"squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. things were shaping up to look like a mixed picture earlier that's the case now. the s&p up by less than a point. dow down by 4. the nasdaq off by 11 this comes after yesterday's declines in the markets even though we did see some gains in equities after the fed's decision and hearing some of those comments we'll continue to watch this the s&p is now in danger of closing negative for the month of september if we continue on these trends dow has been down for three sessions in a row but still on a positive track for september overnight in asia, you will

see the nikkei was down by a percent. hang seng off by a third of a percentage point in europe, where we are seeing some trading in the liearly hou, the ftse is flat most other markets are down. dax is down along with cac and check out treasury yields, we saw a pullback in some of the yields looks like the ten-year note is still above 3%, but trading at 3.044%. we have a developing story in the energy market reuters is reporting that saudi arabia will slowly add oil saying they may have to limit output next year to balance global supply and demand as the u.s. pumping more crude. wti at 72.33 saudi arabia has been iunder

pressure from pump to halt the recent climb in oil prices >> hour and a half, watched most of it yesterday, the press conference president trump making headlines at the news conference covering a lot of topics, including quite a few in the business world. including the trade war. here's how he characterized the nafta negotiations with canada >> canada has treated us very badly. they treated our farmers in wisconsin and new york state and a lot of other states badly. dairy products, 300% how do you sell a dairy product at 300%? you don't. it's basically a barrier it's 300%, you don't send it in so you can't compete canada has a long way to go. we're not getting along at all with their negotiators we think their negotiation verse

taken advantage of our country for a long time. >> the president also weighed in on the trade war with china. >> with china, as you know, we put out an announcement today, they would like to see me lose an election because they never have been challenged like this but i want to open up china to our farmers and to our industrialists and our companies and china is not open. but we are open to them. >> president trump and japanese prime minister shinzo abe have agreed to start trade negotiations this is a move likely to shield japan from the 25% duty on japanese vehicles and auto parts. it's considered a major concession by abe. here's what president trump said about this topic yesterday

>> we are starting trade talks with japan they were not willing for years to talk trade. and now they are willing to talk trade. and i'm sure we'll make a very good deal. >> trade negotiations have been difficult since president trump withdrew from the transpacific partnership. regarding canada, he said he didn't particularly care for the negotiator, chrystia freeland, and said this offer coming from the prime minister, trudeau, said he didn't take it trudeau's office said there was never an offer made. >> a meeting >> he didn't like her style. >> her style >> her style, too? >> there was the off the record comments that got reported that were -- where he said i'm not giving in on anything. and then i think canada is like -- i just think that they at that point that may have soured things a bit. so they probably -- you know,

even though it's a whole country, there's still feelings, pride can be hurt. i think that that's when it soured it has not gotten better since then if you're not doing anything, we won't be patsies then. he was funny, he said he was calling it the u.s. mc if canada was involved he said that sounds like the marine corps then i'll talk about general kelly, because he loves the marine corps then the c won't be there. it would be the usm, u.s. mexico trade. >> this is a serious issue with canada eric cantor said they are not likely to get the votes from congress if it's just a bilateral deal with the u.s. and mexico canada is important with business groups because there's the supply chain with not only auto companies but beyond that

>> in previous administrations that would have been 30 press conferences. the news that comes out of it. >> yeah. >> the fire hose >> i saw something on twitter yesterday, they said please, my head is spinning, give me the headline from this bhafrnlgts >> what is the headline? >> for us -- >> for the business world what was the takeaway >> we didn't even mention the fed. >> disappointed but okay with it because we're doing so well. they need to raise rates then he said that -- you know, obama had the worst economy in history. he had zero costs on money i got these high costs, we're still -- all that stuff. maybe the -- maybe since china is so important and paramount in the talks -- i don't know if he's my friend anymore >> that's what i mean, there's 27 ways to go. >> our elections

eamon asked that question. did you see the famous eamon javers >> yeah. >> so i don't know he says the evidence will be prepared later then he said they already had a stated objective to hurt our farmers. our farmers are the people who voted for me by just doing that they're not getting -- is that the evidence? they're hurting farmers? farmers vote for me? steams different than putting 100,000 ads on facebook. >> right >> speaking of the fed, a bit of central bank news. >> i spoke too quickly >> i saw something happened yesterday. the fed hikes rates a quarter point to 2.25%, a move the president was not happy about. i want to show you what he said on that issue. >> still doing this. >> they just raised interest rates a little bit because we are doing so well.

i'm not happy about that because i know it's a question i'm not happy about that i'd rather pay down debt or do other things, create more jobs so i'm worried about the fact that they seem to like raising interest rates we can do other things with the money. and -- but they raised them. and they are raising them because we're doing so well. joining us now to talk about that comment and rates and the economy, gary pollack is here, also ian shepherdson what was your headline take away from that whole speech in terms of how the markets -- we'll talk about how to react to what the fed is doing, but how do you react to what the president was saying about this. >> the president has a political agenda he wants to emphasize how strong the economy is and wants rates to stay low so the economy remains strong nevertheless the fed will do the

right thing which is continue to get closer to a neutral rate and then probably stop >> do you buy the argument he took some shots at the previous president, said this is making his life a lot harder does that make sense >> this is par for the course for the president. i'm not surprised. >> ian, you look at where rates are now, you think there's another hike on the way? >> in december and then next year they keep going. >> what's your assumed growth rate at this point >> right now growing 3, maybe 3 and a bit. getting a sugar rush from the tax cuts that probably won't last the trend is 2.5, which is fine. it keeps the unemployment rate falling and the fed is hiking. the fed is thinking the fed is not high enough to sustain the unemployment rate. this time next year it might be 3%, in many ways that would be

wonderful -- >> the other question is the issue of wages, which have moved, but moving gradually. how much is that weighing on them >> it's the overwhelming important variable for them. so right now we're roughly 3% wage growth. when stan fisher, the fed vice chair until last year, he was asked about this he said 3% is where we want to be so more than 3% is where they don't want to be they feel the need to be tapping on the breaks. >> what happened with the market reaction yesterday i didn't understand what markets heard that brought yields down >> i was also surprised at the market reaction. the fed will raise rates five times, get the federal fund rate to 3% so they're telling us they don't think the fed will be able to raise rates five times, they have to stop much sooner than what the fed likes to think they

can do >> why >> because inflation is well contained. i think even chairman powell said it was well anchored. in 2019 growth probably will come down. the sugar rush from the tax cuts will exacerbate. growth will be better. inflation is well anchored >> that sounds like a perfect scenario >> the fed achieved a unique spot in u.s. economic history. we're beyond full employment and inflation is around 2% this is a nirvana for the financial markets. >> the question is it looks like a nirvana now, historically when things look like a nirvana t looks like something else. we'll be talking about this in 12, 18 months. >> if you take a snapshot of where we are today, it's great there's nothing not to like about where we are today it's difficult to hold on to this snapshot and play that

forward into the future without something changing for the worse from the fed perspective that's why they're hiking now, to try to stabilize this growth inflation nexus we have in place. but history says that is difficult. usually they overdo it when they overdo it, they have recession. that's nowhere where we are now. if they are so determined to do what they say they will do and keep raising rates, markets will realize they're serious. what i heard from jay powell is he'll be watching inflation. he'll be watching data points. he's not ready to keep spoon feeding the markets to tell you here's what we're doing for the next 18 months it's not a bad situation >> it's like a throw back to the alan greenspan days. we'll see how things are doing we have these forecast cls s whe didn't have the greenspan days, but they're concerned. the worry is that we never had this unemployment rate falling towards 3% they're worried.

they're scared they wake up one day and say that's generated inflation. we didn't see that coming. >> more people are working >> the market was fine at 3:00 it was up 100 points then it gave up 100, went down another 100. so initially the market was happy because powell removed accommodative. during the press conference he said that didn't mean that we're done, but -- >> he said what would make you raise rates more quickly unexpected inflation >> he said he didn't expect inflation, but powell said the removal of the word doesn't signal a change in the path towards normalizing monetary policy which includes rates in 2019 another one this year and then -- >> the stuff he says sounds so logical and commonsense, i don't

understand why the market reacts like this. >> still it did go down. >> with the fed raising rates five times, they risk inverting the yield curve. when they invert the yield curve, that's another self-fulfilling hypothesis here that maybe we'll have a recession sooner than we think >> we'll leave the conversation at that point. appreciate it very much. gary, thank you. >> gary said it's par for the course, i don't think that was -- yeah. that wasn't necessarily -- you wanted a negative comment. >> i was not looking for a negative >> all he said was -- if you shoot par for the course, it's a good score you don't have to be under par par for the course, he was not playing into your -- >> right y >> you started laughing. >> it also suggests a relativity >> no. no it doesn't

if you ever shoot par for the course -- >> it's a short haole, par 3 long hole, par 5 >> we are talking about courses without the windmills and ponds. >> i like the ones with the double holes you hit it once, it goes down. >> you're the guy on the last hole, you kick the ball, then you start over >> that's -- i don't want to pay for the machine twice. >> right >> okay. before we go, we have to take a quick look at the squawk planner. it's a busy day. huge guests to tell you about. durable goods numbers for august, the second revision of second quarter gdp, weekly jobless claims, that's at 8:30 a.m. eastern time. at 10:00 we'll get data on august pending home sales. coming up, mick mulvaney is here we'll talk trade, taxes and a

lot more after the break plus our guest host will be maggie wilderrotter. if you're a guest host from 6:30 to 9:00 -- i don't know if we've ever done this that shows how big the guest is and how great the guest is if we made other guests bring the type of guests maggie is bringing, we wouldn't have other guest hosts. we have the chief executives from octa, a cnbc distributor -- or disruptor, hewlett-packard enterprise ceo, hershey, compass and docusign "squawk box" will be right back.

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welcome back it appears a government shutdown

la bee has been avoided until after the mid term elections when asked by reporters if president trump would sign the spending package, president trump said he would keep the government running it does not include money for the border wall. let's get to mick mulvaney in studio with us he will be part of a white house economic summit today. you already updated us on south carolina, your homestate tell viewers, things are coming along, but it's tough. >> it is it's always strange when you see this type of disaster, which is a low motion disaster. ordinarily we think hurricanes, immediate impact and immediate damage i think the waters crested in some parts of south carolina yesterday or the day before. a week after the storm it is real if you've been through a flood, i have, the

damage is just pervasive and total. that's what those folks are going through. but good response from state, local and federal folks. the president was down there with fema. it's a disaster, but we'll get through it >> you figured you would take the president at his word, government won't get shutdown, right? >> i think so. what you saw this year was a move in the right direction for those geeks like myself who follow washington slowly the house and the senate passed some appropriation bills they passed a labor -- health and human services bill for the first time in 20 years it sounds like they're learning how to govern again. this was a move in the right direction. still got some stuff to do in the lame duck. there is no money for border security yet which is a problem for us but we decided to have that discussion after the election. >> it's a quiet day in washington you have this white house economic summit. is that going to be televised? i don't have anything to watch today.

>> i think you'll have to go to white house.gov to watch us today. >> everybody probably will >> i think that's it >> i love the fact -- >> i canceled the rest of my day. >> it is important you will have linda mcmahon, larry kudlow, secoretary mnuchin will be there. is it a look back at progress made or a look forward >> a little bit of both. we'll talk about what happened over the last 18 months, but keep in mind the house is discussing this tax package 2.0. and in the next week or two we'll introduce the fall deregulatory agenda, sort of a score card what we've done and what is the plan for the next six months as far as deregulation goes. it is a bittal bit o little bith i'm glad we're doing it today, it shows people that government

marches on we're there every day doing precisely this stuff >> when brady is on we ask about the water cooler issue of the day. this glaze comes over his eyes all he can think about is tax reform 2.0 the only point i would make is that we always talk about tax reform, how that has helped, i don't know, spawn this growth in the economy. almost unprecedented things are going very well everybody says you have to take into account deregulation. we still have people saying deregulation, i'm not sure it's that important you make the point that you added zero in fiscal year 2017, trump administration added zero in regulatory costs this year. that's easy to say, but for eight years in the obama administration, literally billions of dollars were layered on >> the net present value of the regulatory savings was $8

billion. >> for that year >> we lowered the regulatory burden >> it used to be you would add 8 billion. >> that's correct. >> how much was added in >> i think the last eight months of the obama administration it was 8$8 billion. the president said a lot of people pay attention to two out for every one new regulation in, but people should pay attention to the zero regulatory budget. we told the cabinet secretaries that you can't put a new reg on putting on a cost without getting others off >> when do you cut into the bone and we turn into chaos regulations are there for a reason >> sure. when do you know the pendulum is swinging too far >> nowhere close to that yet what the previous administration did was do a bunch of stuff they were not able to do legislatively. >> andrew wrote too big to fail.

>> i worked for one agency that exists because of that when you rush to get stuff out the door, that's when you make big and bad mistakes they were not able to prasass a significant piece of legislation, and they focused on the regulatory issue >> is there any piece of the financial world that you think is underregulated? that you look at it and say, actually, they might have gone overboard on this side we'll work on that but there's one component that i think we're not focused on >> you and i started this conversation last week enjoyed you coming down to washington and talking i'll give you an answer off the cuff, which is always dangerous to do. student loans still bother me. if you ask me are student loans regulated enough, i don't know if that's the right question, but i worry that the entity making the loans is one of the most irresponsible entities making a loan, the federal

government if you sit back and say do we need more pro sis rulprecise ruo do something, that's where you start. >> there are a lot of grea things happening in the economy. one that could be a problem is what happens if we don't get trade deals. nafta is a big one the president talked about that yesterday and said that trudeau even turned down a meeting what does that mean for people watching this program who are either big businesses or labor unions that support that what should they think is coming >> a couple different things number one, when you look over what the administration tried to accomplish in the first year and a half the regulatory agenda was fairly easy. we could do most of that ourselves. taxes was more difficult we had to get congress to help us and go along. trade is the hardest one you are trying to get other countries to change. >> and then congress >> yeah. it's tough to do

it's a problem look what the president did at the g7, he walked out the door and said heaters the deal, zero tariffs, zero nontariff barriers, zero subsidies, let's go everybody looked at their shoes because they knew they could not do that. when the president said that anded ka nacanadians acted like, it showed this is one big negotiation. in this negotiation, i will take the president at his word, not going as well as we would want the mexican stuff is going fine. the canadians have been tough to negotiate with that's the real world. the president will get a better deal or else >> eric cantor said he didn't think congress would pass a bilateral deal with just the u.s. and mexico. >> i don't know where they are on trade there's republicans pro trade, anti-trade the president is not anti-trade. are there folks in the

administration who are more anti-trade than i am absolutely canadians could solve this right now. they could say we'll take that deal zero, zero, zero, let's go that would be a tremendous result and everyone would win don't think we'll get there. this is a specific question, cnbc did a piece on a company in your district, a television assembly company >> elements electronics. >> did you have anything to do with the exemption on tariffs with them? did you work some magic? >> politicians love to take credit for stuff like that, but no, i pointed them over to the commerce department. but the components they were buying and assembling over here,

the components had a tariff on them but the competing chinese finished televisions didn't have a tariff on it i would say i pulled a lot of strin strings, but no. >> so you don't pull strings we pay these agent fees, but they're not deductible anymore could you make those deductible again? >> i think we're not getting that >> did brady give you that same glazed over look >> he did. i also asked him to make new jersey state taxes deductible again. >> that's not going to happen. >> so you don't pull string. >> no, we try to shoot down the middle >> that's one of our one percenter problems >> the problem with the new jersey taxes is new jersey, not the federal government >> it's new jersey all right. i once asked the governor if i could have an e-zpass lane so i ask for things. >> he didn't get that either

>> you don't get it if you don't ask. >> in joe's case he doesn't get it when he does ask. >> an eas e-zpass lane? >> i'm thinking bridgegate >> it wasn't that governor >> when we come back, our guest host maggie wilderrotter will join us. they brought a lineup of guests along with us including the ceos of okta, hewlett-packard enterprises. maggie wilderrotter coming up next cal: we saved our money and now, we get to spend it - our way. ♪ valerie: but we worry if we have enough to last. ♪ cal: ellen, our certified financial planner™ professional, helps us manage our cash flow and plan for the unexpected.

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back three retail stories are topping our headlines. shares of bed bath & beyond under pressure falling 15% after missing profit and sales expectations for the second quarter in a row. analysts were looking for a slight increase of 0.3%. it is also cutting its full-year guidance to the lower end of a

previous range >> they came in with sales that were flat. to see your earnings get chopped in half, it's because they're putting a lot of major investments into things like online the street doesn't think those investments will pay off >> aldi's company is trying to do that. >> shares of h&m are jumping in europe today the company is reassuring investors it will not have to cut prices to move unsold clothes, despite reporting a 20% drop in second quarter profit. analysts point to a slight beat on gross margin and see improvement in supply chain issues amazon is opening a new store in new york's soho neighborhood that sells items from its website that are rated four stars or above. the store opens today. the spokeswoman says it is a permanent store, not a pop up. amazon has a handful of book stores across the u.s. and is opening cashierless grocery

stores known as amazon go. this is the first four-star store. it's like a reverse pacman disrupting the opposite way. u.s. equity futures have turned positive the dow is up 18 s&p up 3 wow. the nasdaq and the dow up almost the same amount. went to positive to minus triple digits on the dow during powell's press conference yesterday. a quick update on the oil story we tol reuters reporting that saudi arabia will quietly add oil production after a drop in iranian production saudi arabia is said to be willing and able to put as much as 550,000 additional barrels of oil on to the market if demand merits it. wti crude is up over 1%, 72.34

saudi arabia has been under pressure, as you know, from president trump to halt the climb in oil prices. when they dropped, he took credit for that and thanked them it will be interest tock see what happens on the way up the other way. our guest host this morning it maggie wilderrotter, they is very active and sits on the boards of four public companies and also on the boards of four private companies. great to see you >> great to be here. thanks for having me again >> i was looking at the companies where you sit on the board, it's companies that are very varied in what they do. everything from costco to hewlett-packard enterprise, which will give you insight into business confidence. you're the perfect person to sit down with us and tell us what you see across all of these things when it comes to confidence levels. we continue to see new highs for consumer confidence. we see strong levels of

confidence from ceos what do you see? >> it depends on the consumer, it depends on the business for example, if you look at retail, costco has continued to do extremely well in a very tough market meaning there's a lot of disruption going on in the retail space but they stick to their knitting, they're focused on membership and taking great care of their employees and being disciplined about how they merchandise. they merchandise like no one on the planet because of that they continued to grow every quarter, and they're a big company. on the flip side, on technology, also being disrupted, new entrants to different layers in the stack whastack what i've seen as hpe is how nimble they have gotten. we as a board took a pivot on the strategy, sold off businesses that were not in our sweet spot and doubled down on hybrid i.t. which is about cloud

and non-cloud infrastructure, being able to manage both for them and the intelligent edge. i know when antonio neri is on the show we'll get into that more >> how a company operates is always the most important thing no matter what the environment is what would you say about the external environment that is facing all of these companies today? just from your areas of doing this, how does this match up >> i will tell you, you know, we went through a number of years before the republican change in the white house where businesses were eking out, growth was stagnant, but companies got really good at managing their businesses, getting costs out of their businesses, really focused on the bottom line now that regulation has eased, the markets are doing better, the tax cuts are building confidence in businesses to reinvest we're seeing explosive growth businesses have also not taken

their foot off the pedal of managing costs in their businesses at the same time. >> you were right, that was a great eight years. all these companies who think they were so bad that they had to get really good at thwhat th did. they had to cut costs, then when you take your boot off the neck, suddenly they're -- you know what i think there was more to this than incompetence -- >> don't take that bait, andrew. on the flip side there is trade, tariffs. >> but as you were saying t i started chuckling. >> yes >> i was thinking i didn't give him enough credit for how they managed that and came along. you had a different take >> was not my take, i'll leave it there >> they're totally springloaded for good times >> they were prepared to take advantage of upside, no doubt about it

>> springloaded. >> a method to that madness. >> what does that mean when it comes to trade and beyond? >> in business only the paranoid survive. we are always worried what will happen with trade. we don't like uncertainty in business, nor does the markets the market has done so well for so long. we had such a big bull run when do the skids go on that i think businesses are cautiously optimistic but taking the risks. >> mick mulvaney was here and talked with us a bit about what it means when we have trade agreements that have not necessarily been the best for everyone in the united states. is business worried because it changes the status quo, creates new winners and losers or because there's no clarity >> i think it's more about clarity. i don't think any in the business community thinks he would have been fairly treated worldwide from a trade perspective. there's been a deficit for a

long time in many countries, and many of those countries have grown to be very powerful in the world. so level setting is important to do but it's where we level set, go to the mat >> zero base budgeting and starting over? >> exactly >> all in all, if you had to kind of say where things are, you said it's a perfect situation, there are some bumps on the horizon, but what would you say -- i still take away you think this is an incredibly positive time? >> i think it is if i look back over business in my career, 35 to 40 years, it's a good time. there are tailwinds now for business i think that the other thing that's happening is business has to be more reactive quickly. the cycles are shorter on everything >> we are lucky enough to have maggie as our guest host for the next 2 1/2 hours we have her here for longer than

the average guest host >> the companies you're involved with, phenomenally cutting edge in terms of innovation and technology we deserve productivity increases from what we're able to do. we're moving breakneck pace into these areas, maybe productivity is the missing link for why we can't grow faster. everybody says we're stuck at 2%, maybe it's the productivity from the innovation side that helps us grow? >> i think it is i think there's a perception from consumers and businesses to embrace technology more than in the past >> i'm getting it. you can help me. coming up, more to come, the ceo of cloud computing company okta -- >> you're right, it's okta, like octane >> a disruptor they are up nearly 200% since april of last year

at the top of the hour, the ceo of hp enterprise will join us for his rst teiefiinrvw in the united states.

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time for the executive edge. uber has agreed to pay 1$148 million to all 50 states and the district of columbia after the company failed for a year to notify drivers of a data breach. hackers in november of 2016 access the data for roughly 200,000 drivers in the u.s uber said it paid $100,000 in ransom for the hackers to destroy the stolen information uber agreed to pay the settlement and take steps to tighten data protections we should say because maggie is here, and she mentioned it to us, you're on the board of lyft. >> the good guys >> that's how you positioned yourself thus far. where do you think the competition lies right now

both of these companies are still not making money it's surprising in that business -- these are not startups this have gone on for quite some time >> it's about investments in the business also for expansion. it's a very small percentage that still do rideshare, there's a big market out there i know at lyft we're investing in our drivers, investing to give a great experience to passengers we think end to end about a platform of sharing, whether that's bikes, scooters, cars, autonomous vehicles. so there's a lot to stay up with but they're growing. market share is growing, and they're disciplined. they stay focused on the united states and canada with a right to win there before they go somewhere else >> we'll revisit this. first the ceo of cloud company okta is here the company made the disruptor

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300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me retirement is protected. annuities can provide protected income for life. learn more at retireyourrisk.org the fed has been gradually returning interest rates to rates that are healthier >> how does the level of the market factor into your decisions? >> we do take financial decisions into consideration the answer is, we take everything into account.

for some okta is a company you may not have heard of unless you watch "squawk. mgm resorts, adobe, they all use okta the company was number 38 on the cnbc disrupter list before graduating joining me is todd mckinnon. he's the co-founder and ceo of ok okta good morning to you. we talked about this before, in terms of explaining briefly what okta does in allowing workers, employees, to access different services >> yeah. so, okta, our platform is called the identity cloud and what that means, it's a cloud service that connects all of the technology you that can use at work or a customer uses on your website and makes it easy for them to login and makes it secure and gives

company visibility >> let's show what's happening with the stock it's been a remarkable performance and continues to grow it's been a rocky ride, though, in terms of true movement. we're just looking at -- >> just -- >> just the week >> a great performer >> that's a much better chart. much better chart. >> you know, they reported earnings, since they've been publicest quarter. they've met or exceeded expectations so, you should talk about what drives that success. >> yeah, so, we were very fortunate that we were really in the right place at the right time in terms of what's going on in the world every company is thinking about how to use more technology, how they can do it securely and be the most productive in the environment. >> what i don't ask you every time i see you, why the microsofts of the world and amazons who are trying to build this into their stack, right, their current service, where you fit long term? >> i think this generation of

technology cloud and mobile is different than past generations. in every generation before, identity and identity has been part of other platforms. whether it was windows or whether it was oracle. and now the pervasiveness of everyone needing to connect to everything and everything going online and everything mobile has made it identity has to be its own platform because you have to be able to trust identity to keep you to what you want to use and you're not beholden to any one great factor >> and talk about it, todd, you're not an island in the world of cyberprotection >> yeah, everyone wants their choice of technology and with choice comes disparate systems you can get that choice, that right technology for the job, while at the same time making that experience amazing to be using for your customers that access your system or employees. >> when you think about growth,

where's the next leg come to you? >> the prospects are tremendous, both in, you know, the united states, north america, and internationally, internationally, this is like a worldwide movement and in a lot of ways we're just scratching the surface >> talk about the pivot from small to medium businesses to enterprise >> we're about the cloud, we help them build better customer websites and mobile apps these are being done by companies of all sizes, whether you're a global 2000 or smb. we can help them all we need a cloud platform that can reach to the largest companies in the world and smallest businesses. >> that's great. >> todd mckinnon, thank you. when we come back, we have much more from our guest host maggie wilderotter, up next, we're talking to the ceo of hp enterprise and later, hershey ceo's

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on everything, from nafta, to china to the fed we have a full wrap-up of his comments coming your way today's guest host former frontier communications ceo maggie wilderotter is here to sound off. by the way, a few guests the ceo of hp enterprise is here and the ceo of hershey's will talk sweet snacks. and everybody off the bus. fortnight season 6 is here grab your chug jug and get to the circle as the second hour of "squawk box" begins now.

♪ start me up start me up live from the beating heart of business, new york. this is "squawk box. good morning, we're back to "squawk box" right here on cnbc. we're live at nasdaq andrew ross sorkin along with beblgy quick and joe kernin. the dow opened up about 30 points higher. s&p about 4 points higher. nasdaq, 20 points higher a couple headlines right now a day after the fed raised interest rates, investors have a slew of new economic data that's coming out as they try to figure out how fast rates may rise, in 90 minutes beginning the second part of the gdp. the weekly rates also august durable good orders. and then oil prices they're near four-year highs this morning we'll tell you what's happening here, but some extra supply may

be coming on the market. sources have now confirmed to cnbc, early reports that saudi arabia is ready to increase production the saudis are finally willing to put as much as 350,000 barrels a day on the market. depending on demand that could cause conversations with president trump who is trying to keep the price down this morning. at $72.35 and retailer, bed, bath and beyond, joe, what we're going to do this afternoon >> i know. >> checking out new britas and vaporizers >> heavy duvets. >> travel size everything. >> maggie wilderotter is our guest host she continues to be with us, jumping in on all fun conversations. the company bed bath and beyond

jumped 14% revenue below the forecast for the household goods retail posted an unexpected drop. you're looking at that now down 16%. joseph, we're not buying enough. there's too much browsing going on and browsing on amazon buying it that way. >> lookie loos, that what we do. >> key is, you need to get a life >> we do -- talk to him, we both go. >> yeah. don't you just love to walk around bed bath -- if you actually get into bed bath, you can't leave. >> i know. >> so there is something going on there >> i have a life let's tell you about other headlines, president trump sounding off on everything from china to nafta to the fed in a news conference in new york yesterday. the president taking new aim at canada, saying he's considering more tariffs against our neighbors to the north as nafta

talks stall. >> we're thinking about jut taxing cars coming in from canada that's the mother lode that's the big one we're very unhappy with the negotiations and the negotiating style of canada. we don't like their representative very much they've taken -- i love canada, by the way i have ohm friends i have everybody so many friends. but that has nothing to do with this i'm representing the united states >> president trump also talked about china. he said he plans to call chinese president xi jinping later today and call out china for trying to interfere in the midterm elections. >> one thing they are trying to do is they're trying to convince people to go against donald trump. because a normal, regular, political person that has no concept of what the hell he's doing would let china continue to take $500 billion a year out of our country and rebuild our country. our economy is hotter than it's ever been. i don't know if you saw the confidence levels this morning

that just came out fantastic. >> and the president weighing in on the fed and the rate hikes. >> unfortunately, they just raised interest rates a little bit because we are doing so well i'm not happy about that because i know it's going to be a question i am not happy about that. i'd rather dpay down debt or do other things, create more jobs so, i'm worried about the fact that they seem to like raising interest rates we can do other things with the money. but they raised them they're raising them because we're doing so well. >> time now for our squawk ceo with the leader of the $24 billion enterprise company hewlett-packard enterprise which spun off in 2015 antonio neri, great to have you here, guest of maggie.

a short spin, about six months, and you've done all kinds of things in terms of refocusing. selling some things, refocusing the core businesses, i guess, to something we're going to talk about. we've already discussed it a little bit, hybrid i.t >> right >> and edge computing. but just talk about, you're an engineer, and it's been a while. it's been five years since hp got back to its roots. william and david they were both engineers to start it's like returning back to the future, sort, for hpe with you >> well, it's been a remarkable journey for me, personally, i've been with the company 24 years, i joined hp as an agent. but i'm an engineer by trade and i use technology but i like to use technology to disrupt things, to change things and we have a clear purpose for

the company which is to advance the way we work. >> it collaborative with you and the board and everybody else with decisions to jettison parts of the business? >> absolutely. absolutely and when antonio was president before becoming ceo of the company, he was actively involved in managing the implementation of all of the decisions we made as a board you know, we spun off and created huge shareholder value you should talk a little bit about some of the opportunities. now that we've simplified the business in a big way. >> yeah, no, listen, we have gone through a remarkable transformation to make maggie's point. we no longer claim the shareholder value. we took away from the focus, we live in an incredible time everything is changing we're at an amazing point from business standpoint, and from the technology standpoint, that's where we live the digital life that gave us focus and that's where my focus is, to drive the company to the future where we

see the ability to compete that's why we talk about hybrid cloud, the intelligence edge we're so much safer today where we have to put to work and that's what i'm doing. >> you respond to the market and where technology is headed and picking your spots >> it's not just the market force. it's the fact that customers are looking to us for solutions. this is how it comes >> antonio, talk a little bit about the cloud and noncloud environments of these big companies and how hp helps them. >> yeah, no, i mean, customers are going through transformation of their own data centers and implement the cloud. cloud for me is an experience and a way to deliver services faster and the reality, they have to live in both worlds. the traditional world where they have a lot of legacy applications and obviously through new apps to deliver the business results they're looking for. so, we help them implement the

right hybrid strategy which is basically find the right mix, design the right mix and operate the right mix. that's the factor that they're going through today. we think about the future it's going to be a cloud-enabled enterprise and that's the opportunity because 75% of the data we generate today is not in that data center. it's not in the cloud. it's where we live and work, here >> i agree with that, and the manufacturing centers won't send data to a data center, it will be right there with the equipment in the facility. >> like the edge on your phone >> that's the edge, yes. >> a lot of it, we have to say everything computes. and so, you know, as we the manufacturer world, the world get s digitized. the question is how much do they want to transfer to a big location, call it the cloud.

whether it's your center or somewhere in the cloud >> is there some latency issue in terms of why you wouldn't >> it's a combination of things. latency is one factor. compliance is another factor security is another factor ability to transfer realtime is another factor a lot of things come together. when you talk about physics, it's easy to compute where the data is not where the data of the computer is. >> what do you think is the greatest competitor today? >> i mean, i think, you know, to maggie's point, we work together on a strategy that takes us into the future >> right >> and we have been very deliberate about it. so, on the cloud business, we know everything gets in the sense that infrastructure matters but the ability to do it in an intelligent way, applying machine learning, ai, technology tools. >> what do you mean

infrastructure matters? infrastructure of companies building their internal? >> well, infrastructure in a sense that you need to have an infrastructure to run your software, obviously the way you interact your infrastructure matters. >> you should talk about the consumption model that you just unveiled, antonio. >> yeah, so with infrastructure runs your data, where you want the data to set and where you want to run the apps >> and do you think of yourself as a services business effectively and then i think of an ibm which is trying to put together an architecture, lots of different pieces, right and then like the classic cloud, the google world, that doesn't have the services layered on if you will and you're probably working with them as well. >> yeah, they're big customers >> my question is do you think that the googles and the awss of the world ever try to

effectively clareate their own services piece so they're doing what you're doing? >> i think we have tremendous partnerships with some the cloud providers, and the solution integrators, the bpo, business process transformation, and the we bring the software to run it for them for us, it's obviously, the infrastructure plus the software running. >> and the services, yeah. >> if you think of we're on the side of revenue today, it's actually services and work that we focus on but to maggie's point, the consumption base model, i support the group 100%. this is something that customers are looking to consume technology >> and we also allow them almost pay as you go so you don't have to buy everything up front

and as technology continues to evolve and change, we can swap things out for customers and it didn't hurt them financially >> you think about the cloud it was easy to use, the simplicity to consume. and so, our job has been how we bring that cloud and experience and economics in a hybrid world. when what we call on-premises, on the data center how we get to the specifics. >> just are people worried about a slowdown of storage at the company in the third quarter, even though that's a. >> reporter: robust marketplace? >> yeah, actually, you have to look at the whole year performance storage for us was 1% year-to-year growth but as you recall, we said it would be tough to compare because we had the acquisition that were lacking. if you look at the total, our storage base is up 16% and when you look at what we call a specific way to deploy,

hybrid merge, our storage is up 28%. i have to say, i'm pleased about the performance this year. we're growing the company, we're expanding profit almost five times faster and we're innovating the data that the customer is asking to us focus on so we continue to drive the next shift which is deliberate >> so, you announce the partnership of the world economics, i guess you're going to davos >> reiff been there. >> we'll be there. so, you know, what to expect >> well, it's tech companies doing well >> i know. but we need guests so you'll come on. >> sure. it will be cold outside. >> it will be cold, but much later in the day >> okay. >> i guess we're going >> well, we did a great thing with the world economics forum we launched tech impact 2030 listen, we have an obligation to work together between the government and the private

sector and the technology companies to solve the biggest problems we launched this partnership and we focus on one thing right now which is our culture we had 800 million people on the planet starving how we use technology in solutions to produce food in kind of an environmental way so that we can actually solve these problems together and it's perfect for our purpose, you know. >> absolutely. actually, we like davos, we used to be they were called tops and bottoms in the market. but everyone's positive. and it turned out that things were positive. antonio, thank you thanks for being here. >> thank you for having me >> thanks, antonio keep up the great work >> thank you coming up, when we return, the fed's decision to raise rates for the third time this year indicating there is more to come we're going to talk markets and investments. and later, the sweet

business of hershey. the ceo is going to join us. you're watching "squawk" right here on cnbc hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab.

welcome back, everybody.

let's talk about the markets right now. tom lee, managing partner. gentlemen, welcome i want to run through what the fed said yesterday and what it means for each of your markets tom, why don't we start with equities it was a little bit of a weird reaction it sounded like it's what exactly the markets were anticipates. we saw it go up and give it all back i couldn't figure out why because powell's comments to me seemed pretty innocuous. >> yeah, i think that's right. it's as expected and i guess i'm not a little surprised we're selling on the news. >> you're not surprised? meaning a little hawkishness on expectations built up over time? >> yeah, and i think it probably adds to the clouds 2019. this year, markets have been narrow 77% of managers are missing their benchmark. i think between now and year end, it really has no effect

i think if people think of the path of rates next year -- >> two, three, four, five rate hikes? >> yeah, that's right. >> and the market is expecting -- it has lower expectation than the reality is going to be next year? >> that's right. and even uncertain expectations. but in the meantime, you know, the economy's great. i know you guys had a discussion, i completely agree that ceo confidence is really strong i think that's the most important thing to focus on. businesses have very few regulatory restraints. i think profit growth is going to be strong but decent next year >> is that also based on what you think capital expenditures will be for companies? >> yeah, there is pent-up demand depreciation has been higher than capital expenditures for many of the years2009. we know there's pent-up demand for businesses to expand and service action for oils is really a stimulus for cap spending and a decent cap xl look as well

>> let's talk about the bond reaction, that was a little strange watching what happened to yields. they'd been pushing up 3.5%, finally looking at a move to get there. and then yields coming under pressure yesterday even though the chairman said, look, he's goings to do what the data tells him to do >> yeah, i think we see the bottom of the market with the yield flattening a little bit on the announcement, the press conference, like why, why does the fed need to raise rates this fast especially in a benign environment. you look at growth expectations. they start to fall off this year into next year in that type of environment, if the fed is going to continue to raise rates, i mean, the likelihood of inflation showing up very, very low. >> so, where do you think the yield is going to be for the ten-year, let's say, over the next six to 12 months? >> i think we'll probably get a little bit higher, but not a lot higher i look by the end of next year, maybe we can push it up to 3.5

but i don't think much higher than that. >> tom, what does that mean for equities because that's not a lot of movement that's not making bonds look that much more attractive. >> yeah, i equities are still the best place to be because you can get real return on earnings and they've got pretty good yields and i don't think valuations are that expensive. i think what investors have to ask themselves, some sectors that are expensive, tech i think that's the shift >> tom, bitcoin, what do you think? >> i like bitcoin, i think it's held 6,000 which is a break and mining costs and catalysts here, they exchanged ice back and google has lifted those ads on cryptocurrency ads i think there's catalysts.

>> don't you think there's a lot of volatility, still, though, in that whole area to shake out >> yes i think, in fact, volatility is probably what makes it attractive for macro funds because macro funds like to trade volatility crypto is sort of a place that you'll see institutional money move to. >> thomas, thank you, and also brian who joins us from wells fargo investments institute. when we come back, season 6 is here. what you can expect to pay for epic game's latest edition of fortnight. amazon's new store is open for business and has twists. we're going to explain in just a moment time for today's aflac trivia question. what is the best-selling perfume in the world the answer when cnbc's "squawk box" continues no-good break. gooood break.

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now, the answer to today's aflac trivia question. what is the best-selling perfume in the world the answer -- chanel number 5. when we come back, a rare television interview with michele buck, ceo of the hershey

company. she will join us in a "squawk box" exclusive right after this break. right now, as we head to the break, let's take a look at u.s. equity futures higher dow up by 16 points, s&p by 15 nasdaq up by almost 20 "squawk box" will be right back.

good morning, and welcome back to "squawk box" right here on cnbc. we're live at the nasdaq market site at times square among the stories front and center, managed care wellcare health buying aetna unit terms of the deal not disclosed, wellcare up by 2% this morning the national association of realtors set to release its latest home sales. not yet closed, expected to drop by 0.4%. the report by 10:00 a.m. eastern time and drugstore chain rite aid

has announced he's separating the ceo. bruce bowden will be the chairman and amazon in its latest push, joe, is making one into the brick and mortar world today. opening a new store in new york, it's going to be called amazon 4-star it will make new devices like speakers and kindle e-readers. on amazon, of course, that bookstore which i believe is in the time warner center right now, but this is the first one that's not a bookstore and there's lots of other items. by the way, the bookstore has lots of other items, too maybe they're kind of playing around with it epic games fortnight, the new season is here that means battle goodness is coming along with it

the battle pass arrives with a fresh halloween horror theme the pass offers players 100 unlockable tiers more than 100 items in the unlocked gained by battling stars which the players get by completing challenges or earning experience during the battle the battle royale matches that they play. >> you have no idea? >> no idea, because last night on "jeopardy!" there was a game segment, and one of them was the -- the answer was battle royale that's when a lot of multiplayers are playing the last person to survive that's what it's called battle royale season 6 battle pass is available in fortnight's in-game store for 950 v-bucks or 9 1/2 dollars. and it also offers up a free version of the pass which is an entirely different award so those who don't want to pay can earn something in the month of august there

were over 78 million fortnight players. including the segment producer, the producer of this hour, apparently, matt, because who else would have written that much stuff about fortnight and he's also the guy that plays the cheer song friday. >> that's a good cheer for the first time ever this week on the cover of "espn magazine" is e-game star it's like a true athlete i believe his name is -- he plays 12 hours a day he makes about $500,000 a month playing. he's got 11 million followers on twitch and 8 million followers on youtube. if you done think that e-sports is a sport, it's at least a business >> it's a huge business. and it's also a big draw, especially for young talent. it's a way for people who can't

perform on the field can perform on a different field >> i think that's a disk >> the real field. >> yeah. people talk about substance abuse and steroids in regular sports >> yeah. >> huge issue in e-sports, as it happens. >> just to stay awake. >> yeah. >> stay motivated. >> exactly >> and talking about steroids -- >> to enhance my performance >> you're talking about enhancing. >> you have to focus for 12 hour >> no i understand, yeah >> caffeine. >> we've had the gentleman on -- packed stadiums full of people that watch people play you say this guy's name is ninja. >> i believe -- i'll tell you his real name. i think our producer knows who is it, matt? tyler -- what's his last name? >> bltyler bleven phoknown for reece's kit-ka,

watchamacallit, any bar you can think of, the hershey company a $27 billion snacking ports fellow yo. joining us is michele buck she is the ceo of hershey company. michele, you may have the greatest job on the planet >> i absolutely believe i do people i meet everywhere tell me connections with our products and how important brands have been in my life. >> i can tell you right now, i have got hershey kisses and bars back in our cabinets back home the kids love them but i also know brands are changing i didn't know skinny pop is one of your brands and i knew crave the jerky was. how are you reacting to that >> as a company, we focus very much on consumers and how they're changing their eating habitses

consumers are snacking more and more and we're in a perfect position to take advantage of that. many people may not know and they think of us as a confection company. but if you look at our business, we've really been a snacking company since our inception. and we have deep consumer insights about how consumers are snacking and what we're really trying to do is look at how do we leverage and capture more incremental snacking occasions >> you call it snacking, which is great it's catchy. i know as a consumer, just like what becky is saying, if i'm in for something important, it's kisses but when i try to be a good snacker, it's skinny pop. >> by the way, the ceo of costco always has a bag on the desk, too. >> i love to hear that >> tell us about that relationship that you have from a distribution perspective because that's also changing? >> yeah. let me start with our port joel faux, our first priority is our confections. consumers are doing permissible

snacking as you said, to capture morning, afternoon, evening occasions. >> midnight snacking >> yeah, midnight snacking we think the perfect opportunity to offer confection brands and then some of more permissible snacking we need to win in bricks and mortars and the digital space but really, it's one continuous journey. most purchases in store actually start with a connection with consumers online looking for information about what they want to buy we think we're well suited to take advantage of this our category insight relative to managing the shelf if you think about it, digital shelving, digital commerce is very similar to brick and mortars. in that there is a shelf, there is a shopping cart >> i think it's good in my mind because i'm not walking past the candy aisle. >> well, it's just different you got the shelf, the cart and

now it's in your pocket. and now you look at the screen and say how do you capture that consumer so, the equivalent of eye-level at shelf is what you show up with >> right now, it's market cost online versus off is what, in your mind? >> is so, our margins are comparable, online versus offline, which is a myth that people have that it's a much better opportunity online. but it's really not the case it's a different business model but we thought thoughtfully about how we capture that? >> is there anything that your offline will actually be the lower version because brick and mortar stores are going to use that effectively for your product to get you hooked and then you buy it online that seems to be the way this all heads, no? >> we'll see how this unfolds but i'll tell you right now, one of the things we love about our retail world, it's a very profitable category.

we continue to look at our model in that way. >> so, you're coming up to your holiday season halloween. >> yes >> what's your prediction in terms of what's going to be hot this year? >> well, right now, it looks like a good holiday season for halloween, we had an excellent sell-in. right now, the proprietary force is in the stores, helping to build the displays one of the hottest new items is chocolate in glow in the dark packaging. you can imagine people are trick or treating and now they've got the glow in the dark package in their bag. >> i need to see that pop snack mix. and that payday for my indul indulgence >> there's a reece's peanut buttercup. >> and pop -- >> popcorn in there. this is a great opportunity to

taking our brands and fixing them with pretzels and peanuts a satiating snack. >> i'll tell you, i ask every developer, for the snack that comes in for the holy grail, if it can be done, the fountain of youth and then there's the carb-free snack. you know what people told me, pork rinds i can't eat those things let's say i'm starving myself of carbs, i have one carbs that ruins everything >> the the kketose >> do i go for jerky >> yeah, if consumers are looking for their indulgent hit, they look for the reece. >> what about the skinny pop >> the skinny pop is actually a good choice. >> you see, you got to keep working on this. >> crave jerky, protein snacks

>> you've become an iconic ceo growing up in in hershey as well you've really pivoted the company since you've been ceo. what do you see for the future you've done acquisitions, you've gone organic what does it look like for you >> we continue to be focused on that innovative powerhouse solution we're on our way there in the correspond ce confection. our recent acquisition of pirate's booty we have done work to be profitable so we're seeing good progress there and then we'll continue to operate in a way where we give back to society. it's in our dna. for citizenship. >> and doing it with the farmers. >> that's right. it starts with our founder milton hershey, and she was one of the greatest social entrepreneurs of all time. and really started the company and left the company in trust

for disadvantaged kids >> michele, we'd love to have you back there's a lot to dig through >> you don't eat all of this stuff either >> and i enjoy it and continue with the snacks. michele buck is the ceo of the hershey company. >> definitely not over our limit for what we can accept >> no. >> okay. >> eat some and then you won't be -- >> it's very dear -- can i have that payday. thank you. when we return, i had my eye on this, i'm collecting things over here. real estate platform announcing a new round of funding $4 billion anyway, we're going to ask the company ceo about the new investment and business plan when we come back, "squawk box" will be right back [knocking]

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memories. what we deliver by delivering.

box. real estate tech company compass has a new funding round this morning. $400 million raise $4.4 billion i remember when he first came on joining us now, compass' founder

and ceo, i remember when you just started you were the chief of staff for gary cohn at goldman sachs. >> that was good training, huh >> when we were first here, $125 million round. >> what was the valuation? >> $120 million. we're announcing a $400 million round which helps us accelerate the market share by 2020 and we're going to announce ahead the first international push >> and you've got a push from south bank as well bought they've been a supporter of yours and backer of all of this. i want to talk about real estate and prices across the country. just on your business and in particular, it is growing exponentially, but growing at a cost as well i just want you to talk about that because there's been a number of different articles how you're growing you're spending a lot of money, i don't want to say you've become a rollup, to having to

break into the markets you're having to buy automatic a lot of competitors effectively or pick offer their people >> we're building organically, one by one, but we have started a strategy in the last six to eight months you can't buy companies and can't buy people you have to want to be part of their vision, they're coming here because they think we can create a future. >> when you first started, first of all, it felt like it was more focused as a technology company. it was going to help renters you pivoted in many ways it almost felt like you were going to become long-term just the largest straight-up real estate agencies in the country in a more classic way, backed by technology but is that a different sort of flip in terms what the model looks like >> so, there are 2 million agents in the country. they have the largest group of entrepreneurs in this company. we have 7,000, 8,000 small

business owners that rely on us every day like twitter the foundation of compass with technology will be more in the future >> real estate prices. we're here in new york city. and you look at the stock market you hear about everything going so great economically. and yet, real estate prices in the city are getting knocked down, what is happening. is this stall? is this something else what's your calculus for what's happening here >> so, the fed raised interest rates yesterday. and establishes to keep in mind, within the last few weeks there have been 800 price drops in new york city alone. that's more than any point in the last 12 year but it has been a 12-year cycle. things have to turn. >> just the pendulum swinging? >> the pendulum has to swing >> we're in 80 cities across the country with 7,000 agents. almost every agent i speak to

says the market is softening >> to help predict, what are we talking, 5% drop, so% drop, 20% drop to get to an equilibrium? >> we're seeing 5 to 10% >> do you think there's a function of the fed, that's why i said, is there a salt component to this? is thering in else happening here and why is that happening at the same time when everything else is going such gangbusters? >> it's uncertainty. and people feeling that the prices have gone up so high. they don't want to buy the top of the market. >> and it's also an affordability factor in a number of these cities that people wind up renting instead of buying >> and prices have grown faster than income. >> so there is an issue, i don't know if we should be worried or thinking about more than we do we have not talked about real estate prices. >> we always hear about supply >> right

but when you get to a point where people say i can't actually get out of my house at par, or whatever it's going to be, unless everything was run up, or everybody was already in, or, you know, on this train. then they might actually not spend the way they thought >> and rental calculations, too. is rent going up or down >> rent is -- in new york city, is relatively fine that's where we focus more on rentals. >> rent can be more attractive for years at a time, right it's a complex calculation >> and it as gives flexibility to individuals if they rent. >> right >> they make a decision -- they might not be staying where they are today. >> in new york, they say we'll buy it for skwchlt and it will be worth 2x in five years. your rent is covered sometimes, that always work. >> i'm assuming denver is still growing. >> i like austin i like denver. i still like seattle

san francisco, with job growth but the hottest city in the country is nashville >> nashville >> nashville >> and it's the health care capital of the world health care, culture think about everything that you liked about austin over the last decade that you liked about brooklyn. >> why did they just figure that out? that's been the case in nashville for a long time. >> food and musicians. >> a lot of people from l.a. and new york and san francisco are moving there and getting second homes there. >> what's the market that you wouldn't touch right now >> that's a good question. the market that i would not touch -- or at least, you know, i would say certain second-home markets. certain second-home markets have too elevated >> do you want to mention them by name? >> it's important for me to support the markets that we're in i may get a backlash from our agents and they're relying on us >> another fast growth market is reno, because there's a lot of californians that can move up there. google's moved up there.

apple's moved up there tesla. >> and vegas >> yeah, vegas is not a market -- >> we're going to launch it next year >> oh, you are >> always great to see you appreciate it. when we come back, we have more from our guest host maggie wilderotter. plus we've got stocks to watch as we head to a break, take a look at today's winners and losers ♪ i want you i need you but there ain't no way i'm ever gonna love you ♪ ♪ now don't be sad don't be 'cse two out of three ain't bad ♪ this isn't just any moving day.

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this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. a few stocks here, quite a few, in fact, to watch shares of conagra are lower in free market trading. the company reported earnings of 47 cents a share the company said it was pleased with the quarter but noted a continued challenging inflationary environment apple is rated overweight. the new cover at jpmorgan, beating the bushes looking for undiscovered opportunities they found apple a price target of $272 a share basing it on apple's services businesses as well as stronger than expected iphone pricing and cyberark software, the

update based on the review that the cybermaker positioned for long-term growth due to stronger demand and pricing capability. this is one company that maggie wilderotter is not on the market of it johnson and johnson, jansen bio-teching is ending a license agreement. the partnership is involved in the development of a new one that's a new supposedly promising stem cell companies. coming up, we're going to talk about dealmaking by joseph borotta, more than 90 companies with combined annual revenue topping $77 million. futures at this hour under control. heey're up a little, 10, up 19 on t nasdaq, but 2.5 on the s&p. we'll be back. ♪ ♪

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that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flights for us. so i'm more than confident. kayak. search one and done. president trump sounding off on the fed the trade war with china and his dislike of the canadian trade negotiators. his comments are straight ahead. breaking economic data durable good orders and jobless claims

and the ceo of cnbc's disrupter docusign the final hour of "squawk box" begins right now ♪ wake me up before you go, go ♪ live from the most powerful city in the world new york this is "squawk box. good morning, welcome back to "squawk box" here in cnbc, live from the nasdaq market site in times square, i'm joe kernin with andrew ross sorkin and becky quick. the dow up 12 on the dow jones, s&p up 2.5 nasdaq up about 20 points or so. treasury yields, yesterday, they actually dropped a little after the fed announcement today, you can see the ten-year, as low as it was previously this week 3.84%. here are the stories that

investors will be talking about today. crude prices moving higher sources have confirmed to cnbc, that saudi arabia is ready to increase production to offset a drop in iranian output the saudis are willing to put as much as 550,000 extra barrels a day on the market, depending on demand you see wti up by 68 cents to 72.55. the soft banc fund has invested $17 million in open door a company that buys and resells homes. a way to streamline your home without listing with a realtor or showing the it will join the board of directors as a result of this deal and a busy morning for economic data in in 30 minutes' we'll be getting the second quarters of weekly gdp jobless claims and august durable goods. for gdp, they're looking for a

revision of 3.2% president trump making headlines at his press conference yesterday covered a range of topics. including the trade war. here's how he characterized the nafta communications with canada >> we're thinking about just the cars from canada, that's the big one. we're the negotiating style of canada we don't like their representative so much i like canada, by the way, i have everybody, so many friends but that has nothing to do with this, i'm representing the united states. >> and the president weighed in on the trade war with china. >> with china, as you know, we put out an announcement today, they would like to see me lose an election because they've never been challenged like this. but i want to open up china to our farmers and to our industrialists and our companies. and china is not open. but we're open to them

>> president trump said he and president xi have a good relationship and respect each other. and a few stocks on the move to to tell you about managed wellcare with aetna's prescription drug unit aetna is selling that unit for part of acquisition of cvs health terms shares of bed bath and beyond we talked about this last hour joseph and i have not been buying enough stuff, apparently. we're just browsing. >> just browsing >> browsing. >> here's what's happening it has fallen now -- we're looking -- a fall of almost 17%, after its quarterly reported earnings the retailer's stock falling in extended hours after the forecast seems to have fell for a sixth straight quarter now 0.6% and also it's guiding its full-year guidance to the lower end of the previous range. blackstone wrapping up its

2018 investor day to provide insight on the company's recent moves, the global head of equity at blackstone. we just had a long discussion, joe, about real estate, and buyer eggs's market. the economic backdrop, so powerful right now if we do we could do a 3% difference every year. i would think you could if you were a seller things are so good right now but if it's a sea change, you'd be a buyer and a seller >> we're always trying to invest when we have stabilized assets whether in real estate or private equity, we look to sell. if the markets are good, we have the benefit of controlling the sell we never are selling if the markets are bad. we look to sell our assets no matter where we are unless we're in a crisis. >> you remember guys seem to remember when to dump everything you never would do that? there's always a time to buy,

always a time to sell? >> no, i mean, there are moments that we've been able to ride through. >> what do you mean? >> right now, i think we're end toward the end of the capital market market as well. with capital rates, pe multiples. i think we're later in the cycle but we still see good opportunities across the various businesses >> so, joe, you guys just did a big deal with thompson talk about why you did that. and how you have the capacity to do those kind of deals >> well, i think it's right up our sweet spot, maggie it has elements of everything we're trying to do for our investors. manufacturing unique opportunities at scale in this case, it's a large corporate partnership with the parent company, 45% stake. it's a corporate carveout. it's a giant company that requires $4 billion of equity. there's a lot for us to do to help improve the business. partnering with the parent company. they view us as a better, almost

strategic buyer of the asset and there are a few firms able to manufacture an opportunity like that for our investors. >> since we're on the topic and we're on the news business, i'm curious what you think long term is happening i know you're effectively decoupling the term business to news business to go straight to bloomberg. how much do you think news matters? and do you ultimately think you'll have to build your own news product to compete with reuters? >> no. news is essential. and we are a distributor of the reuters news >> like 20 years? >> it's really into perpetuity that's essential to the data that we're delivering and to the value proposition. to be definitive with customers. >> there's uniqueness. you mentioned some aspects of the thompson reuters deal. talk about new private equity

companies. because there's a lot of companies put to work. what makes blackstone unique >> we operate to the large part of the market. we have 70 portfolio acquisition agents so our ability to act as an industrialist is a big part of it we're not just buying things at auction that the investment banks are selling with complete transparency in the process. we're having to manufacture things involving public companies. taking big divisions off their hands, do public partnerships, buying the whole company that's complicated manufacture and complicated the finance. after we buy the business, we have to do something with it to improve it and we've built that capability over 15 years. so there's a couple of competitors that are similar to us but i really believe that we and a few are dish yated in the market and our investors agree with that they're giving us capital to invest on that scale >> public versus private

how do you think of that being an advantage or disadvantage >> i think it's been an enormous advantage for building the firm. we've grown our assets since our ipo from $70 billion to nearly $300 billion we've been able to use our currency as a way to retain talent and acquire other platforms. it's given us more of an institutional brand and reputation so, we stand as a credible counterparty and the blackstone name means something to our counterparties and it's given our investors confidence that we have an enduring firm. it's not just about the founders and we've done a great job of managing succession with john in his, you know, mid to late 40s, as the new president and each person running their business sort of within the prime of their career. so, i think it's really helped to retain great talent and give us an enduring franchise >> we were just talking about bed, bath and beyond one of the things you have done is turn around businesses.

i don't you don't love necessarily a form turnaround. how do you think about turnaround in retail talk about a turnaround and then there are companies like a bed, bath and beyond? >> i think traditional retail is tough. large format, big box, multidepartment store formats have been challenged not to say they're over, but they'll be challenged. however, brand to direct consumer, and having something that's innovative, it's probably something that will be invested more at the growth stages than really large-scale retail buyups in my opinion. >> large-scale like costco is a wholesaler they seem to be doing well >> costco is doing great >> things are percolating here we got tax reform and deregulation, both tax reform, one-shot deal? or does it change the structure of the way companies do business in this country for more than one year >> look, i think tax reform is

unleashed the u.s. economy and it's to unleash investment spending, which was completely repressed. for -- up until, really, the last two years >> everybody is repressed. >> all of these economists they all talk about next year growth is going to slow because of the effects of tax reform will wear off. >> well, that's just mathematical because one of your biggest expenses -- >> you're still at 21% instead of 35% >> yeah, but now people have more confidence to spend they've got more confidence that they're not going to wake up and do a worse regulatory climate. persistent as long as there's a perception in the market that his will persist >> and with corporate tax, we have the highest corporate tax rate in the world. >> that may be fair, let me ask

a question, if we're at the end of the cycle, how is this -- does this meaningfully helping to extend the cycle? is that what's happening here? >> i think it's taken the growth rate higher. straurlly higher >> right >> as a result of lower tax, more money to invest >> i guess the question is, is it extending the cycle or ending it faster? >> i don't think it's ending it faster >> when you think about the economy, you get early warning system, based on the portfolio you that have, what are you seeing? >> we're seeing very strong-growth in the u.s. economy. we also continue to see strong growth in china and india. and europe is spottier slightly lower structural growth i'd say any of our industrial or energy-related investments are doing extremely well at the top line. not just the bottom line >> you just got back from asia and we were just hearing about the relationship we may or may not have with canada, based on

the president's comments when you look at some of the trade issues on your own portfolio right now, what are you thinking and what are you hearing also from your investors in these countries? >> there's a lot of concern of implications of a trade war to the extent of what happened on our portfolio, and just in general. it will be less of a factor on our discrete portfolio, however, it wouldn't be good for markets. and i think it would bring down price levels everywhere. if was a protracted significant trade war which i don't expect to happen because it's not good for anybody. >> what do did you think of investors because you have a lot of sovereigns? >> they're worried about it. >> and just trying to figure out the two components of gdp growth and productivity and population growth, your argument would be the productivity, it's going to be the positive that allows us

to grow long-term at a faster rate, is that right -- >> correct correct. and i think as you give more resources to corporations to reinvest and hire more people and grow their businesses, productivity is going to be higher than having a higher tax burden shifted over. >> are you saying that money in the private sector might be treated better than in the government sector? i've heard that in 1776. i know, we forget it, though somehow, we keep forgetting that >> he says that every night before he goes to bed. >> yeah. praying. joe baratta, thank you >> thanks. when we come back, hot stocks are on fire but the next guest says slow down before marijuana becomes anheotr tobacco. seven myths about marijuana straight ahead you're watching "squawk box" on cnbc this isn't just any moving day.

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

until marijuana stocks recently. also some extreme volatility our next guest wants everyone from investors to those actually using marijuana to take a step back and slow down that's because, even though he thinks pot use should be decriminalized he also see it as a dangerous substance. joining me is kevin tibet. he's the author of "reefer sanity: seven myths of marijuana. 808 80" ". >> there's so many myths about marijuana. people think it's not addictive. but today's pot is so much stronger than it used to be. it's so innovative, created all of these gummis, candies, ice creams that are attractive to kids

i think it's a real problem. we need to slow this train down. it's going way too fast. >> what's the biggest myth that you want to talk down? >> i think the biggest myth is it's going to bring revenue. it costs us $10 for every dollar in revenue i'm still looking for the states that solve it with alcohol, tobacco revenue. it's going to cost us in car crashes because marijuana absolutely impairs driving youth dropout rates. i don't know how we're a better country and better workforce and frankly competitive economy. >> what happens when you put a different age limit on it. i'm saying not at 21, but literally like 30. because one of the big issues is really about young people using it do you think there is a shift or a change in the danger, if you will, once you get to an older age? >> i think it would be better to do that, to make it something like 30 or 25. but the marijuana industry would never go for that, because the largest growth, frankly, is 25

and under. or 30 and under. there's a lot of talk of baby boomers rediscovering pot. but the heavy users, you start when you're young. the industry would never go for it and i as think it would still be a bad idea i don't think we would be encouraging a workforce or those who drive to be stoned >> did you evaluate alcohol -- has it ever been done in terms of net-net, all of the companies, car crashes, all the aa, all that goes on, rehab, all of that stuff, have you ever calculated net/net, whether that's a cost to society >> we have, it's about $10 loss. >> and similar, the argument to alcohol, we tried, you don't do everything because it makes economic sense sometimes, you do it because it's happening anyway and people want to toke >> yeah, i'm not saying we should put people in prison for pot or criminal them a criminal

record but we're going to this other extreme. >> i understand, it's a gray area >> it reminds me of tobacco from a hundred years ago. it's like 1819 it wasn't deadly until the tobacco industry discovered how to create a cigarette to add nicotine, ammonia and all of these other things we have eight times as much as opioid deaths. not because cigarettes are more harmful than heroin, but because of the availability and normalization. >> normalization, the legitimatization when it comes to second-hand smoke, it's a huge issue in states, frankly, in new york, but california and washington. >> in california, marijuana has only been legal a short time and the vaping epidemic in junior and high schools is out of control >> when vaping, you can't tell what someone is using. they're using 90% thc.

think about the average joint at woodstock with 5% or less. >> so, what do you think needs to happen to get to an inflexion point to turn the conversation because, clearly in this country, whether you like it or, or you don't, the people with you you the public is not on your side? >> you are to swing that pendulum >> and given the amount of money, this goes back to industry, you spend money for this to happen, there's not a lot of money on the other side saying don't do this >> no it's not like when we defeat legalization we get our money back we're definitely swinging on the pro-side five states, not many people know this have rejected legalization in the legislature. when it's done in a contemplative way, people say let's look at this elected officials don't want to touch it but i hope it doesn't take a tragedy. i hope it doesn't take 80 years of lies and deceit

or pharma, look at opioids where we have to finally wake up where we realize this isn't going well you know, it's happening in some states now i also worry, this is still against federal law. i sort of say investors be wear. it's not like you have a friend at doj on this issue i think we have to be careful, investors have to watch out, they think they're getting involved in early days of tech, i don't think so at all. it's so volatile and a criminal enterprise. >> does it break down partisan lines at all >> not really. i mean, more and more, we're seeing some of the progressive wing of the democratic party and the libertarian wing of the republican party like they ironically meet on many issues, they meet on this. but when 93 realize this is about corporate greed, they're going to run away from it. >> by the way, kevin that thinks that you come at it from a particular point of view, you worked in the obama white house,

and even though president obama said he was kind of for this and you weren't. >> no, i worked with eric holder and luckily, president obama still to this day has not said he's in favor of legalization, and they have not done that. but this should not be a nonpartisan issue. it's not a cultural issue. it's a public safety issue and health issue >> we're somewhat a society of addiction late with facets to it so it makes it even tougher. >> it makes it tougher because we abuse pharmaceutical and other drugs in huge ways >> and devices >> and we're in the midst of an opioid epidemic, why would we want to encourage sbaub indication in the wake of that, makes no sense to me >> thank you coming up, when we return, do you understand the systems in your car, blind spot warning,

automatic brakes, a new study says most people actually don't. we'll talk about it when we return

the economic reports just minutes away we'll get gdp. durable good goods and weekly jobless claims right after the break. plus, we're going to take you to the woodstock pour porsches "squawk box" is coming right back

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we are just seconds away from davos claimed durable goods. and futures. i want to get to rick santelli in just a second rickster, dow looks like it's open 21 points higher. let's see what happens after the numbers. >> all right there's a litany of numbers, too. on the august read, trade balance, it's a deficit, minus 75 billion 75.8 that's bigger than what we were expecting. now, that is a preliminary advance read let's go to wholesale inventories up 0.8 retail inventories, up 0.7 gdp, 42. no change. so, therefore, it's still the best quarter we had going back to the fourth quarter of 2015. personal consumption stayed pallet at 3.8, price point,

stays pat at 3%. let's go to claims, shall we 214,000 from a slightly real viced 202. it's up 12 hovering in levels from the late '60s continuing claims 1.66 million that is really getting to be a tiny number. let's go for durable goods orders, shall we up 4.5%. now that is a big number it moves to minus 1.2. i do caution these are august preliminary goods readings and this is volatile very volatile. now, if you strip out transportation, look what happens, it goes down to a .1. if you take capable goods, sand for business spending this is a disappointment, down 5th last time we were up 1.5 if you look at shipman's it was up 0.1 once you get past durable goods

and i haven't been able to dig through the minutia. it's not as good after all of that, andrew, five-year high, the story, post-fed, dollar index, up half a penny. back to you. >> thank you for bringing the numbers. meantime, want to tell you about a couple stories we're following this morning drivers they're overestimating advanced safety technology in their cars this according to a new study from aaa finds that most drivers don't actually understand the features like blind spot monitoring or automatic braking. for instance, 80% of drivers don't think that blind spot monitoring or actually think it's more powerful than it is. the systems aren't meant to replace humans behind the wheels do you get those little lights on the side? >> on the mirrors. what is that thing you have -- >> it's in all cars at this point. >> i know, we got an escalade. it works really well

it comes on when there's a car there. >> but is there a big blind spot on that car? >> on all suvs, absolutely i'll tell you, you know, this -- >> in the future, what they're going to do, what they haven't done -- >> what is that thing that you have >> cameras cameras on the side. >> yeah, a camera. >> my rear view mirror has a camera you can switch one or the other permanent. >> right but you have to combine your own sense of what's there or not >> right >> with the technology >> right >> i just don't think you can trust it 100%. >>. >> and if you just smoked a big joint -- from the last segment -- >> yeah. >> so, joe, this next story is for you. >> i saw it. >> man of the people >> man of the people, exactly. >> you are, truly, except -- that wasn't me here. >> was your highlander made here

>> i do believe it is. >> really. >> i believe it is i believe they're made in kentucky all right, porsche fanatics are gathering in salinas, california, for the rensport reunion, phil lebeau interested in where you're standing and what is behind you. good morning the. >> reporter: good morning, joe i have a plethora of vintage porsche models behind me the 934 with the jagermeister, we picked that out for you when you come out here, we're at the laguna racetrack this is woodstock for porsche fans, fanatics about 2,000 different porsche models at some point will be involved in a race on the track here the racing, by the way, start, up at 11:00 a.m. eastern time. cannot wait for that we got a little taste of that yesterday. a lot of people are saying, well, look, in this day and age

of electronic or electric vehicles and atop muss drive vehicles coming out, does porsche, does it have relevance? oh, yeah, they believe they have relevance. >> of course, porsche is embracing the future we're looking for innovation what is new for the future what we continue to develop in 9/11, in the last years. people are asking for true value, authentic things. >> reporter: and the fact that you can still get in one of these and it's about the handling, it's about the steering, it's about the acceleration guys so many people believe that the future of the automobile will be the electric vehicle and porsche has one coming out next year but they still believe there's still a lot of demand. in fact, sales are at a record pace, demand from people that want that feeling behind the wheel of a porsche cannot wait for racing when it starts in, oh, about three

hours. guys, back to you. >> you're right outside of monterey you're not very far. -- do you know -- c-h-o-a-l -- that is where james dean, the nickname of his porsche 550 spyder was little bastard. >> that's where i found it horrible that the porsche show is within a couple miles of that >> did you bring that up because you wanted to refer to me as the little bastard on the air? >> i wanted to say that on the air legally. no, but -- no i know salinas, it was near there when it happened. it's just interesting that's the place for the rennsport reunion which is interesting have they got any not ones, the 2019 out there, the 911? >> reporter: yes, every model.

even going back to model 1 which is here. we've not had a chance to see it we will see it in a couple hours. anything that you're looking for is here. including porsche tractors when i say this is woodstock for porsche fans, it truly is almost every vehicle that porsche has ever built is here >> so, no porsche diesels anymore? >> reporter: no, no. and i don't think porsche fans in the u.s. could care less. >> my husband's first car was a porsche 914. >> really, one of the -- >> and i have -- i have one being built, too >> we called a lawnmower >> you are copping to having one built? >> i am. it's coming, i think, next month. it is. >> no more than 1% -- >> i've done it isn't sort of simpatico. >> i drive a highlander ehighlao

>> your foyer -- >> i have a direction to make, the hilander is not made in kentucky it's made in princeton, indiana. >> oh, a heartland car >> i support the people. but i do have the escalade and a jeep so, it's not -- i have two out of three are made here is that okay or not >> we'll take it anyway, so, thank you, let's get back to our guest host this morning, maggie wilderotter, the chairman and former ceo of frontier communications. the 914 was that ugly -- >> very low to the ground. did he go from that to -- >> and then to a volvo station wagon when we had kids when i was pregnant, i couldn't get in the 911 i shouldn't say that, i could get in i couldn't get out

>> we haven't talked enough about the societal things. i was thinking about all of the boards you're on i was thinking about how much you're involved with strategy which is interesting and complex. but then i wonder how much are involved with maybe not the most -- the reason you join a board. hr issues or diversity issues. or advancement for women on board. or the corporate officer, all of those things go into -- into what you're doing now, i think, right? >> yeah, you know, board service has changed and morphed just like ceos' jobs have changed and morphed. we are responsible for governance in companies. we're as responsible for the strategy of the company. and we're responsible to have the right ceo leading companies. and those are really the three major priorities but under that umbrella, for example, on governance, it's also reputation, it's trust doing right by the customer. >> the goalpost, we had an article yesterday about a consensual relationship but it was with an employee or something and he had written a

performance report -- >> the employee -- >> i mean, the sensitivity is much greater now >> it is and i think what -- >> it's exponential. >> i think what companies have to do, they have been loud and clear on what's acceptable and what's not and hold people to those standards. >> you can speak to why you think there are less women running s&p 500 companies than year ago >> it's called pipeline. if you think about ceos in large companies, in many cases, it's because the company is in trouble. and they pick somebody and say we're going to give tell a shot. a person from the inside bringing somebody from the outside into a troubled company. i think a lot of women who ran fortune 500s for the last decade have number companies that are in trouble i think we need to get the pipeline where it needs to be, otherwise, it's not going to happen >> let's talk about that you make it sound like it's almost a hail mary that they

bring in a woman to do this. we've talked about the idea that activist investors are more likely to go after female ceos they're kind of the last place to go. that's an interesting thought. i hadn't put that together before why do you think that is >> well, i think at times, you look for someone within a company or someone who has a track record outside of a company that can come in and be a great leader be a great leader within the corporation. look at the culture. the values and drive the different agenda and if you look at the women who have done that, you look at indra, you look at, as i said, my track record. my sister at campbell's soup came in on the turn around even michele buck who we talked to today these are large companies that have to reinvent themselves. >> but they're not willing to necessarily put a woman in charge unless they figure everything that we're doing right now has to be thrown out the window >> well, i think that's been the

historic case. but when you look at where you would traditionally hire from within a company, it's that space where women who have traditional backgrounds that have run p & ls. sometimes, it's not the traditional ceo. it's not the traditional that women are in >> women and men -- young women and young men to step up if i were going back, i wouldn't want to take engineering we need to induce everyone to take those but how do you do it >> i have an economics degree. i have a s.t.e.m. degree i have a doctorate in engineering. >> more people need to did that, take english lit or french art, don't you think? >> i think it's more of a controversial question i hope i don't giet killed for asking, but i'm asking

is there clearly a move afoot to have management more diverse clearly and to put people in the pipeline >> yes >> i hear often now, especially in the banking and consulting community from, let's call them, white men, who are in their late 40s or 50s who think they were on the track to being part of the management committee, or whatever the next thing is and they say, you know what, i'm out. because the next person who has to fill that management committee slot, by default, if the company's suggested goal is to become more diversified means that i am not on it. what do you tell that person >> well, i would tell that person, if it was my company, that i just want to have a diverse slate for any job that we look at it doesn't mean that there's a quota system and it doesn't mean that you lean toward just a woman or a minority in a job. you want somebody who's qualified to do it because the number one priority is returning shareholder value but it's not just going to be a

slate of all-white men we should have a diverse slate and then make the best decision for that job and that company. >> we've had people on, women who basically have said that the ends justify the means and some men are going to be, not nextly the best person for the job, they are going to factor in gender more than five years ago. and i mooerngs that's just the way it's going to have to be if you're going to change they say it's moving so slowly, you need to do it that way >> right >> and if you want to be reflective of your customers and the market, you have to do that. which again becomes a very interesting thing on all sides meantime, i'm sure women have been saying for decades that i have no shot >> yeah. how do you decide what's qualified? how do you decide who gets there? >> it's what skill basis they have the potential for doing well in those positions. track record of how they've grown already. look, i agree, i think it's not going to all white males

but not all females, too you're going to see a balance. but that pipeline takes a long time to get to that corner office we'll have more with maggie wilderotter. signed, sealed and delivered. the ceo of docusign will join us to talk about results, software nd thnsaecology in washington. ♪ signed sealed delivered these techs in a lab. this builder in a hardhat... ...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here.

our next guest went from stay-at home dad to ceo of a billion dollar company in two years. we want to welcome him to the conversation, dan springer docusign ceo dan, thank you for joining us. for those who don't know what docusign is, give us a quick explainer. >> absolutely. so docusign provides the core e-signatures capability that many people are familiar with and allows you to transact easily online for things that used to be paper-based with a lot of manual process. >> so people can effectively put their signature -- and it is a signature, i mean, it looks like a signature. you compete with hellosign and a couple of other different services clearly, you're a leader in this space. how valuable is your signature the actual written signature the john hancock, matter any more in a digital world? >> i think the signature, the

manifestation that you're talk about in a written form, who is it creating that electronic signature, that's the real value for our customers. it allows them to make their business easier to work with and allows them to move much more quickly. and those are the core benefits of moving from wloktronic to paper-based documents. >> so, dan, docusign has been around for a long time and i have the privilege 6 sitting on your board. just being a signature company and being strong presidents like real estate. talk a little bit about what the system of agreement is >> absolutely, maggie. i think when you see what happened in the past, people love the e-signature process one of the great things working at docusign, people say i love docusign increasingly, the kisses have

said, do we move upstream to preparing the agreement so that the documents being signed are actually in the docusign system. and most post signature in what we call the manage phase so we can help them run their business based on the created. >> how do you think of block change given the context to some extent what you're doing is sort of a block chain-like system of sorts to try to keep an identifier on all the documents. >> absolutely. particularly in the en corrupted agreement. we've built the -- encrypted agreement. we want to do that encrypted or do that in a public block chain. at this point, i would tell you that the vast, vast majority of our customers are using the core docusign system because the economics are better of the over ti time, i think block chain will get to scale where it's a more reasonable option. but at this point, it's still a little early for what -- >> gets to what you describe as a reasonable scale, is that good

or bad for your business >> well, i think it's great for the operations of our business it gives us the alternative of having a low cost system for that storage of the encrypted signature. but i think from a standpoint of the future block chain, i think it's going to be much broader than just the storage. so we're pretty excited about what that technology could provide going forward. >> so, dan, you went public five months ago then you took a very unusual step over the last several weeks and went out and did a follow-on and a convert. talk a little bit about why you did that >> well, two separate reasons. i mean there was an efficiency to do the road show together that's why in the end we did it that way from our standpoint, the motivations were different the first was, we wanted to have an orderly disposition of the shares that were owned by our private company investors, so the public company investors wouldn't see a huge amount of shares come at one time. that's why we did all secondary shares there the convertible is a super

attractive time to do that for technology companies very low cost to capital we had recently completed an acquisition of a company called spring cm. it was an opportunity to top up our cash position. >> dan, we got to leave the conversation there we appreciate you joining us the next time you're in new york, come by and say hello. >> we'll do that we're going to take you live to amazon's new brick and mortar store in new york city we'll be right back. [knocking] ♪ ♪

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hi everybody a live shot of amazon's new store in new york's neighborhood it's selling items rated from amazon's website, four stars or above. store opens today. amazon says it is a permanent store, not a pop-up location like in the past this is the retailer's first four-star home. coming up, parting shots from maggie wills rouder you don't want to miss this. we have a huge lineup of some of the biggest names in sports business philadelphia sixers owner michael rubin joins us and new england patriots owner, robert

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after previous hikes in the cycle, the s&p dropped nearly 1% let's get back to the guest host the former chairman and ceo of frontier communications.

maggie, you are on eight boards. four public, four private. you've gone from the ceo suite to sitting on the board, how has your perspective change in the makeup of board members yet? >> i think there's a big opportunity as we think about diversity, it's really getting diversity on the corporate boards in america. there's a lot of companies that have taken that as a strategic imperative it's helped their business i think you'll see more and more companies trying to balance the equation of women in the board ram. >> is that with or without legislations like in california where they're considering that rule that would require a certain percentage -- >> they have required a quo at that. >> has it been signed? >> it has been signed. i think the right answer is it's good for business. if you skee great women that have -- see great women, there are only a couple that are heads of fortune 500s. taking a chance at women in the

boardroom was we do with men in the boardroom, you'll see snowball effect with more women. >> real quickly. that pays off in how many years? >> in the next couple years. the push can be to get the 15% parity over the next three to five years. >> thank you for being here. hope to see you soon. join us tomorrow "squawk on the street" begins right now. > ♪ ♪ >> good thursday morning welcome to "squawk on the street." i'm carl king can cramer continuing his -- futures point to a gain after four days down for the s&p. a drop today would be the longest stretch in two years kavanaugh, bullish calls on -- italian bonds.