wish we could. not only that, it's not for air, but we don't have time. >> even if we did have time, probably wouldn't share with you. what happens in the commercial break stays in the commercial break. >> join us tomorrow. "squawk on the street" is next ♪ welcome to squawk on the street we're live from the new york stock exchange, an historic location where jeans are strictly forbidden but not today. levi strauss returns to the public markets for the first time since the '80s. we're going to bring you the open and the ceo futures are weak after the fed's dovish turn on wednesday although got some price target upgrades for apple europe is red. the ten year yield trying to

hold 2.5 after that tough day for banks yesterday. biogen tumbles levi strauss goes public again after a 34-year high yea after a 34-year high yeatuhiatus and cvs betting on cbd t despite the fed abandoning its projections for any rate hikes for the rest of the year >> we were focused on the president obviously saying some of the things we talked about which is that he doesn't want to take the tariffs off he wants to be a little tougher than ronald reagan was with the soviets. then we had that incredible break. he realized, wow, this economy is much weaker think of the pivot october 3rd where he created weakness to

yesterday where you can't start a fire -- there's nothing here. >> without a spark. >> it's a total springsteen situation. they're out of the way now they're out. they took themselves out of the equation and that's great. they're not going to bother us probably about a third of the questions hinted that is the next move to cut rates of seain overseas is just terrible. we've got may having a late night conference call. there's still nothing going on we can't dismiss what fred smith said fedex it's really slowing. he's got a better view than a lot. he's got 14 million packages a day he's got to handle j sadly had to say don't blame me, don't bhlame my tv interviews he's not going to go on "ellen"

any time soon and say i made a mistake, but he course corrected. my hat's off to him. he did not dig in his heels. but the president really telling people, listen, if the chinese do not stop pretty much military projection, they've got to show us something first if they show us something first, we can seal the deal but they've got to show us something. >> people are waking up to stories that day despair is good because the fed is out of the way. >> right. >> on the other hand, there are stories that say too late. the fed can change their mind. it's too late. >> that's ridiculous just pivot should we be in the s&p? i hear that risk on risk off that's stupid thinking you just switch to buying the highest gross stocks that don't need the u.s. economy to do well >> companies that don't need the

u.s. economy amazon, what was the narrative three weeks ago? the guy is completely focused, the numbers are good, the stock is flying. look at apple. it's moving up ahead so the they sayers can come out and say this was really thin gruel. where's tim cook with the car that can go on mars. he's no elon musk. i do see people saying let's revert to growth, but they usually want to revert to health care we'll talk about a stock that's not a split. it's biogen. >> that's funny. >> i've been saying that could not work the banks aren't any good. we really need health care to do better it's not i spoke to larry merlot from cbs later.

we're reverting to fang and inindividualia >> that's a familiar play book. >> it worked it's just narrow >> the sidelines are close together. >> exactly. >> jim mentions biogen, obviously getting hammered in the premarket. they're discontinuing late stage trials for alzheimer's they say the trials were unlikely to meet their primary end point. this disappointing news confirms the complexity of treating alzheimer's disease and the need to further advance knowledge and neuro science. the flood of downgrades in the last half hour has been amazing. >> this was an oddity because i have talked to the ceos of the three major companies that tried this all of them said the same thing. this is hardest nut to crack we can't do it there's biogen continually

saying don't worry there was no sign you shouldn't worry. the stock is down. that is binary if they did have anything -- i've got to tell you, speaking to a major pharmaceutical head who spent hundreds of millions on this, he said, look, we don't have it yet. don't get your hopes up and stop creating false hope. i'm down on biogen for two reasons. one, they constantly said we've got it, don't worry about it then for leading people wrong, hope, because it's a bad disease. >> this would be the biggest downside gap since august of 2008 11 years >> people are talking about takeover can we just acknowledge that it did badly and let it sit there for a little bit i didn't like the fact that they continually told you that things were a-okay. it's obvious that they weren't and i think that most drug

companies are probably angry at biogen right now. >> for herding credibility in the space yoefoverall? >> yeah. because this is the kind of things that make an industry that raises prices constantly, causes more scrutiny they gave you a lot of wink and nod on alzheimer's the other companies that dropped it were telling you they didn't have anything. biogen has nothing we try tied that path. it wasn't fruitful >> not exactly comparable by any means, but the boeing news continues today. senate hearings likely, the fbi is joining the investigation the times today says a fix was available ahead of time but it was going to cost you extra. >> that reads bad. all the stuff reads bad right now. i remain convinced they're

safety first the speed with which they approach the safety, i don't know the fbi -- if the justice is looking at it, that's the fbi. the justice lawyers don't call up and say, listen, guys, we're going to come down and investigate you. it's very rare i don't like the pile-on effect. there are pilots coming forward telling people, look, which was a real issue >> gary kelly told the journal yesterday we continued to fly it because that's what our data was telling us >> i mean, to the uninformed it seems like there was this vast conspiracy to cover up something. that's not boeing. boeing was very forceful going around town to big institutions two days ago telling them not to worry. didn't come on tv. i'm still trying. >> interesting. >> still trying. i think i'm going to get them. >> certainly a lot of questions to be asked. >> yeah. >> obviously as we mentioned at the top, big day for the maker

of levi's jeans and dockers, levi strauss going public for a second time. >> it's a big day for the capital markets. the ipo market's been closed for four months. there's huge pent-up demand. they're coming right at the perfect moment the markets are up the ipo etf which looks at the after market trading of the 60 most recent ipos it's up 62% this year. perfect moment to go public. levi is an iconic brand. the valuations were perceived to be reasonable. it priced at 17, no surprise given the pent-up demand, the quality of the company and the reasonable valuation this is where the trade sing is going to occur

a lot of joking going on around the floor. it looks like woodstock '69 here there's a sign right around the corner here posted reminding everyone in the trading community thursday march 21st, wear both your jean jacket and jeans. the reason everybody's laughing is 20 feet away downstairs at the bottom of the stairs there is a sign that says blue jeans are not permitted on the trading floor. but for levi strauss we do that and of course that's perfectly appropriate. we'll be back in a little bit after the opening bell >> largest listing on the u.s. exchange so far this year, priced to sales. it's going to be better than valuation but no lululemon.

>> one of t-- denim is hot. apparel is general is hit or miss we've got lulu doing very very well we've got pvh kind of not doing well people want to guy this stock because they don't really know anything that's fine. that's absolutely terrific let's do some homework there's a reason why it went private. it could not get the price earnings multiple of other companies and i think that's going to happen again after it dies down. look at gap's numbers. why did vf decide to hive off lee and wrangler the answer is it's just a really hard business. right now fashion is doing well. calvin klein is doing okay in

jeans. i like to make money good company, but let's not get too excited. it's jeans it's not genes >> right that's also a tough business as we know. >> whoa. >> after levi strauss does open for trade we will have a live interview with chip bergh. when we come back, micron better than expected results, up 31%. we're going to talk to the ceo in a few moments meantime, market's at risk for a third week down out of four. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated.

but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. don't get mad. tthis 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.

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. you're not going to be able to trade today without watching this interview shares of micron moving higher after disappointing numbers and cutting forecasts. i've got to tell you this is one of those things that you may not be able to figure out unless we drill down here. the company says it expects recovery on memory chips joining me is the ceo sanjay

great to see you sir data center weak, auto not so good, pc weak. why should we think there should be a pot of gold at the end of this rainbow given all these weaknesses >> the underlying trends in data for example continue to be solid. as you can see from the results of the cloud service providers and the trend for more data and a.i. and machine learning and data centers and cloud services absolutely continues to increase that need more memory, more storage in the long run. the demand from cloud service providers and data centers has been impacted because during the course of last year inventories were built up by those customers given those increasing prices. however those are being worked through the system during the first half of the year and we expect during the second half of the calendar year inventory by

the second half of the calendar year will be starting to largely normalize and leading to demand growth in the second half of the year similarly on the smart phone side some weakness on the high end smart phone. but the average content of memory and storage in the phones continues to increase. second half tends to be seasonally stronger from a demand point of view as well. >> if that's the case, why are are you idle production for deram? why cut back it sounds like a situation where we want you to go full throttle. >> it's really important for us to manage our business prudently and make sure that our supply growth during the course of the entire calendar year is aligned with our expected demand from the industry so when we cut back our

production as we announced on our earnings call on the d ram side by 5%, that is intended, keep in mi keeping in mind that demand growth expected in the second half of the year will help bring our inventories in better alignment as well as of course provide the benefit of cash flow it's just a healthy way to manage the business. it has several benefits in terms of really having your demand and supply well aligned. it's important for us to take this action. of course we took action on the th side as well in terms of reducing our output and bringing our overall supply in better alignment with demand over the course of next couple of years. >> this is how we get a bottom i love your comment on the call. how about the koreans now? how about they listen to you and instead of taking a single they take sanjay's market share

we don't care. we don't have to worry how do you keep the koreans from taking the share that you're willing to walk away from in order to make it so you have a constructive cash flow and balance sheet? >> as long as we focus on supply growth to be aligned with demand, we believe that the product portfolio that we keep expanding we will definitely do well in terms of meeting the requirements of our customers and maintaining our share in the market as well our focus is on growing the profitability of the business. you can see in fiscal q 2 that we reported even with steep price declines in the industry and significant decline in sequential revenue we reported healthy cash flows that's our focus in terms of driving the business in terms of really keeping demand and supply

aligned as well as absolutely continuing to drive cost reductions and bring innovative products to our customers and bring value to our customers we have all the end markets driven by a.i., ml and 5g from smart phone to autos to data centers. we are really extremely well engaged in terms of continuing to maintain and strengthen our business fundamentals. >> you remember the '80s when it used to be that you would lose money in a downtown, even the '90s if you remember that first downtown in the beginning of the '90s where you just got clobbered. this is a new micron tell people at the trough how much money you're making. >> you're absolutely right that this is a new micron i have been in this industry for 40 years and i have never seen a company like micron better prepared to weather the downt n downturn we are extremely focused on execution and executing well to

our strategy of driving cost competitiveness and high value solutions to end market. as i mentioned, the second quarter showed healthy cash flow in terms of managing our cap x -- of course you put that to work, healthy share buyback as well continuing to be committed to at least 50% of annual cash flow going toward share buyback. the guidance we provided for our fiscal third quarter also makes operating margins in the 20s that's very healthy for any business even we are able to provide that guidance in an extremely challenging environment and worse environment in terms of pricing in the industry. >> really quick just on inventory day supply, where is

the sweet spot in terms of number of days does 5% trim really get you there? >> we do believe that 5% cut that we have made will help us continue to improve our inventory position throughout the course of the year of course, it provides aside from the benefitins of inventory reduction, provides the benefits of cash flow as well as enables us to manage our business overall in a healthy fashion so our inventory at this point as reported yesterday are somewhat inflated. however, we are taking decisive actions. this is the new micron taking decisive actions in terms of cutting production when actually the growth margins are healthy and our profitability is at a very healthy level this is different about the new micron as well as this is different about the industry in terms of the discipline in focus on profitability. >> sanjay and i are old enough to remember the old micron

great to see you, sir. ceo at micron. carl, you asked the right question, which is the 5% reduction, will it really matter historically it has. that's why the stock is going up even though it's counter intuitive unless the koreans act differently and irrationally this time. >> we got some south korea export data yesterday. not good no matter what country you're talking about count down to the opening bell here in a minute you'll see some denim on the floor as levi goes public today. 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. ♪

(video games have evolved.addle) why hasn't the way you bank? virtual wallet from pnc bank helps make it easier to see what you're spending, stash more into savings and stay on top of your finances in a digital world. just one way pnc is modernizing banking to help make things easier. pnc bank. make today the day. at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. 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 &. & if your customer also forgets

socks! & you could send him a coupon for that item. levi strauss holding court on this ipo thursday the company's ceo is going to

join us after the stock begins trading later on this morning. the opening bell is 4 1/2 minutes away from the start, the c-class was ahead of its time.

still, we never stopped making it stronger.

faster. 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. ♪ ♪ 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.

just about a minute before the opening bell time for cross-claamer's mad da. >> this morning get this, carl needham goes from buy to strong buy. 170 the 220. tough wat you have to watch this the overall market is going down we heard sanjay do a spirited defense and not because of apple but because of trade it's interesting because apple is the company most hurt by trade. people want to be in ahead of this value stock. >> a big part of the rationale is it's in the value index. >> i wish there were many tore .

>> let's get to the opening bell, get a look at levi on the podium at the big board. it is levi strauss celebrating an ipo today >> chip is fun you'll enjoy him >> very nice circling back to apple, web bush goes to 215 from 200 they say 100 million subs is realistic over the medium term at that rate you're talking annual revenue of 7-10 billion. >> i wish they hasn't put that out. this is what happens we get people's expectations out. they've been dribbling things out. the air pods with self-charging and 30% less latency

they've been talking about that revenue stream from video. don't get your hopes up. this is just apple building things up it's not something that is going to dazzle. listen, we haven't seen it yet but it's disappointing. >> only 5 of 41 analysts have price target implying a trillion dollar market cap. >> i mean, everyone took the price target down. when the stock got to 160, what did they do? they took the price target down again because the stock was down this is the worthlessness of trading apple. this is why i always say just own it, don't trade it when the analyst followed it down as it went down from 200 to 150 they cut their price target. 140 was the bottom that's when most of the price target cuts occurred now it's moving back up.

be careful just own it. if you don't own it ahead of this launch, believe me there will be a guy that comes out and says this is really disappointing. there will be another person who says tim cook is no steve jobs the market cap is tim cook's they don't want to give him the thing that he deserves, which is he created an ecosystem that he's going to be able to run a lot of things through. the people most negative about apple are listening on their air pods while they watch their watch and call on facetime and take amazing pictures with an an p apple. after a while you get frustrated by the analysts where were they? even warren buffett wasn't there. this is why wall street can't make your money. had you owned it instead of

trading it -- people say, jim you can't say that, it's sickening. what am i supposed to do, change my view? >> darden today 180 beats by a nickel >> olive garden. one of the reasons this goes up is i have never seen a wall street analyst at olive garden i have a great olive garden on route 10 my daughter's a vegetarian olive garden rocks you can get in and out for very little money, great rolls. people don't get it. long horn vegetarians is killing it with a 3.8. this is jean lee doing it again and again and again and being underestimated by wall street because they're such snobs they probably think they own red lobster still for heaven's sake.

>> williams sonoma up 4% that comps were a slight miss div hike and a buyback >> morgan stanley is saying she's too optimistic, haur laur alberts. west elm is great looking. the comp acceleration was good i like the story very much she's a very good executive, continuing to be underestimated by wall street. >> a lot of news in cannabis today and cbd. jim talked to the ceo of cvs. >> as you took at the cbd products, we're going to be carrying them in eight states. we're going to be carrying the topical products only. >> branded by cvs.

>> not branded by cvs. we've heard from our customers that have used those products say it's helped with pain relief, with arthritis and other ailments we're going to walk slowly but we think this is something the customers are going to be looking for. >> secular shift >> definitely. when canopy came out they went into hemp. people want this they want it in place of companies like icy hot i don't mean to pick on them because when you go there, there's a whole aisle of things that work for some and don't work for others. they want to put the patch in there. they're thinking about opiates and trying to stop opiates they're only going to go in the states where it's legal. i think it is going to take the country by storm why? for a simple reason, because it

works. larry merlot, most of the interview was about the stock can recover. but this is going to be in demand as it is in colorado and it's going to be nationwide because it's not addictive it's not addictive i think that's really important. i've been doing pain and suicide as features on mad money because i think that pain is opiate and suicide is an epidemic and no one wants to talk about it so we talk about it several times a week this is an antidote. people have to recognize that it works for some saying icy hot works for some, it should be in the mix and larry knows it should be in the mix. he wants to satisfy customers. it's a health care issue canopy has a lot of trials we know it works for epilepsy, terrible disease this is a good move by larry >> is it even? >> no. it's add tiitive to our show.

>> we'll take that argus takes a high on chipotle to 770. >> ain't no stopping that now. i tried to order t last night in brooklyn they wanted to send it from 48th street in manhattan. >> we mentioned darden, we mentioned williams sonoma. those don't look like slowdowns. >> we don't want j to watch the show today it's just a burrito. chip bo chipotle is a story of recovery after 18 months. people forgot what the virus was. there is an inflection point for levis. la last year was a good year. for every one of those i can

give you a negative. mcdonald's numbers aren't so great. >> traffic is a problem. >> wendy's was downgraded the other day. my wife had a baconator. holy cow that's tough to work off, by the way. >> walmart chief technology officer leaves, been there for about eight years. ford cfo bob shanks going to retire and be replaced by tim -- >> how do you like that. >> just came from snap. >> he's been around a long time. he's very good walmart, i don't know they got jet.com. that's really taking over the technology i continue to think that walmart is radically undervalued which is what doug mcmillan is working on when you get off the desk and ask who is doing well in retail, you always get his name. the stores look very very good costco is doing the best of everyone right now

think about the themes here. walmart, costco, dollar tree, all really good. tjx really good. nordstrom bad. expensive. >> we're going to talk to levis about wholesale and distribution. >> that will be great. jeans are cyclical they did have a great inflection point, but jeans go up and down which is one of the reasons the company wanted to go private to begin with do we really have to deal with this this quarter? i'm older than chip. i don't know if chip remembers trading at levi. >> the banks not helping. >> they're so horrible i was shooting an e-mail over to jamie like enough. and goldman, i'm meeting with someone from goldman later today. wow. we can't even look at it goldman's a trading firm don't look at the stock. no there's 500 companies. they're supposed to be looking at that stock. >> big crowd watching levi

strauss. >> we're all having a lot of fun down here. the important thing is it looks like woodstock '69 here. looks like the whole floor is going to join a jug band the important thing, we don't have any indications yet and i'm not expecting any indications for it the important thing is the deal got done finally four months the ipo market has been closed. there's a lot of pent-up demand in general add to that the fact that the market is in excellent shape, the ipo that measures how the last 60 or so ipos have been doing up this year it's a perfect moment. you've got an iconic company here generally comments have been very reasonable. you've got a lot of things going for it in addition to the fact that it's sitting right at the perfect moment here. we'll be back here in the next

15 or 20 minutes i hope to give you some indications of potentially where it might be able to open we've got a little bit of a problem here with a couple of things yes the semiconductors are doing very, very well. they pulled off a very neat little trick there but semiconductors are moving to the upside we also have some other ones most of the rest of the market is weaker. we're seeing weakness in energy, industrials but particularly the bank stocks. that kbe is down 6% this week, the bank stocks. look at all the big names here you noticed the regional banks yesterda yesterday. they don't have trading profits. they're dependant on how loans go out and the interest raid spread to make the money this is the third day in a row they've had some problems. sanjay, great interview with jim there as always. i call this the hockey stick defense. this is a very old story on wall street the revenues were in line eps

was above consensus. everyone after fedex believed micron would lower the numbers again. but they lowered it more than people said. the hockey stick defense was, folks, don't worry, the first half of the year is not working, the second half of the year we're going to be fine growth is definitely going to resume they waved the magic wand talking about 5g they waved the magic wand talking about foldable phones. things are going to be better. the street basically has bought into that concept. look at samsung, look at hynix over in korea. very successful move in terms of the way they positioned the story for the semiconductors we're still waiting for levis to open i'll be back in 15 minutes with some indications. >> let's get to the bond pits in

the meantime good morning, rick. >> yesterday was a big day especially if you're trying to calibrate what the treasury complex and indeed global yields are saying about the path direction and sustainability about the year to date equity markets. no matter what country you're in, the same dynamic exists. it's just to what extent yesterday was fascinating because the u.s. treasury curve basically dropped to levels for the most part we haven't seen since early 2018, all except for the wings, twos, 30s look at the two-year, year to date you notice that 238 january 3rd when all treasuries at their low spikes that lasted up until yesterday for the most part. we traded there. we bounced a bit, didn't close under it right now that's 238 we're only a basis point away but it took a long time for us to pressure the rest of the curve down let's look at january 2018

ten-year note yields the charge to threes, fives, sevens and indeed that ten-year chart all looked basically the same if you look at a year to date 30-year bond looks a bit different. same dynamic as the two-year but with a little more space 290 is that significant area we're currently six basis points above it finally bund yields closed by time all the fun hit yesterday after the fed's statement. look how they responded. yes, trading down under five basis points, open the chart up, haven't closed at these levels since around halloween 2016. finally two-day dollar index, there is the bright spot along with the potential for equities and the treasuries to recalibrate and give more confidence to stocks the dollar index had a nice jump, regained the 96 handle >> obviously we are on ipo watch, waiting to see how levis

will open on the big board no indications yet, but we will bring you the first trade followed by an interview with chip bergh the ceo back in a moment - did you know that americans that bought gold in 2005 quadrupled their money by 2012? and even now, many experts predict the next gold rush is just beginning. (upbeat music)

- [announcer] today the u.s. money reserve announces the immediate release of u.s. government issued solid gold coins for the incredible price on screen. these gold american eagles are official gold coins of the united states and are being sold for the price on screen. - pick up the phone and call america's gold authority u.s. money reserve. with nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients world wide, u.s. money reserve is one of the most dependable gold distributors in america. - [announcer] today the u.s. money reserve is releasing official gold american eagle coins at cost for the incredible price on screen. these government issued gold coins are official u.s. legal tender, made from solid gold mined here in america, and fully backed by the united states government

for their gold weight, purity and content. do not delay. call now to purchase your gold american eagles for the amazing price on the screen. gold is now on sale at prices unseen in years. and this year could be one of the greatest gold buying opportunities of all time. call now while vault inventory remains. as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute. call now to purchase your american eagle coins at cost for the amazing price on screen now.

watching shares of biogen obviously down more than 27%, worst day since august of 2008 going to take you back to 2016 levels as they scrap this trial for an alzheimer's drug. >> it's a reminder of why drug companies have to charge money because they spent fortunes on this and didn't work imagine any industry where you spent hundreds of millions of dollars and it doesn't work. you have to recoup it somewhere. at least understand the process of trying to come up with a drug that could save millions of people and it's a shame. i don't like hype. i felt they gave people hope you can't give people hope with

these. as someone with a mother who died where i had tremendous hope from a drug company, i just caution all drug companies don't do it, don't do it speak softly or don't speak at all and let the trial speak for itself. >> normally when a stock dropped by a third, you start talking about value. it doesn't work in these cases. >> they do have some other drugs. they're not empty. look at the debate over how bristol myers is trying to buy cellgene these companies, they have some things but this was alzheimer's. that's what biogen was that's not why you buy a stock buy a stock because its business a good buy merck because keytruda is really working look at all the negative reaction that bristol is getting for doing something that i

actually think is good. >> let's get back to bob in the meantime, still waiting for those little yellow number indications, bob. >> the excitement is building, as i said. it's woodstock a lot of fun i'm anticipating we can get indications about 10:00 a.m. eastern time uncertain fluid process. huge demand for this goldman sachs is the lead book runner gts is the lead book runner. they are talking to the desk trying to figure out the order size and behind them all these guys wearing denim, traders on the floor. orders to buy and sell orders coming in to the lead broker here which is goldman sachs, in this particular case the lead book runner as well as guys on the floor. it's a very old-fashioned process. a little high tech and a little bit of people literally shouting out in the crowd what they have

and what the asking for price indication is. give us 15 minutes i expect to have some prices priced above the range after price talk of 14 to 16 lots of pent-up demand and well-known company and generally perceived to be very good valuations back in a few minutes with more indications. >> i know what your thinking is. >> pops, did have a breakthrough year you do strike when the iron is hot. it can go higher it's not that expensive, but i'm neutral and apparel. >> does seeing this crowd today and obviously the energy that new issues bring or is this the beginning of something new we'll get lyft tomorrow. >> i think lyft is exciting. remember the trajectory, first three are four deals they try to bring you in listen, we're going to make money, and the deals start going down in quality or they start getting much more -- they have to cut it to a sliver in order to get a pop, and then everybody loses money in the end that's what's happened

that's the way it works. there will be a couple of stocks that will come out, but there won't be the hot ones and people have to recognize that that's the cycle. it is great to have some enthusiasm we haven't had a lot of enthusiasm, but these deals, do not have natural buyers for the reits. i mean, don't confuse enthusiasm with what's going to make you a lot of money what's going to make you money are things like -- inexpensive stocks like apple. remember, tim cook will not be able to put a man on mars next week, nor will he introduce a car that runs on sea water >> dow is up 20 points 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. i'm not really a, i thoughtement wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

want more from your entejust say teach me more. into your xfinice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password.

hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. time for cramer and why the stop trading." >> i've always been a fan of sean connery but people should a fan of sean connolly who is turning around conagra starting to get the taste of -

o-s-c-a-r out of our mouth kraft-heinz is no longer casting a pal over the center of the store. >> interesting so tonight more cvs. what else? >> larry merlo about why the stuck has been a complete bow would you. in the bow would you chateau for a while. been awful and larry has a crystal clear view and the people who are selling it will eventually regret or go to walgreens. >> and then you'll rest up for lyft tomorrow. >> we talked about dual clad structures and ride hailing. >> that's the excitement and i think people are right to understand the technology behind lyft don't forget who lyft is powered by amazon web services. negative piece today about amazon and what's going to happen in india. lilliputian argument against a great company. >> we'll see you at 6:00. >> i don't want to leave so much fun today. >> it was good

good, fun show 6:00 p.m. "mad money" eastern time when we come back, the opening trade for levi strauss and the interview with the ceo don't go away.

♪ good thursday morning. welcome back toes on the street. i'm carl quintanilla live with sara eisen live at the post 9 at the new york stock exchange. markets improving a bit here dow up 50 points and apple up 2.5%, but the big story today, of course, is a new ipo, the largest listing on a u.s. exchange this year. >> our road map for the hour starts there levi strauss, the 166-year-old jean-maker set to return to the public markets right here at the new york stock exchange. we've got you covered. >> plus, shares of biogen are plunge after ending a trial for a potentially bloc buster alzheimer's drug it's on pace for the worst day since '08. >> and a global economic slowdown concerns coming to light we're going to break down the state of the consumer, ceo of restaurant brands international, parent company for burger king, pop eyes and tim hortons is with us >> first stop, the world's largest denim brand as a private

company, but that's about to change levi strauss set to go public right here at the new york stock exchange pricing above the rake at $17 per share it's the second time the company is going public. remember, after being taken private back in 1984, we'll be trading under ticker symbol levi we've got complete team coverage for you. bob pisani is on the floor of the new york stock exchange. courtney reagan is at a levis star in times square we'll begin with you, bob, in the pre-trading action what can we glean so far >> reporter: we have the first indications right now, and it is $20 to $21 by the way, we're not just on the floor, in the booth. only cnbc is in the booth with you. 20 to 21, remember what the talk was here their 14 to $16 was the price talk it priced at $17, and the indications are now 20 to 21 you take the mid-point, 20.50, that's almost 40% higher than the mid-point of the price talk just a couple of days ago.

that gives you an indication of the pent-up demand the pent-up demand because the market had been closed for four months, there would be pent-up demand because the stock market is doing well, ipo trading well, stocks that recently ipo'd generally doing well pat murphy, a veteran trader down here on the floor, running the book here. pat, how is it looking how is the demand? >> such an iconic brand. gts is so proud to represent levi, first common stock ipo on the new york stock exchange t.priced texchange it priced above the range. we like to get 10% of the print. that would be really happy we're working with goldman, the stabilizer, all the is asset managers and brokers in the crowd to disseminate all the information out to the public to be as transparent as possible.

once this pros -- this process takes a while, as you know we're probably anywhere from half an hour to 45 minutes away. right now we're just in the volume-building process right now, and hopefully we can fine tune the price. >> and 10% of the print would be 3.5 million shares you're looking that to open. that's the kind of volume you want. >> that's the goal, not always the standard but that's the goal if we're comfortable with the price and the debt to book around the price, i think we're good to go. >> glen, you've been doing this for many years you've opened many famous ipos ali baba, twitter, snap as well. how is the demand looking compared to other ipos like that >> just as good. like pat said. you know, we have an indication out there 20, 21 we're building the book with a lot of retailored flow and also combining the institutional flow as well, so right now it looks great. you know, we have a little more time like pat said half an hour to 45 minutes. everything looks really good. >> we'll come back in half an hour, and i think we'll get a

lot closer and patty will actually explain how they build the books. really fascinating to look how the process works. down here post 8 behind the action bob pisani, guys, back to you. >> meantime, let's get over to courtney reagan live at the levi store in times square to talk more about why they are going public good morning, court. >> reporter: levi strauss is the largest seller of denim both in the u.s. and in the world, and it built that market share position as a private company, so why go public now why open yourself up to the public market scrutiny well, most experts tend to agree it's largely so that the descendants of the founding family, the hass family, can cash out their stakes and yet still retain control because of this duel class shareholder structure so the hass family is selling more than 21 million shares in the ipo at $17 a share. the family's collective proceeds will be worth around $359 million. now, each share that the family will hold is a class "b" common stock. then titles the family to ten

votes compared to one vote for the class "a" shares which means the family will hold 81% of the total shareholder voting power now, in its prospectus levi says its main purpose for going public is, to quote, increase our financial stability and create a public market for a class "a" common stock as well as having more capital to grow sales and improve the pace of investments. levi says it will use a proceeds of the offerings for capital expenditures and for potential acquisitions or also for strategic expansion. also another reason is so that it can join the club if you look at the next close f-competitors in denim to levi by total sales, they are all public in the u.s. second is wrong learn. that's owned by vf corp, and that's going to be part of its own separate public trade company contour brands that's going to be in the first half of this year and then gap owns old navy. that's the third in-market share

in the u.s. and that's going to be its own pubically traded company soon globally, zahra is second. that's owned by intadex and then one other pubically traded in europe think about being public and what that can offer for potential employees when you can offer them things like stock options which becomes a very valuable recruiting asset, especially when you're looking at levis headquartered in san francisco in the bay area. the competition for talent we know is very, very tight back over to you guys. >> quick question, courtney. you mentioned all the other moves happening in denim with vf corp spinning off the business and gap breaking up. >> yeah. >> is it a sign that business has been tough or that there's some sort of resurgence? >> no. i -- i actually think, look, denim is one of those things that's always going to be around i don't think people are never going to be wearing jeans, but it does ebb and flow, and we know that there's been a strong

growth in athleisure, but i've spoken to all of these companies, and, you know, when i talk to gap, they said we very a strong growth in denim, double-digit comp. if you look at american eagle, that's another competitor in the top five they said we've seen strong growth in men's and women and expect significant growth to continue, so i actually don't think it's a sign that denim is in trouble, but i think each of these companies has to sort of operate in their own way in a corporate structure, and that's what's really changing right now. >> courtney reagan, thank you. we'll, of course, check in with you and bob shortly as we await that i'mio joining us is the ceo of the american apparel and footwear association and roxanne myer, mkm senior research analyst conversation retail. rick, we generally have you on to talk about all the problems that we're seeing right now in retail, brands, not so much in ipo. >> i can do that, too. this is really exciting. a piece of americana unfortunately, had to wait 166

years for it, but, you know, how often do you get a chance -- how often do you get a chance to buy something as potent as a piece of the statue of liberty i mean, think about it, a global brand, represents the global value chain around the world, yet everybody believes it's totally american, so this is a chance to get a piece of the rock, to buy into americana no matter where it's made, and levi makes in 25 countries. >> all right what about the argument that we're really going public to take advantage of a fashion cycle and we know how ephemeral those are. >> look, men's business, boys business, stable, women's business growing denim is always in fashion my mother-in-law says that all the time denim never goes out of fashion, so don't worry about the cycle worry about how they are addressing the business to deal with the millenial customer. that's where it's going. >> we'll talk about that, roxanne, but, first, you know, rick makes a point it's an american icon. does that mean it's a good

investment >> you know, it's -- no. i think you have to look at the -- at really the characteristics of the company and the fact that here's a brand that is growing, you know, 20%, 30%, 40% in some categories in what's a very tough retail landscape this to me is one of the few standouts out there that's showing really good signs. >> how is it doing that? >> through two things. one it's got a ceo that's laser focused on brands, innovation andcustomer. sounds like retail 101 sadly it's not necessarily always that way. second a real focus on innovation and using what they are calling eureka lab to -- to innovate and to shorten the supply chain, and it's growing in categories where it's been underpen trade, whether that's tops, whether that's women's or geographical mix so there's really a large amount of opportunity here >> do you evaluate them based on sort of these now classic metrix, ecome growth versus

wholesale. what do you make of them through that lens? >> yeah. i think at the end of the day you look up and look at what the are the components that will drive top line growth, and, you know, for a company that's able to drive mid-single digit or top line growth, that, again, is really a standout in the landscape, so you have to look at it by category opportunity, by the opportunity they have in women's and compare it to the peer set, and they are really underpenetrated in women's, for example, where it's only 25% of the total business. >> so, rick, how do you think about trangz formingsforming a 166-year-old brand in a growth story? >> first of all, give a lot of credit to chip burn and his amazing team at levi they are members, as are all the top denim brands so we get to see them all and deal with them all. they took a real good turn to understand the market and achieve growth and chip quite frankly is a marketing genius. he's reaching more with what they already had, and he's

running a better organization, so the idea that they are going public is just an amazing opportunity for america. >> do you think this gives them currency to expand their pipeline, or do they get even more deep on what they already have, as rick says >> i think there's still more room to go deeper, but they are going to expand. you know, not only for geography. china is 3% of their business so it's a wide-open opportunity, but they want to go into new categories in accessories and footwear. they have done some collaborations with michael jordan, so there's -- there's really a lot of low-hanging fruit that's left. >> how do you think about the valuation? who should it directly be compared with? >> so i think really you look at a global set of global apparel manufacturers which if you put together a basket of 12 they trade at a median forward multiple on a pe basis of 17 times. if you want to get laser focused within that niche, maybe you would say it's more along the lines of a ralph lauren. that's the name i've heard

touted most by other investors certainly they are a subset that look at eb to ebitda where it's a nine times average, but either way it doesn't shock me the valuation that we're seeing today. that's implied. >> rick, nike is reporting earnings after the bell today. we're covering it. so much momentum and that stock is trading at a record high, indicative of the fact that not only does nike have innovation momentum but athleisure has really taken over as a key growth area in the apparel industry is that going to hurt a company like levis >> no, there's plenty of room to grow, and i know you're a big fan of the yoga pants and the yoga whole lifestyle and athleisure lifestyle. >> i just like to be comfortable. >> everybody likes to be comfortable, but jeans, too, are comfortable. >> jeans are for dress-up. >> in this generation i think there's some truth to that, but i did notice when i came into the exchange this morning there's a big sign in red that says no jeans per mid the on the

floor. that may change very soon. >> well, certainly for one day only, right? guys, thank you. thank you. >> yeah. >> as we await that opening trade. >> when we come back, shares of biogen really getting taken apart today after ending a trial for a blockbuster drug where it may be hiding in your portfolio. shares down more than 27 was, and some news to jeremy king is now headed to pinterest, a company that's expected to ipo big news at the nyse as we await levi's return to the public market indications still 20 to 21 don't ay.gowa the latest innovation from xfinity

isn't just a store. 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. share of biogen plunging this morning after ending a trial for a potentially blockbuster drug dom chu with a look at at fallout. >> the decision alongside its development partner to halt the later stage trial of the alzheimer's treatment, not just hurting the trial but seeing some big ripple effects in the exchange-traded fund world as well, and the juxtaposition highlights the structure of two of the bigger etfs that track biotech companies. one of the biggest impacts that you're going to see is going come via the nasdaq, biotech and ticker ibb we track it a lot. shares are down by just 1.5% to 2% today, off the worst levels

of the session now this is an $8 billion fund it's been a standout year-to-date period up around 15%, but because its market cap weighted biogen is the third biggest holding it acounts for nearly 8% of the fund, so a big impact there. now you contrast that to the spdr biotech etf it's around flat to just slightly hour on the day so far. higher actually because this fund is a modified equal-weighted index of biotech stocks meaning you don't get as much of an outsized effect from some of the larger cap stocks. biogen just for reference here around only 1.5% of that xbi so that's something to watch there as well. it's an interesting kind of juxtaposition, guys, the idea, carl, gang, equal weighted ones performing better. it just goes that you live by the sword, die by the sword is the best way to put it. >> we do see hopefully not dying, dom we do see a lot of trials go wrong and the stock suffers, but for a stock of this size, this is serious, right?

wouldn't you argue that. >> oh, no. there's no doubt about that. for a stock that had a $60 billion market cap going into today's trade, that kind of a move here is going to have an adverse impact, but it also shows you if you take a look at how some of these etfs are performed, that modified equal weighted xpi is up around 40% of the lows that we saw back on christmas eve. you contrast that to the 25% gain for the more market weighted ones and that maybe gives you an idea that some of the smaller biotech companies, the smaller mid-cap ones got hit the hardest during the downturn and have rebounded the most and if you're looking for firepower sometimes the smaller ones do better and you can see it play out in today's trade, carl. >> quite a story dom chu back at hq. meantime, positive momentum for apple leading stocks higher. the minimum wage or indices erased some earlier losses here with the road map ahead alex dryden, asset management

with us at post nine good to have you back. >> thanks for having me. >> where are you on this fed turn, and -- and are they too late is this like -- are you more worried than they are glad they are out of the way >> for me the fed in 2019 have really re-ignited that trade there is no alternative to equities they have pushed the ten year down to 2.5% investors who are still yield starved have nowhere to go they are coming into equity markets. for us looking into the second half of 2019, we think we can see valuations continuing to expand, price-to-earnings multiple on the s&p 500 already above the 25-year average. the fed yesterday gave a real gift i think that's going to drift higher we'll have probably solid returns for the rest of this year. >> 3k is likely? >> we could see 3k that's a possibility now the thing is we need to be a little bit careful here. we're entering into the late stages of the economic cycle investors need to be a little bit wary about taking too much ring don't be too greedy at this late stage. >> here's the counterpoint

the economy is slowing, and we're not getting any monetary still lurks and we're not really getting any fiscal stimulus anymore, so why the optimism >> i think for me the economy doesn't need that stimulus anymore. it's starting to fire on its own. don't get me wrong the it's not particular, but it is solid consumers are looking okay business sentiment is looking fairly solid global growth outside of the u.s. which had been a concern for investors at the early part of this year has started to stabilize a little bit helped out by their central banks as well that transition from quantitative easing to tightening, the central banks have almost called a truce on that transition and have said actually we may not be going back to qe, but we're not heading towards qt quite as quickly as we first thought. >> some are traumatized a little bit about the reaction yesterday in the fed so finally the fed goes to where the market is. zero rate hikes and cause for celebration. just like the ecb which eased

further. >> yeah. >> both stock markets ended the day lower, and there's some questions as to whether, you know, central banks can still back the same bunch that they used to. >> i agree with you. i think the central banks may not be the sole focus for investors like they have been for much of this cycle yesterday i think it was more to do with some of the trade discussions that are starting to beef up. let's remember it's not just central banks that investors are focused on it will be a very nice tailwind from year-to-date performance. if that starts to turn into a he hadwind maybe things are a little bit different our base case for a moment is these trade tensions will continue to resolve themselves the chinese don't have the stomach to go another round on the trade fund after their economy got battered last year and the u.s. would like to see a win. >> even though we don't have a dole and we have reports that commerce has cleared, you know, the ability to tariff eu autos, it could get worse. >> it is, and that's the risk. i think for the time being with financial conditions continuing

to ease, earnings downgrades become to stabilize slightly i think they are slightly more upside than downside and keep a wary eye on trade tensions when it takes you by surprise, markets can get him. that's the risk. >> alex, thankyou very much. alex dryden. >> we're waiting for that first trade from levis the company set to enter the public market right here at the new york stock exchange. a see of denim plus, a state on the global consumer ceo of restaurant brands international, owner of pittsburgh king, tim hortons and p esilbe with us "squawk on the street" will be right back

burger king and hortons parent company restaurant brands international off to a strong start in 2019 outperforming wendy's and mcdonald's up by 25%. last week the company announced a new $5 monthly coffee subscription for coffee. joining us now is jose sale, ceo

of restaurant brands international. first time i think we've talked to you guys since 3g formed this company eight and a half years ago. welcome. >> great top here. good morning to everyone. >> how is burger king specifically doing that's your biggest brand and very competitive environment still solid number two >> yeah, we're doing well. what's exciting about the burger king brand it's growing both internationally with new restaurant development and new markets that we're opening as well as top line sales, and we're also growing quite well in the u.s., and just in the past year in 2018 we grew restaurant openings to more than 200 which is one of the top growing restaurant brands right here in the u.s. so we're excited about the progress we're making with burger king. have a lot of work to do, but we're excited that it's a growth business and has been a growth business for quite some time. >> everybody has jumped on the coffee bandwagon mcdonald's has been doing it for year dunkin' brands why now are you getting into coffee subscription? >> well, we've had a really strong breakfast business at

burger king in the u.s. for many years for decades, but we felt it was an important time for us to be able to revamp and overhaul the breakfast offering as well as the coffee offering new packaging, sustainable -- more sustainable packaging we have a new brand which is a burger king cafe and we thought that the coffee subscription would be a good way to bring people in, create some excitement and have them try the coffee at burger king. >> you say bring people in i mean, traffic has been the sticking point for the industry in total, right? traffic, you make it up on ticket, but it's trying to get the feet in the door. >> absolutely. this business has always been and will always be about bringing more guests into the restaurants. it's not about pricing only. it's about having great experiences. having great looking restaurants. tech why i is a big part of what we're doing with burger king, with tim horton's and pop eyes so it's a full focus on guest experience, and i think that's what is going to drive more guests into the restaurants. what we start with is really great-tasting food atburg kings and pop eyes and great cove so

those are the drivers of traffic in our business. >> can you describe what margins are like in the early day part versus the rest of the day and dinnertime. >> margins are better. a stronger beverage business so there are better numbers, better margins in that business, but overall the margins are healthy, and we're focused on continuing to grow top line through -- to traffic counts. >> so the other story wall street is very focused on with your tock is the international growth i know it's a key mission. how ambitious are your plans and how much do you have to make up for the fact that mcdonald's and yum have been so global for so long >> so international is a big part of the story and the opportunity for burger king, tim hortons and pop eyes, just opened our second tim hortons in china, a great opportunity tore the brand and over 1,000 ellen degeneres transin china so latin america has really big growth opportunities and right here in

north america we're growing and growing very ambitiously we have a really strong pipeline of new stores for pop eyes here in the u.s. as well as for burger king, so we think we have a lot of room for growth internationally and in the u.s., and we're excited about the opportunities. >> what about tim hortons? any growth momentum there yet? >> yeah. we've done a really good job over the last four quarters with tim hortons. in canada we saw sequential same-store sales growth in canada, have a great team in canada built up the sales side and marketing side, operations and development, so we're really working closely with our franchise restaurant owners to be able to drive top line there and bottom line and we're excited about recently launching actually just yesterday our loyalty program in canada. it's off to a good start people are excited it's one of the strongest brands anywhere in the world in terms of loyalty and frequency with its guests. >> absolutely. >> and seven out of ten cups of coffee in canada are sold in a

tim hortons. >> talk to any restaurant owner, qsr, high end no matter what, the first thing they want to talk are labor costs how much it costs to get a cook, a dishwasher, a cashier. how tough is it? i mean, how would you describe it right now >> we've seen over the years and decades that the qsr business in this country and abroad, you'll see ups and downs in fluctuations in costs and commodities and lane tower focus it is always bringing in really talented people and focusing on making sure that they are engaged, that they are motivated and that they stay excited about the brands in the restaurants, so the focus is on bringing in great people and growing the type line which will help address any commodities and labor costs that you see in the business. >> when you implement floors how can people be prepared for sg & a >> at the restaurant levels we've seen healthy margins and

seen continued growth in restaurant level margins at burger king in 2018. we saw the same with tim hortons in canada, and we saw flat year-over-year restaurant level profitability at pop eyes, and the focus for us is to keep driving more guests into the restaurants and ensure that we drive the top line that's going to help us outpace any inflationary pressures we may feel, whether it's commodities or labor. >> the market has really fallen out of love with 3g recently kraft-heinz is a disaster, the botched takeover of unilever do you see that as an overhang for your stuff >> very different businesses since 3g acquired the company in october of 2010 has been about growth we felt that the burger king brand was a very well-known brand, had presence and awareness in a lot of markets, but it didn't have a business that reflected the size of the brand, and so from day one every conversation i've had related to burger king and to the acquisition was always about how do we grow burger king to become

a world class -- world class restaurant brand and business? and we've seen over the last six, seven years with burger king that we've gone from about 14 billion in systemwide sales to over -- to nearly 22 billion, and all of that has come on a focus on growth and focusing on investing and marketing, in technology things that are helping ups drive the top line and helping us drive the bottom line. >> in other words, the culture is different. >> common shareholders and, you know, i've learned a bunch working with the team from and the share holders from 3g but the focus is on growing our restaurant brands. started with burger king and squared tim hortons and that was popeye and we have three iconic amazing brands that have growth potential here in north america and abroad. >> you have a great window into u.s. consumer spending are u.s. consumers still benefiting from the tax cuts, and how does growth look for the rest this year >> we're excited about the

opportunities for growth here in the u.s. we think there's growth both in terms of same-store sales or comparable sales our like for likes are growing, and we also think there's opportunities for growth in new store development and we're creating jobs and creating opportunities in small markets in the u.s. so we're real, really excited about the opportunities for bk, poppis and tim's here in the u.s. >> jose, thank you. >> great to see you. >> jose cil, the ceo of restaurant brands international. aid groups are working non-stop to rescue families from the surging waters in mozambique after a cyclone swept across that country it is one of the most destructive natural disasters to hit the southern hemisphere. it's feared more than 1,000 people have been killed. the university of southern california announcing a new president, carol full, the former chancellor of the university of north carolina will serve as that university's 12th president the hiring comes as usc reels

from a college admissions cheating scandal. >> we pledge that we're going to do everything to be get to the bottom of this and make it right, but to give up on hire education or to give up on usc i think would be a serious mistake. >> and take a look at this spot busine sotheby's auctioning off this sculpture. the sculpture is estimated to sell between $60,000 and $80 now, but more than 2 million what a story that's the news update guys, back downtown to you. >> all right, sue, thank you very much. we are waiting for levi's to open for trade here. indication vimz prov ucdication have improved a

toh. ceo chip bergh will join us after the break on "squawk on the street." don't go away. pars

. we are closely following the indications ahead of levi's first trade. >> we're getting closer. new indications, 21 to 22. remember, the price 17, looks like they will sell it 21 to 22. let's go over here patty murphy, how close are we >> we're getting closer. we are probably indicated four to five points above the deal price. we're very healthy on volume we're fine tuning the price. we're actually in the stage of applying gts and cutting edge technology, and i say we're about 50 minute to 20 minutes away. >> and you're going to get -- you said you want to float 10% that will be typical you going to hit that?

>> we're over that we're over that, and we're still building on some more volume, but right now we're fine tuning the price between 21 and 22. we have about 50 minutes left. there's very healthy demand. i mean, it's an iconic brand and it's real showing up in the price. >> stay here and wait for that want to point out to everybody, that this is just the beginning, this is just the start of a tidal wave of ipos put that full screen up for me because we have 234 ipos that may be sitting out there ready to go public that's according to renaissance public valuations $700 billion. now, what they would actually go public at seeking to raise would be $100 billion. simply try to raise 10% to 50% why is that important? the old record is 96 billion remember that, the year 2000 so everyone will try to be will this be that record year that's the good news the bad news this is an awful lot of stuff on the market

who is going to buy all of that, and there's concerns that valuations could go down the road and could get high. last raise was $76 billion but there's 120 billion. lyft raised -- last round of funding was is a billion there's news they may raise as much as 20 billion pinterest, robinhood, peloton, post maids still out there we're looking at people buying this down the road and everyone wants to make sure that the valuations are fair. that's the big issue down here want more on the hot ipo market. tradertalk.cnbc.com. a whole rundown of the various issues that are involved as patty said, i'll give it ten more minutes here. we'll be right back here, and i'll be standing here waiting for it to happen we'll be here when it goes public. >> don't go too far. know you won't speaking of jeans, as goldman sachs announces it will

allow more casual dress by its employees, is wall street going casual robert frank is one at wall street's tone bespoke suit-makers. good morning, frank. >> reporter: good morning, car as you mentioned, the levi's ipo this morning and all the talk about athleisure is a reminder that the traditional business suit has been falling out of favor for years, but goldman sachs's announcement it's going casual earlier this month just created a whole new era for these suit-makers and the tailors that have been dressing wall street for decades. suit sales falling from 13 million to 11 million last year. expected to fall even further to 10 million in the next few years. >> we have said for a while if goldman goes casual, there's going to be a problem, because goldman is such a bellwether for -- for the market and is such a trend setter among other firms. i think once a firm as prestigious as goldman says we're going casual, that's kind of the last domino, and i think

we'll see a lot of other holdouts very quickly begin to adapt. >> so the future of suit-making probably looks a lot like this as you mentioned, we're at michael andrews in downtown manhattan. traditional suit sales down 28% over the last three years and they have a three-part strategy. first of all, they are consolidating buying new york's oldest suit-maker. they are doing a lot of events so millenials don't like to wear a suit to work but do like to wear them for weddings and going out and big parties, and they are also going casual, so this is the new power suit on wall street goldman sachs. it's a sport coast often with a pattern. custom jeans, five times as much as the traditional levis and also made buying a suit a lot more fun traditionally you would walk into one of the cramped tailors and the guy would tell you what you're going to wear and how much it costs this play is more like a club,

couches, plush dressing rooms and you get a full bar where you can get a drink where you get your suit. guys, back to you. >> a good live shot, and sets us up beautifully robert frank talking about the potential death of the suit and as we wait for levi's first trade. does today's ipo signal a broad shift in retail and fashion? joining us is the former ceo of j brands and cam wolf is a style writer at "gq. thanks for joining us. >> good morning. >> thanks for having me. >> where is denim right now in the cultural zeitgeist >> levi's has been very smart by keeping themselves relevant by collaborating with offlight. a couple seasons ago they worked on a big collaboration heavy season that they have done levi's has been really smart to

keep themselvesin the conversation euro monitor, maybe the sales don't look too great denim sales are only up 2%, but i think in terms of like a fashion perspective they have actually been in the mix. >> jeff, a lot of compliments from both of your brands of jeans. maybe you can help us answer that question in terms of how much denim category faces growth right now. >> well, denim is a very strong category it's american. it's iconic. it's not going anywhere. i think that it's become a lifestyle dress of people's fashion way and point of view. whether it's a woman or a man. it's here to stay. you know, when people asked me in the past is premium denim or denim going away when coca-cola goes away for an american iconic brand, then jeans will go away it's very important, and it's here to stay

>> is "gq" going to allow this, or is there a certain element that wants to keep men's dress elevated, at least when you're at work? >> absolutely. you've seen a lot of different pant styles like come in over the past couple of years you know, athleisure has been really hot also just seen people gravitating a lot towards trousers and pleated pants and dickie's ha dickey's have been really hot over the last couple of years. a lot of -- at the last couple of fashion weeks we've seen denim being shown on the runway. >> my amateur take here as a shop their tries to stay a little bit on trend is that levi's benefits from the vintage idea, the fact that, you know, what's old is cool again, and we like the old school levi's and also the fact that they have been successful in translating that into tops, for instance, which is 20% of their revenue now and the fact that as you say, denim is really being born everywhere not just jeans.

>> really less reliant on denim than they were a couple of years ago. >> jeff, i've got a question on just cost of production. when we're talking about denim specifically, is sourcing the material any less expensive than materials you might find in athleisure, for example? >> i think that cost of raw materials is a little bit less in denim than your premium athleisure, and what i can say about the athleisure sprocket that i think it's peaked, and the reason why denim is seeing a good comeback is because people want to dress sophisticated, at least on the woman's side and denim gives you that point of view that you have a -- a -- let's say a timeless and can you dress it up and dress it down. so we're seeing people want to dress again. denim is part of american's mainstay of their closet and what they have as product, and i think we're seeing an uptick. >> are you serious when you say

you believe athleisure has peaked though? valuations on lululemon might argue otherwise? >> well, you know, when i say peak, it's maybe about how the woman is dressing, you know, during her day in athleisurewear people in general want to dress a little more sophisticated where can you dress it up and down and of course athleisure wear will be a very strong choice and maybe it's yoga and pilates and then changing later for the rest day. >> denim is coming back in a growth area and there's still big challenges in retail with stores and department stores and even brands, so how much of that is a headwind to some of these more successful jean companies like levi's whose brand is working right now with the

consumers? >> well, you know, it's all about product, and when you execute the right product and you're relevant, your business could be strong whether it's a brick and more tore of your own and whether it's hole sale and what's what we're seeing the experience in my company, but it's all about product i think when levi's is planning to do is invest in product line and become more of a lifestyle because, you know, the jean is the cornerstone, and let's face it, 150 plus years speaks for itself, so, you know, it's not about let's say a 50 is anywhere it's about surrounding product, but it's american and it's iconic and so is denim in general and i think, that you know, when the product is right, it sells in any retail environment. that's the experience that we've had and if levi's is seeing a good retail experience and they are seeing sales going up it's because product is right, and it's compelling and the consumer is responding. >> yeah. >> finally, cam, as we wait for

this opening trade, and we'll ask the ceo next hour, i mean, diesel has had some news lately that hasn't been good. store closures and filings is that a cautionary snael is denim easier to mess up than anything else? >> i think diesel and levi's are really different animals any time we're talking about denim at "gq" the jean we're always recommending is the levi's 501. >> really? >> not trying to sell here. >> no, no, no, i think it's the ultimate classic i went into a store and bought a pair of 501s this weekend. i think it's coming back into fashion and jeans and denim are finding an interesting way to stay fashionable like we wrote a story a couple months ago about how bootleg jeans were coming back and people like freaked out. we're like, no, i just got into skinny jeans there's no way i'm getting into bootleg now. so there's still like a long sort of trend line that's yet to play out. >> within the category.

>> now it's boot leg, is that what you're saying >> the same brand that levi's collaborated with, boot leg denim was brought back on runway. >> good discussion as we wait for this particular story to happen. >> thank you very much. >> thank you >> when we come back, the levi strauss ipo. we expect it to begin trading in you few mea monts and we'll speak with ceo chip bergh after that opening trade this is loma linda, a place with one of the highest life expectancies in the country.

you see so many people walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges. 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.

one key sector is trailing the market but one strategist says it is a buying opportunity. find out on tradingnation.cnbc.com more "squawk on the street" is coming up.

worst performer by far in the market is biogen, losing a third of its value in what's been an up market. that stock on pace to close at its lowest since 2016 after ending some alzheimer's trials with disappointing results

jon fortt has more on what's coming on "squawk alley. good morning, sara i'm not walking. i'm at the post, post 8. a different kind of san francisco, coming up, the ceo of levi strauss after that company goes public. expected any minute now, that's coming up on "squawk alley." excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.

(danny) after a long day of hard work... ...you have to do more work? every day you're nearly fried to a crisp, professionally! can someone turn on the ac?! no? oh right... ...'cause there isn't any. here- (vo) automatically sort your expenses and save over 40 hours a month. without you, we wouldn't have electricity. our hobby would be going to bed early. (vo) you earned it, we're here to make sure you get it. (danny) it's time to get yours! (vo) quickbooks. backing you.

welcome back to "squawk on the street." i am dominic chu let's drill down on one of the outperforming groups, consumer staples. due in large part to conagra brands on case for the best day since june of 2015, after posting better than expected results for its frozen and meal products out there that bullish report lifting other consumer names, including campbell's soup, general mills, tyson foods, kellogg's keep an eye on those staple stocks i will send it back downtown to you, carl, at the exchange >> thank you. a big show coming up in the next hour as we await levi another big show this afternoon. >> we have the ceo of pure leaf that signed a distribution deal with cvs, bringing cbd to cvs.

big day for the nyse and speaking of retail, nike is reporting results after the bell you know i will be all over those numbers and instant reaction >> stock is a monster. >> don't go away hey mercedes,

how about letting your hair down a little? how about a car for people who don't play golf? hey mercedes! mix it up a little. how about something for a guy who doesn't want a corner office? hey mercedes, i don't even own a tie. do you think i need a mahogany dashboard? hey mercedes, can you make it a little cooler in here? [ a-class ] i am setting the temperature [ a-class ] to 68 degrees. we hear you. we made a car that does, too. the all-new a-class. all-new thinking starting at $32,500.

this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see

what adding futures can do for you. good morning it is 8:00 a.m. at levi's headquarters in san francisco, it is 11:00 a.m. on wall street where levi's is expected to start trading any minute and "squawk alley" is live ♪ ♪