without it. even though it has issues and some challenges around -- in general, i think they do a good job of trying to keep a middle ground and so i think google not only around search but on some other things they're doing, autonomous cars is a great opportunity. facebook and twitter i have fundamental challenges. now i'm old. i'm 47 so its a little bit beyond what i would spend my time on on a day-to-day basis but they fundamentally just

don't do a lot of good for the world. if you look at facebook's f 8 conference and some of the announcements they made around building community, that is an indication that facebook also recognizes that people don't feel as good. its a long narrative around what good does facebook actually bring to the world, so my belief is for businesses to really change the world and to continue to grow they have to do some form of good and i question some of that related to facebook. >> great to see you, gene. >> thank you. i feel good about cnbc in terms of doing good for the world, you know what i mean? coming up, the biggest price cuts in real estate are now at the top. robert frank joins us. >> good morning. how about $62 million for a california mansion. that's not the price, that's the price cut.

luxury market under pressure. we'll show you the biggest homes with the bgeigst discounts right after the break. 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. the mansion market experiencing a bit of problem, price cuts. robert frank joins us now with more. what's 10% on 20 million, is

that a price cut >> that would be normal market. right now we're seeing much bigger cuts from johnny carson's former state to warren buffett's beach house. the top of the real estate market is seeing some of the biggest price cuts since the financial crisis. a new study found that at the top of the real estate markets, those are homes priced at 10 million or more, 12% of listings had a price drop in the second quarter that was twice the levels of 2016. price cuts totalled $1 billion for the top 500 listings with discounts and the biggest drops are now reaching eight figures. the late johnny carson's estate got a price cut of 16 million going from 81 to a mere 65 million. that's now $27 million cheaper down to 138 million. that was actually the second price cut. its dropped by 57 million since it was first listed in 2016. even warren buffett is lowering his price that he had listed for

11 million has been reduced by 3 million. now a bargain at 8 million. the biggest price cut of the past 12 months was this $250 million house listed in 2017 just reduced by $62 million now. its cheap at 188. and, you know, some of these prices were fantasies. they were really just for marketing so we knew they would come down but what's happening across the market is, these sellers are capitulating the market is just not what it was in 2014. the foreign buyers are not there and tax cuts are hurting. >> does that fit with the narrative of the market sitting at new highs the economy doing great? does it matchup? >> normally that would be -- you would think the luxury market would be doing stronger in those circumstances, but it was just so ridiculously high priced in 2014 -- >> you said the tax cuts are hurting? >> in places like california and new york. >> because of the blue states --

>> taxes went up on rich people. >> i did not know that. >> about 10% of people in new jersey and new york will see tax hikes. >> i've experienced that, thank you. to one talks about it. >> exactly. >> i thought i was getting a great deal now. >> thank you, robert. when we come back the former u.s. ambassador to mexico james jones on the latest nafta developments. don't miss our conversation with warren buffett. ahead of his lunch with the winning bidder of the annual glide foundation auction. stick around. causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

candid conversation with warren buffett. becky quick sits down with the world's greatest investor. incite, opinion and a birthday celebration you'll see first on "squawk alley" today on cnbc. from turmoil to truce. president trump is optimistic that canada will join a trade deal. jobs and the consumer, just 30 minutes away. plus santa monica's great scooter experiment. why cities across america should take notice on what's happening in california right now. the final hour of "squawk box" begins right now. ♪ announcer: live from the most powerful city in the world, new york. this is "squawk box."

good morning and welcome back to "squawk box" here on cnbc. live from the nasdaq market site in times square. i'm joe kernen along with becky quick and mike santoli. the futures are indicated down 62 that's about where we've been, down 80, it was down 50 on the dow now down 60. s&p indicated down five and the nasdaq pulling back by 12.5. both the s&p and nasdaq pulling back from record highs that were set just yesterday. treasury yields have been inching higher like watching a snail this week. 287. 281 after, i don't know -- >> the fed last week. >> something scared the market last week and got to 281. maybe about not messing with him. >> with the inverted yield. >> got down to the low two eights again. presumably, three, but who knows. other headlines, shares of campbell soup under pressure after the company announced that

it will sell its international and refrigerated foods unit. it plans to focus on its core brands and use the proceeds of that sale to reduce debt. the company has been criticized by moody's for how much debt its carrying. campbell gave a full year earnings outlook that falls below what the street is expecting. right now its just turning positive. its up 3 cents. last frayed, $40.02. technology stocks remain front and center as well. shares of amazon running another 3% and they are up once again. technology giant hitting $2,000 a share early this morning. touching just beyond that right now. we also go from stocks to currencies. the indian rupee hitting an all-time low. one of the reasons cited, the higher impact of oil prices. stocks on the move this morning. shares of significant net jewelers big mover, big gainer

today earnings of 52 cents a share came in well above a consensus estimate of 20 cents, more than double. it also posted a same store sales increase and increase 1.7%. stock is up 13%. abercrombie & fitch sales are lower. analysts did expect a quarterly loss, however revenue and same store sales fell short of street expectations. now to washington. the latest in the high stakes trade talks. eamon javers join us once again. >> reporter: its almost friday. they want to wrap this up by the end of this week. all sides involved in this negotiation are expressing optimism. all sides also saying they don't want to negotiate in public. we don't have a lot of transparency into what the potential sticking pointsmight be here in terms of bringing canada in to that three-way deal

with the united states and mexico. the u.s. and mexico agreed to their own deal earlier this week and said they'd go it alone without canada. in ottawa yesterday, justin trudeau suggested one area, though, that could be a sticking point before the end of the week. here's what he said. >> our government and i personally will stand up to defend supply management and defend our dairy farmers. that is something we have made very, very clear to the americans, even though it has been very obvious that the americans want us to get rid of supply management. i have said that that is not acceptable to us, but the negotiations continue. >> reporter: so trudeau also saying that it is possible that they could come to a deal that would be good for canada by friday. we'll wait and see what happens today. the negotiators said last night they'd be willing to negotiate late into the night last night and continue on today. so we expect this will be a moving target throughout the day today, guys.

>> seven tweets from president trump today. when you're -- when you are talking and we go to video, do you look down at your phone? >> reporter: i have a twitter alert for the president's tweet so my phone beeps and blurps at me. >> tomorrow, my phone beeps when you say weekend. under the circumstances the only thing -- >> reporter: is that the only alert? you've got it just for that tweet. do the double tweet because its a three day weekend tomorrow. >> right. >> that should be additional fanfare. >> end of summer. >> thanks. joining us now ambassador james jones, a former u.s. ambassador to mexico. mr. ambassador, thanks for coming. i wish we could have just episodically gotten your comments as this has played out over the last six months because having been ambassador to mexico, you must have been watching with wrapped attention as this whole nafta thing played

out. are you surprised at what's happening and where we are right now? >> i'm not surprised because when you peeled everything back, all the insults and everything else, its in all three countries best interest to do a deal. for the united states, the largest export market we have is canada. the second largest export market we have is mexico and if we disrupt those two, we have a big hit to our own economy and for mexico and canada, they're largest export market is the united states, so its in all three countries best interest. my disappointment was we did not have to go through all the insults of both countries in order to get here. any way, i'm fairly optimistic that we can wrap it up at least in principle and we can have a deal. >> what are the improvements that really stand out for you

for what's happening in the -- on the mexico side and what do we need to do on the side with canada, our neighbors to the north, to make it better -- hopefully for the united states and canada >> as you just mentioned, there's an awful lot that has not been revealed and so we're trying to interpret what the two sides -- at least mexico and u.s. have agreed to and its really hard to get all the details on that. i think its an improvement in some ways because things such as digital trade and intellectual property protection, things like that did not exist in the original nafta and they're going to be addressed in this. from the united states point of view our major concern was to create a situation where we can improve auto production, automobile production in the united states and in north

america and that seems to be a very complicated result but one that should increase our production in the united states as well as mexico and canada. so those are improvements and overall i think if we can settle it all, get it done and get going its going to be -- its going to be a great improvement. one of the things through this whole past year of uncertainty, investment in all three countries, capital investment in all three countries has been down. people have been waiting to find out, investors have been waiting to find out whether or not the three countries can reach a deal. as we move toward a deal and get it, then i believe we will -- we'll see a lot more capital investment. that will be a boost to all three economies and when you look at north america from the standpoint of natural resources,

human resources and where we're located, we are the richest region in the entire world and if we make this trade deal work, we will continue to be a dominant economic factor throughout the world for years to come. >> do you think that china's watching, mr. ambassador do you think that this in any way can either help or hurt in our eventual resolution with what we're trying to accomplish there? >> well, in china, two issues there of the number one, as we look to the unfair trade practices, china is really the culprit. it really is not europe. its not mexico. its not canada. it is china. and there we have to deal with that on a basically bilateral basis or a world versus china basis, which i hope we can get back to. as far as china's watching, absolutely they're watching

because we see that in their moves here in this hemisphere. they are looking to investments in mexico, they're looking to investments in central and south america. they want to be apart of the action, and so, yes, they're watching what we do very, very closely. >> i just wonder whether if they see what looks like a -- you know, united states making concession that's allow this to be done with mexico and canada, well, it can be done. maybe we need to enter in ernst and give up a few things because we'll get a few things in return. >> i think that's true. if we can reach a new nafta agreement and implement that, its going to be a strong signal to china that they need to be more cooperative in dealing with the trade injustices that we say they commit. but to do that, we do have to re-engage our european

colleagues, our european countries as well as other asian countries who have their own set of criticisms with china and what needs to be basically the rest of the world versus china in saying, if you want to be apart of the world, you really have to straighten up and play by fair rules. and so that's -- i think that could be the result of that -- assuming we get nafta completed. >> all right. mr. ambassador, thank you. becky's from oklahoma -- >> oh, really? >> and indiana and new jersey. >> i claim as many states as you do but not a single state i haven't lived in for at least five years. >> oklahoma was a big one. >> i was there from fourth grade until 11th grade. >> that was in my congressional district. >> there you go. >> and i was always at the rooster day parade. >> rooster day parade. you're the first person on the planet that i've talked to on the planet that knows what that is. >> you really were in oklahoma

>> yeah. >> i'm getting some confirmation here. i've been wanting to do that -- sorry, sully. >> is the grand marshal called the cob of the walk at the parade >> no, that's what we call you. >> you said yourself up for that one. >> great to see you, mr. ambassador. >> what's happening? will venezuela last great asset be seized over a lawsuit this is story you've got to hear to believe. the oil and gas company, citgo, according to delaware may decide not only but perhaps the economic fate of the country of the venezuela. who would have thought, who would have guessed? an energy company helping cars emit less. making cars lighter, it's a good place to start,

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this company a lot yesterday. tem persealy is accusing former customer mattress -- former customer mattress firm -- its weird. you sell mattresses, come up with something besides mattress firm. its a customer of tem persealy they're selling copycat products similar to the tempur brand. the biggest thing is -- i don't even know what it is, you open a box and the mattress jumps out of the box >> they suck all the air out of it. they stuff it into a box, it makes it much smaller, easier to lift, its not so heavy. >> is that the only advantage is that you open it up and it opens up and there it is is it a good bed >> we've actually ordered a couple. >> what about the box springs?

you don't have any. >> no. so this is casper. >> i ordered the last one off amazon. the last ones i got were off of amazon and they were pretty nice. >> do they come in a size where this guy's feet won't be hanging off the end of the bed >> california king. >> its not the height, its the width. >> i don't know -- wilfred is taller than me but its mostly hair. >> i'd like to see him tamp that down. i'm hundred pounds. >> brian sullivan is here. >> he is. >> are we going to talk about anything >> i think we'll talk about venezuela. >> let's intro you. could venezuela's last greatest asset get taken away. that's what brian sullivan is here to talk about more on the citgo story and its a pretty crazy one. >> i'll try to extract it and not make too much mistakes.

so, michelle, thank you. its a very important story. citgo is owned by the venezuelan oil company. ten years ago a canadian hedge fund sued the government over a gold mine that venezuela stole from the hedge fund. the hedge fund has gone through all these years of courts. they attached themselves to citgo because its one of the few assets that has value in north america. a judge has recently ruled that their claim stands. the idea is this, unless citgo slash venezuelan government can pull a magic rabbit out of a hat and pony up money it owes crystalex, its possible citgo could be seized.

they will be seized by federal marshals and sold at auction to pay that $1.4 billion debt. its a houston company controlled by venezuela. >> and this is a u.s. judge that made this ruling. >> third circuit in wilmington, delaware. >> what would happen to the citgo gas stations i would drive by every day >> probably nothing. most of them are franchised. they have refineries in texas, louisiana, illinois. venezuela has been selling more to russia who loaned them a billion and a half dollars in exchange for oil but a lot of it still goes to citgo. they're going to be owned but will they have gas to sell if they're buying from the citgo refineries >> the bigger problem with venezuela and this is why no one wants to do business with them, you invest money and pay for it and they can confiscate the assets and nothing comes of it.

even though they have more oil supply than any other nation, you can't get it out of the ground because no one's willing to invest there. >> its crap oil. its thick and sludgy and expensive to refine. expensive to maintain. they're not putting the capital back in. what makes the story even more interesting is that this crystalex basically went bust. its a canadian hedge fund. a new york hedge fund came in eight years ago and said, what do you need? we'll fund you call tenor capital. they put in by over $7 million. they basically bought the lawsuit and it looks like they could have a billion dollars payday. i talked to some people, you know, not going to name them, sources off the record yesterday who said -- if crystalex wins, won't they just sell the stock effectively in u.s. subsidiaries. they may want to operate the refinery because its good cash flow. we could see litigation as an

asset class grow from this. we do see the economic fate of venezuela be finally decided by this. >> what's venezuela's response to any of this >> they're pulling every legal trick out of the hat. sovereign immunity. they're saying the court doesn't have jurisdiction. a judge has said that we'll have a delay, a slight delay, but they're going to seize the assets of citgo. i don't know when its going to happen, but unless something changes legally for pbd holdings, its going to happen. >> you're too young, i think, but i'm going to bring this all home to roost here. so citgo at one time was city service, maca tried to buy city service instead city service bought mesa and oxidental bought

mesa and the reason i'm saying this, the first stock that warren buffett ever bought was city services. >> was it city services? when he was 12 years old. he's 88 today. >> it was a convertible -- i guess -- >> as soon as you said city services. >> and now he owns a bunch of phillip 66. ask him if he's interested. >> last thing, citgo is controlled by the venezuelans and people have a strong opinions about that. there's a lot of people that work in houston. you got to think about them. you don't want the padlock on the door, but it looks like citgo is going to go up for auction. i'll keep you informed. if anything breaks -- >> there's a lot riding on this in terms of other potential litigation, what it means for the company and the country. >> there's also the weird robert f. kennedy jr. got free oil for for people up in boston from

hu hugo chavez jr. because he was massachusetts energy or something. >> he was just happy -- chavez was subsidizing, a lot of stuff swirling around and we even brought up michelle cabrera connection. >> she did all the research on this. she's in mongolia. >> thanks. coming up, breaking economic news, jobless claims and personal income and spending and later this morning don't miss becky interview with warren buffett, who bought city service when he was 12. ahead of his lunch with the winning bidder of the annual glide foundation auction at 11:00 a.m. eastern on "squawk alley." stay tedun you're watching

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welcome back. we got a lot to talk about today and we have breaking economic news coming up. enngess claims, personal spdi. stay tuned.

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♪ it was a video. it was a video. its not important.

it was a video. we're just seconds away from weekly jobless claims and personal income. just tired. futures down 50 points right now. the s&p down four. rick santelli standing by. rick, are you ready to give us the numbers please right now. >> reporter: i am ready. survey says, jobless claims rose 3,000 from 210,000 to 213,000 continuing claims, moved down a bit from 1.728 to 1.708 million. if we look at july personal income we're expecting the number up .3 to .4. it follows up .4. spending was up .4. .1 cooler than our last look. let's get into the important stuff to many. the personal expenditure was

up .1 as expected. year over year, 2.3. this one's interesting, it is as expected but is .1 higher than our last look. let's take core, month over more, that's up .2 year over year, its up 2%. also a .10 hotter than the rear-view mirror, 1.9. as i look across the spectrum of markets we're almost exactly unchanged. the long end 30 year bond's been getting extra volatility. the market's are getting thin. >> almost the weekend. its almost here. thank you very much, rick, we'll talk to you soon. steve liesman is joining us right now. he's been going over the numbers. welcome back from jackson hole, where you spent so much time tirelessly working. >> with all those fed guys. we were working very hard. >> yes. >> exhausted. very tired. >> look at all the work he was

doing. >> well, there's a fisherman in undisclosed location i can't tell you about. that's a large brown trout. not, you know -- not too bad a fish. >> let's talk about the personal economic spending numbers. down a tick on the income number but in line with expectations and these are good numbers. 0-4, 0-3. 0.4 in july. 0.3 on disposable income. durables down a tick. that might reflect the fall off in car sales. i don't know if you're registering that in stock market prices but you have had a bit of weakening there but nondurables up 0.4. they adjusted a lot at 6.7%. they did a revision of this. >> that's a big number. >> you got to get used to the new level. they were down in the fours and fives and they went back and

looked at it again. there's more savings out there. >> its a healthier rate but there's that fine line between a point where its a healthy rate and people are putting enough aside that they're supposed to be saving for a rainy day, saving for retirement and all kinds of things. every time people save too much, we worry they're not spending the. >> i think people -- the trouble with the number like that is its an aggregate number and if its all rich people put money away it doesn't matter. what you really want is you want it to be spread across the economy. we're unable to measure that in this number. do you have these numbers like some large percentage of the people can't come up with $400. its the savings that you worry about in a down turn -- >> that was one of the numbers that the republicans talked about so much in terms of the tax break. its a small number but if it could help people set aside for an emergency. >> after yesterday the rapid up. you had the 4.2 number on gdp. we're tracking 3.3.

what i like about this number is some media's people will register this as growth slowing. its not slowing. it is lower, but, remember, we're working with what we still believe to be a potential economy of 1.8. so you do have 4.2 like that. you follow that up with a 3.3. you're not giving back the overage. just real quickly. if you do that together, the 4.2 and the 3.3, it'll be one of the best quarters we've had since the second -- third quarter of 2014, one of the best halves, two six month periods and it'll be one of the best fourth quarter we've had since 2015. we will do a four quarter average of 3% if all we do is 3.1 here. the bottom line in all this and this is not before this data came out which is in line, so i don't think we'll get a big change today in the gdp outlook, the idea is july was still strong. all -- most of the data coming

in from july is supporting this idea of being over the potential growth by quite a bit. and we'll see how long that lasts. very quickly, i want to show you the fed probability which are interesting for a couple reasons. september locked in 95%. pretty good agreement on what happens in that quarter point despite what's happening with the yield curve. may is making an appearance for the first time and i've put that in there -- >> that was never there before. >> it was low. everybody was in june. june is up to 60% and some of that is bled over into now a debate on an earlier quarter point for 2019 which is now at 45%. so i'm just putting that on the radar. let's track it. you can watch what happens to the debate. if things get a little weaker we'll have a debate between june and july but because things are stronger the debate is may or june for that first quart -- >> december firmed up a little bit. >> absolutely. >> which is interesting because the initial takeaway was it was a -- >> that was just --

>> no, no. i'm just going to correct you a little bit. right. it was a dovish longer term presentation but more of a hawkish, inline shorter term perspective. >> the feds, are they reflected in the market? >> yeah. you started to hear some talk and there was a story yesterday about how the bull case for 2019 a lot of people are saying, maybe the fed is going to pause, right? i think that's one of those more wishful -- i don't know about wishful but its conjecture at this time. its not necessarily that the data is telling you -- >> i have to say those numbers are surprising. >> i don't know if you have the 2.10 curve. it was 20 basis points this morning. there's a new paper out from the san francisco fed said you got to watch this. there are some guys that said i don't want to cut a quarter because i'm going to invert the curve. >> he's not a voting member. >> jim says that. i know that kaplans worried about it. what they're going to do is follow through to december, they'll have a look and we'll

see what the ten year does, right? right now its 2.87. its benign from a market standpoint. its below -- that happened after powell that you got below 20 basis points. >> there's -- is there still hope we fall back down well below 2% >> why would you hope that, joe? >> is there? >> who hopes that? >> okay. never mind. >> nobody hopes that. >> are you getting tired from the winning? >> which winning, joe? >> he misses andrew. he hasn't been here. >> winning. >> this is joe. >> the economy's doing well and he's reacting well to the tax cuts. we need to see, joe -- >> was that charlie sheen? >> winning. >> everybody will win. everybody's going to win. >> winning. don't take the bait, steve. take it easy. >> its an interesting story. >> hope springs eternal. >> economics is interesting. let's bring in another voice

on this. scott nation is here. the president of nation shares also cnbc contributor. scott, what do you think about this conversation? has the market priced in to what steve was talking about with those fed fund futures >> absolutely. we should consider september to be a lock. december less so. the fed could do something very different after september just before the economic crisis, the fed balance sheet was at about $800 billion, now its well north of $4 trillion. i think the fed has perverted the yield curve by not practicing -- they have not sold any substantial amount of the stuff, the long-term stuff that they acquire during q3 -- >> the plan has been to let that stuff rolloff. >> but that's a mistake. that's an absolute mistake. what have they done? they've raised short-term rates six times and they've done nothing, nothing with long-term rates and that's why the yield curve is where it is at 20 basis

points. if they were much more aggressive -- >> scott, can i -- >> if they were much more aggressive we'd have a normal yield curve. >> i want to make clear what you're talking about. so people understand what the fed does is it let's its securities rolloff so by definition everything it sells is on the short end. you're saying go up the curve or up the term structure and sell five year note, sell ten year notes in order to push up rates on the longer end? >> and its not just selling them, its selling something they have in their inventory. their inventory quinn tupled and a $4.3 trillion federal reserve balance stheet. that's an emergency balance sheet and its tough to say with the gdp growth of 4.2% that we're in an emergency situation. i think that they should not be letting that stuff roll off. if they do that, then their balance sheet will get to a normal size in about ten years. i just think that's silly. they ought to be selling some of

that in the same way they actively bought it. >> i wish rick was here. >> president trump's going to love that, scott, right? what you're talking about is more aggressive tightening of monetary policy. >> i'm not trying to make a political statement here, but we know that the worst thing the federal reserve can do is not raise rates prematurely but keep them too low for too long. the federal reserved cause two market krarks by doing exactly that in 2006/2007 and eight and nine and a long time ago in 1927 and 1928. that's the worst thing they can do and the long end of the curve that's what's going on. we see that because the stock market is making all-time highs. >> let's talk short-term because we're heading into a holiday weekend. we've got today and tomorrow left ahead of that. i would say the trade talks are weighing pretty heavily. a lot of people have assumed that those are going to take place before tomorrow. if there's not a deal that's cut

tomorrow, does that matter as we head into a long weekend or are the trade talks on the back burner >> i think it is certainly worrisome and that's why we see the s&p futures down about 3.5 points the last time i looked. what's going on in turkey is a problem? why does this matter because the turkish economy is about four and a half times the size of the greek economy. we saw what happened in 2010. i think the worrisome thing for s&p investors, those who are long s&p, is yesterday the s&p got overbought for the first time since january. now it was much more overbought in january but in the two weeks ending february 8, the s&p lost about 290 points. i don't think we'll have apocalypse like that but the last time we were overbought the s&p did not perform well. >> thank you for joining us today. steve, thank you.

>> pleasure. when we come back, blockchain has become a buzz word in corporate america but do leaders really understand it or do they know what to do with it? we got the answers in a new report straight ahead. later this morning, don't miss our conversation with warren buffett. that is ahead of his lunch with the winning bidder of the annual glide foundation auction. coming up at1: a 100.m. eastern time on "squawk alley."

good morning and welcome back to "squawk box" live from the nasdaq market site in times square. shares of two discount retailers, dollar tree and dollar general are falling this morning. dollar tree matched estimates of 1.15 share revenues. meanwhile dollar general shares falling in spite of beating estimates on the top and bottom lines. and same store sales were better than expected. its the age old question and really flish economic times, do these stores suffer because we know they do better -- >> walmart and targets those discounters have managed to do very well. you just wonder how much of the market share they're stealing from dollar general and dollar tree right now. >> dollar general, the stock has been great. its been up almost 30% before this in 12 months. market was rewarding it saying things were pretty good. >> this is you, i think. >> its you. >> it is

i like saying the name of this company. medical device maker stryker announcing an acquisition this morning, its buying k2 m group, about 1.4 billion. prices 26% premium over yesterday's closing price. don't call me shirley and general motors has run into a setback in its effort to ramp up. gm found that batteries for those cars that were made in china failed to meet the company's performance in safety standards during testing. 84% of business executives report having blockchain initiatives under way, but do they know what to do with that technology pwc surveyed corporate leaders on their approach to blockchain. thank you for being here today. what did you find in this poll you talked to 600 executives in

15 different countries. what did they tell you >> reporter: so its really interesting and fascinating. 84% of our clients are actually actively working with it and trying to figure out how it can be useful but what's fascinating is a technology that's supposed to be trustless and made trust a nonissue is failing to hit the primetime because of some real issues around trust and when we look at what are those issues, its not really about the technology itself. its about other things. for example, corporates are really concerned about regulatory uncertainty. there could be a backlash from regulators, there could be new rules that would make it difficult to comply. they're also worried about who are the participants in these networks that they're establishing, who do i need to play with, who am i implementing blockchain with? trying to figure out what's the business problem i'm trying to solve, who do i need to help me solve that problem these are bigger issues and this is where some of this trust is really breaking down. >> i guess part of it probably

has to do just with the headlines that circulate about chiropractor toe currency, some of the ploys you see where people throw blockchain into the name of their stock. how do you breakdown all of those headline hype and all of this lottery ticket mentality and set that aside from what can really happen with blockchain? >> absolutely. its helpful to distinguish what's a chiropractryptocurrenc there's been a negative news around that and what we're talking about here which is really distributed ledger technology, the idea that corporates will get together in a permissions private network but what they're trying to do is take cost out or build new marketplaces to exchange digital assets. it is helpful to make those distinctions. we're talking about heavily regulated industries in many cases like financial services and again we're talking about participants coming together. they're trying to do two things. they're trying to build utility functions to remove some of the

back office processing and other things and make that more efficient and the technology is actually proven to be really good at doing that. the second thing they're doing, of course, is participating in this token economy now. these tokens, these digital assets that are coming to the market and the infrastructure being built around them, again, a lot of times we're talking about registered securities, compliant products that are being brought to the market. we're not talking about cryptocurrencies necessarily. >> i would imagine that its probably tough in this job market to try and find people who know what they're talking about, employees you can hire into this arena, its hard to find anybody with high tech skills in some of these areas. but i also hear that colleges are doing a lot to try and teach this right now. what is the supply/demand when it comes to employees who actually are pro-efficient in this stuff and can help you on your way >> reporter: yeah. that's a great point. we're working with a lot of academic institutions. they're struggling to keep up and keen the curriculum current and that's right. corporate are looking what's the

workforce impact of all of this emerging technology not just blockchain but really trying to think about how do i build a more agile organization, what sort of people do i need to employ that embody this with technical skills and being able to think about business process and think about how the technology can come in to support that and because the technology is moving so quickly, you know, it's really difficult to keep up and again it is a different type of person that these corporates do need to hire. >> thank you for your time today. grainne mcnamara the great scooter experience aditi roy joins us live from santa monica aditi? >> yeah, not a bad way to spend the day in santa monica. the city is flooded with scooters like these. and today city officials are going to make an important announcement about their pilot program for scooters we'll explain coming up in a live report. !? aha ha ha!

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welcome back, everybody. santa monica is the latest city involved in a battle over escooters. that's where we find aditi roy this morning with the great scooter experiment in the very early hours. good morning >> good morning to you, becky.

that's right electric scooters like this one have flooded the streets of santa monica, but it remains to be seen what the city's scooter landscape will look look once a pilot program gets under way next month later on today, city officials are going to be announcing which two scooter companies and two bike share companies will be allowed to operate under this pilot program. 18 applicants have been filed. for a lot of commuters, the appeal of scooters is obvious. they're small, easy to move around and dockless. but there are a lot of critics out there as well. if you look on social media, you'll see it splattered with images of scooters scattered across streets as users leave them when trips are finished, creating tripping and road hazards. that's prompted regulations. san francisco, los angeles and at this hour, santa monica have all pending regulations on scooters while d.c., dallas and miami have regulations already

in place the public outcry over safety issues could have a business impact on many of these companies. some cities, the backlash has put pressure on regulators to take action like requiring helmets or considering speed limits on scooters which can add hardware costs for instance, bird and spin, two scooter start-ups have handed out free helmets and one bike share company has pulled out of several cities, including chicago, because of the tough regulatory environment out there. back to you guys >> i see that little santa monica pier. adi aditi, i've been on that i don't like those -- >> ferris wheel? >> i feel like i'm going to get stuck. i don't want to get stuck up on top. pretty good roller coaster >> by the way, there's people out there. i saw bikes going by behind you. >> i know. we saw scooters going by once it gets light and things get going, once the scooters hit the roads here, it's just filled

here with scooters we talked to a lot of people who say it's so much easier than using, for instance, an uber or a lyft or even using public transportation if they just have a micro commute. but it's so much easier than walking. they really love it. but there's a lot of really vocal people on the other side who say it is a public danger. they've are afraid of getting hit by a scooter or tripping over one >> segway never took off aditi, thanks. coming up, the biggest market movers. later on "squawk alley," don't forget box ceo aaron levie. that's today at 11:30 eastern. st be right after warren >> yeah. >> all right we'll be right back. big, bold promises like... it'll transform the human race! it's gonna solve unsolvable problems! it'll find life on mars! but here's the thing. you don't live on mars. you build wind turbines. supply car parts to thousands of cities.

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over the past decade, software and retail have led each gaining over 1% happy birthday today to warren buffett he is turning 88 years old a chance to spend a little time with him today he'll be joining all of us for a special event you can catch coming up at 11:00 a.m. eastern time this is ahead of his lunch with the bidder of the auction who paid $3.3 million to have lunch with him but you get a seat for free. join us at 11:00 a.m >> if you tell me where you're going today, i will pop out of the cake >> you promise

>> and i'll sing that song >> "happy birthday." >> mr. warren buffett. >> i'll tell you where we're going. you wait mike, thank you for being here today. great seeing you this week join us tomorrow "squawk on the street" is next ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with sarah eisner we continue to watch u.s./canada trade talks. buffett will join us in two hours. europe south of the flat line. personal income and spending are roughly in line. our road map is going to go like this stock poised to end a four-day rally. major averages remai