>> it would be against history to keep the house. >> but, you know they got to get 23 seats we'll see. hopefully, they'll hang on but it will be close >> larry bossidy, the one and only, we appreciate it >> thank you >> make sure you join us tomorrow "squawk on the street" begins right now. good thursday morning, welcome to "squawk on the street," i am carl quintanilla, cramer is in philadelphia where the eagles will kickoff against the falcons. future is pretty steady after the drop for texans for july we'll see if the u.s. launches tariffs on 200 billions on chinese goods. our road map begins with a new season and a new nfl

controversy. nike/kaeperni nike/kaepernick. hours before kickoff the tech tumble, high flying technology stocks and facebook and google all slumping yesterday. at least discusses new regulatory over sight.net fli netflix rallies the premarket. the u.s. pushes ahead with another $200 billion in tariffs. jim, a big show tonight. man, does it coincide with the givening of t beginning of the season and the dropping of the kaepernick ad yesterday, you got a lot to cover. >> remember when you see it at 8:30 that ball, i don't think the front and center, the game itself will take over. inside the lines will be a more powerful narrative than people think. one of the reasons is because we finally have good teams in major

markets. i am not saying we are a minor market, chicago has been bad and new york has been bad and l.a. and texans have been bad all that can change this year. those are one of the main reasons why it is not the numbers that i am expected >> david, a lot of the center is around the future of media you have been doing a lot of work >> i have. we have a lot of stories cbs, a company that's been no shortage of reporting lately the board of directors of cbs is deeply in settlement talk with the company's ceo leslie moonves. ian ianniello, now the talks between moonves and the boards have been going ton for some time. they have yet reach a conclusion

of what appears to be back and forth of moonves' exit package his contract, he's due as much as $180 million in severance and the production deal tells me the board right now offering a package that would be roughly $100 million made up of entirely not of completely cbs stocks the rest of it being cash. moonves have been found committed of other inappropriate acts now, it was widely reported yesterday, cbs and the controlling shareholders, national amusement are negotiating of to end the board. while it is possible the settlement with moonves and between cbs and controlling shareholder could be announced simultaneously

sources tell me they are not really linked right now. cbs officials overall declined comments it is one month since moonves' future is put into jeopardy by a number of sexual harassment allegations against mr. moonves, at the time he said he regretted his behavior in it made women uncomfortable but we denied retaliating or harming anyone's career with advances if they were rebuffed. since then many expected mr. moonves would potentially leave the company. he was not suspended and an investigation was commenced. it is still on going people close to that investigation tells me they are moving rapidly as they can they had hoped to potentially completed by the october 3rd date, that being the potential day delegation in delaware

we'll have to wait and see when that investigation ends. as for moonves, carl and gyjim, what i have been hearing is he's been focused on the settlement and litigation and not as much typically for a case of a man that's all over that company and takes a look at everything that's been the case for him there is been no senior staff meetings for a long time i had quite a few who have not heard from him and he's certainly not communicating and done the job the same way he has been doing previously. as for ianiella, it is my understanding that he'll take the position and it would be interim position and it is unclear if he'll be replaced by somebody by the outside. remember guys, the reporting yesterday indicate that cbs may remain an independent company.

mr. moonves' departure would not come with the offering of a potential deal of viacom it will come more likely being the potential of cbs would remain an independent company as seen of a key between settlement discussions. >> how long would nia would resist >> i think they said a year and a half i don't have that. i am basing on the journals and others recording on the settlement discussion of the litigation between nai and cbs jim? >> as i listen to that sett settleme settlement, okay, here goes 5% of the pretax earnings it makes me want -- the stock is down because they pay a lot of money to les or the stock is down because of what dave just said

vai c viacom is doing quite well what is the idea of a interim ceo if not the idea that viacom should be cbs? >> in order to get a settlement here, what's dangerous from the view of nai and so many people believe that they would prevail in delaware and maintaining their control and shareholder rights sher sherry redstone indicated in the past that she would not force a deal and they did not seem to be interested in the departure of cbs and at least on the social issues that were such a key of it as we reported time and again last spring. and so she seems committed to following what the board wants which is keeping these two companies separate that does not mean somebody is dpoing to come in from

going to come in from cbs. it is better sold one day as a combination of viacom and cbs. it does appear that cbs is going to stay independent and moonves will not be the ceo. >> the stock is already down 10% coming in. you mentioned the fact that les moonves have not been at the helm for a little bit. is it possible that they literally were not able to complete an investigation for months what is going on it is obviously the man apologized and said he was wrong. david, are there moore thing tha is moonves did post marriage that they are worried about? otherwise, hey, let's part and say he did what he did and let's move on. >> i don't know the answer, jim. i think we made this point

preserve previously when these kinds of things reported, there are more often than not allegations have been made. i have no idea of what this investigation is and they're not sharing and has turn up or what they are aware of or perhaps aware of and how that colors any discussions going on on the board or discussions of mr. moonves, it is not the compensation package he would be doing or simply a clean exit for the company. it is an enormous amount of money they are talking about here and the optics to be important of something like this as well, jim, you brought it up right away >> yeah, i happen to have the privilege soft watto watching. it is on youtube moonves is remarkable where he talked about how he wanted to be an entertainment and his father thought it was a loser job i know when you have these allegations, we focus in them. i think you and i both know that

les moonves is one of those people that you want to be in the room with you. i know the people who are watching are saying are you kidding me, jim in can y can you put this man in perspective. he was a tighten in the business that we are in >> yeah. listen considering for many years of the greatest programmer in television in terms of finding the right things to put on the air that people want to watch. and, serccertainly creating a g deal of values for his shareholders and including his nation national amusements and guiding the company in a positive way in terms of the digital future and creating cbs all access and aggressive targets there in terms of subscription numbers. there are plenty of ways in terms of his management o f this company of what has been a very well-respected tenure. with that said, it appears that it is more likely to become a

conclusion fairly soon >> end of an era >> cbs and the nfl do business together you mentioned the last conference call with moonves, he talked about the all access projection for 2019. that's a topic that he'll cover tonight of the degree of which media is changing and relationships with sports are changing and likes of amazon are start to stream some of these games on their own >> we know the numbers were bad last year. the question is, were they as bad as other things that were bad and we struggle to see how people watch it and we spend a lot of time talking about millennials, we don't split stocks anymore people are not watching games as they used to and i want to know, there are a lot of sites today that are traditional sites that have gambling and have the odds. you never see any odds on

typical business sites or sports site do you think gambling can resurrect watching in the fourth kwou quarter where there is a big drop off t >> the company that's best leverage to that is disney, what would you argue? >> i think it is huge and it is untalked about everybody remembers a couple of years ago when fan duo came out and there were moments where people were kind of betting illegally on games and it was not regulated. look, it has been an open secret that people bet gigantically on football i think wage is going to be up this year. a lot of people know this is what you build your schedule on including sunday night football for nbc which has been a gigantic win by any stretch or any way that you can talk about

profiting, that has been the money show i think that continues and gets better i am calling for a reversal. i think nbc is back and all the networks covering football is back and including amazon. >> bringing it back briefly to cbs carly, we'll be interesting for whoever that's running the company. that's an important negotiation with the nfl the deal is not up for the couple cough yeaof years but tho negotiate it as for viacom when they were negotiating a price to be bought by cbs as a real, jim, i guess a real risk for cbs. >> i am trying to think of cbs without moonves. they were really not sales man or chief in the media. people just told you this and we

are the most watched and we are unbelievable >> cbs never ever lost its roots of being in the nfl. i think a lot of people know from watching the commercials, it is the way of the most watched of the endless way of moonves promoted i look at the stock going down, what did they lose they lost a guy who was promoter in chief and also a programmer >> we'll pay more attention on this and in the wake of david's reporting on moonves a deeper dive with jim into the beginning of football season we'll have brian roberts on comcast and we'll take a look at the premarket. nasdaq was down 1.2 yesterday. steep decline since july the future is hanging in there pretty good. once again the lowest since 1969 back in a minute

a big night for football as the nfl kicks off a new season the eagles host the falcons

tonight. the controversial protest during the national anthem continues the loom and now you have the president blasting nike of colin kaepernick this is interesting, jim, i wonder how you place nike and this school of companies that are making judgments of things other than a return on investments whether that's cynical or not, it is something that's happening more and more >> it is funny you go back to shoe dog of the incredib incredible autobiograph autobiography -- there is a fellow by the name of steve fontaine and i remember the campaign, it was about stopping prix there were those of us who are runners, wow, this ose were

different times. noo nike did it and they affiliated of the most controversial athletes of the era. i don't know whether it is cost people to say hey, you know what, nike is interesting again. the market is down a lot there is a head and shoulder top that's coming right now with nike's stock riep right now i am not cutting numbers of nike and the long-term is good and the short term is a hiccup >> i am so glad you mentioned that, i thought of a book as well this company is built on taking a lot of risks and apparently that culture is not gone yet >> yes >> what i think people have to recognize and david and i were talking about shoe dog nike has never played the game where ever the game is right

now, nike want to play cross current. the question is, has that been good or bad? you tell me that company was bet on being conservative and taking no stands and it was the opposite, mark parker, is very much in the traditional. we are going to do what we do and look at how we have done it. these guys are not in their trying cut their own numbers i think nike is a brilliant company. i am not saying they did this to make money i am saying things they have done in the heart have made them money whether they expected or not. >> stocks soft of 28% of the yer sara eisen broke down the geography today. north america, what do you think? >> not a majority. >> i would say 39 this year. >> 23 -- >> western europe is so strong >> europe and middle east africa is 23 and china is 14.

hard to envision boycott taking a huge chunks out of numbers >> not to mention right there and their target audience which we know. the people protesting are not the ones necessarily >> we'll take a quick break here and cramer's mad dash on the other side countdown to the opening bell. dow and s&p and the nasdaq have not had concurrent losing weeks since june they're maybe having one this week we'll be back in a moment.

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six minutes ago, before we get to an opening bell the ceo of honeywell always interesting and a lot of things going on, larry bossidy >> david, this morning, we have a bunch of analysts who are coming out saying it is time to buy some industrials he anoits honeywell as the best

in the group derek was talking candidly about how you should worry less about china and i think that has become what we are hearing from many ceos, i heard it from gary freedman saying we are going to get a deal david, the question is is the president going to play ball or is he going to tweet there is nothing that's coming that's good. a lot of the analysts are saying we may be over the hump in terms of nasty nature of chinese talks. i find it fansabciable i don't think the president like the idea to get china to say uncle. >> tomorrow is the 7th 200 billion additional tariffs potentially. we got to go to hit the opening bell we'll catch you on the other side and talk a lot of the big sell-off of the nasdaq when we

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from the capitol of the world. busy thursday morning as we watch some tech pressure google is down a little bit today as we got not just the hearing on the hill yesterday but after the bell reports that attorney general is going to meet with state attorney generals about whether or not some of these companies will throttle >> ebay was down and allibaba were down and these are not names caught up in those hearings as you know were much more civils than some had expected and had a fairly not just high minded tone but were informative which is rare. >> we did learn a little bit of how some of these things work. jim, jack dorsey, dietsespite a manner that sometimes can read as aloof was made earnest compares to sandberg >> i am so glad you said that. dorsey was unscripted.

he's becoming a quiet hero he recognized that he has screwed up he's hurting his numbers and users and he does not care he came off as someone saying hey, what do you guys want, we are there and we are good guys he seems like a good guy i think i have come around byer entirely on him thinking this guy is a great manager >> there is the opening bell and the s&p at the cnbc realtime exchange the big board today is trans ocean celebrating their anniversary and altair jim, to david's broader point of tech though. tech are leading the year for the year, 17% and they were the biggest lagger yesterday is it sort of a short term rotation or something else is going on

>> when you have nasdaq is buying up of 15% verses the dow at 5%. you will see a rotation. i don't think the rotation is over i think people have to watch micron i suspected that fang is going to have another day at the dentist. these sell offs will take two or three days we got friday coming up. we think the trade numbers, we have employment and we have trade and monday and it is not the idea for safe returns. there are a lot of stocks that are already getting crushed. it is way too early for someone to say you know what, this is the time to buy facebook >> you know jim, we had a couple of fake ads as it come to lis t as it did yesterday or the banks were beneficiary yesterday of the sell-off in fang it never really lasts, does it

>> no, it does not 3 m yesterday had a multiple that's lower than facebook 3 m is one of 20 suddenly, 3m got the 2.5 if 3m has no pizazz. >> to them, 3m is just scotch tape they can't resist those. >> the big guys, they are idiots if they are not taking something off the table. you are seeing non-idiots taking something off the table. >> tesla have fallen slice to 300. elon musk tweets some positive third party sales numbers out of a firm called inside evies

he tweeted tesla first and second and third and august sales as the focus remains how quickly they can make some of these cars >> china is also concerned given 15% or 17% of their sales. the tariffs is 40%, 25 on top of the 15 that had the tendency to slow all of sales for all u.s. manufactures that's a big concern as we would get ready for 200 billion more tomorrow as soon as. i should not say will be the tomorrow the public comment on that additional $200 billion in tariffs >> the fundamentals do matter. we had a piece of research this morning talking about the growing competition. i think always is the way to look at tesla and people don't want to hear this. you have to look at the bonds. the bonds just keep ongoing down in value

are the bonds reacting to model 3 sales. the windows may be once again close for financing because of the nuttiness of the ceo elon musk's visionary for shares i didn't learn the hedge funds when i look at visionary per share, what i say to myself is if you like the cars, you will still buy the stocks we have not shaken up people oh, there is a tesla there is still an oh there is a tesla but it is not in china >> we'll find out. david, cbs is reacting to reporting. >> it is, frankly speaking visionaries, i don't know if you will call leslie moonves would call him a visionary but you

would call him a stronger leader of cbs likely to come in a conclusion soon talking about money right now in terms of how much he would get going out verses what he was owed under his contract and verses what they would like potentially to have the rights to claw back should an investigation is currently ongoing finding more wrong doing on his part in terms of sexual harassment at the company. the stocks are actually now up some of these have played out a month ago when we saw the story in terms of detailing a number of different women over the company over a long period of time many years ago in fact alleging inappropriate behavior by mr. moonves, he says he apologize for making anybody uncomfortable but never did anything that's in abuse of his power at the top of the company. an investigation, not sure when

they'll conclude it but what we can tell you that they are involved in those negotiations joe ianienlla is going to take over his interim as ceo if they reach a conclusion this is separate from and linked onto the ongoing settlement talks between cbs and control shareholders of national amusement to try to end litigation between the two parties and scheduled to go to court in delaware on october 3rd. >> jim, kind of interesting, cbs started down but is now right at itself, let's call a flat on the session. >> i thought it should have been down to begin with this is not lululemon which had a move of 100 points when it did not have any ceo because of its fashion. i am down in philadelphia and interviewing brian roberts

it does not do -- your company does not do well when your ceo is huddled with lawyers. he should be huddled with deal makers may we never forget during the period of wall lowing the worst spin off, netflix went to the $40 million cap. was that the most watched network? no it was most watched digital network and one of the lasting legacies, let's see that too late anybody could have bought this company. anybody could have bought netflix of $25 billion when it was $15 billion. these guys did not see it. they cared more about tv domestically than they cared about entertainment internationally. >> you never know when you make these arguments of having an opportunity and whether netflix would be netflix if it was owned by, you name it. there was a period of time when amazon would have want to own it

many years ago >> nobody is going to own netflix. >> their chance of 49% >> $152 billion market cap not much talk of take over other than these people coming on saying apple is going to buy them which i don't think they are. >> jim, on comcast -- >> you know what, david? >> what? >> i was going to talk about comcast and cbs. i can't stress out important tonight's game is when it comes to something we don't talk about because we are busy talking about moonves and nike numbers, numbers will things continue last spring at this point, we are worried of court cutting and things got better and better will tonight be a night where we wake up tomorrow, you know the deep decline of the way people watch the nfl have ended i am not saying it is the greatest game of the world but, i think how tonight's game

goes in term of numbers will affect all the companies in the business >> interesting >> comcast by the way has not has back-to-back games since the end of july. it is higher now than it was in july as the up days had better games. >> the stock now is stabilizing in 36 range after trading far lower when it appears that comcast was going to compete with disney to the bitter end for trying to rest fox property from it. sky is now the new focus my guess though, brian roberts, is not going to address that that's more or less typical, radioi right? don't want to talk about acquisitio acquisitions i know you will ask. >> in the end when you have the nasdaq up 16 and you have comcast down 9%, you have to find a narrative which just says

the comcast should be bought and perhaps, david, when they do a deal, their stocks go up when they don't do a deal, they're at the mercy of people sayi saying wow, video and very adamiada a damming narrative and the reason is people want netflix. i just saw the sign up sign ups going up there and sign ups being okay broad band, and my kids don't know about cable i don't need cable anymore i just want broad band i have to inform them that's cable. they don't want to hear. you are too old to know what cable is i work for cable >> i know. >> broad band is the key product and we have been making that point a long time. it is a high margin products there is concerns of court cutting and the numbers themselves showed a lack of

weakness recently. it will continue to be a concern because of your kids and carl's, the yours truly that they'll never buy a package of channel via cable so to speak in the traditional way. it does not mean that the distributors themselves are not going to helicopter to thrive because of broad band man >> let's talk again about numbers. we know a couple of thing, we know when advisements stuck with the nfl, that was a sign the nfl is still here as a way to do things i think the nfl even though we know that papa john's out going ceo, says wait a second, it has no not helped us because of the kneeling i think it is nonsense, it is a way to draw people and it is still the keystone live programming and that's not going to be taken away

>> it always tells me, jim, don't forget, there are so hours of the day and those hours are filled with facebook and instagram and david, let me ask you. all these hearings, do you think any consumer package goods are going to social media? i want to be back on tfv. did any of those hearings say to you, i think clorox is going back they're going to go back to football or basketball is that ever going to happen again or is that just dreaming >> they would seem to be more in the land of sleep than the land of reality maybe dreaming, jim. >> and by facebook at the end of the day. >> people are not buying facebook, tax is slumping again with google and facebook or alphabet and facebook. >> this is below 165 you got to go back to april. by the way, snap, below ten,

jim. that's an all time low >> that's some of your chip favorites for the first time down >> i like snap they had consistent earnings earnings in corporate government seems to be lacking. snap is a kind of grand slam college and it does not really work as a stock. it is more of an organization and favors some rich people who started it facebook will bottom it is going to be 18 or 19 times earnings but it will still be a 20% grower what david said of the advertisers not deserving it in the end is what we care about. a advertisemen advertisements today's alphabet's pinata day. do you they think they're going to get away with that?

this group will bottom if advertisements stick with them it is the all mighty dollar and not all mighty free speech the dollar sign reigns supreme >> dow is up 40 points and s&p is down with 2 >> let's get to bob pisani >> dollar is moving and it is a little higher and it is flat right now. we have been pointing out everyday, you got a slightly stronger dollar every night and materials stocks and emerging markets are acting better and other things are acting better here elsewhere, retails have been a great performer and flatish today. healthcare is kind of flat-ish today. semi has not been doing much today. a lot of people are baffled of the political events it is not a big surprise, it is

a review of what we do here. improvements on earnings it is growing up here. earnings outlook is in the united states. that's why the united states out performs the world this year lesser growth and earnings outlook are in europe and emerging markets and they are under performing there is of course this dollar over two and a couple of things that's moving the market that's hurting the emerging markets and trade war and tariffs uncertainties. where is the over lay of these two things most impacting? it is in asian countries and asian markets. if you look at emerging markets, you will see this. other emerging markets are down, they are definitely affected by all of this. mexico and brazil is not down as much this is primarily the influence of the strong dollar and it is

in asia that you see the big i am pa -- impact right now. hon hai, that's a new low right now and samsung, the big korean giant is down 20%. baidu 24% and taiwan se semi though, not down as much. out of that immediate sector, you get less influence look for signs of a wash out now. i watch vwo, this is at a 52-week low. bottom line it is down 20% from its recent highs its got all the big names in it and all the baidu and hon hai. as for social media, the guys were talking about it. what happened yesterday, this is apart of an ongoing process. this has been going on all year. social media has lost its glow snap is at a new low yesterday

and 50% of its highs and groupon were at a new low yesterday and yelp is 13% down look at the social media, socl, it went up 100% in the two-year. this is all apart of the attacks that we have been seeing on the validity and the importance of how strong and big social media stocks could be. the dow is up 50 points. >> bob, talk to you in a little while. let's get to the bond pitwi, there is more on the day, right rick santelli? >> it has been a little bit of a mix bag. adp is a little bit light. i like the productivity numbers. two day of tens, it looks like a healthy ekg.

it was mostly flat line hovering right around the 280 to mid 280 area flat line is something investors like really kind of good health economy beneath it and rates are not moving aggressively. how about a year's perspective on everything. we always read who's doing good or bad our eyes can tell us much moreey >> let's look at the dollar index. the rieght soft the chart, s&p 500, hard to argue with that don don't see a lot of big drops to be corrected if i switch gear and look at outside the u.s., bund looks like a staircase down everyon though we feel like it is correlation and we link up to different area that adds up overtime.

look at the dax, the economic in europe looks pretty flat to me and finally, shanghai, we are in a wrestling match with china and depending how you get your news, kind of hard to tell who's winning and losing this chart gives you the answer. carl, jim, and david back to you. >> rick santelli, still to come this morning mark mahaney is upping his target on netflix. the rest of fang is down the dow is up 68 points and the s&p just turned green. we'll be back in a moment.

take a look at today's top performing stocks on the s&p it's being led by netflix, as rbc ups their targets. we'll get stock tra"stop tradin jim after a short break.

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trading. >> no, i'm not running for anything there's a stock called micron, mu, that is the cheapest stock out of 500 that is not a good sign, when a big semiconductor maker like this, the estimates are way wrong, when people are going to leave that stock, that's the stock to watch, to see if we get any turn in the semis, and we'll see if it turns, but not until micron bottoms. >> this is for the week, jim, down about 11% this will be micron's worst week of the year so far >> it is just horrendous, remember, it's a building block, western digital is down quite badly, those are the building blocks of anything internet. instead people want tiffany, instead people want stock like ralph lauren

gp apparel, is very much like the suit that i wore earlier, just a fantastic look that has a sticker that says it can catch fire if it gets close to anything hot >> so we know what's on "mad" tonight, we have the let ombard trophy tonight >> they can't take this back, come february, i don't know, but come now i love it. >> all season long jim, we'll see you tonight, a very special "mad money," 6:00 p.m. eastern time. dow's up 58, we're back in a moment

welcome back to "squawk on the street." yes, more breaking news, important breaking news, let's check out our august read on nonmanufacturing, the service sector, the big chunk. 58.5, that's better than expectations and the really nice part is in the rear view mirror, last look was 55.7

that was the weakest since august so we really bounce back quite nicely let's go through the next set of data points. these are for july, they are down .8, down .8, this is a bit of a surprise, and if we look at transportation, it's up .2 this is the final read for july, down 1.7 if we look at transportation, it actually rises to .1 it a proxy for business spending actually remains intact. not really good durable or factory orders number, but really the investment part gives us some optimism and definitely a winner on the service sector carl, back to you. >> all right, rick, thank you,

rick santelli. good thursday morning, everybody. i'm a look at the numbers. our red map for the hour is going to look at the future of cbs, we'll have a report on the future of les moonves and his departure from the company as we said, tech troubles, facebook, google, twitter, all facing tough questions from congress yesterday the backdrop of a fresh controversy, nike and its kaepernick pick. first to our top story this morning, the board of cbs is in deep talks with the ceo leslie

moonves about his departure. he's expected to be replaced by joseph ianniello talks have been going on for some time, but they have not given details on moonves's exit package. the board right now is offering what would be roughly $100 million in compensation, largely made up of cbs stock, but it also wants the right to claw back some of that compensation, if an ongoing investigation into sexual harassment moonves is found to have committed other sexual acts. cbs and it's shareholder national amusements are currently undergoing negotiation for a settlement while it is possible that the settlement with moonves and

between cbs's board and nai could be announced simultaneously, sources tell us right now they're not really linked cbs officials declined to comment. it's been one month since that explosive news came out that there were a number of women that had sexual advances made by moonves. at the time moonves expressed regret that he did anything that made women feel uncomfortable. so that's one month ago, but soon after an investigation was commenced with the law firm of covington and clemton. but surprisingly, moonves was not suspended during the investigation. that's because people might not be comfortable speaking about allegations of sexual harassment

at the company i am told by newspapumerous peo the company that moonves has no been involved in any talks with the company. he's been the cfo, the coo for some time, he would be seen as an interim replacement, it's unclear if he would be replaced down the road, or also in contention for the top job on a permanent basis. there's so much flux involving this company which appears to remain independent. which is another surprise in this others reporting on this settlement negotiation between national amusement and cbs, part of it will be national amusement staying we will not try to put

viacom and cbs together for at least a year and a half. there's lots of negotiations going on with the company, including changes at the top that would not be for a short time >> $100 million exit package what does that say about what the investigation has found or not found? >> that's a great question i don't know it is less than he is owed under his contract -- >> but still a lot >> but that is the number that people have shared with me, it can still move around. it is still an enormous amount, but it is less than $180 million and that productive deal that was part of his contract in terms of an orderly exit from the company. >> some might ask why it took so long, it's been a month -- >> a full month since the farrah piece came out but to your point, some have

wondered about his status since this story first appeared. it the investigation is still ongoing and its unclear when it will conclude. >> jerry red stostone was resi g i -- resisting it >> to have joe ianello be his number two, and that of course ran counter to the wishes of sherry redstone and the two simply could not see their way past it and there was a great deal of enmity between the two that's still on the docket for october 3 in delaware, but it appears that we're going to have a lot of things changing prior

to that. >> way to move this ball forward, as always and a lot more from david through the hour on the big cbs move today in the meantime, we're keeping an eye on tech stocks, nasdaq is again in the red today, since dropping 2% yesterday. shares of facebook and twitter stocks are falling after the testimony on capitol hill yesterday. >> the market has kind of wobbled a little bit it's unclear if this was just an overcrowded trade, everybody was fully weighted in tech, and now it's a little bit higher, and now we have had pull backs, look at the different angles you can look at tech at. the broad s&ptech sector etf, you definitely see it kind of surrendering that leadership

role, but that is still intact this is up 60% year to date, but down 2% from its high, so its further off it's high. this is the internet etf, it does act like a lot of those fang stocks. the pattern is here, if you're up more than the market, a lot more, you're down more than your high finally semiconductors, they have really taken a bit of a back seat in the next two weeks. the soxx, you can see the high is way back in the spring, and that's down 4.5% or so from its peak i want to highlight the equal weighted etf, the ryt. this strips away the dominance of apple and the average tech stock is holding up.

it's not a matter of a flight away from tech by the way, not a lot of people talking about the fact that amazon is less than 58% in 24 hours. not a big deal in the grand scheme, but clearly the question is it good that the question is among the winners and losers and fang is not a monolithic thing, or the horses of the market are starting to get too tired. >> i think it's probably somewhere in between there, what i don't think is likely is that the market has this kind of immaculate rotation away from being cap tech away in other stuff and it keeps going higher without losing stride. i think it more likely you're going to get more correction in the market that causes concern in leadership. we have had these switch backs before >> the story of the year is, every time it seems as though there's going to be momentum

behind it, and something happens and it moves higher. >> even if growth overseas concerns people, then you find yourself hiding in defensive tech big cap >> what is this going to do for the selloff? >> those hearings yesterday, if nothing else, you could take away from it that the leadership of facebook and twitter don't see a blowout in the next several quarters >> mark mahaney, leyou raise yor foreca forecast from 330 to 440 does it translate to any of the other names we just mentioned?

>> i'm not sure it translates, one, two, i think the really interesting story about netflix is increasingly the international story. so what our survey picked up is record high levels of satisfaction, record low levels of churn and record high levels of usage for the uk and for the first time ever in the seven years we have been fratracking this, and it's been more popular to watch than netflix and youtube. we also did a deep dive on india. the growth strategy for netflix is to expand, land and expand in asia if you will, they have been rolling out more original content. they have been rolling out three streaming companies in india so that might add several million subs to netflix in the next several years. i think the key on the stock

seems to be getting stronger, we like the stock, we like the shares here. >> mark, i know you don't cover all the stocks here. but in the semis today, micron below 76 here, on pace for the worst week of the year, is this about the sort of chinese trade or a bifurcating tech trade or something else >> there were a few fundamental pieces of news that came out, twitter was testifying yesterday and netflix restoring the group, there's a new bundle coming out that would compete with netflix, i don't think that changes the landscape for netflix. but for twitter, they may need to increase their spend. facebook has already said they're going to take down margins, they're doubling cap x, they need to spend on artificial

intelligence and it turned out to be more expensive than they thought, and twitter is learning that what we have learned in the last new days is that twitter is overearning and we think that's what caused the selloff on twitter yesterday. >> there's others that are loosening their connection with face book. it seems like there's a little bit of a news challenge. apple's got an event, the stock has kind of had its run. some people are saying that the big picture is that the run is over >> mike, it concerns people, it's been such a big winner to go down 6% on no news yesterday. >> it right, that is deflinitel true, but how much air is on this stock, it kind of doubled

in the year, without necessarily having great news to push it mark talks about kind of a big picture, an international story. it probably takes another quarterly report of where they're at in that news cycle. >> this bernie sanders amazon war kind of got buried because of the testimony on capitol hill yesterday. but how much of this is active that senator sanders proposed? >> it just highlights the regulatory challenge facing these names. and by the way, the costs are already showing up the reason that facebook is having us double down on cap x and facebook this year is because of this public pressure and they realize the need to kind of clean up a lot of the context that's on the site, and they need to clean up foreign actors, bad actors from undermining their platform amazon doesn't have that kind of risk, but being one of the largest employers in the country

now, there are some that are going to go after them, but haven't seen anything that's unfair business practices. amazon is the single biggest story in this space. >> mark, i appreciate that mark mahaney on nbc, taking his target to 440. thanks to you. cbs's bombshell reporting is that the company's board is in talks with les moonves on his departure. and we'll hear from global wealth and investment management and as we head to break, take a look at the movers in the s&p 500 right now. the dow's up about 25 points, you've got gainers in some consumer areas you've got general mill s and

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manager, sally, i'll give you a chance to do a little bit of advertisement. why do you think it is that so many people want to work at your company. >> good morning, and thank you for having me, and it's really exciting to be recognized in this way to be recognized. i think it's because we're a very mission driven company. we're all about helping women invest, women have not invested nearly as much as men have, it has cost women hundreds of thousands of dollars over the course of their lives, and by helping them invest in capability in a product, if you want to do something great for individuals and for society and for communities, you get more money to women and that's what we're really working to do. >> now that we have heard from you on that, i want to come back to a subject we have dealt with a few times.

you know, this morning i have been reporting on leslie moonves, what's the board's role and this ongoing crisis, if you want to call it that, where allegations have been made not necessarily all proven, and the ceo's job is on the line >> well, look, the board needs to dig in and really do the right thing. i think what we're starting to see is that these issues where there's been predatory behavior and sexual harassment, are not just bad, and people need to be booted for them, they're really bad for business and they're bad for business and we can see it in terms of these crises but they're also bad because they can lead to lower diversity within these companies the industry around this is really compelling. greater innovation, diversity is so powerful, gender diversity

and diversity of all time. the gender diverse teams are smarter teams. if we have cultures that make people feel unincluded, then we are giving up improvement. i'm going to take you back to elavast. that's why we're seeing success at elavast we can hire a leadership team that makes us feel comfortable, so we'll hire people just like ourselves. but what i have to say as a recovering research analyst, is that we have to speak to what drives performance, and what deprives performance that a lot of people don't tap into is diversity. >> all of the research shows this, christine lagarde is talking about this, she put out a blog post on the crisis, on female leadership, she says, would be more prudent, liz inclined to the kinds of

reckless decisions that cause crisis but legally and ethically are they in a better position? >> gender diversity after the banking crisis went braackwards as we sit here today, men are fantastic and terrific but do we really believe that they are better for all -- for such a majority of these top jobs overall and is there anyone who really believes that if we had greater cognitive diversity in the lead up to the crisis, that we would have had such a deep crisis. no, the financial crisis, i think, we all believe intuitively and the research backs us up would not have been worse if we had had greater diversity. >> and maybe banks would be in better shape

we're still dealing with issues, like wells fargo and the fraudulent account scandal and the s&p 500, it feels like we have gone backwards this year, in terms of female ceos leaving the top post and not replacing with females >> i think most boards and most ceos get that diversity is a positive they say the right things and they mean the right things, but i think middle management is where diversity goes to die. individuals get that they should hire people that's not quite like themselves, but it's not something they go often. so when that individual comes along, it just reminds them so much of themselves when they were younger, that such an intuitively obvious hire for them, and i'll hire the next person will be diverse so there's a counti icounter

interviewity find -- that merit o'clock kras si, then diverse leadership concerns are worst 69 but in fact, our inherent biases, override and we tend to hire people like ourselves >> and sally, finally, on hiring itself, you're in a very competitive market, some other ceos are certainly complaining about a lack of diversity. how difficult is it out there to compete for talent >> it's never easy to find great people, but when you are building a company that is mission driven, that is addressing a large market as we are. you know, where we are moving fast, we're building something that we believe is really great and, you know, the early results were sort of, you know, we have

been launched for, call it a year and a half, were fantastic. then you find you can hire people what we're doing is building a team that looks like our clients. so we are two-thirds women, we are people of color, we're really working to reflect america as they are today, not america from 1952, and not america from the existing industry, and what we find that the innovation from our team is actually off the charts as a result of it. >> sallie krawcheck, thank you very much. the nfl season is about to get under way, but of course it's not without controversy we're going to talk with a sports agent with the dow up

. kickoff for the nfl season is looming now nike's new "just do it" ad

featuring colin kaepernick set to air tonight we talk to our nfl agent, kendra miley, she holds the record for the most top ten nfl draft picks represented by a female agent, very cool, kim, welcome. >> thank you, nice to be back. >> how does the whole colin kaepernick controversy set up for this season? >> at this stage of the game, as we're about to kick off the season for the nfl is quite telling. i think it's quite remarkable that colin kaepernick is being part of this ad campaign

>> how are you advising your clients to deal with the anthem issue. >> i don't want to tell clients how to view the topic or the issue, i'm all about them expressing themselves as they see fit. as long as they understand that there are potential repercussions and they are potentially putting themselves in a situation where there's a fine or something like that then that's their decision. >> do you think this is going to lead to more player advocacy this season? >> i think it will lead to more off the field, i think players want to be engaged and implement programs and advocacy to help change the criminal justice system and change the racial injustices that have been taking place in the country >> does that mean more knees being taken, more fists being raised to express it >> i think time will tell on that, but hopefully the fan base and the players will not pay so much attention on the protests

going on but what's actually being done to create change. >> our colleague jim cramer predicts that the ratings are going to go down >> if you look at tv ratings in general, last year, tv networks, their ratings dropped 16%, the nfl dropped 9% so comparatively speaking, the nfl's doing pretty well, compared to tv in general, i think those numbers are skewed because they're not taking into account the ways that people are watching the product people are streaming, watching nfl networks, or even going to bars in groups, so those numbers don't accurately reflect the fan base >> what do you think about colin

kaepernick not starting the season playing for his team? >> i would imagine that was a difficult decision for him to make, for a player who's playing under the franchise tag, it's really the only leverage he can use to get the long-term deal he's looking for >> what about your client dez bryant >> i said this before, and i'll say it again, dez, his primary focus is taking time to making sure that the best fit aligns, it's making sure that the financial aspect is right. he also likes the culture of the team, the division of the team, and the real they see him play he was on the show "hard knocks" and i think his energy was contagious

he's one of the most diynamic players on the field >> kaepernick and nike sort of buried old controversies like the clock and the referees and even injuries. do you think those issues have settled into the background? or do you think we'll hear about it again. >> i think we'll hear about it because, because of the rules changes, there's emphasis on player health and safety about 34 past the hour, let's get a news update from sue. good morning, carl, good morning, everyone, here's what's happening at this hour, secretary of state mike pompeo denying being the author of an opinion piece published by the "new york times" claiming to be part of a resistance movement in the white house, he spoke at a press event in new delhi >> i come from a place where if

you're not in position to execute the commander's intent you have a singular option and that is to leave and this person said according to to the "new york times" is that there are people who are trying to undermine what president trump is trying to do. >> f-150 trucks, there's a potential fire risk resulting from the deployment of driver or passenger seat belt retentioners it follows a nhtsa safety investigation into that issue. and police are responding to an active shooter situation, at the fifth third bank in downtown cincinnati, at least two and possibly more people have been shot, it isn't clear if the shooter is one of those that's injured. the situation, though, according to authorities is under control, but we are going to monitor that and bring you updates as they warrant. you are up to date, i'll

send it back downtown to you, sarah? >> right in the heart of downtown cincinnati where people don't realize there's so many fortune 500 companies. fifth third, and it happened right down the block >> and it happened right at the height of rush hour, it was apparently a very crowded situation, but we're going to monitor it and find out exactly how many people were hurt. i'll give you an update next hour >> thank you, sue. as david's been reporting all morning, the future of les moonves at cbs, there's negotiation talks over a potential departure. here's a look at cbs shares which did reverse to the up side after the opening bell dow is holding it's own, up 17 points, back in a minute you'll only pay $4.95. fidelity. open an account today.

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welcome back to "squawk on the street," live as always from

post 9 at the new york stock exchange the nasdaq is down another three-quarters of a percent after it fell another quarter percent yesterday. dow is hanging in there in positive territory, up 15. groups like materials, industrials are also leading the market lower cbs reporting that the board is in negotiations for les moonves to exit from the company. meantime social media remains in the spotlight. the doj and state attorneys general are planning to meet later on this month. and leaders say the meeting will focus on whether the media is intentionally stifling -- ken, it's always good to have you on the program, good morning.

>> what do you make of what david's reporting on les >> i think that chief sherry redstone has won the battle. that rest moonves is acknowledging that there's evidence out there including row and farrell pieces in the new yorker, as reporting that six women that say he acted inappropriately. and that was fact checked by the new yorker, which is really a fact checking arm. i think it was just fact checking what was in that magazine les moonves has had a great career as a great media executive. >> what do you think of him now? >> he's an extraordinary

executive. you don't cast someone for a major sitcom on cbs without him approving the casting. he looks at many of the scripts. cbs has been number one on prime time for 14 of the last 16 years under his rule so the profits are greater than they were 10 or 20 years ago you have to give him points for that on the other hand this is an inglorious way to leave. >> it certainly is were you surprised that he wasn't suspended pending the results of the investigation that's still ongoing into his behavior, ken? >> i think that's a really good question you and others have reported that the board in negotiating would agree to an initial figure, but obviously if the investigation turns up with more negative information, they would roll that back and obviously he would resist that. but there's a real question as to whether you would do anything until you have is investigation done >> moving on to social media,

which you've become expert in as well over these last few years, i assume you watched these last few haergsearings, what was your thought, and what was your thoughts about google not being there? >> it brought me back to memories of microsoft. i covered the microsoft trial in '99 and 2000, and microsoft took this belligerent attitude to the government, you have no power over us. they were found guilty of antitrust violations i was stunned that google didn't send either its chief executive or the head of the google search operation. and i think what the congress did, or the senate did by putting an empty chair with the name google beside it was devastating.

>> so, referred to your book "frenemies," you said in your book that google as too much dominance and power over the advertising business right now >> google has more than 50% of all the digital ads, and that's growing, if you're a digital company you're competing against them and you're not competing very well. the question becomes, 90% of companies revenue come from advertising. 90% of google's revenue comes from advertising google's saying we want more data so we can have more ads data gets into privacy issue facebook and google have a real incentive to keep getting more advertising dollars, more clicks, more targeted information. and the public may not have that same incentive so the real question is

advertising partly the culprit here and the other question boecomes is there a replacement for advertising. the thought that they could pay for facebook or pay for google and it not be free, i think that's a pipe dream. >> ken, do you envision, can you imagine i guess is the better question, something of a pendulum swinging back, away from dollars that have flowed out of legacy media, into social at least, we wondered this morning whether they would ever go back into sort of linear televisi television, maybe you see that as a possibility >> i don't i wish i did i'm not an optimist that the money is going to flow back to newspapers, magazines and radio, advertising dollars, which is really responsible in large measure for the decline of

newspaper circulation and newspapers going out of business and journalists being laid off there are some newspapers like the "new york times," "the wall street journal," the financial times, the new yorker, could raise their subscription rate because they have an affluent reader ship. but the others, they can't do that and i don't so advertising going back to the legacy media >> ken, love to get your thoughts, the book is fantastic. we'll see you next time. quick programming note as we tell you about as we head to break, don't miss an exclusive interview tomorrow of the new ceo of mondelez, don't miss

that dow is up 16

one journalist says a relief rally could be afoot don't miss more "squawk on the street" coming right up.

thoughts, the book is fantastic. rally could be afoot dow's now down about 27 points, let's send it over to the cme group in chicago, rick santelli at the exchange >> peter, good morning >> when it comes to wages, there's a lot of things people talk about around water coolers. but when you talk about economies, a lot of things come up demographics are things you use to explain participation it isn't used to say that maybe

it has to do with wages, your thoughts >> i think when looking at the wage picture today, we have to look at who are the real new entrants into the labor force. we're approaching the 10th year of thi in the labor force are those coming out of college and those that just have high school degrees. the last payroll number, biggest component of job growth were those were just a high school diploma. you look at average hourly earnings and throw in these wage earners, it keeps a lid on average earnings you listen to every ceo out there, they're having to pay more in compensation because it is harder to find good work. i believe wages are going up, they're going higher than the actual numbers reflect if you take out components i talked about, and that there is for the first time in a while real wage growth that employees can enjoy

now. >> this is a huge story. it will take time to get into the conventional wisdom of the market view directly another issue, divergence. peter, it was a cool movie, but can we go from synchronized global growth, highly correlated markets and the economies to the u.s. still being a standout if we see the tide go the other way in europe and asia specifically? >> i think it would be difficult. exports of u.s. goods is 10% services about 15% we'll be impacted by global slow down here's another thing that's important. since 40% of s & p revenue is sourced overseas, if the s & p falls, that effects u.s. consumer spending. if we just looked at the labor market in the u.s., wage picture in the u.s., i would say the u.s. consumer will be okay, maybe can weather anything going

on overseas, but we're so intertwined to where the stock market goes, if the overseas weakness persists and effects the stock market through sentiment and earnings, that's going to effect the u.s. consumer and their spending habits. >> peter, it all makes sense it doesn't add up. what you're telling me in a macro picture is that we are so intermixed in globalism that we can be lost if others are lost, no matter how good the gps is. is that really the place we're in >> yes the only question is when does it impact us i think the stock market is no longer a discounting mechanism they're only going to react when the numbers are in their face in terms of u.s. earnings. >> you know what, i have to go, peter, i am bringing you back for discussion on this topic exactly. thank you. david faber, back to you >> okay. thank you, mr. santelli. now over to morgan brennan with a look at what's coming up

on "squawk alley." >> david, at the top of the hour, a gut check on tech as social stocks continue to sell off. case in point, twitter down another 4% we have an all-star liupne you don't want to miss this coming up on "squawk alley."

welcome back to "squawk on the street." the s&p 500 is at the lows of the day, off by a little over a half percent real estate industrials and telecom are leading sectors. financials, energy, technology the laggers. 59 companies were negative yesterday. it is interesting, within technology today, keeping a close eye on semiconductor stock specifically, smh is down. more than 2% so far in early trading. micron, falling more than 10% on pace for its worst day in three years. big losses there among other names, lam research and nvidia back to you.

>> approaching the midnight deadline on the hearing about the new tariffs potentially today. coming up later today on closing bell, count down to kickoff, we will be joined by fan duel as the nfl season gets under way. when we come back, social media names continue to drag twitter below 200 for the first time in a year "squawk alley" starts in a few moments. ♪

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