want to thank jason for being our guest today. right now it is time for "squawk on the street. ♪ i feel so close to you right now ♪ ♪ it is a force field ♪ i wear my heart up on my sleeve ♪ good monday morning. welcome to "squawk on the street." futures in a familiar mode here. s&p and nasdaq higher as investors hope for a dovish fed this week and m&a. boeing will pinch the dow amid reports of a federal probe busy week ahead in europe, more brexit drama will approach us tomorrow ten year barely hanging on to a

2.6 yield. boeing shares under pressure once again amid a widening investigation into the faa 737 max approval process >> plus, trump versus gm the president lashes out at the automaker calling for fast action to restart production at an ohio plant. >> and lyft planning to raise $2 billion at a $23 billion valuation, the ride hailing platform kicking off the investor road show ahead of its long wait ipo today. >> stocks off a pretty good week for the major indices which did include the s&p hittinging a five month closing high on friday boeing set to drag the dow lower as federal authorities scrutinize the company's 737 max jets the dow is in negative session for the month, underperforming the s&p and nasdaq you have a column out today saying 2815 cleared for now and if people start to, i don't know, feel a little fomo, it will go higher. >> we saw a lot of rush into etfs and equity funds and i do

think that most of this recovery that happened, so repeat about six months ago in the s&p 500 has been really just about the fed story getting more patient and yields remaining low and a little bit of a reversal of excessively negative sentiment we haven't really had the resumption of bull market habits in a way you haven't had people chasing, haven't had the momentum stuff working. it has been defensive type stocks that have been leading. not saying that is going to happen this moment it makes sense to spill back after the run we had short-term basis, it seems like if we get a little confidence that earnings won't fall apart, that's the next phase. >> it is tomo, right, not fomo anymore? >> tired of sitting out. >> he coined that last week. you could say we're coming off the worst december, what, since the great depression and we're at this turning point where we breach the key technical level

and half the strategists you talk to say we're headed to record highs, and the other half say, the economic outlook is too uncertain. we're getting such mixed signals on the economic front. the fed made this widely celebrated pause but how long does that last? if the inflation numbers are -- or the economy starts to heat up, maybe hike interest rates and throw the whole thing off. >> some of the stubborn bears, david rosenberg, they argue you can celebrate a collapse in the vix, you can celebrate a fed pivot like we saw in '90 and have it be too late for the economy to not suffer the effects of prior hikes >> right. >> there has not been a decisive blow against the bear case for that reason. because you can look to the bond market and say, well, look, the bond market is not sniffing out any kind of reacceleration here or anything like that, although, you know, i know david is pointing to 1991, you're at the 20% pullback and the market didn't fall apart even though we went into a tech cnical brief

recession. it is not something where the market is ignoring the challenges there i do think if you don't think we tip into recession, in 2020, it is hard to say there is big down for stocks at this level >> and people are scrutinizing the mixed signals we're getting. equity it continuing to march toward the highs going back to october levels and bond yields are at lowest point of the year. gold, for instance, also, you know, sort of in demand. you're not getting the sort of risk on economy is in great shape and is it a signal that the economy is not in great shape or that just the easing story is on and that it is a green light for the bulls. >> 2% growth easy money low yields was a really good bull case in years like 2013. right? the question is can it work here at this stage of that site >> what is the underlying reason, the ecb is doing negative interest rates forever? it is because of slowing economy. >> and inflation is nowhere to be worried about at this point. >> so boeing as carl mentioned

clearly a weight on the dow. let's get to phil lebeau in chicago for the latest there >> the reason the stock is under more pressure today is because there is growing uncertainty about a couple of things one, how long will it take to get the 737 max's recertifies to begin supplying again? there is some indication from some of the people in washington this could go on for months. and if that's the case, what happens with deliveries of the 737 max? meanwhile, with regard to the investigation of the two crashes, the one in ethiopia last week as well as the one last october with lion air, the ethiopian minister says after looking at the data that was downloaded and analyzed in france, there are clear similarities between the two 737 crashes. meanwhile, the wall street journal reporting that the department of transportation as well as the department of justice are scrutinizing the 737 certification process. looking into the relationship between the faa and boeing as part of that process yesterday boeing ceo dennis

mullenberg issued a statement saying while investigators continue to work to establish definitive conclusions, boeing is finalizing the development of a previously announced software update and pilot training revision that will address the mcas flight control laws behavior in response to erroneous sensor inputs. as you look at shares of boeing, which again under pressure this morning, we should point out that boeing says we followed all of the guidelines and met all of the faa requirements for certification of the 737 max that may be the case, guys, but the question being asked in washington right now by regulators as well as those who are looking into the relationship between the faa and boeing is was this a tough enough process in other words, could it have been more stringent? if that's the case, they say, look, it could have been more stringent, we don't know if that will happen, will they be more stringent in terms approving any

type of a fix for the 737 max. that's the reason why you have some people saying how much longer will this grounding go on will it be months? will it be four, five, six months, in way of knowing at this point, that's the uncertainty behind the stock being lower. >> phil, the journal today says that a grand jury in washington and subpoenas for documents over certification for a commercial airliner is in their words highly unusual you would not take issue with that language? >> not at all. very unusual you don't see that very often. now, the inspector general from the dot looking into the process, that doesn't surprise me given the crashes. but the grand jury one, that's unusual. you don't see that when it comes to the certification process for an airplane. >> just to be clear, is what they're looking into the coziness of the relationship between boeing and the faa when it comes to getting the approvals done or was there something -- are they looking into something specific related to this

airline, this aircraft >> my sense is -- i've not seen the subpoena my sense is, especially with regard to the dot inspector general, they're looking into the relationship between the faa and boeing in terms of the faa cannot certify every single aspect of a new aircraft they just can't. they don't have the manpower and the staffing that's been the case for a number of years. what we have seen is that the faa and boeing as the new aircraft is being developed, they'll say, okay, let's tal about what your engineers can certify to meet certain requirements that we will need to see for this aircraft, and then what are we the faa engineers going to look at what they're looking at with the dot is how was this divvied up and was it stringent enough in terms of boeing certification of certain aspects or what they reported to the faa for certification. >> phil, we'll watch it again

today. obviously huge impact on the indices. phil lebeau watching boeing this morning. time for a closer look at the markets ahead of this week's fed meeting. let's bring in greg and david servos david, let's start with you, jumping off our conversation at the top of the hour, is it possible to as credit suisse did today trim your numbers for the year, but also raise your price target for year end because you believe investors are not done rerisking? >> i think you can do that if you want to raise multiples and think the rate structure is headed lower or the fed will act more dovishly than what is priced into the market but i think more importantly based on your initial discussions of the top of the hour, carl, is this idea, is it a growth story or inflation story? are we seeing the market move to a lower growth expectation or are we just finally pricing in the fact there are more disinflation risks than inflation risks out there? i would argue it is the latter

we saw weak cpi last week, weak ppi, we continue to see weak export and import prices and this is all with the unemployment rate at 3.8 or sub 4% having been sub 4.5% for over two years now, which is what most economists call a hot economy that can't seem to generate inflation so i think the real story is inflation or lack of it. i think the feds had to recognize it and i think that's really where the rate markets reprice too. and that's what's repricing the equity market. >> the significant of the technical level we were talking about, breaching -- going past 2800, going past the levels that have failed so many times in the past, does that do anything to change the technical or even sentiment picture of the market? >> absolutely. i think the u.s. equity market rallied and failed october, november, december, 2800 level so having traded up through that last week, i think it is going to start to drag reluctant bulls back into the market we had the options expire last

friday we think that will remove some of the overhang of long gamma positions that have been pinning the market closer to the 2800 position we think while volatility remains low, this will drag reluctant bulls back into the market and see some of the systematic strategies relever. along the longer term view on the market is cautious but short-term, this could drive a squeeze higher. >> david, as we wait for the fed on wednesday, the market seems to have made up its mind that the next move if there is going to be one is more likely a cut than a hike. is there still enough of a gap between the consensus on the fed what the dots will reflect and the markets to create a little friction or no >> i doubt it. but maybe a little i don't think they're going to drop all the way down to zero. but they might in terms of the way the dots fall on wednesday i don't think it is a big deal whether they come out at one or zero or lower the long-term a little bit or 2020 a little bit. i think the market has gotten to the point they don't always

really believe the fed dots. the fed needs to bring it back from a very, very elevated level last year, they don't want to do it that quickly. they look stupid if they do. i think they can gradually guide that in. the other thing they'll focus on is just telling us when qt is going to end i don't think that's at this meeting, maybe the summer and more in line with the this june conference that the fed scheduled in chicago to discuss the changes in the inflation targeting framework. that's the next big fed story. so we're really kind of in a two to three-month period where i don't think a lot can happen in terms of changes for the monetary policy outlook. either from the committee or even from the market and unless we get big data changes which i don't think are a huge story either. >> well, not to mention, greg, to david's point, the extension of uncertainty is whether -- who knows if we're really talking about a nine month delay on brexit, the south china morning post today saying xi summit with trump may not happen until june

at the earliest now. implications for having those things on our shoulders for longers? >> yeah, i think the potential growth overhangs that we have been concerned about are still there. and we think could be more of a second half story. i think the issue in the short-term is that there are a lack of material catalysts we don't think the fed will be a large catalyst for equity markets. and many of the political issues people have been worried about seem to be more likely to be a second half of the year story than first half of the year. i think in the short-term, market could be driven more by positioning and sentiment than hard data or potential catalyst. >> yeah. definitely seen that happen before greg boutle, david zervos, thank you, talk to you soon. when we come back, more tweets from the president this morning after an active weekend on twitter, pushing for gm to reopen its plant in ohio also ahead, lyft kicking off its road show this week after announcing new details about its ipo. we'll get some numbers and update on what kind of valuation they expect.

coming off four out of five gains for all major indices, ndx, all time high "squawk on the street" back in a moment (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. your control. like bedhead. hmmmm. ♪ rub-a-dub ducky... and then...there's national car rental. at national, i'm in total control.

i can just skip the counter and choose any car in the aisle i like. so i can rent fast without getting a hair out of place. heeeeey. hey! ah, control. (vo) go national. go like a pro.

all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome.

the economic bellwethers in the s&p of course is 3m. this morphini inmorning with ing leadership announcements, going from five business units down to four they're often seen as opaque, but with 80,000 skus, they're basically in every business imaginable >> yeah. and some stumbles in terms of earnings targets and not meeting them in the last couple of quarters, few quarters, i guess. it may be a reaction to that also a company that i think some people have expressed surprise or hasn't been an activist who sort of taken a position and said is there a better way to set up these different businesses so right now looks like a half step rationalization going from five to four business units. >> down 12% over the last 12 months one of the dow's underperformers gets caught up in the trade escalation, the global economic

slowdown and as mike mentioned, some issues of its own president trump continuing to tweet this morning about gm as he urges the automaker to reopen the lordstown, ohio, plant this morning tweeting, why wait? i want jobs to stay in the usa and want lordstown, ohio, one of the best economies in our history opened or sold to a company who will open it fast. car companies are all coming back to the u.s., so it everyone else, we now have best economy in the world, the envy of all, get that big beautiful plant in ohio open now. close the plant in china or mexico where you invested so heavily pretrump, but not in the usa, bring jobs home always fun to read the trump tweets lordstown, ohio, population 3,000, it is in the northeast part of the state, sort of like cleveland, akron region. and the unemployment rate over the last, i don't know, few

years has improved in trumbull county where it is in ohio, it is still 7.7% as you can see the tick up there. elevated and in lordstown in particular, i mean, this plant -- this town is built around the gm plant so obviously a devastating local story. but in the broader picture, you know, this is part of the five north american plants that gm is closing. americans are choosing suvs over sedans they're pure economics that are behind this decision as well which is part of the story which the president seems to be ignoring. >> yeah. i mean, obviously it is a pure bet on compact cars and probably -- a gesture in the direction of, look, we have done what we were supposed to do to get manufacturing to be more economical here, we did the deal with usmca, which maybe is not going to lead to a catalyst to have plants come back here so -- >> and a lot of discussion about

the circular nature of some of the policies his tweet about keeping plants open is something you can arguably see from bernie sanders, elizabeth warren, someone -- >> not very capitalistic but keep in mind, ohio is a key state for him. it was in the last tlekelection it will be in 2020 he's in youngstown, the bigger town close to lordstown, during 2017 saying don't leave, we'll get the auto plants open and keep these auto jobs this is one of his campaign promises also an example, i think, of -- when president trump remembers his base, remembers his promises, and keeps politics maybe ahead of the economic decisions, remember, gary cohn, his former economic adviser said last week that he was trying to convince trump that there are way more jobs in solar panel, 350,000 of them, versus 50,000 in the coal industry, and yet trump instead sided with the coal industry, put tariffs on the solar industry it is all about west virginia, ohio, pennsylvania >> we'll keep an eye on gm and

any further response from the company today. when we come back what to make of stocks rebound since december the s&p now 4% from its all time highs. and looks like we might gain some more ground at the open as the s&p futures remain positive. we're back in a moment ♪ just hold on, i'm comin'

♪ hold on, i'm comin' ♪ hold on ♪ don't you worry, i'm comin' ♪ here i come for just $39.00 ? yup that's what we do. and you guarantee they'll get there? yup that's great! i have two sets. you know ship sticks only ships golf clubs? right? honey are we there yet? umph! ship sticks. that hurt.

♪ welcome back we have been talking about the

s&p 500's difficulty so far in clearing this very widely watched level, just above the 2800 mark. wednesday is six months since the all-time high in the s&p let's talk about why so many people were focused on 2800. we have one, two, three, four, five, six, really seven attempts in the general vicinity to get above this area between when we hit a high of 2900 in january of 2018 and last summer and so we, as you see here, nosed above it right here. what is interesting about it is we have done it really without any change in expectations for earnings growing fast they are year earnings estimates for 2019 are down 7% since october, talking about this in the comments up on cnbc.com and really with bond yields anchored at very low levels, people asking what is the stock market celebrating look at the valuation of the market you can see low yields have bolstered the pe multiple this the forward pe of the s&p 500 right now. way up here, january of last

year, that was probably maybe the peak for the cycle for sure. we're in the even back to where we were at the highs as we are about 3%, 4%, earnings have flattened out. that's been on the strength of bond yields going lower and stabilizing earnings outlook and sentiment. one thing i want to point out is when we got up in this range, above 17, in 2016, also with the slow growth market, coming off a big shock, nasty correction in early 2016, you got above there because yields stayed low. it was the story, we all looked ahead to an earnings, we're going to take the fore that's the question. can there be a seamless transition where yield stocks and quality, you know, nasdaq 100 stocks hold the market together until we maybe get earnings coming back. >> the jump in between these two circles was the election of donald trump and tax cuts. >> right here at the election and the tax cuts the market rushed to price i think the last couple of years have been about the markets kind of uncertainty of how to rush to price in a huge windfall from

corporate tax cuts and decelerate from 20% growth down to nothing that's something the market can't really do in a smooth way. >> all right mike, thank you. opening bell just a few moments away stay with us on "squawk on the street." 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. valerie: her experience and training gave us the courage to go for it. it's our "confident forever plan"... cal: ...and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. ♪ ♪ each day, brings new possibilities. that's why you need a partner dedicated to helping your company reach its goals. u.s. bank -- the power of possible.

watching "squawk on the street." live from the financial capital of the world, the opening bell in just over 60 seconds, ahead of a busy week, a two-day fed meeting begins tomorrow, we'll get march pmis decent diet of earn things this week from fedex, general mills, and on top of all of that is a little vaneer of m&a. >> we had a couple of mondays, a trickle of deals $35 billion deal, fidelity information services, what the old name was, buying worldpay. kind of reflecting the enthusiasm in the mobile payment spa space. that whole group will probably benefit. >> this will create the largest

global payments, one of the largest global payments suppliers. has an interesting history >> royal bank of scotland's value, so this could be part of the company, kind of a pay pal/ebay story. >> a ton going on. let's look at the opening bell at the big board today the tory burch foundation celebrating women's history month at the nasdaq. kelly services mover this morning at the open is going to be edwards lifesciences i'll leave it to you to explain what is happening. >> there is a cardiology conference there was a new product approval, it is basically a valve replacement technology,

but i think the reason to talk about it is this whole sector, medical tools and devices, jim talks about it all the time, it is an incredibly strong segment for years now within health care and this looks like it is causing some more excitement another reason to buy edwards lifesciences, up about 9%. so it is just one of those things where you think of these companies as being sort of in the razise razor blade businesss is more of a technology approval for a new surgical procedure. >> looks like medtronic is moving on some positive results related to that. and apple actually, apple watch helped detect some -- an irregular heart rhythm disorder in some users. showed some false positives in other cases. one to watch along with new product launches. >> yeah. apple today launching a new ipad mini and tim cook tweeting a picture of him drawing on an ipad, just saying hello remember, we're a week way from apple's announcement which we do

expect some streaming services to be announced. the times looks at what the challenge will be to netflix and some of the competitors in that space, depending how much ammo apple decides to bring. >> what are they naming? five completed series or something like that, and maybe six more in post production. so it is obviously a slow start. i think the question is, you know, do you have that one that will make you want to try the service and also just, you know, how much is it not a zero sum game which i think everyone has to figure out. >> am has bepple has been one o performers we're wrapping up the quarter soon, up 18.5%, after the big slide at the end of last year and warnings on china. another stock to watch is facebook a host of reasons related to the news items that we talk about every day. the negative financial impact of their strategic pivot toward

privacy, the growing risks of regulation we talk about, horrific images they say from new zealand, what happened, that are difficult to block they say all and all the departures, it is a negative effect and that's going to start hurting and bring facebook earnings estimates below wall street consensus. >> needham cuts, we'll talk to the analyst in the 11:00 hour. largely on the revenue risk element of all of this, they say things like ephemeral stories are not as easily monetized as news feed and if this really all comes to pass, it is more like a three-year revenue outlook that starts to draw some scrutiny, they say. >> that's been the missing part of it. they told us how much more money they'll be spending, how much they have to -- head count to deal with all the issues it seems like the stocks come back has given the sell side an opportunity to say, okay, now what's priced in the highs of last year are, you know, kind of out of sight still. and how much do we have to tweak our forward going revenue models it is on large part a guess.

you can say it is not as good, but you have to surmise how it is going to filter through the platform, how advertisers respond. >> marriott is another mover announcing today a new three-year growth plan arnie sorensen was on "squawk box," they'll be opening more than 1700 hotels around the world, adding 300,000, little less than that, rooms. they have been an underperformer over the last year they just haven't seen the kind of economic recovery, the 3% growth of 2018, that many other industries have. whether it is a global story, international travel, maybe a trade impact, and that sort of thing. but clearly -- >> very exposed. that's where a lot of expansion will be. >> merger with the points system and the starwood points holders are still mourning the fact that

they have been combined with marriott i can tell you that personally. >> you mentioned the deutsche bank commerzbank talks out in the open the european financials etf which is a lot of people look at, it is up .8% so getting a little bit of the balance, outperforming u.s. banks and city up a similar amount people feel like it is not a similar situation where the big new competitor will get together, it is more about this creates more stability in the european financial system if it happens. >> shows you how much more problematic the european banks have been than the u.s. banks with the control that germany still has in a bank like commerce. >> i saw today, financial services 6% of uk gdp. we know how much brexit has done to carve out activity and financials there and autos. goldman, cracking above 200, once again, that's up a percent and a quarter. and we'll see if some of the

financials here can start to get some traction as well. >> yeah, that's been -- it has been a question. they obviously have only -- i think the yield story is part of that just a general sense of if you're worried that the cycle, you know, is -- doesn't have too much longer to run, you might have seen the best returns from banks. that's been a little bit about -- >> boeing a drag on the dow. so is disney the fox deal is expected to close on wednesday we'll see what that means for corporate structure and employment after that closes captain marvel did dominate for a second weekend, global growth closing in on $800 million and it is only open for two weeks. >> i wonder if the market is saying, okay, what's next. there will be -- just a side note on the fox deal closing for disney is it is going to throw a lot of cash into shareholders hands. talk about buybacks a lot, but cash mergers are another piece of the way that portfolios get

refreshed. if you owned fox, and opted for the cash, you get a bunch, 30 something billion dollars and that gets recycled back to the market. >> i was watching the opening trades on gm, which is higher, despite the fact the president has been focused on gm, part of the tweet storm over the weekend and continuing into this morning, criticizing the company and, you know, the uaw for closing this lordstown, ohio, plant. it is part of the closings, urging talks with uaw faster, urging them to keep that plant open >> also axios, the president according to four people, does not like self-driving cars, doesn't trust the technology, just as a concept going forward. just looking at tesla today, not really affected by it too much, up more than a dollar, but we'll see how much of this long-term sort of policy stance will come to pass given we're not even in

the first inning. >> critical of the boeing, the kind of technology in cockpits as well. we have the lyft ipo happening autonomous has to be part of the longer term story in valuing the company and the opportunity. >> he also targeted google in his tweet. he said google is helping china and military, but not the u.s., terrible the good news is they helped crooked hillary clinton and not trump and how did that turn out? google swiftly came out and denied, of course, working with the chinese military we're working with the u.s. government including the department of defense, they say, and many areas including cybersecurity, recruiting and health care. >> nike we mentioned, does report this week one of the leaders along with goldman. i saw under armour appoints a new chief design officer did you see this one >> trying to sort of beef up its executive ranks, really, over

the last year as they try to come out of this funk they had on wall street and investors have bought in to their story, the maturity story, the fact they will right size, hire new people on the product side, on the design side, on the operating side and that's a big part of the story. they want to see margins improve. that's the proof when it comes to under armour. a lot of hope about nike on thursday, taking market share again in north america from both under armour and from adidas is, the big key with nike always is going to be china. they had incredible double digit growth, like 30% sales growth every quarter despite the trade work that's going to be another question mark going in. >> the key for nike is not the ncaa tournament? >> zion williamson, no, not yet. don't think we'll see that one. >> the other one i had was kraft heinz, multiyear low, as s&p puts it on credit watch negative dow down 37. to bob pisani. >> happy monday, everybody modest gains for the markets

dow weighed down by boeing and 3m look at the sectors. you like to see the second secreta sector leadership. emerging markets are are doing fantastic. china sitting at a nine-month high there metals and mining, they're all up some concerns about a supply crunch in the metal stocks are up but industrials are flat now, being weighed down by boeing and 3m and the airlines a little on the weak side. they turned positive as well let's look at where we are we have been circling, doing little circles for the last week or so. we broke through the 2815 level on the s&p 500 and that's the key level. there is 2820 that we broke through. that was on friday big breakout there the vix lowest level since october. we had a 12 handle, believe it or not, back on friday but it is over 13 right now. so put up the vix here lowest level since october that's an important breakthrough there. saw that there then we also had the bond

yields, near new lows for the year the new high list is littered with utilities, for example, also right near new high reits having many stocks there at 52 week highs right now there is utilities moving to the up side. what could keep the rally going at this point? obviously global central banks have been accommodative from china to japan to the ecb to federal reserve. we have generally declining inflation fears, there are still some recession fears out there but they have beenacquired recently as well china is in full on stimulus mode, right across the board, including lowering taxes there europe is at 6 month highs on some hopes that the crummy economic data we have seen might finally be bottoming that's a pretty long-term hope right now. but at least we have seen europe outperform the united states this month and, of course, the most important thing is earnings, the downward earnings revisions we have been seeing for four, five, six months has essentially come to a halt.

it is still down, but not dropping so, remember, for first quarter on january 1st, expecting 5% earnings growth and they cut it to pieces in the next six weeks by february 15th, negative today we're still negative the rate of decline is is basically stopped. last week we stopped declining, we'll see if we can move positive in the next several weeks on that. the one you want to watch this week are micron and fedex. micron big drops in their earnings last quarter because of the concerns about china they get 60% of their revenues from china as well as intense competition, fedex, of course, concerns about slowing in the international shipping business there. we'll get some comments from them finally, i know everybody is very excited about the lyft ipo. we have a big famous name coming to the new york stock exchange levi strauss is coming here, the world's largest denim apparel brand, they price wednesday night for trading here on thursday we'll keep an eye on them. and there will be a lot of people wearing denim, they came here a few weeks ago and gave

out denim on the floor you get a lot of people wearing that denim on friday and that will be one of the big names that we have seen in the first quarter. right now, the dow is down, but, carl, sara, s&p is up 5 points. >> i missed that thank you. >> they're on the floor for all day and had literally entire warehouse of denim here that people were picking and choosing from >> bob, thanks to the bond pits rick santelli in chicago rick, yields perking up here from the lows of the year. >> yeah. not much though. as i look, you know, 260 in a ten year, today's intraday low, two-day chart, so far was around 2.58 we have lifted, but we're lifting off of basically areas that are basis point or two away from the lowest yield closes since january of last year

maybe more important if we -- you can open the chart up, there it is right there, early january last year. when treasury yields get comfy as sometimes they do going into meetings where there doesn't seem to be any surprises, there is a parallel shift going on maybe at an equilibrium let's look at a couple of weeks comparing the s&p as it is getting in striking distance, 4% or thereabouts it doesn't seem like an equitable correlation. if you look at the right side, it is turning up a bit those two have to cross somehow. either equities come down and meet them or ten-year will go up but spongy rates is not a big confidence builder now in the equity markets look at one we can of the dollar index, it is drifting on a downward glide path. 96.5 as mike santoli well knows, we failed to get it at 97 maybe the biggest news of all is that yes, we may fail there, but we don't give up much ground below there.

mike, back to you. >> yes, rick, sticky, both in yields and the dollar for now at those levels thank you very much. after a strong week for the tech sector to bertha coombs at the nasdaq market site >> we're starting off on a positive note. the nasdaq edging higher here, on pace for the best start to the year since 2012. a few movers this morning including okta, identify tal management software firm, getting upgrade over at goldman sachs. clovis oncology presented data over the weekend, breast cancer trial data that looked good for treatment there. and then of course marriott after having completed fully integrated its starwoods integration and deal now laying out a three-year plan. what has been interesting here, it is not been the nontech, it is all about tech in terms of the movement on the nasdaq and it is really about apple apple really having a very strong quarter its best since 2018.

strong month, responsible for 25% of the gains here on the nasdaq 100 and a strong year to date. and even so with those gains, it is still in bear market territory. still over 20% just over 20% from its all time high but chip stocks have been the other gainer and this morning gaining as apple is announcing new products ahead of that unveiling event next week, now seems more likely will be about content and its tv streaming nonetheless, chips had a phenomenal month and also phenomenal quarter to date, really leading tech higher back over to you guys. >> bertha, thank you very much when we come back, we mentioned the lyft ipo, taking a big step toward going public. company launches a road show this week. we'll get a live report and talk about some of the numbers they're talking. dow down 11. about a 60 point drag out of boeing and disney helping either back in a minute

each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.

lyft is meeting with investors to pitch the sale of shares in the company as it gets ready to go public leslie picker has the latest on

the ipo road show. >> good morning. we're here at credit suisse, one of the underwriters for the lyft ipo. moments ago we saw the executives leave these offices we saw ceo logan green and president john zimmer after they met john zimmer after they met with the sales force here at credit suisse where they basically presented to them on how their vision was for marketing this deal to investors. now, i'm told by sources that there are really five key themes that they are looking at, especially as it pertains to differentiating lyft fritz rival uber which is also expected to go public in about a month the five themes including being a founder-led company, their transport network which they pointed out to be up to the point of scale there are pure play consumer transport company. they don't do other things like food delivery. they are strong brand, they say, is one that hasn't real been tarnished that much, and also they are their autonomous driving strategy they say is quite sophisticated.

now, from here they got into lyft cars which took them up to jpmorgan, the lead underwriter for the deal, where they will be doing the exact same thing, meeting with the sales force, teaching them how to build this deal before meeting up to jeffries and meeting with that sales force and doing the same thing. i'm told they hope in the afternoon they will have time for the investor meetings, but really this road show kicks off in earnest tomorrow and will span the better part of two weeks. i'm told they are price their shares next thursday with trading to begin next friday, so we really do have a lot to learn between now and next friday. guys >> leslie, wonder if one of the questions they are getting is on this dual class voting structure, the share structure that they have. >> absolutely. >> and just how egregious that is compared to some. other big tech ipos we've seen recently i mean, it's not near s.n.a.p. where shareholders didn't get any voting control. >> so the two founders, john zimmer and logan green will have

about 48% of the voting rights, and they own much less than that in economic rights that's something investors look at and say, you know, when an economic right is not equivalent to a voting right, is that fair for the rest of the share holders who want more of a say to say in the company? paul singer wrote in "the f.t." saying it makes his job much, much harder to make changes when a tech company loses its way this is different from the uber ipo where uber says they will have one vote per share. that's something that i think investors will certainly be asking for -- will be asking about over the next two weeks or so in these meetings >> leslie, understandable that lyft wants to distinguish itself from uber here in investor minds, but i also wonder if investors are saying if this space is big enough for these companies to thrive and get these valuations today, do i even have to choose between the two. the distinction is mortgage important to investors at this

point. >> reporter: exactly well, have you about an $18.5 billion market cap for lyft. uber's market cap will be significantly larger than, that and i'm told by people that they are looking at least in this deal currently, one of the benefits for lyft going public is that they could choose some long-only investors that they think would be a little bit stickier every ipo goes out and says they want these long-only invest thoors will bors that are sticky but it doesn't often actually happen in prak physical. >> a fascinating look at the road show, our leslie picker. >> thank you, guys. >> as we go to break, dow has gone positive, up 17 points, 2832 goldman pops to a four month high and edward life sciences the biggest gainer "squawk on the street" will be right back

smarter. because to be the best, is to never ever stop making it better. the new 2019 c-class family. visit your local mercedes-benz dealer for exceptional lease & financing offers during the mercedes-benz spring event. going on now. this is decision tech. it's screening technology that helps you find a stock based on what's trending or an investing goal. it's real-time insights and information, in your own customized view of the market. it's smarter trading technology, for smarter trading decisions.

and it's only from fidelity. open an account with no minimums today.

and it's only from fidelity. the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. interesting dynamic on the dow here boeing's losses have gotten a little bit worse dragging 70 points off, even as the dow itself has gone higher with the help of goldman sachs. we'll talk to former couldn'tnental airlines ceo gordon bethune about binoeg's

trevails later on. don't go away. alpha seems more elusive today.

is it because so many go after it the same way, chasing after short-term returns? instead if getting caught up with the crowd, the investment managers at pgim take a long term view. uncovering opportunities for alpha across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim. the global investment management businesses of prudential financial, inc.

♪ good monday morning. welcome bok 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 hanging in there despite boeing once again trying to take some air out of the dow, but it has gone positive, and we're back up to 2832. >> our mood map for the hour starts with shares of boeing falling. "the journal" reporting the d.o.t. and federal prosecutors were scrutinizing the development of the company's 737 max planes. >> lyft kicking off its investor road show trying to woo money managers before its ride-hailing rival uber makes its ipo. >> and let's start with the markets. major averages trading higher this morning the s&p coming off its highest close since last october markets looking forifiedance on rates and the balance sheet at this week's fomc meeting

joining us to discuss, delphi management president scott black and investment strategist bruce vittles. is the fed the catalyst to determine where we'll go from here >> the fed has been the catalyst ever since they turned more dovish in january, and expectations are that the fed will not raise interest rates in 2019 i think that's really been the driving force behind the market. >> scott, what do you think will be the next catalyst >> i think there have been two factors. i think that the people feel it's going to be a resolution of the trade issue because if it's not, then i think the stock market will tank, but the fact that they have extended the deadline, seem to be negotiating and making a little bit of progress and i agree with the other gentleman that the federal will be accommodative. they won't raise interest rates in 2019. >> there have been some reports, scott, that administration officials think there will be a

2,000-point rally on the dow if a deal is signed why won't that happen? >> well, i think there will. i said the fact that now is people think there will be a resolution i agree with you i think stocks would explode to the upside, especially commodity stocks because world demand would go back up for things like copper, oil, all the things that are related to the resurgence of the chinese economy if there's global trade resolution, so i think that that would be bullish. >> you don't think 30% rally in oil off the lows already has factored that in >> well, it's too hard if you look at the iea data demand is somewhere around 100 million barrels a day. up 1.4 million barrels was the latest forecast, but ply is all over the place depending on what opec does in the latest moment plus you've had a couple of curtailments because of venezuela and iran so it's very hard to forecast supply and demand imbalance, but obviously if we resolve the trade issue and china's economy picks up,

that's good for global demand. that would push oil prices up some more, but truthfully the small-cap energy companies, especially the share plays, really haven't played all that well it's been the larger companies like the royal duchess, the exxons and chevrons of the world that have played better so far in 2019. >> bruce, when it comes to these mixed signals that we're getting, does the ten-year at 2.60 and the russell and the transports, are those not endorsements of the rally, or is there something else at work >> well, it's too early to say, to really give the divergences a whole lot of consideration with that said, you know, last week the s&p hit a new recovery high, but that was not confirmed by the dow industrials or the transports or the small caps, and also it was not confirmed by a growing number of stocks hitting new recovery highs that lagged as well. it's not a concern right now, but if that would continue, and the longer it continues the more

problematic it becomes >> so bruce, where in this market do you want to be positioned i mean, all sectors within the s&p are actually having a good run, but it's actually technology and financials which are doing especially well lately do you want to be there, or do you want to be more defensive? >> well, i think you want to be in growth stocks, and the reason i say that is when the economy is just sluggish like it is now. investors tend to gravitate towards companies that are not so dependant on the economy to grow their top and bottom lines, so i think growth stocks for now, and hopefully if the economy improves in the second half, and that's what expectations are calling for, then i think value stocks can -- can do much better later on this year. >> scott, are you in a mode to fade defensives here if -- if this action continues? >> well, we always are fully invested

we're always 90% plus, but as you know we don't try to forecast the market. we're bottom-up stock pickers looking for returns on equity that turn up year over year. we're not sector bound we don't have anything that looks like the weightings of the s&p or the russell 2000. we're just individual stock pickers. >> can you name a few? >> sure. one that i think is cheap is tearx and divested a division and the stock is going to hit 3.90 and another one is royal caribbean. they have about a 25% share of the cruise market. the stock is 117 with $10 on earnings, double-digit top line and bottom line growth the company earns about 17.2% on book, and this year their cap "x" will be way down last year 3 billion. this year 1.2. they should generate a nexus of

2.5 to 3 billion in cash both solid companies with high returns owningities and expected upside for 2019. >> jot, is it easier for your screen to find value targets right now, or less so in recent years? >> well, it was a lot easier in december i mean, we've been back into companies we never would have thought of we bought cisco on the bottom at 42.50 and companies like parker hannaford that went back up to 16, 17 and another one i bought was lockheed was selling at at 12p and raytheon at 12.5, they are back at 16 times earnings. it's getting increasingly difficult, but it was easy pickings in the end of december and beginning of january >> bruce, what about you i know you can't talk specifically around stocks, and you said you like the growth stocks i was just looking at the royal caribbean chart, that you know, scott likes. it's down over the last year or

so where does the consumer take thus year? >> well, getting away from the consumer stocks for just a moment, what else has done very well this year are dividend pairs. the utility index is making a new record high. reits have done very well this year so you really have a combination of factors here. you have defensive areas doing well alongside growth stocks, so i think that -- that constant will continue certainly two the first half of the year >> scott, did you have a view on the consumer broadly >> well, i think consumer discretionaries should continue to do well wages are up the most year over year if you use the employment cost index it's up about 3.7 or 3.8, so that bodes well in general headline unsploiemployment is 3o that's good.

i think it bodes well for 2019 >> all right thank you, guys, scott and bruce. >> thank you >> meantime, a russian billionaire is suing the u.s. government demanding it lift sanctions against him. we have more exclusively with this with geoff cutmore. >> reporter: hi, carl, hi, sara. we're talking about oleg deripaska who was put on the sanctions list he agreed to reduce his ownership of his businesses which were taken off the sanctions list, but he remains, and he now says that his net worth has declined by $7.5 billion as a result of that, and that is what he's suing the u.s. treasury and steve mnuchin for let's hear what he had to say in defense of this lawsuit.

>> i hope that sooner or later people will recognize it's wrong. we'll try to assess the facts, and actually it's getting worse and worse and lasthearing in congress when people start blaming me personally for any sort of things which i had not connection even with, not just based on fact but just fantasy, and, of course, it's given me -- the legal system in the u.s. may be the last resort where people could assess the facts and to see, you know, what justice would be >> reporter: now, some of our audience may be familiar with oleg barps " oleg deripaska or may have heard had the name because it's come under the scrutiny of the mueller investigation. there are no direct allegations that he was involved in election

meddling in 2016, but his name has been in the swirl because he had dealings with poll manafort, president trump's former campaign manager when directly questioned on this issue, oleg deripaska said i have not spoken to him since 2010, 2011, and i was not involved in any election meddling activity, so for the time being he is seeking economic redress from the u.s. treasury and continues to insist that the u.s. is using the financial system inappropriately to penalize him. back to you guys >> i mean, it's amazing that you got him to speak to you about some of these very sensitive topics for the u.s. and russia any idea as to why now he went on the record with you >> yeah uncertain interesting question, sara he hasn't spoken to any television network in over two

years. the sanctions that were imposed on him though that been swinging on their effect and even here in moscow the government and central bank are reluctant to deal with him for fear of upsetting the u.s. treasury and leading to a second round of sanctions, so he says his life has been totally changed, that the business eds that he has spent decades working to build up have now been taken away from him, and he insists he wasn't pressured into doing this by the kremlin, but he is doing it because emotionally this experience has been devastating. that's at least what he's telling news they, conclusive interview. sara >> our geoff cutmore in moscow that's what we call a get, geoff. very nicely done thanks so much. when we come back, the president going after the gm and the uaw over the weekend over this plant closure in ohio, but

they aren't the only company he's attacking plus, lyft launching its road show we'll get details on the ipo when we come back. shares of boeing meantime continue to weigh on the dow not so much that the index is in the red. boeing down almost 10 bucks after a report said the prosecutors are probing the development of the 7 m37ax "x. we'll talk about gordon bethune, former ceo of continental in a minute to unlock opportunities other advisers might not see. learn what a cfa charterholder can do for you, at therightquestion.org dear tech, let's talk. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪

let's expect more from technology. let's put smart to work. does your wealth a cfa charterholder does. they have the investment expertise you need for the ambitions you have for your wealth. learn what a cfa charterholder can do for you, at therightquestion.org

all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome.

welcome back to "squawk on the street." ride-hailing service lyft is kicking off its ipo road show. in a new filing, lyft says it expects to sell 38.3 million shares at $62 to $68 per share our leslie picker is sort hopping on the different stops along the road show right now giving us some reporting that they are pumping it as an alternative to uber. i think one of the more interesting store i lines here is this dual class voting structure. the founders john zimmer and logan green, together roughly own about 7% of lyft, but according to "the journal" will have 50% of voting control according to people familiar, and that's one of the more contentious issues, whether investors will buy that or demand some sort of change from that, that they don't have full voting control when they buy into this ipo. >> not to mention the 23 billion in valuation they are seeking. i think the last private

valuation was 15. >> less than that. >> 15,1 so pretty dramatic difference. >> a test of ride-sharing tech ipos, the first ride-sharing ipo out of the gate, ahead of uber by a couple of months. >> alphabet and gm said that because the economy is so good, gm must get the lordstown plant open, maybe with a new owner or something fast gm must act quickly. time is of the essence the president added he spoke with gm's mary barra regarding the plant closure. on alphabet goingel is helping china and the military and not the u.s., terrible the good news is they helped crooked hillary clinton and not trump and how did that turn out. both companies issued statements regarding the president's comments american

good morning, guys good to see you all. >> jimmy, your quote toad out this morning on twitter. essential lit comments he is making on gm are in their own way more socialist than anything that the gop has accused the dems of, right >> i think it is -- it is highly inappropriate, and if we want a dynamic economy we can't have the president trying to micromanage the business decisions of american corporations now, companies spend a lot of money on brand-building, and they have the president on twitter repeatedly, particularly in the case of gm, sort of saying, you know, suggesting the company dobbs doesn't have the interest of americans at heart, and then it previously actually a sort of threat at gm executives that they need to build cars in the united states. i mean, that's bad economics it's bad politics, and you don't want corporations trying to make

decisions and future investments fearing how washington might react. >> though can it work, jarred? what if he gets the uaw and gm into some sort of expedited agreement where they can figure out how to keep the plant open >> that's what they are going to try to do anyway it's very up likely. in fact, one of the plant has already closed whether something can reopen is another question i don't think anything trump is doing in this space is helping at all i guess the only disagreement would i have with jimmy is politically there are some people who probably like to hear him saying and tweeting this sort of thing, but it makes no economic sense, and it flies in the face of a globalization that our country and our manufacturers have long accepted that doesn't mean there isn't a problem here i think where the presiden falls terribly short is that he's really done nothing to help people in places like youngstown and lordstown, hoe hoerk and by the way, that's just not my

view, that's sherrod brown, the senator from ohio who is with the president on a lot of these issues what the next president needs to do, whoever he or she is, is to figure out how to help people in places like this i've got ideas, but i guarantee you it's not a -- a trade war or a twitter tantrum. >> well, if that next president is bernie sanders we might want to ask him if he still believes because he apparently used to in the 1970s that local communities should be able to veto companies closing plants or at least moving plants to other places, so i'll be very curious to see where the democrats come down on this issue. >> there's also the -- go ahead. >> i was just going to say, briefly, there are actually a lot of very good ideas in this space, and they don't have to do with these kinds of, you know, crude interventions. for example, direct job creation, sectoral training and improved labor standards, you know, trying to actually do something to help communities through public investment. those are all the sorts of ideas

that will actually bring jobs back to these places and trump hasn't gotten anywhere near that. >> although he's showing that he's fighting for it that one thing that a supporter would argue. >> i agree. >> the other thing is -- did mary barra do you think have the expectation that their conversation would be private or at least that the president wouldn't throw her under the bus saying she played the uaw? >> only if she's not been paying attention to the news and the president's twitter account for the last three years i don't see why any executive meeting with the president would have any expectation at this point that the president is not going to talk about that conversation, turn that conversation against them. if i were the ceo and i was talking to the president, i would assume that thing is being live streamed directly to the entire world before i said a word. >> let's just talk about the economics near for a second. >> sure. >> the u.s., we either second largest, what, auto market in terms of consumers those sales are expected to fall

from where they were last year, this year. americans are buying suvs, not sedans this the was a plant that made sedans. >> yeah. >> it's really hard to argue with the economics here. why do you think the support doing it >> well, the president in 2017 went to these towns and said don't sell your house. i'll bring the jocks back. he literally stood in front of them and said that so that's why he has to -- feels like he those make this kind of noise, but i do think the economics are the most important and i'm glad tower bring is us back there let me say some things about some very micro economics. i'm the proud owner of a chevy kruz i get that it's a dinosaur apparently and it's going extent this is a fantastic piece of machinery. it drives exactly like my sister's bmw at one-fourth of the cost why is consumer demand supposedly declining for these sedans it's because the gas of which fluctuates as we know a great deal has been so low so this kind of, you know, quick shift

in your production lines to meet what i think are potentially temporary shifts in demand strikes me as kind of short-sighted. you know, that said i think the bigger issue is the impact of globalization on manufacturing, and that's a longtime problem driven by persistent trade deficits in this country that have been big negatives since the 1970s and, again, trump doesn't really know what to did about that. >> it is ohio so i can't imagine this is the last we've talked about this plant. >> no. it's kind of shockingwe don't hear anymore about carrier which was the first time that the president as a candidate actually did this. we'll hear more about that, and i assume we'll see more attacks, a big american companies that the president thinks aren't doing well whether it's amazon or google. >> we'll see who is next in line. >> yeah. >> after a weekend of plenty in the spanking machine jarred and jimmy, we'll talk to you soon. >> okay. you bet. >> the spanking machine. let's get to dom chu with a

market flash dom? >> perhaps identifybly talking about spanking watch a share of synaptics, the maker of everything that goes into smartphones and tablets and cars, gave sales guidance citing weaker demand and said that the ceo would step down immediately. this morning analysts downgraded the stock, on pace for its worst day since october of 2016. sara, back over to you. >> dom, thank you. as we head to a quick break a deal we want to mempingts fidelity national incentives buying world play. shares of both companies are higher on the news massive deal in global payments. the ceo of fis will be joining us later on "closing bell," and we'll be back after a quick break. hey there people eligible for medicare.

gimme two minutes. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... is your part b medical expenses. this much - about 80 percent... medicare will pay for. what's left... this slice here... well... you have to pay for that. and that's where an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company comes in. this type of plan helps pay some of what medicare doesn't. and these are the only plans to carry the aarp endorsement. that's because they meet their high standards of quality and service. review aarp medicare supplement plans and their rates in this free decision guide. call united healthcare insurance company or go online.

visit aarpmedicaresupplement.com to request yours. even apply online... any time. oh. speaking of time... about a little over half way and there's more to tell. like, how... with this type of plan, you'll have the freedom to choose any doctor who accepts medicare patients. great for staying with the one you know... or finding... somebody new, like a specialist. there are no networks and no referrals needed. none. and when you travel, your plan will go with you anywhere in the country. so, if you're in another state visiting the grandkids, stay awhile...enjoy... and know that you'll still be able to see any doctor who accepts medicare patients. learn more with this free decision guide. call or go online to request yours. tick, tick, tick, time for a wrap up. a medicare supplement plan helps pay some of what medicare doesn't. you know, the pizza slice. it allows you to choose any doctor, who accepts medicare patients... and these are the only plans

of their kind endorsed by aarp. whew! call or go online and find out more. for our etf spotlight, mike santoli taking a look at syntech

as they made a deal for world pay at $35 million. >> payments has been a very hot area of the market there is ipay which is mostly about mobile payments. it's up today, as you see. also, this is a two-year chart for these two, so up of them up 50%. the other up 66% the s&p for context is about 20% over those two, so it's been or favored group. you would really recognize all the stocks in here paypals, the squares, these companies that have gotten enormous market values really on the excitement, not so much about earnings today, but in terms of the excitement of penetration and this place in cash and checks and all the rest of it. we did see another deal in this area the service needs the banks buying first data. so far mastercard and visa have

been very strong creating the underlining platform and guts of the payment system long erm term there will be a question whether thereby more encroachment on what they do are at least thwarting their ambitions to be sort of the consumer interface with a lot of these companies, but for now in terms of growth within financials it's really what you're looking at as payments. >> the question is where is the next deal going to come from >> exactly seems like the industry is in that consolidation mode for sure. >> we'll have the ceo on "closing bell" later. >> when we come back, federal prosecutors reportedly investigating the faa's approval of boeing 737 max planes we're going to talk to the former ceo of continental rm cirf gordon bethune and the foerha othe ntsb in a minute this is your invitation to exhilaration.

this is the invitation to lexus sales event. lease the 2019 is 300 for $329 a month for 36 months. now thru march 31st. experience amazing at your lexus dealer.

. let's get a news update for

this morning for that we'll go back to headquarters >> good morning, everyone. dutch police linking a 37-year-old turkish-born man to a tram shooting in the netherlands that left three people dead and nine injured as the manhunt for the suspect continues, they are considering the possibility of a terrorist motor any of that attack dozens of muslims returning to mosques in christchurch, new zealand for the first time suns a gunman killed 50 people in mass shootings there australian breton tarrant, a suspected white supremacist, has been charged with those murders. and a controversial australian lawmaker who blamed the mosque massacre on country's immigration program has doubled down on his remarks. two days after being egged by a teenager senator frazier anning claiming what he said was a fact and he criticized the person who attacked him. >> he got a slap across the face which is what his mother should have given him long ago because he's been misbehaving badly so,

you know, when somebody cracks you in the back of your head you react and defend yourself. >> you are up to date. that's the news update this hour guys, i'll send it back down to you. sara. >> sue, thank you. shares of boeing falling this morning dragging on the dow again. a new report from "the wall street journal" says the development and eventual approval of boeing 737 max jets are under screw any of federal prosecutors and the transportation department. this following the crash, of course, of the 737 max will jet operated bid ethiopian airlines a week ago, the second crash involving the jet within a few months joining us to discuss is gordon bethune, the former continental ceo and former executive for the boeing 737 and 757 programs and earlier was responsible for pilot and mechanic training for customer airline gordon, you've got a pretty unique perspective on all of this. >> can't keep a job. >> were you surprised to see that now the doj and the

department of transportation are looking into this faa boeing relationship and the approval, safety approval of this aircraft >> well, i'm really skeptical of that i'm sad to see that happen, and i hope that we minimize this criminality of what's a tragic event. >> why you reskeptical of it >> well, first of all, the boeing engineers are probably the best in the world and people -- there are not a lot of people that can duplicate their expertise, so who is the justice department to second guess a technical analysis from a very highly skilled engineer? i'm not saying they are perfect. ionly saying that who has that ability to correct those mistakes and foresee those out comes? i don't think anyone in government does. just take us through the process of getting a plane like this for flight so doing does the safety checks

and then the fda goes to bows to make sure that's safe. how does it is work? >> boeing designates examiners and investigators to work for them so there's special people in the boeing company who report to the faa and are their eyes and ears and they havethe expertise. the government doesn't have the expertise because these are newly designed and new ideas and so they take the people and use them they do that also in licensing pilots, using designated examiners that are not government employees >> gordon, brief eve spoken several times since the crash, i guess a week ago sunday, and as foreign governments were grounding the plane, you were not -- not appreciative of that. you thought it was speculative, especially in china's case did anything or any of the comments out of the ethiopian officials change your mind on the similarities between these two, lion and ethiopia >> carl, yes, quite frankly.

the jack screw from the horizontal stabilizer, that's both in the fold down position and that's unusual, but i do know in the lion air that was the third flight of the aircraft before it had that accident. the other two crews were able to handle it. i think there's pilot training and maintenance procedures, carl, around certainly there is a design issue and they will address all of those. >> is that -- i mean, when we're talking about a jack screw, that's a physical component, right? >> yeah. >> how much -- i'm just curious how much we can rely on a software fix what's the difference here between software and hardware. >> the software is driving the hardware's behavior so the jack square is a methodology to move the stabilizer should that go haywire and it

does from other reasons than software there's a cutoff switch and you can grab the wheel and grab it steady i think the airplanes took off they didn't have much altitude certainly the second airplane had a very inexperienced copilot, no help to the pilot at all who was just overwhelmed so those procedures of a runaway stabilizer are practiced in normal training. the fact that they were caused by a different reason is -- is not material. >> right. >> and i assume you're not skeptical of overall changes in design in this model, namely size and placement of engine. >> no, no, no. >> as some sort of structural defect and whether the nose is pushed down or not. >> no, i don't think so, carl. i think they will fix this by having two sensors instead of one and they will both have to agree and that's a critical camptive to prevent this from happening again and them put in

ultra interference pilots mode which if the pilot rejects it it will disconnect which i understand it does not. >> and the faa regulators looking into the relationship and the development of this plane, i think one broad question is has this industry been deregulated at all and sort of left to its own devices because of its tremendous success and impeccable safety record >> if you look back to world war ii boeing was building the bombers. the government doesn't build airplanes. airplane companies build airplanes,ance they are overseen by government regulators but there's not enough technical expertise in the government to provide the necessary oversight so they purchase or contract and designate experts in those companies to help them >> but i guess one question is there's fierce competition, as you know, between boeing and airbus. >> yeah. >> do any corners get cut along this process in an effort to get planes to market >> you know, i worked for boeing a long time and they just would

never do that. that would be really short-term thinking and catastrophic to their business so absolutely not. >> finally, gordon, the politics of all of this "washington post" this morning has a piece about how the president essentially framed himself as the ultimate arbiter of whether or not to make this grounding, getting ahead of the faa in the announcement. does that bother you >> yes, it does, carl, and this is not a time for grandstanding. this is a national tragedy, certainly for the people involved this is a very serious issue, and i know boeing wants to get it right there's a whole lot of the world counting on boeing delivering the airplane because thousands and thousands of thousands of people plan to fly and they need that output. yes, it's not appropriate. gordon bethune, thank you very much. >> okay. nice to be here. >> for your perspective. sad news to get to this morning and for that we'll go to steve liesman this morning steve? >> carl.

the economics really in the policy community have lost a giant i think it's fair to say alan krug earning the former cea chairman under president obama, also in the treasury department, princeton economic professor passed away according to princeton university we have this quote we just got from jason fehrman, the former cea chairman himself, when i think does a very good job of describing the importance of alan krueger and the quotes that -- there's a shot of alan, the quotes as he brought us into a new era of empirical economics, looking at data regressions, alan looked at natural experiments, and by that everybody talks about the first thing, the 1994 study he did on minimum wages where he looked at two actual communities side by side, one in new jersey, one in pennsylvania, a paper that is still cited today. during the recent scandal about admittance to colleges, people

go back to a paper that alan wrote about the returns to education. he's done a lot of work on the opioid crisis, an awful lost work of whether or not americans are coming back to work. he was a foremost labor economist. alan krueger will be well remembered there's the quote from jason he brought us into a new era of empeekal economics, and one other bit of data, alan has a book forthcoming or had a book forthcoming in june called "roccon ho mics, what rock 'n' roll can tell us and i actually participated and alan was committed to use rock 'n' roll to teach about regular economics. >> that's so cool. that's shocking, so young. >> 58 years old. >> frequent guest on business television. >> yeah. >> as you mentioned, the definitive piece is really about minimum wage, and whenever, you know, people make it, and it's become a partisan issue, but really he wrote as you said an

economics paper about it, the case for why higher minimum wage is better, they looked to his piece which showed that the net benefits outweighed the cost say in the fast food industry if you go up to a certain level on minimum wage, it helps the low-wage workers and it helps the overall economy. >> and what's so interesting is how he did that. he found two communities, one in new jersey with the higher minimum wage and one in pennsylvania without it, and -- and that was kind of a breakthrough, an idea, and sara, i will say that people have written for and against that paper, but the -- the importance over the importance of kreuger is that everybody has to cite that paper in their argument against it it was the definitive paper, and he's done a lot more since then and was still going on always very excited and inspired about his work and the possibility of economics to inform public policy princeton does say that they will release some information regarding a public celebration of his life, steve, at a future day. >> yeah. >> we'll look for that

alan kruger, dead at 58. we'll be right back. how do you gauge the greatness of an suv? is it to carry cargo... or to carry on a legacy? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the mercedes-benz suv family. greatness comes in many forms. lease the glc 300 for just $479 a month at the mercedes-benz spring event. going on now. mercedes-benz. the best or nothing.

takes more mathan just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org.

semi stocks are surging, but there's one point that leads to a major crack in the rally find out more on tradingnation.cbs president -- obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities.

we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ let's get over to the cme group in chicago rick santelli with the santelli exchange hi, rick. >> good morning, sara. like to welcome my guest chief executive officer of global fixed income at morgan stanley michael cushman. thanks for joining me. let's get right into it. my favorite chart lately is to overlate s&p 500 on top of ten-year note yields and they really aren't core late as much as they should and maybe the catalyst was the fourth quarter of 2018. your thoughts. >> very correct. ten-year treasury yields have

moved very directly with risk assets whether it's the s&p 500, high yields, risk assets doing well in 2019 and treasuries are holding up we're not having a pull market in treasuries, they are not going up yield, and i think the primary reason for that is twofollow. one is the fed has on the way to stopping quantitative tightening, they will stop balance sheet shrinkage later this year. secondly, the interest rates in the interest rates are much higher than they are in the rest of the world there's money coming back into the u.s. and back to the equity and bond market and that's supporting keeping bond yields relatively low as we have a rally in risk assets. >> now, many investors that i bump into, that's the first thing they want to talk about, and even though they feel guilty because they thought a year ago january that rising rates would kill the rally, they are now more concerned than global macro and all the issues to describe are still pushing rates with a

voice towards the notion that global horsepower isn't going to pick up. do you see a recession in four crystal balcony time soon, michael? >> good question we do not see that we see evidence that the u.s. and global economy is bottoming sometime between now and the end of the second quarter. green shoots are evident and most likely policy is backbecoming more supportive of economic growth both in the united states, in europe, in china and even to a lesser degree in japan, and also emerging markets around the swrorld adopted a more pro-growth strategy. >> let's not try to figure out what the fed's next move is going to be. i think a more appropriate discussion would be if the fed changed their mind partially due to the volatility and the way the markets moved, especially in the equity space at the end of last year, how are they going to

respond to the renewed strength of this first quarter? >> i think there's a high correlation in the fourth quarter this year between economic data and equity markets, so equity markets were weakening last year as treasury yields were rallying and economic data was trading weaker, very sharp lire at the end of the year and also around the world and the equity market this year i think is rebounding from probably oversold levels last year, but fed is most focused on data, and the u.s. economy is maybe bottoming right now. it's likely to do better over the course of the year, and i think that's what they will focus on if equities continue to ramy and the rally is weak, that won't influence their decision a whole lot. >> all right i'm going to put you on the spot, mike i personally think the next 35-point basis point move for interest rates in a tight time frame is going to be to the upside what's your thought on that? >> good question we think that there will be no rate hike this year.

the fed will let the economy run hotter through the left of the year. >> oh, no, mike, i don't mean in terms. fed, i mean in terms of the market itself, just the treasury market. >> oh, bond yields, i think that we're near the bottom of the range 2.are 50, 2.60 on ten-year treasuries given the view there's unlikely to be a recession but probably capped around 3%. we saw 3% bond yields were quite damaging to the u.s. economy at that point in time last year so it's hard to see them going much over 3 up to 20, 30 basis points is a buying opportunity >> excellent thank you for your opinion, mike, and also, audience, that was mike's first time. of course, we'll be asking you back pretty darn soon. let's gets back to the desk and carl >> all right rick, thank you very much. as we go to a break, take a look at the top-performing names on at the top-performing names on the s&p, including eardwds liv .

sciences and nuo brands. don't go away. i'm paying upfr. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ lies beyond the tech sector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing.

and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential.

college admissions cheating scandal continues. the company at the center of the scandal was designated as a charity, enabling parents to write off bribes from their taxes. robert frank is digging through filings to see where the money

went good morning >> good morning, carl. as you mention, the company at the center called key worldwide foundation or kwf was designated as a charity so parents could write off 6 figure bribes from taxes. now the issues is looking at where the money went and whether some deductions could be clawed back the charity told the irs the purpose was to, quote, provide education that was normally unattainable to underprivileged students prosecutors say it was a front for wealthy parents to laundromater six figure bribes the irs forms so 7 million in contributions between 2013 and 2016, payouts of just more than five million more than a dozen colleges received money from them some of the groups were not named in the initial scandal and are new to the picture, along with usc and yale, university of texas, nyu, chapman, and university of miami received hundreds of thousands of dollars

from kwf university of texas told us it is in the process of reviewing more than 250,000 it received. chapman said of the 150 k it received, it intends to review the relationship in depth to assure that our principles have not been compromised the irs said it is investigating the parents who made a total of $25 million in donations to the foundation, and then of course claimed it on taxes, which means that in addition to the mail fraud charges, parents could face charges of tax fraud. guys, back to you. >> that's just what i was going to ask, tax fraud is included there because they were able to write it off as a charity. what kind of penalties are they looking at >> they would have to pay what they deducted, plus a 75% of that amount as penalty, but the broader issue is that you now have people in the senate and house looking at should you make any donation to a university taxable if your child is

applying there or attending that university that could disrupt the $47 billion a year that currently goes to colleges and universities we'll see where it all plays out. >> i can't imagine conversations in admissions offices and endowment offices around the campuses around the country really, robert thank you. fascinating. robert frank we'll go to dom chu for a quick sector check. >> sara, markets are coming up high, at session highs best level so far. communication services stocks, watch those. facebook in particular capping gains for the broader s&p 500. let's drill down on one of the best performing groups, the financials, ahead of the key federal reserve meeting later this week. goldman, sachs, wells fargo, up between 1 and 2% early on. financials are big with the fed in focus, carl

back over to you. let's talk about what's coming up on "closing bell." >> former minneapolis fed chairman is with us on a big fed week why he says the fed should consider cutting interest rates. and the ceo of tilray joins us fresh off earnings which are set to come after the bell and as we mention, the deal of the day, with us on buying world pay, worth $35 billion that makes it a huge player in global payments. we'll ask him what's next. >> big week ahead. fed, pmis. >> fedex tomorrow, nike thursday see you this afternoon several ags warning a reckoning for tech is coming one of them is joining us on "squawk alley" in a few moments. imagine traveling hassle-free with your golf clubs.

now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

shipsticks.com saves you time and money. mimini was born extraordinary, with more power for more fun. mini was born to do the only thing we ever wanted to do. drive. to hit start and just go. fast and far. around town and around hairpins. to leave everyone in the dust, and leave rubber on the road. because mini was born to drive. drive for yourself at the mini born to drive sales event. special offers at your local mini dealer. at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london

& you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react... good morning, it is 8:00 a.m. at google headquarters, 11:00 a.m. on wall street "squawk alley" is live ♪

jts good morning going to begin this morning with washington's continued pressure on tech and silicon valley the president taking a shot at google over the weekend on twitter, saying the company is aiding china and its military. and several state attorneys general warn the likes of google and facebook that a reckoning is coming as the group considers an antitrust probe into big tech. meantime, shares of facebook down more than 2%. and we're joined by mark may senior analyst at citi but laura martin, the lead ana