now. leave fr >> welcome to "squawk box" on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. yesterday we saw a down day for the dow and s&p once again dow down by 69 points. s&p off by 4 points. nasdaq up once again this morning green arrows across the board. dow futures indicated up by 41 points nasdaq by 23, s&p up by 5. the nikkei was up by 0.39% in europe where early trading is taking place, mostly green arrows the dax is down by a tenth of a

percentage point cac is up a quarter percentage point, and the ftse is flat. looking at the treasury yields, ten-year yielding 3.089% the big ipo of the day, surveymonkey pricing its ipo at $12 a share, above the expected $9 to $11 a range. so surveymonkey increasing the size of its float it will begin trading today on the nasdaq under the ticker svmk it's a four-time top 50 disruptor. the company's ceo will join us on set at 7:30 a.m. eastern time to talk all about it google expected to tell congress today that it made mistakes in how it handled

privacy. that's according to prepared testimony from the privacy chief. he will appear before the senate commerce committee today google will be joined by at&t, amazon and apple, all in today's hearing. a lot of people in silicon valley watching that closely >> cbs naming former time warner chief richard parsons its interim chairman parsons joined the board a few weeks ago. he will lead the search for a new ceo after les moonves' departu departure. >> you figured this was going to be the case when you heard parsons was going on the ball. the role he plays with the clippers -- >> have not seen him in a while. >> no. >> he guest hosts a lot for us maybe he'll come on now. we'll ask him. >> if you're traveling yesterday, or if you were flying delta this may have affected you. the airline's operations finally

getting back to normal there was a nationwide ground stop the airline said a technology issue stopped planes from departing but did not pose safety risks to planes in flight at the time. a lot of customers said they were unable to logon to their accounts, others complained they could not access flight information. delta said shortly after 9:00 p.m. that the issue was resolved it would work to accommodate passengers affected by the glitch. president trump delivered a rebuke of globalism yesterday saying the united states would protect its national interests and other countries should do the same >> the president today will be back at united nationses in new york he'll have bilateral meetings with japan, with the uk, with israel today we'll see a big speech also from the president. yesterday he had a full-throated

denunciation of globalization. the president suggesting that the united states is stronger and wealthier since he came to power two years ago and suggesting that the united states doesn't need to be part of all the multinational organizations that have sprouted up in the post world war ii era because, he said, he's choosing patriotism over globalism. >> america is governed by americans. we reject the ideology of globalism and we embrace the doctrine of patriotism >> so the president suggesting that the united states is not going to tell other countries how to live, how to work, how to worship, and in exchange he expects the united states to be given the same respect this speech was all about american sovereignty and was an exmrepression of his america-fi agenda america first does not mean

america alone according to the white house. >> it was almost as if he was not speaking to the people in the room maybe he was but you would have thought -- given the way he spoke to people in davos, you would have thought for this crowd he would have modulated perhaps a bit from this approach, and on the campaign trail, if you will, this would make more sense >> it's all the campaign trail this is the campaign trail this is him demonstrating to his voters, to his base that he's doing what he told them he would do >> i think people there should have beened up to what he was saying he was talking to them, it's different. he said you're unelected bureaucrats. we will never be up the thumb of globalest bureaucrats. >> he said we'll rejected global domination ultimately the critics were pointing out yesterday that the president said we will not tell these countries how to live, how to work, how to do business, and

then he spent the second part of the speech telling others how to live, to work, and do business so he does want to tell them how to do business >> stop being dependent on us for your military is not telling them how to live >> stop telling us how to -- >> do you have something over your head? >> the u.n. camera positions are on the sidewalk. it was like a monsoon. >> it was. all day long >> we had one umbrella, the rain was coming in sideways the turkish television was next to me. the wind blew their umbrella over, hit me in the head i should get hazard pay. >> you're so glad to get inside. >> we went down to the nyse set. i've been taking a tour of the sets in the greater new york

region we went down to the nyse, hung out with wilfred and sarah >> anywhere where there's a ceiling, you'll take >> right >> let me ask you about the trade talks with canada. >> it's in the "wall street journal" front page and an editorial about it >> lead story today for the "journal." where do we stand? are the deadlines for real this time >> you can always negotiate and extend any deadline you want if you have the political will to do it. it feels like we're in a stall mate stalemate. ultimately it's in cappnada's interest to get to a deal. >> maybe there's rm foom for movement in the beginning of october? >> i think there could be.

there could be the new mexican government will take office, and american officials have been signaling that the new mexican government has been more of a part of the talks than most have let on. >> so no palace intrigue regarding rod rosenstein >> weird thing >> the other dashy, was that wht house chaos or press corps chaos. >> definitely press corps chaos. >> you know what i mean, were they reporting on what happened? did he talk to kelly >> yeah. something happened there we can't -- a lot of times reporters are like a blind man with an elephant, you have your hands on a giant toenail and you sort of know where it is we knew something was going on, was it department of chaos did rosenstein misinterpret the signals he was getting >> sounds like he did.

>> sounds like it. >> all the reports suggest that he woke up that morning thinking -- >> meaning that he was the leak for confusing these reporters? if he was confused and the reporters were confused -- >> it could be that rosenstein felt he was getting fired. they were already writing statements about his successor he was going down to the white house to resign ahead of that firing, but maybe he misinterpreted the president the president was angry as all that but other reporting says he will stay until the last day. if the president wants to fire him, he has to fire him in person >> we're just waiting for him to get back to d.c. in that case. >> it matters if he gets resigns or fires >> there's a vacancies act if he resigns, was does that mean >> the ig comes in, if he

doesn't, you need another confirmation >> imagine a senate confirmation in this climate over that issue, with the russia investigation hanging in the balance t would be a political dog and pony show >> still raining >> yeah. >> drizzling >> yeah. >> everything okay up there? was there a -- >> total disaster. >> thanks. >> nike shares are falling despite posting a 15% jump in profits. earnings of 67 cents a share beat the street. nike's ceo addressing that new colin kaepernick ad on the earnings call. here's what mark parker said >> we feel actually very good and very proud of the work that we're doing with "just do it" introducing that to the new generation of consumers. here in north america it was

strong an also around the world, it's transcended the north american market to touch i think people around the world. it's driving an uptick in traffic and engagement, both socially as well as commercially we have seen record engagement with the brand as part of the campaign >> joining us to comment on the report and the company's performance is sam poser, kind of a poser, senior analyst at susquehanna. you must get that a lot. >> never heard it before >> pretty original the stock was 82 and change when they announced initially the colin kaepernick ad. it went down to under 80, then up to 86 now up to 82 and change. is it a said show to talk about that are there bigger issues

affecting the stock price now? is that actually affecting company performance and stock performance? >> every time you mention it or the press brings it up, it's another hit for nike >> positive? >> positive, they get exposure to the brand you mentioned nike from the commercial sense, they have never steered away from controversy. >> if it's positive why is the stock down >> the stock is down because they missed the gross margin by a fraction >> performance of the stock and the company might be related to something other than the campaign >> look, their quarter was very good their outlook was maintained q2 was probably lighter than people anticipated the stock at least premarket and post market yesterday pulled back a fraction.

i think, though, there's nothing going on here that will slow the momentum of the company and the stock. >> is it still future orders that we key on now you're talking about margins. what's more important? >> they don't give future orders anymore. they haven't for a couple years. >> we need to try to figure out, you know, what inventory looks like, what they're making. >> they have spoken about their speed initiative a lot of new innovation. they caught up on products speed is working their inventory is as clean as it's ever been margins are still good they were up 50 bips and missed by 10 bips in this environment everything has to be perfect. somebody bought the stock for a real beat. >> how much of it is just a comparison with adidas >> i don't think any of it i think they're starting to take share from adidas. >> that helps, too >> is it a north american story

or a global story. >> i think it's both what happened with north america was floundering. they went from floun dering to p three to -- >> that a product story or a positioning story? >> it's a product and brand story how they're getting better personalizing experiences. saying, becky, for you, we have something we'll market it directly for you joe, we have something for you, we'll market directly to you that's what they're doing better and better that's improving, on top of which the product they have to support that is there to reflect you or joe this is turning the corner at the same time adidas is losing momentum. so you get the win on both sides. people get caught up on one quarter, but it you look at inventory, margins, spend,

overall brand positioning, it looks as good as it ever has >> i'm an asix guy any way >> and lululemon >> and a lululemon pants guy, as we have said >> what's going on with under armour >> they make clothes >> i know, but -- >> one thing that nike made clear last night was how sort of fashion and function or style and performance are not mutually exclusive. they mention serena williams and how she was wearing his shoes during the u.s. open it is a performance shoe but cap chores the imagination the problem is if you focus on

function, the addressable market is small on top of which they don't have the breadth of product offerings nor have they segmented the product the way nike has or segmented the message like nike has. that stock is up sharply >> it is i have a sell on under armour, i think they have to lower this year inventories will be on the roof or you will take a hit on the margin which could do damage to the brand. that puts them in a difficult situation. >> but can we put to bed any controversy about the campaign at this point? as each day goes by further in the past, the company will not be net positive or a net

negative, would you say that >> i think again that nike knows who their customer is. it happens to reflect this, but back in 1984 or 1985 when they did the just do it ad, it was a very, very edgy ad back in the time this is reflecting thetimes in a different way. i don't think anything changes in the way nike approaches the way they market their brand, and the way they know their consumer i think it was a lot of hype to begin with it's great for nike, because every time we talk about it it is good for nike still to come, the top water cooler stories, including beer, candy and soccer. then we'll get you ready for the fed meeting and tell you how the economy is likely to respond

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stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ♪ there is a new m&m flavor on the way, it's good news for nutella lovers mars announcing a hazelnut spread flavor launching next year do you think the crispy kind will be like a nestle crunch kind >> i will give them credit for picking flavors that stay in line, instead of those oreos

sara was ating this stays in line, even if you're not a huge fan of those flavors, i get it. >> i tried lobster ice cream bad idea >> there's lobster pieces in it? >> not good. >> all these products will be available starting in december a programming note, we'll talk to hershey tomorrow, m&m's competitor michelle buck will join us tomorrow they also own krave, like a jerky thing. >> like the turkey -- >> exactly >> those are good. >> the hershey theme park. >> i wanted to get there this

summer we never did >> i'm petrified have you seen all the things with them stopping, loading people off at 300 feet up. the ferris wheel, the kid is hanging. one of the world's most recognizable sports venues is changing hands "the financial times" reporting that england's football association agreed to sell wembley stadium to u.s. billionaire shahid khan. he jones the jaguars and the fulham football league in the premiere league. and ihop is partnering with a new york brewery to produce what it calls ihops. it's a seasonal pumpkin pancake stout. unlike other beers this one has ihop pancake batter in it. not sure how that works. >> ihop beer

i didn't know they sold it >> i didn't think they did i guess new day. >> i could see that. >> someone -- >> i like breakfast for dinner >> they got themselves in the news a lot recently. >> yeah. >> ihob it was going to be. coming up a busy day on wllt street traders getting ready for a fed rate hike. we'll talk strategy next don't miss "squawk box" tomorrow, we'll be joined by mick mulvaney, also the ceos of hewlett-packard, hershey, and docusign as we head to break, a look at yesterday's s&p 500's winners and losers

live from the beating heart of business, new york, this is "squawk box. ♪ good morning i don't feel stronger. >> what's the friday song you love so much they skipped it the last two weeks. >> i was at the gym, they played

it i was going to tell greco. >> that's karma. >> i almost messaged him walking out. i was going to record it walking out. nike shares falling despite posting earnings that were better than expected and a 15% profit growth. the ceo addressing the colin kaepernick ad saying he feels good and proud about the campaign adding that it has driven an uptick in traffic and engagement delta getting back to normal after a technical issue forced a ground stop for all of its flights. it happened last night it's not clear how many flights were impacted. delta expects minimal impact on the morning schedule. google is expected to tell congress today that it made mistakes in dealing with your privacy. they actually played more money

stealing data -- no. no >> i'll laugh on that. that was legitimately funny. >> i have arrived. that's according to prepared testimony from the privacy chief who will appear before the senate commerce committee. google will be joined by at&t, amazon and apple at the hearing today. >> u.s. equity futures at this hour, an upward bias up 46 points today up 26 on the nasdaq. 6 on the s&p fed is raising rates we're in a trade war >> that's how i was planning on starting this. that's why i brought this paper up let's talk about the equity and fixed income markets right now joining us is karen cavanaugh from voya investment and jim, as joe was talking about, futures are indicated higher if you look at the headlines,

you have canada and the trade, all kinds of things going on in washington including the kavanaugh hearings tomorrow, but every day you see things march higher what is happening even as the fed sounds like we're thinking they're raising rates again. >> they're raising rates because the economy is growing that's a good thing. there's a lot of good things going on the economy is doing well. corporate earnings are doing well we're concentrating on the negative things. that is a bullish sign we don't have euphoria we don't have -- >> why the momentum? what do the markets see that leads to this constant upward momentum >> they see companies making money. earnings continuing to be better than expected. we're looking at double digit earnings growth next year. what's not to like in the market >> consumer confidence is strong >> plus consumer confidence. and the overall economy, global

economy, people think it's moderating but we're looking for that negative news, and if you look for it, you will find it, but things are good. >> that's happening at a time when we finally are seeing interest rates rise. the ten-year back above 3%, it's been firmly there. where do you anticipate that headed >> that's reflective of longer term growth. the markets are trying to figure out if the fed is still accommodative or are they in a wind down mode the question for the ten-year yield is a question of where are we in the cycle? the narrative is we're late cycle. there's lots of leverage and different reasons that go into that capex has been strong. the consumer is getting strong so the signal that would be more towards mid cycle are stronger in my opinion than late cycle. so what that means for the ten-year yield, there's probably more room to move higher how much higher? 3.5% would mark the high for

this surnt cyclsi current cycle >> you think we get there in 2019 >> it's possible if it moves above 3%, it's possible we do that. it's hard for me to see the ten-year yield staying above that for a period of time. >> you touched upon the key question investors are thinking about today what is the fed going to do next if you're looking at economists, they're expecting that you will see gdp slow down next-year. that this comes off. does the fed listen to that and hold back and wait or do they look at other signals and say things are strong here and we need to continue >> that's the key. the one thing people are not talking about is the long-term growth rate which the fed projects is 1.8% over the long term could they start to upgrade that forecast in their summary of economic projections maybe we'll find that out later today. even if they go from 1.8 to 1.9, that would reflect maybe secular stagnation is over >> would it also signal rates

will come faster than markets anticipate >> it does, and that would have a moderating effect on the tick market >> you mentioned the markets have been steadily marching higher because of the economy, what's happening with earnings, with business confidence, if the market realizes that the fed may jack up rates faster does that matter >> it does matter somewhat i think that the economy, we're underestimating the strength of the economy. the tax cuts, this is not a sugar high this is a fundamental change in business that's why we are seeing these confidence numbers especially in small business i think we're underestimating that the fed raising rates because the economy is doing bet sertera good thing >> do you have targets for the s&p this year an next? >> 2950. >> for this year >> yeah. we're on target for that as the average investor is just

discounting the fact that the economy is moving forward. this is something that's working its way through the economy, the maul businesses, small business optimism will continue the deregulation there's never been a better time people are talking about being entrepreneurs, shark tank has become a verb, shark tanking that's what is important if we see the ten-year move to 3.5% that changes the calculus what do you tell people to do? >> does depending on growth. i would argue economists have been low on their forecasts. they were for 2018, they may be for 2019 there is fiscal stimulus, tax reform and regulatory reform the small business component of the market is really hard to measure. and i think that is strong that is leading a lot of cons e consumer confidence higher i don't think it has a material effect >> jim and karen, thank you very

much when we come back, the ipo market surging this quarter. today's highlight is surveymonkey set to begin trading on the nasdaq later. we'll run you through the numbers next and then we'll talk to the company's ceo that's at 7:30 eastern time. then eric cantor will be here to talk trade, tax reform, the midterm elections and so much more. you're watching "squawk box" on cnbc restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. that's right, $36,000. which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk, it's our healthcare. can i say it? what's in your wallet?

time for the executive edge. one of uber's top dealmakers has been reportedly disciplined over his office conduct the head of corporate development was found to have made a series of inappropriate comments about co-workers and have had a consensual affair with a colleague that affair was in violation with the company's policy because he contributed to her annual review. he received a formal warning, also got a cut in his annual bonus and mandatory sensitivity coaching the "wall street journal" says an outside law firm substantiated the complaints

he oversaw some of the biggest deals. in the "wall street journal" he said he was rightfully disciplined and deeply regrets his behavior the ipo market making a comeback we had a guest last week talking about that leslie picker joins us now with some stats that are staggering >> nothing says an ipo comeback like a massively upsized deal. >> that's what we saw yesterday and today with surveymonkey. now that deal, that company priced above the marketed range at $12 per share and sold more shares than planned, 15 million compared with the 13 million in the prospectus the traditional offering amounts to a 2$220 million fund raise. this is the latest debut contributing to an already busy quarter. companies have raised nearly $1 billion through u.s.-listed ipos

over the last three months which is the best third quarter since 2014 when alibaba raked in about $22 billion. now this year's third quarter builds on an active 2018 as well with 133 deals raising almost 6 $36 billion. that's the most in four years. that would surpass 2014 if not for alibaba's blockbuster deal as for what that portends about the future, most say the contours of the market are solid, the pipeline is strong but one of the deterrents can be performance of recent ipos that's why it's important to see what surveymonkeydoes today. >> thank you, leslie picker. they're making money they're good we cite them a lot >> we use a lot of their surveys. >> we do we have alliances? >> i think nbc does. >> we'll talk to surveymonkey's

ceo zander lurie, he will be our special guest at 7:30 a.m. eastern time. and marc benioff sounding off on facebook. here's what he told jim cramer last night on "mad money." we have given a huge amount of power to so many technology companies, that's why there's a conversation in washington, d.c. about regulation should they be regulated not just facebook, every company. you know i called for the regulation of facebook >> yes, you did. that's right, yes, you did >> i said they lost my trust because of how they handled their privacy scandal. they are in a crisis of trust. facebook is still in that crisis of trust, so you see those actions by customers, consumers and executives they can change. every company can change they're not the only company going through a crisis of trust. but our industry needs to wake up and realize there is a tech

lash happening, and we need to step up to a new level of ethical and humane use >> benioff also covered a wide range of topics with jim including his purchase of "time" magazine you can see that entire interview right now on cnbc.com. when we come back, the fed expected to hike interest rates ladder today we will talk with david wetzel after the break. right now a quick check of what's happening overseas. looks like the dax is off. cac is still higher. the ftse is up 0.17% we'll be right back. at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem

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all right. welcome back to "squawk box. shares of kb home are higher this morning after better-than-expected earnings. they reported better-than-expected earnings, rising sales offsetting weakness in the average selling price. cintas reporting slightly lower profit last quarter, overall results still beat and the uniform supplier raising

revenue guidance for the year. >> cincinnati company. >> cintas. >> the one time i try to say it without being snooty >> the cintas center >> cintas. and shares of aar are on the rise today they are the maker of parts for aircraft and defense industries they posted double digit sales growth daimler named a new ceo. ola kaellenius will take over from dieter zetsche. mr. kaellenius is swedish. this move needs to be approved by shareholders. the federal reserve likely to announce another rate increase later today the third in 2018.

with another hike likely in december the focus will shift to the future of economic growth. joining sus davidus is david wel my apologies in advance to glenn hutchins, when we were at your fine establishment two weeks ago, i made several references to being at brookings without a proper nod >> we took care of it. >> i want to make sure we have properly -- >> you might not get invited back >> make his day. >> i like all of you, all the folks behind this. help us with this growth in your estimation, you have what might be described as the trump numbers, what are the wessel numbers? >> it sure looks like the economy is doing surprisingly well in the third quarter, better than 3% i'm not convinced that the trend

rate of growth has gotten to that level but it certainly is encouraging. a lot probably has to do with the temporary jolt from the fiscal stimulus. >> if we were having this conversation 12 months things wk different? >> yes i think the rate of growth would be 2.5%. >> because >> because productivity isn't growing very fast. because the trump tariffs will create inefficiencies that will slow the economy and the fed will be raisiing interest rates >> and do you think the fed is in line with your view at this point? >> yes i think it will be interesting to see their survey, but they seem to be suggesting that the economy is very close to its capacity and that they don't see that capacity, that trend rate of growth growing anywhere near as fast as the president is hoping >> one of the big issues remains wage growth. clearly wages are increasing and we're finally seeing an uptick

we were talking this morning suggesting that some of the money that would historically go into your pocket has gone into the form of perks. and how the fed is either adjusting or calculating for that and whether that would be the calculus of how we think about wage growth. >> well, yeah. i mean, we think about wage growth as total compensation one of the recent things data suggested is not only are benefits growing faster than money wages, but more and more people are getting bonuses employers seem to have figured out if you get someone a bonus, they love it you don't have to do it again. when the fed is looking at whether to tighten now, they're looking at overall wage compensation and i think that, you know, it's making up for a lot of lost time >> if we're trying to figure out if there's wage inflation creeping in, how do those numbers fair up. and is there a number we should be watching more carefully >> there's something called the employment cost index which factors in both wages and

benefits i haven't looked at the numbers lately, but it's been creeping up like everything else. for the fed, it's basically a simple choice. what is the bigger risk? is the bigger risk that we're going to get a lot more inflation than anticipated more than just 2 237.2% or someg like that so they should be tightening or do they say worrying about the risks, maybe the risks are more on the downside strong dollar and tariff -- >> but i think it's even more than that. are they anticipating the proper economic growth, the right gdp numbers? or if they raise their gdp expectations, does that in turn mean they would have to raise rates more rapidly >> i think they're going to be feeling around like someone crossing a river feeling for the stones i don't think jay powell is a model dependent guy the way some of his predecessors were i don't think they're going to lock themselves into four rate increases next year. i think that they will be looking to see just that

if you don't see any inflation, if you see job growth continuing to be strong but wages are increasing very slowly, that leads you to believe that the potential growth of the economy has gone up. i don't think that's what they expect but i think that they will be -- and i think a lot of them doubt that's going to happen >> that's interesting that he's not a models guy maybe he goes more with his gut and feels things out, but maybe the market needs to recognize that it's not going to be telegraphed quite as neatly to this point >> i think that's absolutely true people will have to get used to the fact that during the crisis and the slowry coverry, they have deliberate policy saying we are not going to raise rates, relax. they're going to try to wean the market off that and that's going to be unsettling for some people some people might not remember a day the fed didn't tell you what they were going to do. >> when everyone's going to sort of read between the lines today at this press conference, what's the thing you're looking for >> that's a good question.

i think that what i'm most interested in is how he describes the dots one of the things that was so amusing about janet yellen is she had an ambivalent relationship with the dots, the projections that the fed makes for future interest rates. when they were in line with what she wanted, she would site them as an indication of where things were going and when they weren't what she wanted, she kind of dissed them. so i'm interested -- we'll see there's some new members of the committee. we'll see the dots going up. does jay powell -- do they speak for him or is he going to speak against the dots >> david wessel, appreciate it from the hutchins center on fiscal and monetary policy good morning to you, glen. >> so you do mention it and then you -- golly >> you know -- >> you know glenn hutchins >> i do. and i just e-mailed with him he's watching this morning >> then you know he's not

hutchinson >> i have my own problems. all right. amazon is going beyond smart home devices taking a stake in a start-up that actually builds homes. amazon's alexa fund invested in plant prefab that's a southern california company that uses sustainable materials to build prefabricated single and multi-family houses it plans to use automation to build homes faster and bring down costs the alexa fund has typically backed start-ups focused on voice technology but this investment comes less than a week after amazon just launched more than a dozen alexa-powered smart home devices including a microwave. put these two together, you see where amazon is headed >> neat looking houses if you like that style. that modern style. coming up, our guest host for the next hour eric cantor. he's here to talk trade, diplomacy, the midterms, and more then later, verizon ceo will join us right here on the "squawk" set we'll be right back. earningt

nike shares under pressure this morning despite better than expected earnings growth we'll tell you why straight ahead. >> happening now, president trump preparing a return to the u.n. today to chair a security council meeting. the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york, this is "squawk box.

>> good morning. welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square our guest host this morning, former house majority leader eric cantor who's now vice chairman at moleis and company we have a lot to talk to him about. take a look at u.s. equity futures at this hour let's show you what's going on dow looks like it would open up about 55 points higher s&p up about seven points. nasdaq looking to open about 24 points higher right now. here's what's making headlines at this hour policy makers set to conclude what is a two-day meeting today. widely expected they will announce another interest rate increase decision will be announced at 2:00 p.m. eastern time the news conference begins 30 minutes later. of course our own steve liesman will be there reporting live also amazon, apple, and others are set to testify today before the senate commerce committee in a hearing on data

privacy. and google says it's going to admit that it has made, quote, mistakes on privacy in the past. that's according to some written testimony that was seen by reuters. and richard parsons has now been named interim chairman at cbs. this had been expected he's filling in for leslie moonves earlier this month cbs in the process of selecting a permanent replacement for ceo and currently joe ianniello is considered a candidate, perhaps, for permanent position merck's board is rescinding its policy mandating that ceos retire at 65 this will let's kenneth frazier remain as ceo beyond december of next year which is when he hits that age >> gives everybody a little extra -- you know, we're all living longer, doing more. right? >> yeah.

survey monkey pricing its ipo at $12 a share it's going to begin trading today on the nasdaq. survey monkey is a four-time cnbc descriptor company. and survey monkey ceo zander lurie is going to be joining us to talk all about it one of uber's top deal makers has reportedly been disciplined over his office conduct according to "the wall street journal." head of corporate development cameron petcher was said to have made inappropriate comments about coworkers and having a consensual affair with a colleague. he received a formal warning, a cut in his annual bonus, and mandatory sensitivity coaching an outside law firm substantiated the claims against him. including the sale of a stake to japan's softbank in a statement to the journal,

he said he was rightfully disciplined and he deeply regrets his behavior salesforce's marc benioff sounding off on facebook here's what he said last night on "mad money. >> we have given a huge amount of our power to so many technology companies that's why there is a discussion now in washington, d.c. about regulation should they be regulated not just facebook, but every company? now, you know the world economic forum i called for the regulation of facebook. >> yes, you do that's right you did. >> i said they lost my trust because of how they've handled their privacy scandal. they are in a crisis of trust. facebook is still in that crisis of trust so you see those actions by customers, consumers, and executives now, they can change every company can change they're not the only company that's going through a crisis of trust. but our industry needs to wake up and realize that there is a tech lash happening. and we all need to step up to a new level of ethical and humane

views. >> those are interesting comments >> and catch the whole interview on cnbc.com. >> harsh comments. he started this in davos i remember because we had him on "squawk" afterwards. he pushed it a little bit further. and he has continued to really be out -- >> now he's pushing. having said this awhile ago and watching where washington is headed eric cantor's here you know all about how washington works with this stuff. >> we haven't even begun to see the congress sort of become unified against where they want to go with this. but clearly we've seen on both sides of the aisle -- >> it's one of the few bipartisan places. >> it is that. and unfortunately if they rush to conclusion, there may be some bad policy obviously the tech companies have been a significant part of the growth we've seen in our economy. so we'll see i think after the election, we can see some movement on that. >> meantime, nike shares falling this morning after better than

expected earnings. joining us now to talk about it is susan anderson. susan, stock's down. maybe not a surprise given all of the buildup heading into that and how much the stock had run before they beat expectations but their gross margins were down. what did you think about the report >> yeah. the stock had run about 7% over the past couple weeks. i think the expectations were high you know, the beat was nice, but, you know, even though the revenue was a bit better most of the beat was driven by expenses which were pushed into the second quarter and the gross margin was a bit light. i think it was a bit underwhelming given the run in the stock. >> so much of the news, the media surrounding nike has been that add campaign with colin kaepernick was that the reason for the stock's run-up and was there any reason for that with the pullback last night? or is there something else that's happening at nike >> yeah. i think a lot of it, you know, the run-up happened after the ad

campaign was announced and, you know, there had been a lot of press around increased sales at nike, digital growing over 30% i think the thought process was that the ad campaign ended up being a positive for nike which it clearly was they had digital sales this past quarter up 34% ang l i think a lot of that run was surrounding the campaign now people are taking a step back and saying, you know, we'll wait and see it's only been a few weeks we'll wait and see how positive it is for sales and the long-term. >> you did notice some things that concerned you including the amount of clearance inventory that's been going up over the last several weeks what's happening there >> yeah. so that's really within the athletic space nike actually is pretty clean out there. so, you know, that showed up in their inventory. it's really their competitor such as an under armour or we're seeing more adidas on sale out

there. within the mass channel is where it's competitive i think where nike is doing well is within their own stores or more higher end retailer such as a foot locker. so i think nike itself is clean, but the athletic industry itself because of the glut of inventory is still kind of heavy out there. >> why is nike in better shape >> you know, they just really cleaned up faster. they jumped on the innovation bandwagon. you know, they rolled out four new platforms within their footwear categories over the past couple of years those platforms alone are the ones that are doing very well selling at full price. and they generated over $2 billion in sales since the launch also nike sportswear is doing a lot better nike's doing well in women's which i think they could be taking some share back from under armour under armour hasn't differentiated everything looks virtually the same as last year. that's what's hurting them >> you've said a lot of nice things about nike, but your

rating is a neutral. why? >> it's really valuations. it's trading at 27 times next year's numbers you know, well above its historical high teens to low 20s now. so it's really based on valuation. you know, clearly it's positive they got north america sales back on track. they grew 6% this quarter after a positive 3% last quarter but then also i think there's some hesitation around international. so we did see a little bit of a slow down in china still very good growth but there could be some concern that could continue to slow. >> is that trade war related >> well, you know, it's been growing double digits for several quarters now a lot of it is just the law of large numbers on top of very tough compares it's hard to say how much could be tied to the trade war but just more they've had

accelerated growth we were looking for any signs of anti-american sentiment growing there. we've heard about nationalism there too. >> yeah. correct. most of the retailers that i covered that sell over there say they haven't really seen anything like that they have been growing at accelerated rates. there's been talk in general that the economy maybe had been slowing a bit which could be impacting them >> susan, thank you very much. susan anderson and our guest host this hour is eric cantor who served as house majority leader. he's now at moleis and company he's in the private sector you weren't there for a lot of your dreams that have come true in terms of tax reform and deregulation but you left and got a job that it was going to benefit from all those things so it must be -- the good news is you're in the private sector. bad news is you weren't there to

see it happen. or to be part of it happening. >> listen. i think people with all the noise around the political discussion today forget that there's a huge, huge leap forward with the tax reform. we have discussed this with our clients in board room. >> you're in the prieft sector now. the benefits of what you were trying to do, you're actually experiencing -- someone once said elections have consequences and don't mess with me, aaron, i think is what someone said to you. did he get your name right >> he did. >> he won. but now somebody else won. and this is happening now. >> this has had consequences. >> yeah. elections have consequences. in this case it's 4% gdp growth. >> and unemployment below 4% i think we are seeing the results of an economic policy, fiscal policy at least on the

tax front that many of us have been arguing for for a long time >> where i'm leading you on all of this, this was a prelude to november >> uh-huh. >> and whether all this stuff that seems to be positive, you were majority leader you used to whip people. you used to try to figure out how to keep the house majority for republicans. >> right >> so you should know about this where are we what do you think is going to happen >> first of all, remember what happened to me i'm not going to put much stock into pollings. >> or what you know. >> but i will say remember where we are today the narrative can change and president trump's got the ability to change that narrative on a dime. >> good or bad >> right and it used to be that was a pretty short amount of time until the election now it is an tender the i. we will forget -- >> how many tweets >> we will forget what we're

talking about today probably two days from now. so i would just be hesitant to say, hey, we know what will happen i do think that if you look back in history there's only been three times in which the president's party has actually picked up seats in the midterm. and in recent times, '98 and 2001 there are things playing out now whether it's kavanaugh or something the left is going to do it could make them the issue and so i just think we all ought to sort of -- let's see what's going to happen -- >> not to go down the kavanaugh rabbit hole, but you think it's a mistake? >> well, let me just say this about kavanaugh. first of all, serious allegations need to be heard i think chairman grassley and the republicans are doing the right thing. >> you don't think it's a mistake for the president to say comments he's said about this? >> i think the president should remain on the sideline about

this and let congress do their thing. he's been somewhat restrained, but -- >> i didn't want to -- you called it a rabbit hole. so it's not the economy, stupid? is that fair to say? the expression is it is the economy, stupid. but in this case it's not. >> this is why i think the election is going to be closer than what people are saying because the economy is so good >> then you're saying that the gop will do better than people think? >> i do. i really do. i think what i'm seeing is -- and we had a discussion last time on the set about suburban republicans. this is the vulnerability. the district i used to represent, that district is in a toss-up category -- >> is this a referendum on the president or something different? >> this is where the next 41 days is going to be important. if the narrative changes and i think the democrats, they can overplay their hand. then they can make this election a referendum on them and that's where the risk is for

them if they do that, then i think republicans will even do better than what i'm thinking they're going to do to begin with. >> everybody's got their own -- they say all politics are local. but everybody has a congressman they know. it could register some dissatisfaction with president trump based on their own congressmen. but there's 400 and some every two years. >> and so republicans like what's going on fiscally they like this economy i think even independents and some democrats -- >> but tax bill is still not popular. >> but the benefits of the tax policy is what's keeping people optimistic and whether it's small business or large, certainly we've got a strong economic environment right now so that people, i don't think -- and if you look at these polls over the last several cycles, there has been bias -- >> the weird thing in the polls

is that people think they haven't benefitted personally from the tax kucuts but consume confidence is strong >> it's really hard to make sense of it all. but again, we've entered such an age where it's like 24/7 input you don't know where the narrative is going >> we'll continue this in a moment, but questions on the comments the president made yesterday to the u.n clearly trying to play to his base but do you think that plays with the republican party at large? this idea that the united states is not planning or wants to be a leader globally? >> well, there's no questions there's been a turn back towards of a nationalistic type of mantra >> that's his mantra i'm asking do you believe that your party follows that same mantra i would contend to you that it doesn't. >> i would agree with you. let's take trade, for instance i think that the president has a much shorter leash than some think in washington.

depending how this election goes, i know many of my former colleagues are looking at this nafta issue, for instance. canada is the number one export market for i think 36 states there's no way that i think you can get a mexico-only deal through without canada >> by the way, you have labor and big business both aligned with wanting nafta to stay in place. so you're going to have constituencies from both >> this whole nationalistic let's go in -- and i do think the party wants to see a fair deal for america >> absolutely. >> if you look at actions on the world stage in terms of leadership whether it was syria after the chemical weapons use or what happened with north korea or what happened with moving jerusalem we are -- i would argue that the eight years of the obama administration represented a much bigger retreat from world leadership than we're seeing right now. it's different because we curried favor with iran, we curried favor with -- >> when you explicitly stand in front of the united nations and

effectively say to the extent that some people look at it as we are abdicating our role explicitly stating up front that we don't want to lead the world, that's a very interesting message. by the way, read the papers internationally around the world this morning on this issue and think how they received that message. you may say it's different, but that's -- >> listen. we're not governing for the rest of the world there's not another country out there that doesn't put its own interests first over everyone else as well. >> no question europeans and others are wondering how to deal with us. >> the more upset the europeans are, the better we're doing typically. that would probably be a fair statement. >> the debate will continue after the break. we got a lot more to come. we mentioned president trump preparing to return to the u.n. today to chair a security council meeting. what you need to be watching next beyond the traffic in new york city. this isn't just any moving day.

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dow futures up about 50 points nasdaq up by 21. ibm's been leading the way for the dow after it was upgraded by ubs. when we come back, what we should expect at the u.n. this morning. plus survey monkey is going public on the nasdaq today after pricing its ipo at the top of its range. the company's ceo zander lurie will join us when we come back broke my personal record. 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

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aflac trivia question. what shoe brand celebrated their 25th anniversary last year the answer skechers. welcome back to "squawk box. president trump will chair a u.n. security council meeting today. eamon javers is back with us at the desk without a blazer on >> that's right. this is the "squawk box" uniform. i figure i got to fit in with the locals here. look, the president's back at the u.n. today president's got meetings he's going to talk to a number of world leaders today one-on-one he's also going to chair the general assembly today, security

council. this is a big set piece for the president. yesterday he delivered a full throated denunciation of globalism standing in one of the most global settings you can imagine, the united nations general assembly he said the united states is going to stick up for itself here's what he said. >> america will always choose independence and cooperation over global governance, control, and domination i honor the right of every nation in this room to pursue its own customs, beliefs, and traditions we only ask that you honor our sovereignty in return. >> the president did have some demands for foreign countries. he wanted opec countries to charge less for oil. he wanted u.s. allies to pay more for their military defense. the president saying ultimately though that the united states is stronger militarily. its economy is better than when he took office so therefore the united states is on stronger footing to stand more independently on the world

stage. he denounced a bunch of different international organizations that he's been withdrawing from this is a president who's willing to stand on a global stage, playing very much to his domestic political base. >> eamon, thanks got other stuff going on here today like a ipo survey mkeony is going public. the ceo will join us stay tuned can't do my job. business grinds to a halt. our gig-speed network not only downloads files up to 20 times faster, we go beyond fast with 4g backup for complete reliability. so if the unexpected happens... (snaps fingers) you stay up and running. we lost power... but not to that. i want that. (laughing) get fast, reliable internet and add tv and voice for a low price. call now. comcast business. beyond fast. not long ago, ronda started here.

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♪ all right. good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. got a lot happening on the set and we'll tell you about that in a moment let me get you the other stories front and center this morning. mortgage applications rose by 2.4% last week both new purchase applications and refinancing activity rose during the week. the average 30-year mortgage rate rose to 4.97% believe it or not, that's the

highest level since april of 2011 economists are expecting sales to increase half a percent for august following a 1.7% decline in july. those number wills hit at 10:00 a.m. eastern time. delta air lines has resolved a technical glitch that halted domestic departures yesterday evening. the problem was with their computer network there were no diversions or cancellations as a result and all traffic should be normal by this morning okay big news this morning right here at the nasdaq. online questionnaire company survey monkey expected to begin trading this week on the nasdaq after pricing ipo at $12 a share. that was above the expected range of $9 to $11 a share joining us now is the company's ceo zander lurie we should mention sur vvey monky is a four-time member of the cnbc descriptor list

-- interrupt disrupter list welcome. congratulations. >> appreciate it thanks for having me . >> help us understand what going public means for you and how the company's going to change or use the money to do something new. >> sure. it's ban 19-year journey we created the category for survey software. today we help 16 million people around the world listen to their customer, employees, students, patients across the world. for us, we have largely walked into the organization with individuals. people use our products in big companies and small companies to get answers and get insights to do right by their customers and employees. we've never had to raise primary capital to finance our growth. so today is largely about educating big corporate customers which were used everywhere how big our platform is. being public is accountable.

>> the company still loses money. >> well, let's talk about that net income basis gap, we are still unprofitable i think for folks we just went and talked to the past couple weeks, we're bringing on shareholders who understand the business well. this is a highly cash generative business we had a 19% free cash flow margin and because the 90% of our revenue is subscription base, we have high visibility and cash generation with the business so we see the opportunity to grow and continue to drive cash margins and over time you'll see net income >> can i just ask about the paying versus non-paying you've got 60 million subscribers, but 600,000 paying customers. the customers who pay, what are they paying for? more in depth surveys? >> that's a great question 60 million active users are engaged with our product because we have a web-based product, we enable people to try the product, get value, get access to it through the funnel we have over 600,000 paying customers

when you want to send a more robust survey, if you want to survey hundreds of listeners here at "squawk" or export the data, we have integration with other software platforms that's when people are asked to pay for the product. >> salesforce, a private place they have a huge vote of confidence behind what you're doing. in terms of the calculus of going public, i would say once you said you were willing to go public that others like the salesforces of the world might have come to you and said, hey, why don't we just do this now? why don't we just marry up now what was the thought process >> well, we never tried to acquire salesforce that conversation never happened we're not here to share kind of what private conversations might have been had. we are thrilled to welcome public shareholders on this journey. we think we have a fabulous business that can grow and serve our customers over time. we have felt great accountability to our existing shareholders and our board the vote of confidence is terrific one of the key differentiators

of survey monkey is our data flows seamlessly into your other platforms. >> as part of that, though, the arrangement with salesforce, does it give them any better chance if someone were to want to buy you if microsoft were to say, hey, twoept buy this company now. does salesforce have any additional rights in this? >> andrew, we are opening on the nasdaq in like an hour anybody can buy if they have interest we have no existing relationships with salesforce or anybody else we're thrilled to have salesforce as a partner. they wrote the book on selling surprise software. so they'll -- one of the biggest use cases is listening to your customers. >> pretty smooth, andrew instead of having to answer the question about salesforce, he can deny it unequivocally. that's like reagan is age going to be a problem he says no, the youth of my --

>> did you just compare me to -- >> is that okay? >> that's a first. >> zander, let me ask you this you came into this role after the passing of david gulber. he was such a great entrepreneur himself and was also married to sheryl sandberg. what would he think of today >> dave loved coming on the show and he had a lot of respect for you all. i think he would be really proud of the resiliency the last couple of years. he died tragically at 47 years old. he had a huge impact on the valley i'm inspired by the integrity he brought and culture he brought to the company i hope he would be very proud of us we think about him often and we troo i to live by the inspiration. >> what is the company going to be worth after the market cap? what do you expect just a ballpark? >> we priced it 12 bucks a share. >> how much would it be worth?

>> we sold 50 million shares so market cap around $2 billion. >> and you've got a pretty good ownership yourself >> i have a stake to align my incentives, yes. >> you said you watched in grad school you're sitting here worth a couple hundred million that's okay. i'm just watching it play out. you were watching in grad school >> i'm going to help negotiate a raise for you, joe >> i love what i do. it's not about money it's about family as you know. but i was just making the point. you were watching in grad school and eric, now here he is and i'm ready to take us to break with a great reading on the teleprompter >> can i ask one question? we bring up mark ben i don't have he was on last night and talked about how facebook needs to be regulated. if you're doing surveys you're collecting information too

do off game plan if congress gets involved in regulation? >> tech is an increasingly bigger part of the market cap. and the roles the tech leaders have to pay to regulators, politicians. we have a business where we have incredible amount of data collected every day. over 20 million questions are answered on our platform collecting that data, that's aufb the most mission critical sensitive in the world so we pay great heed to our customers' data. it's our customers' data i think if you are in the business on the web helped people collect data, we have to be on the front. >> you're already in compliance with the european regulation then >> absolutely. >> zander, we wish you luck today. >> thank you appreciate it. when we come back, congressman will heaurd.

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welcome back to "squawk box. futures right now in the green because of the fair values in the red. it might not look like much, but we're up about 45. that's not far on the dow from a new high got back about some yesterday, but we were at new highs last week nasdaq up 22 s&p indicated up over six. making headlines this morning, british prime minister theresa may will make a big post-brexit pitch to business leaders in new york today she's expected to promise her country will be in her words unequivocally pro-business as the uk leaves the eu may says she has no plans to scrap her brexit road map even amid criticism both at home and abroad now to washington news a house subcommittee will be holding a hearing today

examining chinese trade practices. the goal is to weigh how much these impact american business joining us right now is will hurd he chairs the oversight subcommittee thank you for being here today >> good morning. pleasure to be on. >> we talk all the time about the chinese business practices that we believe have been hurting the economy. how do you go into this? what are your preconceived notions before you start hearing some of this >> one of my big questions is what are the chinese doing in the united states that we are not able to do in china? they're able to invest in certain industries in the united states they prevent u.s. investments there. how can we find ways to deal with these chinese practices in some other way than random tariffs? you know, we had zte on its knees when it came to realizing the practices they had if we would have done something there, this could have had an impact on chinese companies. chinese companies are allowed to

operate like u.s. companies here in the united states let's look at alibaba. but u.s. companies are not treated like chinese companies in china if we made some changes there, would it have an impact? and we have to look, we know the chinese are trying to become the world leader in some of the top industries like artificial intelligence were the chinese using active measures in something like the rift between google and department of defense over project maven? these are some questions and our business is prepared for nation states using disinformation and influence operations to achieve a strategic goal >> congressman hurd, you mentioned zte. i just wonder how you think of the administration right now clearly the administration in some quarter shares your concerns that's why we're seeing these ramp up in the tariffs but when it came to zte, i knew the congress was pretty frustrated when there was almost

universal agreement and the administration moved to ease some of those regulations. >> i'm still not clear on why zte and huawei, these are extensions of the chinese government period full stop. they are trying to become the infrastructure for the rest of the world. and the chinese do not care about things like privacy. and so when we had them in a place where it was clear that they committed a number of international violations, we had the opportunity to show a real message to china that we're not playing around and we let mem go instead, we're using tariffs which are pretty haphazard and are actually impacting american businesses so we understand how china is stealing our technology. we understand how china is trying to force technology transfer what other steps can we do that impact chinese businesses and china's investment opportunities

in the united states to prevent them from doing that against us in china those are some of the areas that we are going to explore. and again, something that people aren't talking about is when you look at a decision that google made to separate from department of defense, was this influence in some form or fashion by -- >> but how much -- eric cantor is here and i want to get to him in a second. he has a question for you. how much of this conversation today is overlaid by these issues around a view that the valley has a political bias, a way -- a liberal bias, if you will, based in part on videos you've seen. i mean, how much of that is playing into this conversation >> well, on the conversation that we're going to have today at the -- at my subcommittee, that is not something that is being taken into account this is about how do we make sure u.s. businesses stay the

leader in innovation, stay the leader in some of these key sectors that are going to be important for our future and how do we defend against practices behind the chinese government that is negatively impact our economy and our businesses >> hey, will first of all, i want to congratulate you on navigating that mine field down there and the reputation you've earned as a strategic thinker especially in matters of cybersecurity. i want to ask how this all fits into this 21st century great power politics that's going on between us in the u.s. and in china. and as you referred to, there's just a lot of hacking that we know about that's been going on. and sort of how that sort of relates to chinese requirement of u.s. companies to share proprietary information. >> it is very clear. the chinese government is trying

to by 2049 become the world's superpower and replace us. that's not based on my time as an undercover officer in the cia collecting information that's based on their comments about themselves and the way that they're going to get there is to be a leader in ten of the future industries that involve around high-tech. and the quickest way for them to get there is what they've been doing. stealing our technology, forcing technology transfer, using debt traps with countries and in businesses and we need to be prepared to deal with that they have a national strategy. they have an emperor in place for the next 40 years. and we don't even have a strategy on how we deal as a country between the public and the private sector on something like artificial intelligence so this is a great power politics and we need to step up our game. >> if there's a swingier district in the country, i'm not sure where it is and, you know, you've got your opponent this time just reading

her background, pretty impressive former air force intelligence officer. you're the first guy to win re-election in awhile because it goes back and forth. i think hillary clinton won by 8,000 votes in your district how's it looking for you in november what's your forecast >> i feel good about my chances when the folks of the 23rd district are grading my paper in november i'm going to get a passing grade. be honest, treat people with respect, and i represent everybody. this is -- and i represent the people that voted for me and didn't vote for me so we're going to continue to work on issues like how to defend against china, how to keep america at the front of innovation we'll be fine. >> we're watching you walk a fine line down there i guess the democrats are trying to say you are a trump guy and you're trying to say i am but i'm not but i am but i'm not it's tough to tow the line what are you >> it's actually real simple >> let's hear it >> it's real simple. i agree when i agree

i disagree when i disagree right? be honest. that's what my dad always told me growing up. that's what i do >> i think that's what eric was talking about. that's what you do it seems to work for you good luck, congressman appreciate it. >> thank you >> oh. okay i thought you were going to read -- >> thank you, congressman. >> okay. >> meantime when we return, stocks to watch. and tomorrow on "squawk," we have a huge lineup ceos of hewlett-packard, hershey, and docusign. plus mick lveyo lkmuan tta budgets and more nt, it could cost you your life. it's time to get out of line with upmc. at upmc, living-donor transplants put you first. so you don't die waiting.

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based on new products and what oppenheimer calls appropriate prices for those products. meantime, we want to get back to eric cantor. he is now a vice chairman at moleis and company we want to go back to what trump said at the u.n. >> president trump >> president trump did i say? >> just trump. >> back in the day we called him the donald in terms of where we're going to be on trade issues and what he said explicitly and whether that is his actual position or whether you think this is basically one grand negotiation. so how much do you take away from that speech and by the way, all the hand wringing that go along with it

for those that disagree with this >> i think you look at the markets and what they do with trump. they sort of step back away. understanding to your paint he was elected as a goerkter. he gets up in front of the entire world, all the heads of state, and it is a negotiation with him but that's then the complication in washington. because when you are in washington and especially if your party's in power in the white house, you are looking to the white house to understand where to head. i mean, that's the leader. that's the leader of the party, not only the country so then the negotiating positions tend to sort of confuse republicans as to where are we supposed to be on this issue. that's why i go back to my statement earlier. i do not think my party has become a nationalistic anti-trade party and that's what i said before. that i believe that president trump's leash on trade is shorter than what some may think

at this point. i think the election will have a big impact on whether he can continue this or whether there may be a revolt, if you will, in congress look this nafta deadline in the next couple of days will be impactful. as well as, you know, i was just in europe last week. my goodness. those tariffs that are still in abeyance about cars. big deal. >> gallup poll, 12 years it's been since the midterms of 2010, that the gop was at 45%. it ran counter to the previous poll from a few days before that democrats were up 11 or 12 points in terms of generic favorability for going into the election i think it's weird that at this point this populist outsider came in and now republicans are 90% behind him and even the gop is at the

highest level in ten years for -- it's by saizarre >> those polls, believe me they are bias. over the last several cycles, they approve to be bias seven points against republicans remember that when talking about generic ballot also remember although people want to talk about the national election here, this comes down to district by district. >> what about the senate you're okay there? >> i think so. >> 70% >> i think so. i think we're going to be fine in the senate. and the -- >> will anything get done if the house is lost? will it be all oversight all -- >> the senate plays a role in confirmation of all the trump appointees. >> but you'll have a lot of investigations opened up, i would think. >> yeah. you look and see what happened to scott pruitt and what happened with the oversight committee. republicans that brought his team in and then he left i think you're going to see that reflected across the administration.

>> so moelis stock has tripled so all this stuff, you talk about it you fall back on that. because of you and in spite of you? >> i'm blessed to be where i am in spite of me >> i still call you leader >> eric is fine. >> eric's fine all right. coming up, verizon's ceo hans vestberg is going to join us in studio see why his company is looking to buy out employees stay tuned you're watching "squawk box" on cnbc ♪ i'm going to be your substitute teacher. don't assume the substitute teacher has nothing to offer... same goes for a neighborhood. don't forget that friendships last longer than any broadway run. mr. president. (laughing) don't settle for your first draft. or your 10th draft. ♪ ♪ you get to create the room where it happens. ♪ ♪ just don't think you have to do it alone. ♪ ♪ the powerful backing of american express. don't live life without it.

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google says it has made mistakes in the way it handles privacy. that's the message the company will deliver to congress today we'll talk about that straight ahead. verizon ceo hans vestberg will talk about the push for 5g and the company's cost cutting plans. president trump will chair the security counsel today for the first time we'll tell you what to expect on iran and north korea the final hour of "squawk box" begins right now ♪ 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 i'm joe kernen along with becky quick and andrew ross sorkin fed policy makers are set to conclude a two-day meeting today and a rate increase is widely expected hopefully it won't be like -- where was that turkey it went up six points in one day. that would be a big shock for the markets. i don't foresee that from powell today. probably would be a quarter point would be my guess. today's decision at 2:00 p.m. eastern, followed by jay powell's news conference the futures right now are indicated up a little bit less than they were before. up 26 on the dow under 5 on the s&p, nasdaq up 15. treasuries about 3.05% or so 3.08% on the 10-year three corporate leadership stories to tell you about.

merck's board is rescinding its policy mandating that ceos retire at the age of 65. this will allow kenneth frazier to remain ceo beyond 2019 cbs has appointed richard parsons as interim chairman. he will be leading the search for a new ceo. les moonves stepped down this month. he's denied any wrong doing. and daimler naming a new ceo ola kaellenius will be taking over he is swedish. zetsche is seeking to become chairman in 2021 that's a move that needs to be approved by shareholders surp va monkey pricing its ipo at t$12 a share. here's ceo zander lurie on "squawk" about 30 minutes ago.

>> today is largely about educating corporate customers where we're used everywhere how big and powerful our platform is we have new products to sell being public is really important for being accountable to your shareholders so we see the opportunity to grow and continue to drive free cash margins over time, you'll see net income >> survey monkey is going to begin trading today on the nasdaq it's a four-time cnbc disrupter company. technology stocks have helped power markets higher. but it's been a tough couple months google set to appear before congress today to talk about its handling of privacy. joining us now is mark mahaney at rbc capital markets is it a monolithic conversation? i guess it's not with tech or faang stocks even, right >> oligarchic? >> you can't just say faang and think the fundamentals or the

prospects for all are the same. >> you can't the regulatory pressures seem to be about the same though so this is going to be the third or fourth con congressional hearing in just a year where execs from google, twitter, facebook have come up. not amazon yet but they will soon there's no doubt they have enormous amount of data. the eu now is looking into what amazon does with data that it has in terms of building up private label offerings which is what retailers have done for years. amazon plans to collect data more rapidly than in the past. there's a data issue here. >> when anyone talks about stock prices and one guy's a technician one guy deals with fundamentals. are you amazed at the way sometimes it always seems to converge these stocks were -- they had an unbelievable run and were ready for some type of pause or pullback, right? and in comes the data problem

and the regulation problem it almost converged to explain why these stocks might take a break, right or -- >> i think you're right, joe >> do you -- what do you care about? fundamentals or just the stocks had outrun >> fundamentals a we had a rise in netflix to date they added $400 billion in market cap that is going to give you a pause. >> then this comes along >> and you can explain it. there's a few names you find high quality assets. i focus on fundamentals. then when you find them dislocated, that's your opportunity to buy the most interesting stock in this group is the one that's most dislocated. that's facebook. i think facebook at 160 is the new 20 after the ipo, the stock corrected all the way down to $20. only in hindsight, that turned out to be a great buying opportunity. i think that's the case here with facebook at 160 you're paying about an 18, 19 pe

multiple of modest premium to the market for what is still the owner of the two largest social media networks in the world and is what is still the owner of the largest messaging apps in the world. >> we talked about the founders leaving that company and then marc benioff was on last night with cramer saying facebook needs to be regulated what -- you add up all those things, that's a lot of headline risk to jump into now. >> the first one i care about is the first one. i think that was the case with instagram. i saw more innovation out of instagram than i've seen out of facebook the last few years. this is a natural revolution we saw this at amazon in the first 20 years when you make acquisitions, those founders of instagram stayed for six years that's unusual in silicon valley era. facebook still owns instagram. they have an enormous

opportunity with the single fastest growing. they have enormous opportunity to continue to grow. they can still screw it up, but they've done an outstanding job with facebook over the years >> do you think they need to buy somebody else to capture younger audiences or they can do it with what they have in house? >> the biggest impact of regulation has been to deny these companies' ability to do large scale acquisitionacquisits i don't think google could buy motorola now >> is this a benefit to companies like snap? >> no. snap had its chance. and it may still have a chance, but they just got out-innovated -- >> on the product end. >> yes, they did that's really all that matters i focus on fundamentals. what drives fundamentals is product innovation >> so what happens to snap has snap become a twitter? twitter is having a revival, but there was a period where it had

a fallow period, dare i say. >> there are three paths either becomes like yahoo and fades and gets acquired at a market multiple. i don't think that's going to happen it pulls a twitter, has a reversal in product fundamentals they bring ad prices down. i think that's the most likely or it re-rockets up. that's the least likely outcome. i think there's too much -- there's a magnet that's pulling people away from snap and that's instagram. i don't think that changes even though the founders -- >> and you don't think amazon would take it? >> no. they only look to acquire high quality ones >> so we know how much the faang stocks and tech stocks have contributed to the series of new highs. is it possible that regulatory issues could affect the performance of both the companies in the stocks for the

next 6, 12, 18 months and cause a pause? i'm not sure you're going to see that type of over-regulation either they're probably hesitant. >> i don't think it's probable we've already gone through this. we've had gdpr implementations come out of europe it didn't impact fundamentals. we've had two fines placed against google it didn't impact the stock i think the market's generally gotten it right. these are one-time items not going to be any major forced divestiture. that would be hard to argue, why you'd do that to these companies. my guess is regulations don't change the directions of the stocks or the companies. >> we'll have trillion-dollar market cap companies then. >> over time the big catalyst on google, you've got waymo coming in the back half of the year. you've got a catalyst coming they're going to commercially launch waymo this is the -- google is now going to be the self-driving

operating company. that's going to be worth an mor nous value >> i figure microsoft isn't far either. >> that's right. >> they keep growing at a normal -- if they just match eps gains, they'll be there. >> these are all growth compounding companies. >> one data point on google is google has grown its top line for eight and a half years it should be at worth some point a trillion >> they've got to come up with a better way of describing waymo than estas >> i'll tell them that >> thank you, mark mahaney from rbc capital markets? that okay? >> yeah. you think about dos operating system it sounds outdated and old >> befound out excel

spreadsheets are out i'm just finally learning how to do that. >> even python sounds better than d o rksos >> thank you hans vestberg will join us to tell us why he is backing the global citizen festival. we'll also ask him about the push for 5g and the company's new cost cutting plans all of that coming up next and later robert jackson will talk wall street regulation and what he calls puzzling changes for investors. stay tuned you are watching "squawk box" here on cnbc you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay?

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plans that you're planning to put in to move out some employees at headquarters. this is a plan to save billions of dollars over several years. what happened? >> we were all in transformation in a lot of things coming into our market we're doing voluntary offer that wanting to part of that. so it's basically to be ahead of the curve. we want to be on 5g leading. this is a transformative way of working and taking proactive actions and doing it in place with a voluntary offer this is what's happening now >> verizon was one of the big beneficiaries o of the tax program put through. and because you spend so much in capex every year i know it helped to the tune of about $3.5 billion or $4 billion in cash flow this year people would anticipate that should lead into job additions

should we assume you're hiring other places >> we will of course do that but in this moment right now we're doing voluntary offer and see how many will take it because it's up to the employees. we're going to see that when the time is in november. >> i also want to get your reaction to the weekend's news, parent company of this company comcast buying sky internationally. for years there was speculation that verizon would do something with vodafone. this was probably a decade ago what did you think when you saw the headline >> i think that you're seeing a consolation in the media sector between different companies. there's so much money going into media now, so much investments in order to have the prime content. i think that's what is happening. >> is it putting you at a disadvantage >> no. we are building on a great asset. can work with any content provider based on our network and distribution so i feel really good about it

>> let's talk about the global citizen festival and what you have lined up this year. what's new and exciting this year >> well, this year we're thrilled that the global citizen festival will be headlined by a combination of janet jackson with the weeknd, cardi b, john legend this year we're focused, we're three years into the goals that suggested while we've made amazing progress in southeast asia and india, we're off track in sustaining the goals across africa and we have two years to get it back on track. that's why we need an urgent movement of citizens calling on heads of state but also calling on business to take action to achieve -- >> what's happened in subis sub-saharan africa >> the pocket where is you see a lack of progress in achieving human development. all the data suggest ifs we

don't actually promote peace and stability, if we don't actually also make sure that there is true investment in human capital, health and education in those markets, then we're not going to sustain the development goals. >> why does verizon partner? >> first of all, i have been working with the goals for a long time. and what i've seen is, of course, that we have a purpose that is just colliding technology is one of the most sustainable solutions for some of this sort of combatting some of the larger problems on this earth as well as the people in most need. technology is action and solution then can bring down the cost can deliver education, health care, all these inequalities can be part of using technology as a foundation we are now doing a big thing with education we're going to invest $400

million in the u.s the next three years and basically 2 million children or youth will get free technology from us as well as sort of technology driven curriculum. that's why our purposes is saying we want to combat some of the larger challenges we have on this earth this is part of our strategy >> there's always this sort of a discussion we have highlighted between education and health care it would seem you say we have to do health care first and then education. but there are proponents the other way that you take care of the health care but you don't put in a system of education, you're healthy but you've got no economy. and then it feeds back on the health care. it's almost like you mention -- you mention health care first and then education hans mentions education first and then health care so it has to be simultaneous, doesn't it >> it is simultaneous.

it's not a dichotomy, joe. i think the key as you see how south korea grew post-1950s in that stage from the u.s. and the world bank grant given to south korea was an education i was with president kim of the world bank yesterday and he was talking about his experience getting education, also getting quality health care, and how that enabled the economy to grow so i think that's absolutely essential. yesterday we hosted a really important gathering at the u.n. with president macron of france. and teresa may of the uk this was all on the topic of education. now the world is starting to invest more in education earlier this year president macron hosted the replenishment for partnership for education. the most amount of money ever raised on this issue so this is the time where the world is starting to step up on

education. i agree with you it's not a dichotomy >> then i think about, you know, water and how do you go to school if your mother's taking six hours to go get water? >> well, that's why the sustainable development goal framework is so important. because the 17 goals in 179 indicators are all interrelated. you have to provide food, education, water and sanitation, gender equality, all of these have to work hand in hand. >> daunting. >> it is hans, if i could ask you one more verizon question before you go >> you can >> you're here to play all right. the take on the market when you came into this job was that you were going to be much more focused on 5g deployment, technology deployment, and less interested in content. that narrative kind of got pushed forward when we heard that tim armstrong was leaving oath is that fair >> there is no correlation between those. i think that team has done a tremendous job to put together we have been buying a lot of

assets and of course this has not come together the platform he has put together is no remedy for launch. and we have our different channels that have stood up. it's a natural transition. >> can i ask a related question? why not keep the ad platform if really this is a tech and distribution company effectively, keep the ad tech platform, do the deployment of 5g but on the content side, effectively spin that off or do something with it. because we had all these conversations, you decided the content is not the focus >> there is so many other content that is in interest of us of course that's sports, finance, entertainment we think that type of things is

fitting us well. but linear tv is nothing so i think we need to be a little bit better explained when we talk about content. there are many other content will be super important for 5g and our customers in the future. some we might create ourself some of course we're partnering with the best brands in the world. >> hans, thank you for sbg here. hans vestberg. and hugh, thank you for coming back once g en >> good luck on saturday >> thank you. >> the concert comes up on saturday september 29th right here in new york city. there's some of the headline of who you can see here. >> that's on our sister station. amazon heads for home. the internet giant going beyond the smart home into a company that actually builds them. houses, that is. we'll speak to the president of the national foreign trade council. and we've got a lot more with e e.ths.c. commissioner in a little bit back in a minute

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amazon is taking a stake in a start-up that builds actual homes. amazon's alexa fund invested in plant prefab, a california company that uses sustained materials to build prefabricated homes. this investment comes less than a week after amazon launched

more than a dozen alexa-powered smart devices including a microwave. you can see where all these microphones and other things are going to be located throughout the house. >> is that your taste? any of those houses? you like the modern frank lloyd wright -- >> i'm a classic, traditionalist >> they're kind of cool looking. >> maybe for a second or third home >> i know. you've got those -- they're not even one percenter problems. they're like 0.1 percenter problems >> the marble creates such an echo bs i know. loter deliveries i know countdown to the fed meeting is on we'll talk to liesman. at your overall financial strategy. you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. i'm all ears. how did edward jones grow to a trillion dollars in assets under care?

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♪ all right. good morning welcome back to "squawk box," everybody. among the stories front and center today, mortgage rates are at their highest level in about seven and a half years in its weekly report on mortgage applications, the average 30 year rate went up nine basis points last week

that puts it at 4.97%. that applications actually rose by 2.9%. also, carr mmax is out with $1.24 a share. revenue also topped forecasts. analysts had expected a 1.3% increase in comp store sales and deutsche bank is dismissing reports of mergers with rivals. germany said the bank had studied the benefits with either bank speculation about such moves by deutsche bank have increased as it seeks to bounce back from three years of losses. and we are now only a few hours away from the fed's next decision on interest rates but there are new faces at the central bank steve liesman is in washington this morning and he has that story. >> good morning.

one new face on the federal committee, this meeting and several more potentially to come as far as wall street is concerned, the big surprise has been how unsurprising these picks by trump to the board of governors had been in fact, they've seen the result of any administration to create a board that diverse in experti expertise. you have jerome powell picked by the chairman in business, banking, and the fed richard is a new member. randall quarles, he is the banking expert of the banking supervision. and lael brainard, she has international experience and also economics expert. and now let's look at what the market thinks about these two new appointees right there in the middle question asked in our fed survey

are these guys more hawkish in line with this or dovish you can see a big majority of our respondents think they're in line with where the center of the board is how about the new faces that are coming well, there's a bunch of them as you can see in the next graphic there. that there is nelly lang just named recently as a nominee to the federal reserve board. been at the fed for something like 30 years. michelle bowman, the kansas bank commissioner there's marvin goodfriend who's been nominated for a very long time and held up by members of the senate i think it's democrats mostly who worry about how hawkish he is you can see that reflected in our fed survey take a look here at where people think these people land relative to the center of the board michelle bowman, you can see there's a lot of unknowns with these individuals. except for marvin goodfriend who is more hawkish. i think he's more nuanced than all that

there's nelly lang seen as being really a centerist and talk about the opposition. all of this raises the question where is the center of the board i'm talking about. operating hotter than they think to be the steady run rate in gdp and employment remain to the possibility of earlier. potential gdp is higher. >> thanks for that we're going to spend time with you later this afternoon watching you and the press conference is there one thing you're looking for jerome powell to say, by the way? >> i think what we've been saying all week on this fed meeting is the outlook for 2019. i think the powell fed has been following very much the blueprint of the yellen fed.

and there have not been a need to make many choices yet one of the things that's hang is whether or not he ends up embracing the tax cut idea that can create all this without inflati inflation. is it two, three, four rate hikes in 2019. i think a rate hike will be in seems to be a certainty. >> steve liesman in d.c., look forward to your coverage all day. president trump speaking at the u.n. assembly making a trade deal with south korea and defending his trade policies joining us now, national foreign trade council president rufus yukza. it's good to see you is it safe to say -- are you a zero tolerance guy for tariffs just under no circumstance or is there any nuance at all on conducting trade negotiations like this? >> well, i think tariffs are a

potential device to get other countries to negotiate with us but there's a big difference between using it as a targeted tool, sort of a scalpel to, you know, deal with a narrow problem and using it as a meat ax. you know, i think unfortunately what we see here is a real widening of the use of them. kind of mixed rationale. president says tariffs are good for our economy. i really question that but a lot of people in the administration say we need to get tough with china the real question is are we doing it in the right way? and in the meantime, we're using tariffs against some of our best trading partners you know, we're using the national security excuse to impose on steel, aluminum, automobiles. we're worsening our trade relations with those countries and isolating themselves from world markets just when we ought to be doubling down on world markets. >> it's a group that represents

more than 300 companies. it's going to be something they're not necessarily going to be that entlhralled with we have been over the years over the status quo has been dealing with tariffs put on by a lot of our trading partners and our competing trading partners m the status quo, i can see how they like it because they want to keep things as they are and not have any additional problems but does that mean that we should just continue to just be on the receiving end of tariffs? and never try to push back i mean, it would be nice if we had zero tariffs across the board >> you know, i've heard the administration say that was the worst deal ever. actually, worldwide tariffs have

been coming down for the last 20 years. average tariffs in both the developing and developed world have come down even in china. now, we face a lot of other problems in china. and i totally agree with the administration that there are real major problems here particularly in areas like technology transfer, ip, cyber theft, other things. i heard congressman hurd on your show earlier i virtually agree with everything he said that we really need to get tough with china on these kinds of restrictions but he said and i agree with him that tariffs aren't the device to deal with those problems. the better way is to get the rest of the world on our side, push china in the right direction through mechanisms like tpp which the u.s. decided not to join which would have given us a lot more support from countries on a lot of issues related to china like state-owned enterprises

there were good provisions in tpp on that. you know, we need to be able to push china towards better behavior and better norms. but this notion of just disengaging from the world economy raising barriers at home to protect ourselves, the second thing is huge uncertainty for american business. i mean, we depend on global supply chains and inputs for manufacturing. but we've seen, you know, this week we saw 10% tariffs on $200 billion. it's going to go to 25% in january. president trump has talked about another $267 billion we had retaliation on hu.s. exports and they are incredibly important to us. and these tariffs that other countries are imposing our best trading partners imposing tariffs canada, europe, mexico this isnot the way to solve ou problem with china >> what about canada

do you expect -- what's the holdup there is this our fault? why can't they, i don't know, put -- acquiesce on whatever we're looking for to make it a trilateral deal again. what's the problem >> i was a trade negotiator. i know these are tough negotiations and i think ambassador lighthizer is doing a good job of trying to push for a deal they got a deal with mexico. but we got to get canada on board too. that's our largest export market we want this to be a three-way agreement. i don't want to delve into the details of what the sticking points are but clearly there's some major hurdles there for both sides i'm still hopeful they'll get a deal >> we can only hope. we'll be watching. out of your 300 companies, who's the most vocally opposed, do you think? what sector is most at risk, would you say? >> i mean, you know, the

national foreign sector. we have pretty much unanimity on our board of concerns about the direction of current policy. >> anyone saying it will get some time. some of the farmers that are in trump company have said we don't like it, but we understand what's happening anyone with that viewpoint or not really >> not really. i think this kind of rapid escalation is too destabilizing for their businesses you know, if it's a more deliberate strategic process, they would be more willing to do it but the way it's unfolded, it's put them in a way they're not really supportive. >> ambassador yerxa, appreciate it >> thank you when we come back, s.e.c. commissioner robert jackson. he is criticizing his organization for standing on the sidelines as stocks shortchanged

investors. he will join us live right after this cal: we saved our money and now, we get to spend it - our way.

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♪ welcome back to "squawk box. our next guest is calling for changes at the agency he serves. in a recent speech, s.e.c. chairman robert jackson argued that our stock exchanges may be

shortchanging investors. and old policies could be to blame. joining us right now to explain what he means and where this is all headed is s.e.c. commissioner robert jackson. we appreciate him joining us this morning good morning to you, commissioner explain -- we're sitting right here, by the way, at the nasdaq. you have some very tough words for the new york stock exchange and the nasdaq and in particular your own agency about how they have been dealing with these exchanges. >> well, good morning, andrew. thanks for having me yes, that's right. last week i gave a speech where i detailed the fact that we at the s.e.c. have been treating exchanges with non-profit kid gloves for the better part of a decade while the exchanges have been profit making entities. and as you and i know and everyone on that floor with you knows, profit making entities can be counted on to make profit that's why our stock exchanges are structured the way they are with 13 exchanges, 12 of which are owned by just 3 corporate

entities that's why investors are paying for all of this one microsecond at a time. i'm out to change that >> one problem you have is the public and private feeds which is to say there is the public feed which the nasdaq and new york stock exchange feeds to the public the number where stock prices are at any given moment yet there's a private feed that they charge a lot of money for to a lot of private firms. >> well, that's exactly right. here's the key point to see. the exchanges run both feeds that is, there's a public feed that the law requires them to provide for stock prices and there's a private feed they sell for profit. and they run them both that's sort of like letting barnes & noble run our public libraries and then being surprised when there's no books in the library of course there aren't again, that's something that needs to change. >> how would you propose chan changing that? does that mean having the exchanges not be allowed to profit on it

or would it require somebody else stepping in to beef it up if you're looking for a clear separation, what's the answer? >> it's a good question. i think what we need to start doing at the s.e.c. is stop pretend k that profit making entities are going to do anything but try to make profit. every time they try to raise prices on investors, we at the s.e.c. have to approve those filings. what i'm pushing for is for us to get serious about making them show that competitive pricing is driving those requests and if it's not, we can stop them from raising those prices and we should. >> is that an argument for broader regulation where you treat these entities as utilities rather than a profit-driven enterprise >> well, i think we have two choices. either we can have the non-profit exchanges we used to have which we can treat with kid gloves we can think of them in the way of a utility or acknowledge the fact they're out to make profit there's nothing wrong with that. they're designs in ways to pursue profit. but we should treat them like

that we should make sure they're out for investor and not their own pocket >> given most exchanges around the world is for-profit enterprises, has there been innovation in this space because of competition >> well, for sure. and just to be clear, over the last ten years, there's been a great deal of innovation in our stock markets. in many ways, it's cheaper to buy and sell stocks than it has been by answer is there's a great place to high monopoly rents and the cost of connecting to our stock exchanges has ridden year over year at the same time everywhere else in the world is falling. that shows me we might not have the kind of competition investors deserve. >> you talk about having a summit on what the heck insider information in anywhere in the twitter world and what's fair and what's not do we need to have a whole new -- i don't know -- approach to how we decide what you can do

and what you can't do? i'm unclear whether a twitter comment is like a press release. is it? >> it's a good question. i have to be careful, because as an s.e.c. commissioner, i can't comment on anything that might come before us but here's what i will say if all of you who are running this show aren't sure about the law of insider trading, that means the markets don't know the law clearly enough and that's not good for the people that might be informed and in a position to trade that's not good for investors we're trying to protect. and if you're wondering whether it might be time to clarify this, i am too >> the question is therefore why hasn't the s.e.c. issued guidance on this issue yet >> well, to be fair, we center clarified under two rules about a decade ago some of the details around insider trading but i think you might be right, that it might be time for the s.e.c. to dig in on these questions. i can tell you that on capitol hill, a lot of members of congress have suggested it might be time to have -- >> do you have support from the

others to issue on this topic? >> on insider trading? >> on that or the use of twitter and social media by executives >> i should say by the way we have issued some guidance in the area although it's quite old here's what i'll say i know every single commissioner is concerned about making commi concerned maybing sure investors have a plain level field of twitter. i am sure we'll be focusing on questions around how to best define inside trading especially when it comes to use of social media. >> commissioner clayton proposed to modernize the definition of accredited investors, typically somebody having a million dollars or more, want s to lower the bar, where do you stand on that the solution to protect mr. and mrs. 401-k is not put them in private vehicles. we can broaden it without

putting them in is reasonable care -- >> thank you >> when we return, jim cramer will be live from the stock exchange here are the futures right now, we'll be right back. kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.

i want to go low tech, jim, i know how closely you watch that home builder. we mentioned k.b. earlier and i did not look in closely. it matters because people say housing does not really reflect some of the strengths we see everywhere else and we got to figure out why how is k.b. home >> they don't reflect the general part of history. i do think they're also making a lot of per homes that the other major home builders. the hope brothers was on "mad money," the ceo, he was saying things that were really good why does wall street hate us and we are doing well. maybe steve liesman has t

to -- k.b. home is saying come on guys, there are better businesses than you realize. k.b. home is better and not the rest of the business >> it was a fed day and we would be talking about it weeks before and all we talk about today. it is a reflection of the times. you never been that -- you like under line corporate profits more is there anything we need to pay close attention today with powell >> well, i guess what he says about trade and tariff if he talked about general why he need higher rates, you can't look at the two industries that's dependant on as reason why you should raise because both industries are not doing that well. k.b. home is not representative of what people feel in the history which is it is peaking i think housing is good but i defer to the stock market which tells me housing is not good

>> jim, we'll get more from you and filling in all these blanks, "squawk on the street," in a couple of minutes. >> instagram apparently have a drug problem we'll tell you that problem in just a moment. don't ferg to tuorget to tune i today for jay powell's conference, we'll have all of it "squawk" returns in just a moment give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed arr objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. there is a chance that's the last time.

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welcome back to "squawk," instagram pledging a crack down on ads for illegal drugs the network is struggling to delete these content of its own algorithm. liking a post from a drug dealer, facebook tells the paper its ai filter technology is not perfect yet. >> i am worried about liking and retweeting >> i am afraid that i am going to hit the wrong thing when i am reading it >> how do you know that you don't retweet some sicko -- i

saw it in the "times" and someone lodid something and they looked into the organization >> at your apparel >> dangerous time. >> folks, thank you for being with us today. make sure you join us right back here tomorrow. right now we'll hand it over to "squawk on the street. ♪ good wednesday morning, welcome to "squawk on the street," i am carl quintanilla with david faber. jim cramer is in san francisco again attending dream force 18 it is fed day, we have a press conference, we'll watch that along with the potus at the u.n. and a lot more, futures is up about 18 oil is down after the bill on api last night we begin with nike posting