right now. dow futured futures. up by 32 points, the nasdaq up by 15. we'll see where we get as we get a little closer to the opening bell and the closing bell. that does it for us today. right now it's time for "squawk on the street. ♪ good thursday morning. welcome to "squawk on the street." futures up despite some negative headlines. weak china data, the boeing saga and more we await more brexit votes oil 58.5 that's close to the highs for the year our road map is going to do with work to do, that's the message

facebook reportedly facing a criminal investigation over how it uses user data. ge is holding a conference call right now. it issued some earnings guidance below forecast the challenges in 2019 are complex but clear. jim, you were just talking about the guidance and the fact that the shares are higher today. >> this is the reset we've been waiting for. honestly lly if you looked at it very closely, you would not be surprised which is one of the reasons the stock's not going down you didn't want another decline. look, i think that some of the suppositions are a little too positive i think their power outlook where they're saying revenues are going to grow, i think that

was ill-advised. yoo i don't think that's necessarily a bar that you want to set they talk about aviation not being as much. this is something that i totally get. aviation is the julewel obviousy it's a high quality problem. there's tremendous demand for the engine i think you've got some ne negatives i think they can beat and some positives i think they're going to fall short on, which is power i'd rather fall short on power than i would on aerospace. >> when we talk about the degree to which power is recovering, what metric do you look to do you look at like brent? >> i'm going to give you the most crazy metric ever you want the number of pages devoted to power so you can figure it out. >> you want more granularity >> i was trying to figure out

the sensitive analysis for gas turbine orders for 2019. it's such a moving target. i deal with a lot of utilities in this country and it is very clear that every time they they they've going to need to put in a new natural gas plant, they take it back lightbulbs have resulted in a dramatic decline in the number of electricity that's needed. >> as we switch to hallogen. >> as use goes down and it's not met by electronic cars going up, you keep being surprised if you're a utility company about how you don't need that extra plant. that is the real problem i have with the ge gas turbine industry orders they need to lower the range for 2019 they were using 56 in 2015

one of the things that it's a shame that larry was saddled with this, but there were forecasts being made without any thought about environmental conservation by too previous regimes ago and they're still living with that and they're living with the size of a power division that -- >> the last couple of days i've seen a lot of reporting on how they built up and then wrote down 22 billion in assets, right? >> yeah. >> where are you on accounting >> i am a dead horse beater from way back >> there's a whole cemetery of horses. >> i go down to that kentucky horse farm just taking a flogging to these horses yeah, this is real accounting. if you look at the accounting ge uses, it's shocking.

it's actually like other companies for once they had like a separate course in accounting you had to take. if you were using the kind of ridiculous accounting that ge was, it's fine but now we're being brought into the light ages from the dark ages and you're stuck with trying to make sense about what they did you can't just come out and say, look, here's what happened, we completely blew this, we didn't do anything right and now we're stuck with these things we have to clean up. but no one wants to do that because they're not into dead horse flogging >> is the $6 target still making sense? >> i think he's going to be wrong on the 6 it did correctly go to six, he

just forgot to ring the register i love him you know who really loves him? larry kulp. >> what was clear at the conference a few days ago. >> it's a bro thing, you know? >> meantime faa officials say it's uncertainly how long boeing's 737 max jet may be out of service during investigations of two recent crashes involving that jet and whether the causes may be related the jets grounded yesterday after 40 countries around the world had already banned them from entering their air space. this is what the acting administrator of the faa had to say about the flight data yesterday. >> the full track of the flight was very close to lion air the initial track that we got on sunday and monday morning was only three minutes long, the first three minutes of the flight the new track data we looked at

was almost for the entire length of the flight. also, the evidence that we discovered on the ground actually was even further evidence that the flight was very similar to lion air. >> journal has a tick tok on this today because i mean the crash was sunday, 72 hours pass and this decision came in a hurry after they got that flight path information. >> yeah. look, this is a very tough story. we're beginning to get our first notes about the actual number impact for boeing. there's a very tough piece by jp morgan about potential cash flow impact the one thing you never want to see, airline compensation, how much they're going to owe the airlines for what happened that's going to hurt their gross margins down the road. as you develop these planes, each one costs a little less to make they usually learn how to make

them rapidly this is the chink to the thesis. what do you pay for the earnings it's too early to determine here these guys are focused on cash flow, but i don't like these notes. this stock goes lower. it just does. >> it was 446 13 days ago. you think it goes lower from here >> i think there's people who want to say that this will be resolved very quickly. i just find it's very uncomfortable to recommend a stock when the estimates are coming down in your face now, you could say, wait a second, that's what the stock was reflecting no, i don't believe that >> are you more concerned about payouts to carriers or actual production or delivery changes >> here's the thing. there's a very fine firm

well, i don't want to single them out but they're talking about six to eight week grounding. when i read that, i say, okay, under what planet are you able to determine how long the grounding is going to be that would be you and i saying i think it's going to be six, i think it's going to be eight we don't know because they don't know these are, as our president said, complicated issues i do believe if you're boeing you're not going to say we're going to nail this in six weeks. they're already taking a lot of heat they didn't voluntarily recall now they're going to say it's a six-week problem when they don't know themselves? it goes like this and then maybe it comes back. >> sure. southwest yesterday, it's 4% of our daily flights. united 40 flights a day, american -- it's not -- i mean, the generation is not a lion's share of operations.

>> there's a lot of technician who is said, look, if this thing can hold 373, it's fine. look where it is right now it's too precipice like. they're going to be interviewing larry kulp do they know what this is going to impact? do they know what it will do and the answer is, again, anyone who speculates right now is kind of really just -- what gives you the right to even speculate? you can talk about what a fine company boeing is. but beyond that, that actually cuts things being out of commission longer. >> because they're so rigorous, in your view >> they're a very rigorous company. i read these notes and i'm not reassured. >> facebook's down in the premarket. the times today says that federal prosecutors are conducting a criminal investigation into data deals that the company struck with

some of the world's largest tech companies. a grand jury has subpoenaed records from at least two prominent makers of smart phones and some other gudevices. the times does not know how long this grand jury has been in place, what specifically they're looking at. >> these are stories where if you're a enterprising prosecutor and you're somewhat zealous. the company is cooperating it's really hard to go to facebook right now -- this is not where the company is cooperating. facebook wants to cooperate. everything that you say is true and that's why we've done xyz.

the idea is you want to sell facebook because of the outage >> there was a huge outage yesterday of multiple platforms. >> right so there's a make goods issue. let's say cbs doesn't have an outage -- by the way, when cbs had an outage at the super bowl and advertisers were complaining and saying, are you kidding me you just got another 19 minutes. >> tv doesn't have outages >> i do think we have to look for numbers to come down ever so slightly i'm not as worried about the criminal investigation criminal does scare people you're not going to put facebook out of business the bullish situation is we need to put a monitor in. let's get a magistrate in there. that's what they can do. >> you've been asking for this for years, it feels like.

>> i know. maybe they listen over there in brooklyn. >> two questions they will have to give some make goods to advertisers who couldn't reach users. >> yes. >> you still believe 170 is the battleground >> it is this thing has been such a horse. it's just been amazing so what i'm thinking is it's resting. it's a great fang. it's been the fang suddenly apple -- where are these people when apple was at 140, earn was very quiet because apple was falling off a cliff. turned out we cut numbers too far and now we like apple. suddenly everything's good china stabilize. >> we'll talk about some of the research on apple after the break. former twitter chief is going to

join us today, weigh in on elizabeth warren's push for a breakup of big tech. we'll talk about reports of a china/potus meeting being pushed back when you look at the critical issues facing our world, what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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s&p and nasdaq look to extend their gains for a fourth consecutive day. futures were lower in reaction to a report that a meeting between the president and his chinese counterpart could be delayed until april at least you've got gary cohen arguing that the president is desperate for a deal. >> look, i love gary i've known him for a long time i think i disagree with his characterization because we all know there are competing factions there are some within the white house who seem to want a deal far more than others and the president seems to side with the man who is not in a r

hurry which is navarro navarro knows that the longer you string this out, the more that manufacturing goes to vietnam. they're getting that infrastructure more and more in vietnam. >> are you saying the united states wants to play for time, or does china want to play for time hoping for a change in administrations? >> they had the lowest industrial production in 17 years. they need a deal the all invincible chinese need a deal i they xi is concerned about the people's liberation army as he is concerned about navarro i think that our country's trade people know that there are many different manufacturers who are saying give us a little more time and we can pull more infrastructure out of china, pull more factory building out of china. >> fixed asset investment up 6.1 was not a disappointment over

night. >> no. but when you deal with the companies i deal with in apparel, toys and semiconductors, they all say, listen, as time goes on, we're able to find new sources dollar tree said, you give us enough time, we will source -- because i was talking about the sunglasses, the five that i got for $5 that my wife thought was raybans. listen, we'll make those things in another country you give us enough time, we'll source anything out of china that's why i think gary may have old news he's been out for a year i don't know about you but i think this presidency's is fluid enough in a year -- people are out of the loop from this

morning. >> does a delay in a meeting or a summit mean a deal is more likely or less likely? >> i think it's more i'm in the camp that the chinese are not invincible my camp's been winning people over with the numbers. also, it's expensive to make things in china. you can get cheaper labor force all over the world you just don't have the giant port infrastructure. that's what china has been so smart about doing. but that can be built. i continue to think that the longer this goes on, the better it is. >> the markets or the economy? >> the markets like to keep it out. by the way, now there's only one person in the world who cares about it but there may not be

enough food to feed this country in five days it is just a very hard story if you're trying to figure out how much it's going to cost to bring food, in i think you're worried.

just over six minutes to the opening bell let's get cramer's mad dash.

watching an earnings report next week. >> march 21st, nike. deutsche bank with a fantastic report out they say must be the shoes they talk about the pipeline it's kind of like a movie release date they're talking about when a new shoe's coming out. the zoom, the vapor max, the jordan air latitude. i mean, yeah, this is a company and they can do some limiteds which then get traded in the third market mark parker is a master. they've really crushed adidas and under armor. this company's on fire china is numbers are fantastic, europe the numbers are fantastic. the personalization has been brilliant. i think it goes to 100. >> contingent on a china deal? or completely irrelevant >> just on the pipeline.

this is back to the way it was you've got to go back here to see when this became the great american shoe company, but it is more that a shoe manufacturer. it is a technology company you know most of the people who buy jordans in china don't know who jordan is? >> the chinese love basketball. >> a lot of them weren't born during the period that jordan -- >> right >> you want the shoes so badly i think nike has been unbelievable and played the resurgence of nba better than anyone else. onchts

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facebook news in the times today, reports about china trade, brexit and the boeing grounding. meanwhile, claims pretty much in line. >> yeah. >> opec leaves their demand forecast unchanged, although closing in on 59 here. >> the oil stocks have been among the best performers. i'm looking at say a bp. it's finally broken out of the range. no lift whatsoever into the oil surface. and obviously baker hughes needs to go up in order for larry kulp to have a better narrative i don't see that happening and i think that's become a headwind, not a tail wind. that's something that's not working. >> interesting

opec meantime did ask producers to prevent a return of excess supply >> we're in charge of supply right now. you see there is so much coming out of -- watch. th flaring is a big issue among environmentalists, should be a big issue for everybody. we have a lot more natural gas and oil than we know what to do with so we're going to ship it overseas. >> s&p at the bottom of your screen the big board is tortoise acquisition corp and "new amsterdam" tuesdays at 10 eastern on nbc.

apple's up a full percent. m morgan stanley sees early signs of stabilization in china. >> tgive us more than just entertainment. people are starting to talk about charging for siri. i don't think that will happen it's just an example of what you could run through because you're hooked katie is saying china bought if china bought it, holy cow the stock is going to go ever higher there are plenty of people who downgraded and they're all going to have to reverse this is a classic example of why i say,please own apple, don't trade, because you're always going to get caught up in the surveys and what people are

buying. >> it was a bit of a ride down to 140. >> that wyou get that billion n of phones. you've got a lot of people hooked i know apple's being somewhat concerned about the talk about monopoly. >> and the app store. >> yes trying to get people to relate to the fact that there's a lot of other businesses where you have some sort of proprietary -- you know, you have to pay the piper, so to speak do you have to pay the piper at a supermarket? yeah i think that issue can go away i do think china is stabilizing. that's incredible. how is that possible >> february, this is the overall smart phone market in china, but february was a six-year low. but some of these price cuts probably ended up helping them

get some share back. >> we tend not to think about the company as anything price sensitive in this country. remember, you go to verizon and you're like how much is it, i don't know but in china it turned out to be much more price sensitive and the sensitivity worked with them i talked to tim cook he said january was better and it just kept going down. the stock did have when it had that horrible preannouncement that's when people really gave up it's very rare this happens. it turns out to be the time to buy, not sell. typically we get these preannouncements, it is the beginning of a rollover. that preannouncement was the bottom it is the bottom that is so unusual usually a preannouncement shocks people, right? by the way, i remember when the cfo was saying, listen, we kind of stopped buying stock. i don't know i hope they were in there buying

stock after the decline. we don't know. >> we mentioned really quick on boeing before the bell, there is a note out that they see the most likely scenario 3-6 months for a fix and certification of that fix. >> that's more like what i'd like to hear, which is both a wide range and also something that is not out of keeping with the way boeing does things the idea that boeing is simply just going to say let's wrap this up -- >> they're not changing their rating they expect froproduction to continue at about 52 a month >> okay. by the way, we have people saying why is ge up? well, we have steve tusa saying ge's guidance had an optimistic tone, whether defined by

structure of guidance or myriad of promises for 2021 i think he didn't start off with the usual i reiterate my six when does he do the six? it's like a pick six with this guy. no, he's not really talking about the six. the $6 number. i think it's important that people are constructive that tusa looks to be constructive in this >> he says even worse if recession hits stubbornly high leverage would raise the stakes versus prior management. when it looked like an overvalued stock, we struggled to understand the story. >> look, i think there are still plenty of people who say, now i'm getting my chance. one of the things tusa has correctly understood is the psychology, which is after they say that, the analysts keep doing the following thing, which is i'm cutting numbers but reiterating my buy.

>> he hates that. >> he hates that tusa his teaching class in analysis i think this is not as negative as people could have expected. one of the reasons why is because when kulp went to tusa he said, listen, things aren't as good as i hought. that has what endeared to eed t because he knows he has someone that's not blowing smoke >> it's going to be a big day for tesla as they unveil the model y tonight. >> i haven't bought stock for myself for 17 years. this is the first stock that i told the board i would like to make an investment on behalf of our firm baron capital in this company, bought 220 shares at

235. we have 165,000 including the 225,000 that i own for baron capital. i did it for baron because i said i could afford to lose the investment that i have in this company, but i can't afford not to make a billion dollars which is what i think is going to happen over the next 10 or 20 years. >> you've got the model y unveil morgan stanley thinks he might address delivery scheduling and a new cfo today. >> it's funny when he was announced, people were immediately joking how long he's going to stay. that is the big issue here, is that with every single comment that's positive, there's a negative i think that's why the stock is stuck and it hasn't done anything in a long time. we talk about the stock, but take a look at the trajectory. it's been in flat line for ages. people love to talk about it because he's so interesting and the car's so interesting after a certain point others are going to catch up.

there are some people like the bentley has. still waging war at home with the lamborghini. >> i think volkswagon said they're going to unveil 90 evs >> that's the hope against tusa and for kulp which is we end up using more electricity than we used to. that's so far not been the case. we should be going back to workday and adobe and dell i had michael dell on yesterday. they're back dude, you've got to buy a dell >> it's been a while since we've heard that this is what dell told jim about specifically a.i. last night. >> i'm a huge optimist that technology will do far more good than bad you know, it's addressing all kind of opportunities in health care, in education, in

sustainability, the environment, certainly businesses are becoming more productive and more effective ultimately technology is about enabling human potential >> kind of reminiscent of david the other day. >> they can both be visionaries. he brought his company public when he was 23 in 1988 and he took it private about six years ago. when you go into a major bank, you expect to see all ibm. now you see dell i'm talking about half billion dollar deals they do with banks pretty routinely you start with a pc, you go to the server you literally just even internet of things. and because of vmware they have a fabulous relationship with amazon people say it's a pc maker that is so wrong

this stock is radically undervalued. they need to spend some time with michael >> it's going to be a busy night between dobe, oracle, broadcom and ulta. >> ulta does the number. it's okay, it's not great. oracle puts out a number that people think looks great and then they sell it down adobe is going to blow it out. there. >> nice preview. >> look, i just think these that's been the pattern. all i did was give you the pattern of what's been happening. i do think that adobe has done remarkable things. there's big pieces today about cloud. the cloud is just on fire. when you think of artificial intelligence, the cloud, no one

is willing so say it's even in the first inning it's spring training i've been trying to nail a ceo who will put this thing even in the third inning they won't the answer is because we're so not digitized around the world some of our companies are digitized but many of them, like the big banks, they're trying, they're struggling, they're getting there. dell is a good story. >> you saw reports that uber is in talks to sell a billion dollar stake to softbank. >> i continue to be surprised positively about uber. uber freight, they continue to tell me they will absolutely solve one of the chief bottlenecks in our country, not enough drivers one day you'll actually call and get a cab versus a yellow cab and they won on your cell phone you're going to be able to see, i see that

general mills, which got a really good upgrade, that general mills needs to get blue -- you know, their blue buffalo food from a factory to a distributor and when it gets there, then they want that truck to come back that truck has been coming back empty for years. that's where uber freight is going to play a big role it's also going to cut pollution. i really like what uber is doing. ceos who are like sharra. >> it's true we mentioned gary cohen and these comments about trade, specifically about peter navarro which he talked to the podcast

about. >> so we should try and make the goods as cheap as possible and we don't produce the goods in the united states. we import the goods from other countries. if we could produce the goods as cheaply as other country doies we would produce them in the united states. >> every phd economist i've ever come across would agree with 99% of what you just said. but the one that doesn't is in the white house, which is peter navarro. >> there's only one in the world that we know of. >> is that unfair? >> yes. >> do you not believe navarro is unique in his beliefs? >> remember i used to work with larry kudlow for three years he always started by say -- he's a man of great principle, but with all due respect, we know from the work we've seen in steel, the prices have come down dramatically despite the

tariffs. we have not seen inflation look at the ppi. isn't that what we really should be worried about >> because the global world is slowing down no has nothing to do with it? >> there are still imports when they are underneath and fair i think what gary should recognize is the prices were artificially low and made it so we couldn't have job growth. now we have job growth but we're putting up a lot of plans. i think gary needs to factor in the notion that the price of steel hasn't gone up despite the tariffs, but the number of jobs has. this is not unusual when it comes to steel if the chinese would play fair, we would have even more job growth when we hear about what adam smith, the invisible hand, all those things, it's just not fair the state subsidies are awful.

with all due respect, gary >> dow's up three points good morning, bob. >> little more interesting other in china shanghai is down a little bit. they're up 20% for the year so they're among the best performing global markets but the industrial production num r numbers were a disappointment, 17-year lows this is hurting oun earnings estimates in the united states europe would be a lig help too if we get a little more stabilization. even the ftse is near highs for the year the cyclicals were leading utilities, lagging a little bit here still got the sector leads off

of the december 24th bottom, they're all cyclicals. those are the top ones these are classic cyclical names. even the laggers are all up, but they're all defensive names. you see health care and utilities and consumer staples they're lagging but still up about 12%. what i want to talk about is that 2800 level in the s&p this is the best close since the beginning of october we have been here five times and tried to rally over this level october, november, early december, late february, early march. that's why technicals are very important here if we can blow over this, that will be a big help i think we're being helped here by this quadruple witch. this is the week where there's quarterly expectations of options and futures.

generally this week has had an upward bias since 83 it's been up four times this week, down 12 times. good bias overall here let's talk about earnings. two important earnings after the close, adobe and/or. >> caller: and oracle. it's not end of march, it's end of february that's going to be important. if we could get some decent commentary and guidance from them, the probability we will get negative earnings growth in the first quarter and second quarter will go down we're going to watch them as bellweathers look at the first quarter numbers. we're still down 1% on our estimates for the first quarter. second quarter is still on the upside about 3%. the question is, does this flip around there's a good chance it's less than 50% we're going to end negative for the first quarter but a lot of the tone of this is going to be set by adobe a

and oracle just after the close here >> bond pits, a busy morning at well good morning, rick >> good morning, carl. there seems to be just a slight deterioration, a lower glide path to most of the rates on our u.s. treasury curve and many sovereign curves around the globe despite the ongoing strength of the equities they haven't responded when there was a much more significant upside to be fair, not much on the downside experience either they're in a bit of a world of their own. realize that all treasury securities made their spike low yield closes that are still intact on the 3rd of january, 238 for the two-year if you look at one week of tens, it's january 3rd low is right around 255 you see the one week there what's interesting is we did

clip a 255 intraday low when we settled at 260 second low of 2019 which makes it the second lowest yield close going back to january of 2018. if we look at the 30-year, wednesday it has its one day it closed under 3% in the previous 13 sessions now it popped back up. very interest intereing. check out that chart that begins on march 12th and see the activity there finally, yield curve it's been basically flat, not doing too much, as treasuries have been. you could really see that since about november it's squished between 15 and 20 basis points we want to watch that in the context of testing these lows i referred to from january 3rd in the underunderlying. we want to pay especially close

attention to any buoyancy still to come, shares of he on better than expected results. we'll have an exclusive with the ceo today. tight, tight range, dow up a point and a half basically and the s&p steady at 2809 don't go away. measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you

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what adding futures can do for you. take a look at a 24-hour chart of general electric. after the company comes out and sees they see 60% to 70, estimates 70%. stock up 2.5%. we'll get "stop trading" with jim in a minute.

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is not done. good story. >> happy 14th anniversary to "mad money" tonight. >> thank you very much. >> very cool going to make it a special show? >> try to save it for like a round number my wife is celebrating a fifth wedding anniversary but we've only been married for four years. who carries about four, let's celebrate five i would have been more rigorous. i think what's happening here is we'll have larry culp tonight, and do we hold his feet to the fire we don't go easy on him because we want to find out when this thing is investable. right now it's tradeable but we want to find out when it's investable. >> jim, good work. see you tonight "mad money" at 6:00 p.m. eastern time on this 14th year. when we come back, more reaction to the latest developments surrounding boeing with the dow up 4.5.

welcome back to "squawk on the street." the last bit of breaking news for the day, of course, it's january new home sales expected to be up a smidge down close to 7%, and that represents a 607,000 annualized units. 607,000 follows 652,000.

that was upwardly revised from 621. how does 607 fit in? well, it actually is the best number since last month's 652, so not too shabby. we're continuing to watch interest rates they are about unchanged on the session. now let's head east and get more granular data and detail on this number how does it look to you, diana >> well, look, it's a disappointment we were expecting a gain in january. the home build hers been talking about seeing more traffic, amend we saw builder sentiment go up in january as well, but we did see the nice revision to the previous month's numbers i want to talk about what you hit on, rick, and that's mortgage interest rates. we saw in november over 5% they have dropped down to 4.5% in january so we should have seen a bigger boost. we did see the median price of a home drop to $317,200 that is a drop from a year ago and that's

good news because builders have to start lowering prices or at least introduce lower priced inventory to get the buyers n.i am seeing the month supply still at 6.6 months of supply. that's a high number generally you want to see four months of supply for a balanced market we did see mortgage applications to purchase a new home jump in february so that's maybe a sign things rim proving as we get into the spring market, but, again, that's a disappointment to see the numbers down as build hers been seeing more traffic. the question is did that traffic change into closed sales, and apparently it did not. prices down. another good sign though carl, back to you. >> diana, good gran layerity thanks, diana olick. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen at post nine of the new york stock exchange. david faber has the morning off. markets trying to hold on to the flat line. dow down 12 points and we have stories from boeing and ge and facebook. >> our road map for the hour starts with boeing as the faa

grounds all max 8 jets following two crashes in the past six months. >> earnings forecasts fall short of estimates for ge but larry culp says next year is game on. >> facebook's data deals are reportedly now the subject of a criminal investigation we've got the details for you. >> we'll start with boeing this morning. the faa is grounding all 737 max jets, as you know, following two deadly crashes in under five months contessa brewer has the latest on what has become a major developing story contessa >> sure has, carl. the faa did an about-face after it got refined satellite data and crash site information that showed similarities between the crash site in indonesia and indian air flight 203. the cockpit voice recorder and data recorder are now in paris the black boxes were damaged in the crash and requires specialized equipment to extracts information on them meantime, boeing, southwest and american and united airlines all say they support the decision to ground the planes while standing behind the safety of the 737 max

aircraft a pilot representing southwest pilots told cnbc in 90,000 hours of data, it shows it's safe. >> the 41,000 flights, and we've got to figure out why there's an anomaly between what we're seeing with our data and the two accidents that have happened overseas in the last six months. >> bank of america's analysts point out how important this max program is to boeing's bottom line check out the bottom line. it the accounts for 48% of its estimated commercial aircraft revenues this year, so the big question wall street is the asking is how long will the grounding last will the company have to stop deliveries and carry the aircraft on its balance sheet? boeing has lost $25 billion in market cap since march 8th, implying net earnings loss of $1.4 billion it's pointed out three financial risks in the near term, the extension of implementing software fixes, the risk of

delivery delays and the potential compensation to airlines and leasing companies who have had to ground their planes p a note this morning, highlighting of which companies stand to benefit from the grounding, and we're looking at hawaiian and alaskan since southwest had planned to use max aircraft for its new service to a had a. on the leasing side, aircastle if the airlines look for short-term lease cycles with 737s let's take a look at boeing stock as well. we did see it bounce yesterday at the close, but now it's down half a percentage point on the day. carl >> a lot of implications out of this one story contessa, thank you. meantime, take a look at live pictures of the boeing facility in retton, washington about the 737 max planes are built. one big question today, of course, is whether the faa is still the global leader in aviation security. joining us this morning from washington, former faa administration associate scott brenner now with crossroads strategy appreciate your time thank you very much.

>> absolutely. >> you don't like the precedent here >> no, absolutely not. i mean, the faa has an incredibly rigorous process for certifying aircraft, and that system has worked incredibly well to the point where if you look over the last ten years in commercial aviation, we've had one fatality now, name another form of transportation that can boast that type of safety record, and so now we have a situation where due to political pressure and probably some lack of training we've had two crashes, and now boeing has to -- the faa has to burden that effort and try and figure out how do we get back to the -- to where we started from. >> what do you mean political pressure >> well, i think -- i think boeing or faa has facing a lot of pressure when a lot of their partners, civil aviation authorities around the world which used to be that work in conjunction with the faa very

well started grounding this aircraft based on really very little data at all, and i think the president probably made the right decision politically by saying, you know, we only have a couple of these aircraft in this country. why not just ground them over -- over, you know, an overabundance of caution however, that's not why you should ground an aircraft. >> just to be clear. >> yeah. >> i want to push back a bit because this is not what we're getting from the faa at all. we spoke yesterday with daniel elwell he said no global pressure or political pressure what changed for us is we got some new definitive evidence, data from the ground, data from refined satellites that showed these paths were similar until then they didn't have the data so they don't know that the motivations for -- i asked him about the motivations for some of the other global governments that were grounding these planes he said we don't know their motivations, but we didn't have the data until yesterday. >> i think they have had the data on the elevations since the time of the crash. that has been pubically

available from a variety of sources. i'm not really sure what kind of evidence they pulled out of the hole in the ground in ethiopia, but i think dan was just in a tough position where the president went out before him and made the call and then i think the faa was kind of asked to justify the -- the decision >> do you think paris will treat the black boxes any differently than d.c. would? >> i hope not. i really hope not, but they are professionals over there i think they will do the best they can to get the data off of these things it is a very delicate task of pulling this data off because you really only get one shot at it, and if you mess it up, that data is lost forever. >> why is that >> just because of the technical difficulties in pulling the information off. there's only a little bit of software out there that's available, and i think it's -- you know, you're basically working with bent-up floppy discs or whatever they have in

there. it's just a difficult challenge. >> "the financial times" today tries to make, i don't know, you might call it a leap, but they do argue that the united states has run afoul of the global community on things like climate change, 5g, intelligence, diplomacy and that it's finally come home to roost in aviation security, and that's why 40 countries grounded before we had the nerve to what do you make of that >> i think that's a ridiculous statement. you know, it will be a little while of we have all the data pulled off those black boxes, but i think what you're going to find is that it's going to be as with all crashes it's going to be a combination of pilot error, inexperience with the aircraft and perhaps some software issues with the aircraft itself boeing -- >> although -- >> boeing -- go ahead. >> i understand your point, but the number of fatalities for a new model at this stage is higher with this model than

almost any model going back to the '60s all those models had to deal with new pilots getting used to the equipment. >> yeah. i would agree with that, but i would also counter with every pilot that flies a 737 goes through a series of trainings. basically they are put in a simulator, and they are facing five different scenarios that can end in catastrophic failure. the loss of trim, basically the control of the tail is one of those scenarios, and so every pilot has been trained on this several times, and they need to keep that training continuing. if you go look at some of the foreign carriers, perhaps in ethiopia, perhaps in indonesia, that's expensive to do that training, so who knows when the last time these pilots had that type of training >> so with all that in mind, scott, how can you speculate how long this grounding might last for boeing >> you know, that's -- that's a great question simply because for one it will be a little

while before we know what's on those black boxes. two, boeing is working on the software fix where the system that points the nose down when thinks it's going to stall, they are going to institute a new software that involves more sensors on the aircraft rather than just the one that everybody has been talking about, and so, you know, the boeing people are probably arguing, you know, this plane is safe today. we'll do some extra fixes to make it even safer, but it's going to be -- it will be an interesting dynamic to see how soon they can get these planes back up in the air because 50,000 people a day are now not flying because they have -- you know, they have to make reservations, have been re-routed, flights have been cancelled so obviously this is a big decision for boeing and the faa, because i think in their hearts the faa engineers believe this aircraft is safe or they wouldn't have certified it in the first place. >> one of the wall street analysts that covers the company

estimates today three to six months to fix and get certification. does that sound about right? >> yeah. i think that's probably fair i think that's fair. i mean, boeing and the faa have been working on this since the first crash trying to figure out exactly what happened. i think the indonesian authorities were very forthright when they basically pinned it on a maintenance failure, so i think they know what the problem was, and that's why the boeing folks were saying, okay, if that -- if that sensor fails, let's also include other sensors because we know we won't have multiple failures, so, you know, three to six months, i think it will be faster than that, but it will be a political decision more than an engineering decision. >> scott there's a sidebar story being written today about the sort of explosion of chinese regulation and aviation, how china passed the u.s. all the way back in

2005 as the largest market for delivery of new commercial jets, and basically they have never looked back and the decision early by chinese regulators to ground these planes is actually a notable development. do you see this as a u.s. versus china sort of story in the next few years about the claim for global regulation of aircraft? >> you know, i -- i would -- i hope not the chinese obviously do have a lot of support from their government which enables them to get into markets where they may not be competitive, and so the subsidies from the chinese government allows them to be competitive. but, you know, the world over continues to look at the faa as the gold standard for safety regulations. we have obviously the safest aviation system in the world we have foreign governments, civil aviation and authorities coming no this country all the time for training, to learn how the faa does things, and so i'm not concerned immediately, but,

yeah, i think that's probably a potential threat >> scott, appreciate the time very much. great information. scott brenner, former faa associate administrator and an evp at crossroads strategists. >> thanks, guys. up next on the show, shares of ge bouncing back up more than 3% we'll tell you what ceo larry culp said on the call that's soothing investors this morning. plus, don't forget he will eel join jim exclusively on "mad money" tonight at 6:00 p.m. eastern you won't want to miss that. getting a quick check on where the major averages stand right now. lower across the board sort of a mini selloff after three straight up days with the s&p down.02% "squawk on the street" will be right back the latest innovation from xfinity

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like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to "squawk on the street." shares of ge up almost 4% here, bouncing back after ceo larry culp sees the power business bouncing back next year. morgan brennan joins us with all the details. hey, morgan. >> reporter: oh, and there are a lot of details, carl the call just ended a bit ago. it was 90 minutes and covered quite a bit of material. i spoke directly with the ceo larry culp and asked him how he would sum up 2019 in one accepts tense. he said, quote, game on. free cash flow that's the biggest focus for the company, for investors who are trying to value the stock in the midst of this reset as ge looks to turn itself around. the company is expecting industrial-free cash flow to be zero to down 2 billion in 2019, but on that investor call, culp

still striking pretty hopeful and upbeat tone for the longer term >> if we get the returns that we can and should on restructuring, let alone the underlying operating permits that we're making, we think we get cash flow back to positive territory. in '20 we improve upon that and in '21 in longer term we're in a position where we think this portfolio should yield on a cash flow basis numbers far in excess of what we did last year >> so power does continue to be the biggest pain point on that point. culp telling me we'll have a greater level of negative cash flow that will be worse and from there it gets significantly better in 2020, and we expect positive free cash flow in 2021. now culp and his team spending a lot of time explaining all of this and all of the numbers on the call, both in terms of that power business but overall for industrial as well

since three of the four segments are expected to be down this year 2.5 billion in investments that ge can control which decrease after 2019 2 billion in operational headwinds, primarily renewables which will also decrease over time and also billions of dollars in inheritance taxes, think pensions and legal, et cetera 50 to 60 cents per share expected, but ge does believe earnings per share will again grow in 2020 and 2021. lastly a bit on aviation because they are not expecting to see a lot of cash flow growth there this year due to the transition of that leap engine. that's a jet engine that represents a major ramp in terms of production. guys, it is used in a number of aircraft, including boeing max's aircraft i did ask culp about the crash and subsequent grounding of those planes as well, and on that he said, quote, we are monitoring it very closely va safety is priority one and we're working closely with authorities, but we won't get

ahead of the investigation or comment. ge did have two employees that were on that plane that went down, the ethiopian airplane, so it is personal for them as well. meantime, after this call, shares of general electric are up about 3.5%, almost 4 has. sara >> morgan, quick question. i saw in the statement culp was quoted as saying ge's challenges in 2019 are complex but clear. feels like every time we get these ge financial updates, you know, there's a bit of optimism. it sort of feels kitchen sinky, and then there's more bad news to drop. the fact that he says the challenges are clear is there something different this time where investors don't have to worry about more skeletons in the closet? >> it would appear that way, and i think this is an executive team under culp that's really been going to great lengths to try to add more detail and gran later and more transparency to

their different businesses and what they are trying to execute on the turnaround. the fact that they held a call focused on the long-term insurance business last week really speaks to that as well, so, yes. i think a lot of the devil is in the details. analysts and investors got more of those details today i think that's why the stock is up right now despite the fact that it's negative free cash flow for 2019. we already knew what it was going to, and maybe those numbers aren't as bad as some had feared the big question heroic and i think this is the big question when you look at wall street about half of the analysts that cover this stock think, you know, it's neutral or underperform or sell and the other half think it's a buying opportunity right now. the big debate here is really what 2020 and 2021 look like yes, 2019 is going to be hard and challenging, but can they actually execute on the turnaround to next year. >> so far there's optimism h.ge shares up more than 40% this year, having a good run. morgan, thank you. morgan brennan

outside of ge the major averages are in the red this morning after news that a trade meeting between president trump and chinese president xi jinping will be reportedly pushed back joining us to discuss kirk hartman and chief investment strategy brian nick here at post nine gentlemen, good morning to you. >> good morning. >> brian, is that what it moving sentiment for this sentiment when fanned there's a china trade deal >> i think we've been price out tail risk on the bad news side tail risk released to brexit and as it relates to china so as long as it looks like the two sides are on track to reach a deal, there won't be an implosion and tariffs that will go back up will rise even further than last year the market will be relatively happy with that. the specifics of the deal seem a lot less important >> do you agree with that, kirk, doesn't matter what's in the deal or whether it's struck in march or april >> well, i think will be a deal. there's an awful lot of pressure on both sides to do that obviously the details matter, but i think a lot of this has

toss do with protecting technology, so i think to the extent there's a lot of protection that's probably the thing that is most important >> so where are you, brian, where are you guys positioned for the rest of the year do you think that this stock market rally we've seen so far can last >> i think the discussion of ge and industrials is a pretty good stand-in for some of our concern is that we got off to a fast start and priced out a lot of bad news, but big question is with negative earnings momentum and concerns, yes, we could see earnings growth in 2020 and 2021 and could avoid a recession, we're still talking about mid-single digit earnings growth versus last year when it was 20, 25%. those days won't come back, we don't think. economic growth will be slower this year and next year and the upside that the markets have been latching on to in the first quarter, we're not show that will continue. that momentum may slowly dissipate. >> i'm struck by the convergence of the vix, 13 and change today,

at monthly lows, even as the number and total of global bonds with a negative yield hits $9 trillion how can those two things co-exist >> well, i think this is a replay of to 18 or -- yes, and, in other words, i think what's going to happen is you've seen a great start to the year, and then i think you're going to get some more volatility, so to your point i expect the vix will pick up bond yields seem to be stuck in this range, and you're right german bund yields are almost negative, so i think the dollar is going to be stable, and i think this is a replay of last year >> so, in other words, global liquidity has nowhere to go but u.s. equities, is that the story? >> i think u.s. equities are the place to be, and i think this is going to continue for a while until you've got resolution on brexit and a resolution on the trade wars, so so i think it's good to stay close to home obviously things like emerging markets, longer term are great value, but right now i think you have to be in the u.s.

>> so brian, you're not as optimistic on the u.s. stock market but within the overall market are there maces you want snob. >> we agree with kirk. we do like emerging markets. the one area where it's a little bit different than last year is the bond market and stock market don't agree on the outlook right now. beginning of last year the bond market and stock market were optimistic, rising interest rates and a rising stock market and now it's like an adventure story. if you want to believe the bond market you're looking at weak chinese data overnight and if you want to believe stock market -- >> one of the hallmarks of the stock market has been low bond yields. >> sure. when you have central banks globally -- >> that's the story then, right? >> they are not going to be tightening nearly as much as we thought even three months ago. that's been tremendously helpful and global disinflation is allowing that to happen. now necessarily great news for stocks if the economy is slowing down just enough so the central banks don't have to tighten it. >> kirk, do you have a central bank forecast as part of your

overall view of liking u.s. stocks this year the fed pauses, the fed eases, is that part of it >> well, i think the central banks will continue to be accommodative. just a year ago we were talking about maybe two or three more rate hikes, and now the talk is we're probably on hold so central banks around the world are very accommodative especially in europe, and i think that will continue if you look at the u.s., i think a lot of expectation that the unwind of the balance sheet will slow down. i think central banks are definitely driving the markets. >> finally, on whether or not q1 is sort of this giant pothole. eurozone data suggested this week that maybe the worst was ending, and china data overnight you could make the case it got worse in february. short term what do you think the answer is? >> you have to look tat with a magnifying glass we're optimistic numbers will be

better in the u.s. and the potholes are really in the first quarter. >> because of the shutdown. >> the shutdown affecting the economy and is also affecting our ability to gauge the strength economy both at the same time. in china we think it will be more of a slow comeback. >> jobless claims are trending a bit higher people are noticing that the trend is up, still historically low, but is that an alarming sign for the outlook for growth? >> that would tend to lead you to conclude that last week's payroll report wasn't all tight labor market, no availability of work, that there is maybe a bit of a slowdown. there's fewer small businesses planning to higher and planning to raise wages. >> thank you both. >> thank you. >> thanks very much. >> when we come back this morning, airlines are clamoring to rebook passengers as the 736 max fleet does get grounded. we'll check in with the ceo of northwest airlines as we go to break, get a check of major averages, dow down 36

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i'm security why i reagan here with your cnbc news update. several republicans are expected to join democrats when they vote later today on a resolution ending president trump's disaster declaration trump has vowed to veto the measure. millions are in the path of a massive bomb cyclone and intense winter storm unleashing 50-mile-per-hour wind gusts and up to a foot of snow across colorado and the plain states. the blizzard stranded motorists, knocked out power and grounded flilts facebook and its family of apps are back online after a global outage that lasted most of the day yesterday. users received eyore messages when they went to post to instagram or whitecaps whatsapp. the company has yet to say what caused the issue. and if you don't buy your ticket for last night's powerball, don't worry, you didn't miss much there fwhoos winner for the $448 million drawing so the next chance will be saturday, and that jackpot is over $49 are5 b, the eighth largest in powerball

history. carl, let the dreaming begin. >> wow thanks very much time for our etf spotlight d dominic chu taking a look. dom. >> reporter: trying to find a key level in the s&p 500 it's tech and service-related stocks that are a big focus for some sectors. the com services sector, the best performing one in the s&p by far this month. stocks to watch today. they include facebook, lower on the wake of the "new york times" report saying that the social media giant is facing a criminal probe into its user data-sharing deals with other companies meanwhile, snapchat parents snap, inc., not an s&p 500 company stock but it's making a notable move to the upside helped along by analysts at btig who say it's a buy with a $15 price target among the sector etfs to watch beyond that ticker, the spdr com services, the ticker ftn and

vanguard communications ticker vox and the smaller ishares global com services ticker ixp the near-term momentum for the sector has been benefitting from some of the etfs sara, again, it's the best performing sector so far in march. back over to you guys. >> thanks, dom when we come back, grounded. airlines are looking to rebook passengers and fast as the faa grounds all boeing 737 max planes we'll take a look at impact on airlines, flights and how passengers are reacting. the former ceo of northwest airlines is with us.

welcome back to eson the street airlines are strike, scrambling to rebook passengers and keep

routes open after the faa issued that grounding order for all boeing 737 max airplanes our frank holland is at laguardia warrant with more. frank, how does it look? >> reporter: good morning, sara. we're getting a mix of concern and confusion and even confidence about this whole situation after the grounding of the boeing 737 max planes. hear the impact has been kind of minimal. so far we've seen one flight directly cancelled due to that grounding. that's an american airlines flight to miami international scheduled to take off at noon, but all three of the u.s. airlines that fly these 737 maxes say the passengers should expect some level of disruption. southwest airlines, they fly 34 of max 8s and say about 4% of their daily flights are impacted united airlines, they say about 1% of their daily flights rare impacted american airlines about the

same today the decision to continue to fly is one passengers are questioning. >> i'm sure it's a profit one and wanted to make until the last second to make the decision. >> i think it's great that all of the max 8s are now grounded and hopefully they are able to figure out what's been causing this so that no more lives are lost. >> i fly every day i'm aware of it, but if it's american-made i'm going to fly it. >> not all passengers have that same confidence in boeing planes we spoke to some ticket agents off camera and say a lot more people are asking what plane they are getting on which is very unusual some people are also pretty confused about what planes have been grounded and have even asked to be taken off any boeing flight or 737 at all back over to you >> wow frank, thank you frank hole land. >> thank you. our next guest says the airlines will be able to absorb the cost of the loss of the 737

max fleet. joining us force more, former northwest airlines ceo doug steenland. welcome, doug. how much of a disruption do you think we're going to see today in terms of the airlines trying to manage around those grounded planes >> i think it will be minor. there will be some passenger inconvenience, but all the airlines at issue have very sophisticated rebooking software and the like that they use for irregular operations for thunderstorms and the like, and this is probably 2% of domestic capacity, and they will be able to adjust to that quickly, and would i think after a few days it will effectively be a non-event from the customer perfective >> what about that point that frank just brought up, the sort of reputational damage that boeing could stand to face here, that passengers are asking what flight -- what airline they are on, whether it's a boeing plane, what model it is, is that likely

to last? >> well, i think the u.s. safety record is incredible, so there has not been an accident at a u.s. carrier for ten years, and during that period of time i think something like 8 billion passengers have traveled with respect to the max, it's been operated by southwest, american and united without any incidents up to this point in time we had this incident obviously very unfortunate in indonesia. in the ethiopian incident occurred it's my understanding, th that, you know, initially there was no data that corroborated one with the other, but as some additional data emerged there, suggest there had may be a linkage. at that point i think everyone did the prudent -- the prudent step, grounded the airplane, and

i think as the -- as new data emerges we'll be able to ascertain what the cause of that is and look to put in a remedy >> do you think -- do orders, appetite for new deliveries, is thereto potential for that to get impacted by what's discovered over the coming weeks and months in retton >> well, i think everybody will basically, you know, stand pat and -- and look for the additional information to come out. you know, there's a lot of data that will emerge i hi history suggests that you don't want to rush to judgment i know the so-called black boxes just from the ethiopian incident just arrived in france today that will -- that will produce more information, and i think with that information we'll be able to pinpoint, you know, is

this -- is this a product of a software issue is it a different issue? what is the type of remedy that -- if any that will be recalled you know, boeing -- boeing and airbus both, you know, at their core are so fundamentally dedicated to safety. that's, you know, indispensable to their business. this is going to be their top priority to fix this i think their customers know that, and they will be in close touch to monitor how this plays out, and i wouldn't anticipate anyone would do anything precipitously until a lot more information comes forward, and the real -- you know, what the real cause of these two incidents is confidently identified and then the solutions to them are put in place. >> doug, do you think boeing is going to be on the hook for money to the airlines,

liabilities of covering the cost of grounding and switching these place? >> you know, i guess from my experience that's -- that's a secondary consideration at the moment the first is, you know, finding out what happened here and getting the fix in place so that the airplane can get back in the air and the production can continue you know, there is a template for this in that the 787 was grounded for i believe around four months due to a lithium battery issue, and so what boeing did with its customers back then probably established at least one template for what might happen going ford. >> there's been an interesting debate in the wake of all of this pilots like to use the term pushing the envelope, and people are wondering, even the president, wondering whether we're pushing the envelope in the amount of technology that's shoved into the cockpit versus the pilot's ability to feel the aircraft, as the president said. what do you think of that?

>> well, i think part of the reason for the incredible safety record are the advances in technology if you go back over 20 years and look at causes of accidents, my guess is that the largest -- the cause that you would identify as the biggest is pilot error or human error, and not to be critical, but i just think that goes towards, you know, the complexity of trying to, you know, fly one of these airplanes where there is less technology you know, in simulators where -- where pilots do get training, they do get hands-on experience. they are exposed to, you know, basically every possible condition that can happen, engine failures and the like, so it's not that they are without that training, and i think the technology that's been introduced into the airplane all in all is a plus, and i think it

would be an extraordinary mistake to think that we need to turn the clock back. >> doug steenland, thank you for joining us today. >> thank you >> meantime, shares of facebook down today, the company reportedly facing a criminal investigation into its data sharing according to "the times. a former twitter chief dick costolo will join us to talk about that on "squawk alley. bit of a range-bound day dow down 21. take a look at the top performing names on the s&p. ge among them despite the warning today. dot awhe.n'gonyer

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longtime bull richard bernstein says there's something mippening in tech stocks that rends him of the dotcom bubble found out on tradingnation.cnbc.com more "squawk on the street" coming up. imagine traveling hassle-free with your golf clubs.

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hi, ylan. >> reporter: the testimony is about the president's budget but we're learning a lot about mnuchin's own personal finances during this hearing. he said that his tax bill has gone up this year because of the new limits on state and local tax deductions >> i will tell you there's no question that wealthy people in new york have been impacted by this i can tell you i personally pay taxes in new york and california, and my tax rate did go up because i no longer have the s.a.l.t. deduction. >> reporter: he wouldn't say what his tax rail was but in a his overall bill went up the president's budget eliminates the credit for electric vehicles in the document but mnuchin said, guys, he didn't need that credit anyway back over to you. >> we'll keep an eye on that let's get to the cme group in the meantime and get the santelli exchange. good morning again, rick >> reporter: good morning, carl. i would like to welcome my guest

today, jim grant, grant's interest rate observer we're all interest rate observers these days, whether it's the ongoing relationship that seems to be change since the volatility at the end of last year between the intensity of rates and the intensity of stocks low inflation, maybe it peaked in the cycle what do you see, jim >> what i see, rick, is a lot of very, very way out ideas entering the mainstream. i've picked up a copy of "the financial times" yesterday and was struck by a page one, what they call the refer box, come on and look at the story inside and it was a reference to my friend and the copy read new tools, new ideas needed to escape low incape i thought escape low inflation >> why don't you explain to your audience why you think that's so

perverse. >> i think part of it those do with the number of birthday candles i've blown out actually i came of age about the time that a harvard professor named sumner sclikter was opining, and he said we need inflation. we need 2, 3, 4% inflation because it lubricates the moving parts of capitalism empowers labor unions, makes us feel better. that was 1958, '60 wouldn't you know we got a lot more than he bargained for rick, i would say that one of the clear and present risks in today's market is the intellectuals, the ignorance that knows not it is ignorant. >> let me stop you there you hit on something we can enlighten for viewers. if greasing the gears has to do

with inflation, what are mario draghi and the others thinking with interest rates that are negative as far as the eye can see? >> right but one of the things that martin wolf wrote in his column was that he said perversely very aggressive central bank intervention brought us a great deal of debt which is weighed down on price level which paradoxically induced not the inflation the central bank hoped for but rather a persistent drag akin to a low level virus, so he says we can't do that any more but what we must do is spend heavily. need bigger deficits, more spending this reminds me, rick, of something that was hot rather before my birth which was the phrase secular stagnation. that's coming back, too. this is the formulation of a harvard professor, harvard, nice people at harvard, called alvin

hanson he said in 1938 that we were in for a long bout of droopiness because immigration was down and the frontier had closed. 1938 right. so what he didn't see is world war ii, the baby boom, and the greatest expansion in economic activity. >> we have to leave it there that's a positive note to leave it on. >> oh, rick! >> we're going to pick it up with your negative insights next time thanks for joining me. sara, back to you. >> okay. i think we're going to take a moment and go to washington where president trump is hosting the irish prime minister who is close to arriving. we want to get that arrival. the two scheduled to hold meetings this afternoon, then travel to the capital to participate in the friends of ireland luncheon later, they host the prime minister for the annual shamrock

bowl presentation. we will monitor the meetings, bru bring any updates in real time. >> he is going to the hill where they voted union and mustily to make the mueller report public and to strike down powers of national emergency declaration interesting when he makes the trip to the hill. >> not to mention another brexit vote this afternoon. jon fortt has a look what's coming up in the next hour on "squawk alley. good morning, jon. >> bringing it back closer to home, machiniongo db is up. we have the ceo and chairman coming up on "squawk alley."

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but a big afternoon coming on "closing bell." >> huge. we're talking to the former australian prime minister kevin rudd, talking trade. has a keen eye on negotiations between the u.s. and china and when we actually might get a deal and a busy day for earnings. broadcom, or a kel, adobe and

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good morning it is 8:00 a.m. at boeing factory in renton, washington, 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ good morning i am carly fiorina with morgan brennan and jon fortt. dow down 6 points. we start with boeing on watch today, down two-tenths of a percent following the president's call to ground all of the company's 737