that does it for us today. mike, thank you for being here we'll see you on thursday. we'll see all of you here tomorrow right now it is time for "squawk on the street. ♪ good morning and welcome to "squawk on the street. i'm david faber with jim cramer. we're live from the new york stock exchange carl has the morning off let's give you a look at futures. we get started with trading half hour from now. and by the way, the january s&p case-shiller report just out showing a 4.3% year over year increase in home prices. mortgage rates are down now too. so activity seems to be picking up a bit even talked housing a little bit. maybe later. let's get to our road map this morning. more questions than answers. apple unveiling a series of new services that includes streaming and original star studded content. but wall street's reaction,

well, so far somewhat muted. >> yeah. cynics. >> plus bond yields stabilizing, futures pointing to a bit of a rally at the open of trading this morning and in major ride sharing deal news, uber is buying careem in what would be the largest technology deal ever in the middle east. we'll talk about that. interesting transaction. well, apple is ramping up its push into services, being led by that big announcement yesterday of its new entry into video streaming. the company says its tv plus subscription service will be ad free and available on 100 countries beginning this fall. it will feature original content from the likes of oprah winfrey and steven spielberg but apple has yet to disclose a price for the service. apple announcing a $10 a month service called news plus, which will offer users access to more than 300 magazines and apple card payment service with cashback on purchases and no late fees or annual fees was

part of yesterday's announcement partnership with goldman sachs and gaming subscription service, this one called arcade, would give users access to more than 100 exclusive games. jim, in reviewing some of the research this morning from some of your favorite analysts, including katie uber tty, it doesn't appear there is that much enthusiasm for what they unveiled yesterday >> i completely disagree. >> you disagree with that assessment or -- >> the average american -- >> my read of it. >> you're completely right totally right. i just think -- i'll say something that is almost marxian in nature. i don't think analysts care about 2% back on a credit card because they make so much money, they don't care. i think that if you go back to the analysts when they were, let's say having jobs that paid them the average that people get in this country, 47,000, it is gigantic and i'm going to -- i have a

cfo, which is ridiculous, i have a cfo, i'm going to say, look, i want this to be my credit card i want my money put in market. i want to save the 2%. and i want to get the higher rate that markets have it is big, maybe 4.5% if i buy things on the -- from the app, i get 3% back. if you are a buyer of things like i am on apple, look, why shouldn't i just try to save 500 bucks? what is the matter with that in. >> i understand that were you expecting a bit more in terms of detail and/or having things available immediately as opposed to the fall and knowing the pricing or -- >> yes. >> are you fine with the way this is going to continue to roll out in a sense. >> i'm fine with the credit card i'm fine with the magazine newspaper. i think those are both very good i wish the others were more defined. i think that cord cutters will welcome the stuff. we don't know. hbo you have to buy to get a discount same price >> interesting point that was made to me by somebody who follows the company closely and

watched yesterday, like so many of us did in terms of cord cutters and generationally speaking you trot out steven spielberg and oprah winfrey and jennifer aniston and we get excited but if you're in your 20s or teens, do you know who these people are where are the kardashians, the new influencers who willappeal more to those peoplewho actually have or will cut the cord or never had a cord to begin with that was certainly a question that was posed to me and a worthwhile one generationally speaking, who are they going after a show about morning news television really again -- >> late mary tyler moore we have seen it. >> we don't matter anymore we're not even in the demographic. >> you know something, david, you know something, i hadn't thought about that, these are people of our generation and talking about my generation,

we're old. the millennials, no one knows who they like. i don't think they like big bird that much. big bird >> i don't know either. >> we'll see we pointed out so many times it will be such an interesting year when it comes just generally to the streaming entrants the most important of which is disney little more than a month from now, we'll get a lot of the details when they have their big investor day >> but, david, i pay $32.99, so sunday at 3:00 a.m. i got my bill >> for what? >> "the wall street journal. and rooney mcfaddy, you get a good deal -- >> i think -- you get -- why would the journal do that deal >> the new york times has 3 man subscribers and they want more scale at the journal. >> you get everything with the $9.99? >> doing some work on that before we came in. maybe they can clarify it. that's what i'm told

stelter, i double-checked what stelter wrote this morning what do you got there? >> i'm interacting in real time with my sources. this is what we do now again, generationally this is how things work. you see that they -- >> are you using apple news to get it >> no. >> this apple credit card, the apple card -- >> come back to that that excited you the most? >> absolutely. >> of everything announced yesterday -- >> yes. >> apple credit card. >> i like that i have a thing called a password and i just want to buy everything throughout -- i have one central place. listen to me, it is about your family, okay it is family, david. you get your whole family on all of these things. la familia >> did you see anything yesterday that really is in your mind going to significantly increase the revenue growth of services at the company and/or increase the number of devices >> the cards are very valuable

>> the cards, some that you -- there is a lot of mileage related cards. >> that's -- okay. did they have the mac car that goes to mars no do they have the car that uses sea water? no, they didn't come up with that am i able to transport myself to englewood cliffs through the air? >> no. >> those are disappointments >> did it feel innovative to you yesterday? >> life -- let me give you a heads up, life is pedestrian okay life is pedestrian these were prosaic offerings that make us little money. >> okay. >> you keep expecting something big out of -- >> not necessarily >> you do. >> sure. why wouldn't i that's what i'm here for. >> you ever see the movie "children of paradise" that's who we are. that's a far field reference we are, david, prosaic individuals who like to save a little money >> okay. >> except for the rich analysts

who don't care about 2%. you get -- they don't even look at the bills the analysts are so rich they don't look at their bills. they're not going to save, what do they care in. >> brings us back to -- >> the old days, look, there is a dispute -- >> they called it -- can i just -- plus, disney is plus >> there is a dispute about the wall street journal. some say it is a cure rated collection of general interest news others say it is everything. my sources indicate that it is -- >> how come we don't know an answer to this isn't that a simple answer the wall street journal you get it or don't get it or get parts of it. can we have an answer. it is still in process someone has to have an answer. does fox have an answer for us news corp. >> i don't know. why are you trying to pin me down listen, it is controversial. >> yesterday you said -- i know

you continue to say on trade, own it, that's the case. >> that's been right and when tim cook came on the last time it was a buy the time before that, 93 he said that there is like two people that believe in him me and him it was at 93 tony saganeti, he was talking about the service stream, the subscription model, you get the phone, pay a little bit each month. >> you want it all wrapped in. didn't hear anything on that maybe it will come >> we talked about global weakness in the fed funds rate why are we trying to make people interested let's go right there i think 2%, 3%, 2%, 3%, let's go back to apple. >> let's talk about stocks before we wrap up. >> want to talk about bed, bath -- >> i don't want to talk about bed bath >> i got great stuff did you see how much -- bed bath which everybody used to go to, bed bath, a figure you will

like, they bought back -- >> how can you read that >> i don't know. here, they bought -- okay. all right. they bought back $8 billion worth of stock, david. in the 50s they didn't buy any -- >> talking about bed bath for years as a creeping ipo. they bought back stock higher and higher and higher. >> as john dusken told me this morning, when you don't know which way you're going, every road is fine great, isn't it? >> it is great. >> that is profound. >> it is profound. the stock is worth mentioning because bed bath is up on this report in the journal about a number of activists saying enough already we talked about the company for some time, but actually reversing its direction at this point seemed to be a difficult one. >> i think so. they want to throw everybody out, put a new board in, their letter is fiery and

entertaining. >> how anybody can read this -- look -- >> nobody is going to ever see -- this is what he reads what is that >> why i was -- they don't call it dumb class anymore. i was in the needing more help class anymore because my handwriting was so bad my wife has perfect handwriting. >> we didn't get to the markets. we'll talk about them, i promise. >> we're not going to commercial, are we >> yes, we are. >> yesterday on scott wapner, blew every commercial. it was amazing. >> a lot going on the show yesterday. netanyahu came on. >> where do you want to go when we come back >> i want to talk about uber, getting ready to go public and striking this $3 billion deal with an overseas rival, careem, we'll fill you in on that. look at futures here we're going to talk as well about the markets. change in fixed income at least. in terms of weakness and price >> good, good, good. >> a lot more for all of you from us right here at post snin. the future of technology investing

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uber on the acquisition trail ahead of its initial public offering which could come within a month agreeing to purchase careem. the deal worth $3.1 billion. it consists of 1.7 billion in convertible notes, that will convert into uber stock. and $1.4 billion in cash the uber ceo out with a statement on the deal saying, this is an important moment for uber as we continue to expand the strength of our platform around the world, working closely with careem's founders i'm confident we'll deliver outcomes for riders, drivers and cities in the fast moving part of the world significant acquisition? >> absolutely. >> from my perspective, of course, also see how they structured it, the paper is worth, i think, 55 is what they're talking about. higher valuation than uber in the private market but a structured piece of paper as you would need to in something like this where you don't have a market price yet for the stock in question.

>> well, look, you're going to get things on this ipo you don't even realize like uber freight uber freight will be maybe -- >> uber -- >> logistics company >> people talk about uber eats, where you will also see, by the way, consolidation and would not be a surprise for uber to also try to consolidate in that area. >> door dash, post mates, grubhub. too many players in that we use caviar. they have a lot of drivers, a lot of messengers. but uber can own that category and the millennials, they don't like to go out if you look at the olive garden numbers, you're talking about a huge percentage of people who don't want to go and they tend to be millennials. can i just say, they did have a lot of people yesterday on the apple dais who we don't know those are people millennials

like >> they are? people i didn't recognize. they didn't really march a lot of them out on the stage in the big presentation. >> we're too old to know who they are you want sinatra to come out you want dean martin >> j.j. abrams is no youngster. >> we didn't know the younger people because we're too old okay >> is that what it is? >> yes >> i see i see. >> let's just own that and move on >> i don't know about that the journal, all that will be available and stop lying about the journal. have you heard about the card? >> back to apple here. >> it is on this i don't have to carry plastic anymore. there is a guy that used to run visa that said that will never happen, so easy to take plastic out. okay. >> entire quality journal will be available >> yes >> okay. >> my understanding. they can call and tell me not, but that's my understanding. >> okay. anything on uber we got lyft coming pricing at the end of this week, it is going to be a

very strong. it is going to be -- we'll have a lot of coverage of that here on "squawk on the street" as you might imagine. >> it is not going to be here. >> no. it will not be -- we will be here you and i will be here it will be -- it is an nasdaq listed stock, i think they'll be out west but it is an important deal and of course we watch closely by uber, you think uber is rooting against them, no, rooting for them, the higher the valuation, the better it will be -- >> i think when people -- you start talking -- when you go and start talking to people about the market, the first thing they talk about is the fed funds rate no they talk about the ipos can i get some lyft? how do i get some uber i haven't had people talk to me about trying to get a deal >> people want allocations everybody wants -- >> i tip. >> lisa tips. >> they don't want housing starts, david.

they want stocks they want uber let's celebrate that they want lyft they wanted levi's >> they apparently did. >> they got levi's do they want pinterest i don't use pinterest. >> i don't either. in terms of the profile and losses, the journal today having a long story about lyft, and the losses that it is sustaining how much money it raised and the private markets prior to going public and all these companies have raised enormous sums >> is it worth trying to break the record for losss >> they may be they may be. also would like to help them you heard -- i think of all of the things that came out in my interview with massa was his articulation of his belief in wework even though he wasn't able to invest as much as he hoe hoped because the saudis have the right to over $3 billion, no, we have the right to say no. >> newman. >> adam newman. >> seinfeld's newman

>> did you see jeffries invested -- they have to now disclose nice job, right? >> you know that guy. >> i do. >> his father was my accountant. great man. kind man good man. >> jeffries also advised on this careem deal. >> everyone hates the financials >> yeah, i know. >> financials -- >> including jeffries. stock keeps going down david solomon. kardashian -- tell me if they had kardashians, the stock would get to 200 any kardashian how about kylie? >> just get back on the phone with your friends from apple there and come back at me for everything i just said wrong. >> i was talking bed bath. >> go ahead. they don't call me they call him. he tells me, what are you talking about? >> we go to bed bath and see that -- piled to the ceiling

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♪ all right, we'll get started with trading here in a few minutes at the nyse. we'll squeeze in a mad dash. carnival earnings just out what is the quick take here? >> not as good with the forecast, 56 to 60 and people were looking for 72, which is a

downer >> is that what we're talking about? >> i had norwegian cruise lines on last week that's frank del rio, they blew the numbers away we'll find out more, we can tune in later, closing bell but this is a disappointing guidance by a very well run company so i don't know. by the way, millennials like to cruise. >> they do they don't like to go out but they like to go out on boats ships. >> the greatest instagram pictures, the backdrop is extraordinary. we got to find out what is going on here. that's a negative forecast for -- they're in wave month, they make their year and norwegian really made their year we have to see the difference. norwegian is a very upscale model at the top which i just gorgeous. i don't know if you've been on one. >> i have not. >> carnival, i am surprised, i -- i don't want to say it is not an overreaction give than norwegian cruise told me things are fantastic and the forecast was a big guide up

let's just stay tuned. >> okay. we'll dig into it a little bit more we have more earnings to take a look at. stocks to talk about. >> millennials like chipotle take-out i don't know if they'll like the new mcdonald's israely buy. >> that was interesting. >> they like single serve conagra dishes >> millennial children you have some sense. >> they cut the cord -- like the placen placenta, we're like placenta to them >> done. >> we're just placenta >> okay. >> hey, mr. placenta. >> that's a lovely vision. we're back on "squawk on the street" after this

rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.

♪ ♪ 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. you're watching cnbc's "squawk on the street. we're live from the financial capital of the world yes, it still is the opening bell is set to ring a few minutes from now some of our local political officials may work hard to try to make us no longer the financial capital of the world, but we remain. >> what i would have done for cornell.

tragic >> talking amazon again. we could have been one of the tech hubs of the world some would say we still are. back to larger issues. we haven't talked about oil. get ready for an open about a minute from now. we're hitting new highs, at least on brent new recent highs >> that's rather amazing given the fact that oil has topped -- the permian producers sell a huge amount of futures here. so this is incredible it is going through that it may signal a level of worldwide growth or signals that there is something going on -- >> that's the question, all i here about is that growth is slowing and that kind of environment i would not necessarily expect to see the moves -- >> total agreement given the fact that we have the permians exporting huge amount of gasoline given the fact that the worldwide growth is below average. i don't get the -- it is okay to admit it, right. i see people, i want you to see david, this is because the north american tanker, no, i don't

understand it. i do know that the permian producers love to sell at this level because they're comparable around 48 bucks. they sell -- we need to find out why. >> opening bell here at the new york stock exchange. look at our real time exchange, big board. suza suzano, celebrating the investor day. over at the nasdaq, central european media enterprises, from central and eastern europe, celebrating the 25th anniversary. >> nice. >> yeah. >> so what has your attention this morning other than apple? >> okay, david, sometimes you ask me -- >> yes, i do. >> i'll tell you what it is. >> tell me. >> it is nvidia. >> nvidia is the key to the market >> yes we have a buy recommendation of nvidia today i think it is a fantastic recommendation talks about all the gaming that is going on, data center, this

is a piper note. overweight, prime for growth lower price target than i would have used, low 200 nvidia is the stock that broke the back of the semis when it was -- it preannounced it is coming back. don't have the big inventory anymore, people love the -- >> that deal, always a very positive sign in m&a when you see the acquirer stock go up as nvidia's did it was a robust auction as well for them intel in there, a number of other potential bidders. >> this is data center nvidia was felled by the crypto maniacs. they could not -- they could not figure out who was buying for gaming and then, david, the chinese. that was brutal for nvidia these are now -- you start

lapping these things. >> the tough compares. >> people want to get ahead of that and i don't blame them we see some of the gaming stocks starting to come back, take two, electronic arts, they're coming back nvidia is -- nvidia breaks out, all is forgive n. >> what else are you working on? >> is all forgiven yet >> yes, nvidia is breaking out here jensen wong, he got blind sided. i thought he was angry on the preannouncement. he kept talking about how they can beat moore's law is tapped out, intel is tapped out we have -- we have got the not the chip, but the card, we're going to win, don't worry, intel, we're going to smash them now he has something adobe has something to smash sales force. >> that was -- i remember you and i were together that day of that warning. it was not an -- >> it is bad >> percentage of revenues, miss was enormous. >> incredible. >> a lot of people wondering how

and yet now the stock has -- >> it is coming back they have the melinox was brilliant. getting closer to the touring being used, which is life-like when it comes to gaming. they get you hooked, then they take you off. >> when i think of juul, i think about what i think was perhaps one of most interesting if not significant deals of the recent time, which is altria's decision to buy 35% without a path to control, valuing the company at $38 billion or close to that, amazing. >> you get the wrong fda guy he shuts them down. >> it showed just how desperate conceivably big tobacco is >> now you meet with the juul people what they'll tell you is we're the way out of tobacco you can't use the patch. you get away from the combustion part

some people say it is a nicotine delivery system. they say, look, they have been the leader in trying to get people not hooked. what do you got? you got something? >> mcdonald's get iting some loe 1.44 what do you think needs to be discussed -- >> i do drive through. and this is apparently much better drive through. >> the acquisition you're talking about? >> yes. >> relatively small israeli company. >> this is a way to be more personalized david, personalization is everything talk about mark casper at thermobuying this company. that's personalization and, you know, immunology. and nike call was personalization nike will come all the way back. people who hate nike will have to pound sand. they'll be upset but the mcdonald's

personalization, you don't drive through enough for mcdonald's. >> i don't go to mcdonald's. >> what do you do? >> that, by the way, is a great question i ask myself that all the time. >> my wife is a wendy's person.. there is the baconator is really -- she had one last weekend. i had kale >> yeah. >> that's a tough thing to eat >> kale versus baconator, which is it? >> i prefer neither. you mentioned nike, up 1.6%. >> pushed it hard last time. >> did get pushed around a little bit yesterday on this crazy -- >> oh, my god, yeah. >> but not to be overlooked is the fact that u.s. is looking into the charges that he was going to -- he was trying to potentially or arguably bribe them about but they are looking into this allegation that they were paying high school, you know, superstar high school basketball players

and/or families in concealing the payments that's being looked into we don't have any idea whether that's true. >> is that more significant than people paying, what, $400,000 to get into different colleges? >> no, i think -- frankly, i think the high school basketball players should be paid or -- and they should be paid in college >> the fab five felt like that they can't even use their images zion williamson's image is being used all the time. and he's not getting paid for any of that. >> i think nike is an explosive positive situation they gave you an underpromise, overdeliver theme. mark parker, who, again, mark parker, these people avoid the limelight. they think the limelight is poison i want people at home to know that we spend all day trying to get these guys off i'm like appealing to -- it is like it doesn't even matter. i want people to know we try

no if you get through to the actual guy, here, wendy's comes back, says thank you for the -- >> for the baconator >> i do reporting, david >> yes. >> wendy's is happy i mentioned the baconator. >> 950 calories? >> for the baconator you can get a double baconator >> apple is up 1%. had been up a bit more put it in perspective, it is up 21% this year. >> billion pockets >> a year in which the company did warn about china we know. and yet it is up far more than the s&p which is up 12.6%. >> the journal -- you get all the things, the family plan, you can cancel out of other stuff. i pay for everybody in the family now i only have to pay for me

and my family gets my password and it is game on. the analysts are such snobs. stocks are stalled here. >> they missed dollar tree the whole way. my father took me to dollar tree, david. i got to tell you, not a monument for him, but we used to go to that candy aisle and that's one that got turned on by dollar tree. >> the analysts are failing to appreciate the significance. >> they don't do anything. you see wicks breaking out here. i use wicks for my -- we use wicks for the websites for the restaurant that's when i knew it was fantastic. pay 10 bucks what do you got? >> i'm reading through some of the analyst notes. >> maybe do that during the commercial >> they are specifically saying they were unimpressed by the -- you got doldman sachs saying ape card is interesting. >> has that guy bought a capital one card the rich people should not opine

on what the average everyday person has to go through because we don't make enough money in the country. the rich do. >> credit card from my perspective is saying more about goldman sachs than about apple. >> you can't move that stock >> goldman is up this morning as are all the financials >> when maxine waters, when she drills, when she has gary solomon on, you think they'll talk about how great fixed income was >> no plans to bring him in to testify, does she? you're expecting that at some point. goldman is up. but, jim, they had been moving more aggressively under mr. solomon into these areas. >> they have >> that was something -- more of a consumer led -- >> look at that stock price. >> below tangible book and tangible book is scrub what an insult to have the

lowest price earnings multiple of the group do you know what it was like to try to get a job there >> you have told me. i know from -- >> i came back for three interviews one time they left me waiting. 2:00, i got there, they said we'll get to you 5:30, cleaning guy said, what are you doing here they let me sit there. >> reputation in the world still that -- you're talking about in terms of people who want to work there is still very strong >> why is is the price earnings multiple -- >> $70 billion market value. why is the price -- >> jpmorgan can just buy them and put them out of their misery citi could buy them and put them out of their misery. >> yes, you can certainly talk about it. >> we need mergers in this area, we need mergers in health care we. >> we had a huge bank merger >> nobody cares. bristol-myers celgene, is that

geel deal going to get done >> bristol-myers celgene -- >> is it going to get done >> more likely than not. i don't know got to do more reporting we'll see. a number of significant investors who are weighing against it not starboard, wellington, dodge and coxs of the world, they'll be important you want me to keep going? it is going to be about vanguard about black rock and about -- >> i think it passes i think giovanni gets it, the ceo of bristol the retailers, okay, the ones that disappointed are now actually taking out where they were when they disappointed. that's rather amazing. that's forgiveness that might be one of my topics for tonight. dollar general, dollar general's quarter was horrendous and the stock is back where it was before the quarter >> i want to get to -- >> the home depot, it is back. breaking news. >> speaking of back, let's get

back to our headquarters and dom chu has news for us. >> so what we have now is privately held purdue pharma and its main family asset backers, the sackler family, have agreed to pay $270 million to resolve claims by the oklahoma attorney general that the company did help kind of fuel the opioid crisis that's according to a person familiar with the matter the settlement expected to be released later on in the course of this. this is the first -- the reason why it is important, this is the first of more than 1600 opioid related lawsuits that purdue pharma does face and purdue pharma said it is exploring a possible bankruptcy as an option that could help it resolve some of the claims, still first big one, david, jim, in terms of oxycontin, and some of the opioid epidemiepidemic, more dea we know it, that's a big headline over to you. >> sure is incredibly important story, the history of oxycontin, what purdue may have done

>> i don't want to make any judgments. >> now nobody wants to take their money in terms of philanthropically or -- >> i make no judgments about people who make products that -- >> you have read the articles and/or books about what was done in terms of the marketing of this drug. that led to potentially this epidemic that has caught -- >> vietnam war every single year. >> i would hound them every single day it is almost impossible to get people off just almost impossible keep that in mind. for those who understand that mental health, what you can get, you get people off of the electronics, people off the alcohol, get people off of heroin >> let's get to bob pisani, a lot more for us on what is moving around this morning >> happy tuesday what a terrific start to the day. we're talking, like, 8 to 1 advancing to declining stocks.

strong across the board. take a look. you love it. cyclicals lead, you love it when we get action in banks, finally, bank stocks leading. semis been leaders all month energy is a standout performer energy is probably up 3% on the month. that's outperforming nice to see utilities lag, the best performing group for the month of march with real estate investment trust the stock market, you all know, gets fixed on things gets fixed on oil. now it is fixed on the direction of interest rates. look at the markets today and what matters here. what matters is global growth and bond yields. that's what matters right now. the divide line, the debate is what side of the recession of the debate are you on? are you on the side that recession fears are low and we'll have a recession in 2020 on the side that recession fears are overblown and we could avoid it that will determine your outlook for everything at this point one thing that would really help the argument is the street is

obsessed with that 3 month ten year treasury spread, negative, when you subtract the 10 year from the 3 month, it is negative right now it is about 2 basis points you're dealing with 2.45 or the 3 month and 2.43 for the 10-year yield, a 2-basis point spread. if that goes positive, you have a lot of relief on the street. why? because the street is obsessed with this now. eventually will not be obsessed with it. for the moment, it is. i don't normally do yields pisani's law, when the street -- when stock traders start talking about something besides the stock market, pay attention, because it means they're worried about it i've been doing this a long time i pay attention when the street is worried to show you how fixed the market is, look at what happened yesterday. i put this up at the close two-year, as the market moves -- as the yields on the two-year moved down, that's the white line, later in the day, the market moved down.

and things started recovering when the yields started moving back to the upside and that shows you how fixed the market is on rates and the direction of rates. speaking of rates, speaking of technicals, market has been holding up pretty well there is the old 50 versus 200, that purple line is the 50 day moving average for the s&p this year, that solid line across there is the 200 day we'll get what is called the golden cross here very soon here where the 50 day crosses the 200 day. that's 2742 for the 50 day that hasn't happened in a long time that's generally considered positive and, yes, this stuff does mat, technicals matter in this kind of environment keep an eye on all of that and we're just waiting for a significant breakout we hit 2854 on the s&p 500 last thursday that was a pretty significant breakout overall we still have trouble getting above that if you want to know where we are, waiting for new highs, it is like watching paint dry,

because for three weeks now, it is essentially been consumer names. mondelez, and then you're looking at utilities like exelon and other groups that are out there that are sitting around, like, real estate investment trusts hasn't been a lot. we got breakout on the s&p, but not a breakout on the new high list not significant, for example, tech stocks breaking out to new highs or anything like that. then you'll see a lot more squawkinging from the technicians. sitting here the highs for the day. back to you. >> thank you now time to check in with rick santelli at the cme group in chicago. good morning, rick >> good morning, david you know, here we are, rates up, stocks up and the short end is is dragging rates up for basically cycle lows as most maturities are comping back anywhere from kind of march of 2018, mostly to january. some like the seven-year into december of 2017

realize we're now sitting up 5 basis points, 10s sitting up 4 basis points 30s kind of the lazy one on the curve, up 2. it is a good thing that the short end is pushing it up because in many ways, we saw 30-year bonds sort of leading the charge down. and we all know, of course, the inversions and some of the very short maturities now, when it comes to ten-year note yields, there has been one technical feature that was actually quite obvious look at a year to date of 10s. january 3rd, all those spikes, the ten-year spike at 255, the day we settled below, look to the right side, it has been nothing but down and if we look at the relationship with the s&p 500, i have three snapshots versus ten-year note yields let's look at a big picture. year to date, year to date is interesting because, of course, they discombobulated at the end

of last year month to date, starting to get on track, the one week chart tells it all stocks and interest rates tie up together, especially when rates have turned a bit. now, it is too early to say if it is the turn, but certainly a nice intraday bounce with sustainability into today's session finally. one week of the dollar index, even though it had lots of volatility, undeterred in its solid trade even though it can't seem to pop and hold much above 97 jim and david, back to you >> okay. >> changes every single day. >> what do you mean? >> today is a great day. what happened to friday? how about trade talks? >> funny, first time in a long time we haven't mentioned china in trade talks every day -- >> or ge, we haven't done that. >> no, no, we haven't. one thing we have been talking about a lot is apple, which announced the new tv app, made

available on roku as well. we'll talk with the roku ceo. >> that's fabulous. >> that was an interesting move. also all the smart tvs, not all, but samsung, visio more "squawk on the street" for you right after this .

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there's the heat map as you can see, a sea of green this morning with the s&p up almost 1%. nasdaq up even more than that. as jim pointed out earlier, key to this market in his opinion, nvidia, and that's leading the way. >> largest percentage gainer in the s&p. >> up next "stop trading" with jim. 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.

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they love frank's. why? because you don't get fat putting frank's on your food and you can put it on anything >> not frankfur te r frank's hot sauce. they drink is like it's water. >> i think we've got to be talking about gen-z now, not millennials. >> gen-z is your kids. >> what's on "mad" this evening? >> five 9. trollope is kind of an english term >> vanity fair >> thwackery >> oh, we have to go i don't want to go e' ctie to follow this morning's rally. we're back after this. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits

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welcome back to "squawk on the street." breaking news. our march read from the conference board on consumer confidence expecting a number in the 130s a disappointment 124.1. 124.1. sequentially following 131.4 and 124.1 is the weakest since the first read of the year which was 121.7. that was the weakest going back

to september of '17. so it is a bit of a reversal but do keep in mind by historic standards, this is still a good number just not into the 130s as many numbers were when we're really firing on all cylinders. moved down from 173.5 to 160.6 and expectations moved down from 103.4 to 99.8. we're hovering right below 3% in that 30-year bond -- or excuse me, 290 in the 30-year bond. many are looking at that as a significant area sara, back to you. >> good morning. welcome back to "squawk on the street." i'm sara eisen here with david fiber. carl has the morning off let's take a look at where we stand in the markets rally day. stocks are higher. the s&p up by about a percent. so is the dow. the nasdaq up 1.25% on stabilizing treasury yields.

>> let's get to our road map it begins with apple getting into the biz how will it differentiate itself from the competition we'll break down the streaming wars and twhat may signal for investors. >> uber buying its middle east rival. and mcdonald's making its largest acquisition in 20 years. and arianna huffington on apple's big content push and her new seat on the board of the social networking app. a lot to learn, i am sure. >> about millennials, which you know so much -- >> i think it's more the gen-z, gen -- i'm talking more 16 to 25 where i'm thinking >> kardashian was good but i would have chosen some actors. let's start with the markets we're seeing a big jump in stocks it's broad based 1% gains across the major averages reversing what we saw really friday yesterday, stocks didn't do a whole lot of anything, david treasury yields are the focal point for investors right now. the ten-year yield yesterday closed below 2.4

we're stabilizing above that level today though, would note, that very famous much-feared difference between the three-month yield and ten-year yield still in negative territory. some say that signals a recession. as long as we get stabilization, it looks like that's a green light for stocks to rally. technology is coming back very strongly after getting hit yesterday. energy, communication services all sectors in the s&p are up. >> also oil having a fairly significant rally. wti up 2.5%. brent up 1.2%. and wti above 60 bucks right now. which is interesting, sara, in part because typically you'd think it would be reflective of expectations for global growth which don't seem to be there and yet we have oil hitting new recent highs >> there's a big supply story there as well that's helped sort of push the price of oil higher. in other words, less supply this time than where we were back in 2018 in the market.have eased

it's across commodities and stocks and bonds and oil prices have been part of that story after a big slump last year. >> let's get back to apple shares are moving higher this after that big event yesterday announcing four new services julia boorstin was keeping track of all of them and is in los angeles with more on how apple's premium content services compare. >> the big question is really whether apple can succeed in its attempt to own a piece of all the content you access over the course of the day from the news to games to tv now the only service that apple announced with a price tag is apple news plus. the $10 a month fee gives access to 300 publications. it's about 100 publications more than the texter app that apple acquired for the same price. now it includes "the wall street journal" and the "l.a. times" still for $10 a month. this is far less expensive than digital access to the journal which costs as much as $39 a

month. add the price of a couple of magazines, for example, digital access to "the new yorker" is $7.50 a month and apple news plus seems like a great deal it's hard to compare streaming service apple tv plus because we don't know how much it will cost what we do know is that unlike all its rivals, which all have old tv shows and movies, this content will be entirely exclusive. on the down side, there will be a lot of it. we expect it to launch with just about a dozen shows with a small selection compared to the volume of content on netflix and others we'll have to see whether consumers will be willing to pay. also launching in the fall, apple arcade video game service. this will be a direct rival to google's stadia, neither of which yet have a price tag apple's games won't have any micro transactions or additional fees but the games are designed for download, not for streaming like google service. now throughout the announcements, ceo tim cook

threw a few darts at facebook trying to distinguish apple's services by focussing on trust saying not only is everything carefully curated but that apple protects its users' privacy and doesn't share data with advertisers unlike some other companies in silicon valley. guys, back to you. >> they've been making that point in advertising as well let's get more on apple services' push and what it could mean for the stock price we're joined by david rolf and jim suva, citi super apple analyst. he moved his price up yesterday ahead of the event what was the most significant thing you saw yesterday? >> i would say a lot of people anticipated the apple tv and the streaming of it. no one really expected the netflix add-in to be part of that that was as expected the big surprise to us was going into payments even more. apple pay has been successful on watches and phones

it's gaining more traction but it hasn't hit mass market as far as the ability to purchase things where apple pay is not accepted now with the apple credit card, that will then -- that hurdle will be accomplished and overcome so the biggest surprise to us was apple rolling out its own credit card and that was a surprise with the perks of 3% rebates for apple items, 2% for using apple pay and 1% when you bust out the white titanium apple card >> yeah. david, many of the analysts seem to be somewhat muted in their response to yesterday's various announcements. i know your firm has been a long time continuous holder of the stock. were you happy with how it was presented yesterday given the lack of details some are pointing to and the lack of pricing and just more information some say that they need to get? >> those are all good points our expectations going into yesterday were, they weren't

really high. when you think about maybe where the stock has been at year to date over the past year, david, i don't think wall street was expecting any significant game changers or even a game saver, if you will. the stock is up year to date about, i think today, 21, 22%. it's about double the s&p. and over the past year, the stock is up 16 or 17 about 50%, 60% better than the s&p. i will say, though, that in the totality of all the announcements yesterday, our take was they were all solid cogs in the ongoing content ecosystem. keep the ecosystem sticky as possible my big questions are on the apple tv plus side how long -- i mean, apple is kind of late to the game here, let's face it. and how long and how sizable of losses will they accept while they try to catch up to netflix?

and i also find it interesting i get the whole smart tv thing, but there's a lot of devices out there. android and windows where that content won't be on. i get it's exclusive to apple. but the apple tv, you know, the cliche of the day, there's more questions than answers on the apple tv plus. >> jim, julia mentioned the whole push that apple is making to be your -- the protector of your privacy it's not the first time as we noted that apple has said that apple goes to great lengths to share its values on health when it announces new products around the watch. even on tv they said they have a valuable contribution to make here. and talk about changing our lives. do these kind of spreading of apple's values and corporate responsibility actually sell and resonate with consumers. do you think it will make a difference >> actually, over time it does they are really small, incremental steps. everything from a watch that

counts how many steps you take as well as monitors your heart rate health care is a big challenge not only in the u.s. but worldwide. and apple's taking small steps into that. to your point about privacy, think about all the credit cards where personal information has been compromised or things like that the apple credit card doesn't have digits on it. doesn't have your expiration date doesn't have your signature on it your apple pay that you use on your iphone authenticates with your face or fingerprint these are very secure metrics. also taking it to another level when we think about better sustainable world of apple doing things on renewable energy that is actually taking hold when we think about a better life, a better world, these are feel-good things, but they actually are making a difference and they are making a difference not compromising apple's profitability and cash flow because at the end of the day, if you simply want to improve health care, improve privacy, improve the world and

sustainability, if it's going to kill your cash flows and make your company go out of business, investors will struggle with this unfortunately, apple hasn't fallen into that or fortunately they have not. they have fallen into the realm of being able to do this while generating more and more profits and cash flow. so it is working, but expect little changes the big dhinge look ahead we expect is their capital deployment and another big stock buyback when they report earnings in about a month. >> interesting david, let me come back to you for a minute services, of course, is becoming a more important component overall of revenues. in particular because it's increasing at such a significant rate, although decelerating in terms of its growth. did what you see yesterday give you enough confidence that apple can continue on that road to make services as important as many investors want to see it, given its recurring nature >> yeah, i do.

but that said, yesterday's event i don't think was a significant event in the totality where everybody is upping their earnings estimates this morning or last night. but i think as we get more information throughout the year, we get better metrics on pricing, i certainly expect incrementally those numbers to improve. but apple has a big problem. they have a big revenue base and it takes a lot to move the needle 1% or 2%. i like what i saw yesterday but it wasn't an earnings estimate moving event at least not yet >> all right good place to end at least for now, guys. thanks to you both, david and jim. >> thanks, david when we come back -- mcdonald's is making a data grab what its largest acquisition in 20 years means for the future of fast food. plus, uber takes out its largest middle east rival. we've got the latest details on an historic deal and arianna huffington is

with us live at post 9 we'll talk about the content wars in the wake of the apple announcement and her new board seat at diesel peltz's start-up, a new social media company. "squawk on the street" will be right back (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.

time for our etf spotlight mike santoli at the telestrator today looking at retail. shares of bed bath & beyond

soaring. >> bed bath & beyond a huge winner today doesn't happen to be in this etf. this is an equal weighted etf of retail stocks but it is outperforming the market today although about flat on a one-year basis it's, obviously, had a significant high in september, october, back when the overall market peaked. has not really regained as much as the overall market has. what i find interesting about the bed bath & beyond news, a lot of these old chain retailers are having a reckoning gap decided to split up. elle brands has activist interest gamestop has been to some degree in play. even nordstrom had an attempt by the family look at a different etf. the rth, a market cap weighted version of the s&p retail sector and this one has done better, about up 10% over the past 12 months why? amazon 20% and walmart and home depot are another 20%. so essentially this is the mega cap winners of retail but also up about 1% today

obviously, bed bath driving of the whole sector a good feeling about the consumer after a two-day sell-off >> it feels like in retail right now if you can't get it together in what one -- what the target ceo called last year the best consumer spending environment he's seen in his career, something's got to give. >> it's time to change the strategy shrink, get rid of stores or change the capital structure >> stay with us if you would we want to hit the broader market big rally going on seeing 1% gains despite global growth concerns in the background apple and boeing lead the dow higher today with the s&p on pace for its best quarter since 2009 joining us in the conversation is tom lee, head of research at fund strat global advisers tom, the big sell-off days like friday leave people wondering and big drops in bond yields whether we're still in a bear market that we got caught up in. you push back against this thesis

what are the recent signals in the market telling you >> well, i think that friday is really showing how weak conviction is right now. as soon as we get data that highlights weakness, we see these big market sell-offs and when people say markets are bullish in position, i don't think that's the case. the real decision people have to make is, is this a v-shaped year like 2009 or '95 that people are talking about or bear market i think the evidence is showing this is looking like a bull market year and you have to buy the pullpack >> what's the evidence >> i say one is market history we had a v-shaped move in three months, over 20% that's only happened 11 times since world war ii you have further follow-through six and nine months later average is 10% this is saying it's a 20% year i know the yield curve is inverted but the front end is like chicken little. it's inverted as early as four years before a recession the real curve to watch is the

ten-year, 30-year and that's been steepening. so it might be too early for people to get neutral. and then i think we did -- whether it's employment to population ratio which is more like early '80, not late cycle >> most people say we're late cycle. >> that's how the market is positioned and our clients universally feel that way it's contrarian to say we're midcycle if you look at employment to population, usually it peaks at 64%. that to 10 million more jobs for three more years >> it feels like you have to have a good feel for the bond mark toets know what stocks are doing next yields ticking up and green light for a rally. >> right now that's the beacon for the stock. i don't know if that's going to last it seems as if before you had bond yields come down to these fresh lows late last week, the stock market was fine with the idea that the 10-year is contained below 2.6 or something like that. i don't think you'll see a

furious rally in treasuries that drives yields that much lower. just because of, i think, it kind of pricks at the sensitivities that we are late cycle and the bond market is sending us this message. what i find interesting is the parts of the stock market that have been supporting things in the last month which is very large cap growth, defensive sectors like utilities and real estate banks are bouncing today but they've been tremendous underperformers. almost the stock market's way of staying supported when we do have a lot of these doubts about the cycle. so i would prepare -- i do think that even if we have a v-shaped year there will be rotations within it in terms of what sectors seem to be leading or lagging. >> what sectors, tom, are you in >> '95 or '09 as templates you want be in in growth cyclical value, cyclical growth. those are the things outperforming. that's how we want to be positioned for clients >> the one 20% v bottom that

didn't work was after 9/11 >> the only exception was 1987 >> okay. >> so you had a roaring start to the year and then you had a -- obviously, massive crash but you still ended up for the year. otherwise, history says this is a v-shaped year. no retest. >> those employment numbers in terms of -- do you think they're still accurate given the changing complexion of employment in america? so many people perhaps on disability, a lot more part-time workers. >> structural factors. one is if you use employment to population ratio, the curve is not broken it's still 85% it's broken on the unemployment rate the reason it's diverged is exactly what we said the participation rate of 25 to 50-year-olds is collapsed. it's turning up but long-term disability is about 1.5 points of that. felonies are 1.5 points of that. 3 percentage points of participation hit just because two of factors more 60-year-old plus are working so it's pulling up

participation rates. it's still 63% will mark the top of this labor cycle. >> hence back to your midcycle calls. >> three years of further growth >> the fed is hiking again this year >> i think december was a mistake because data has shown it and the curve would not be inverted if we didn't hike i think we should treat it as the fed's done and then we may get another tightening cycle it's two years out >> we're getting signals flashing all over the place. what about globally the amount of negative yields is the highest level we've seen in years and not moving in a direction that would signal growth >> one, clearly the market is concerned about it it's part of the dialogue. i think what people forget is germany's pmi is probably part inventory correction but also europe is rarely important and maybe never important when it creates systematic shocks but germany's numbers reflecting brexit in china. it's not an independent driver of demand.

>> how do you assess where we are in the cycle and what it means for stock? >> the way i would say is it can stay late for long and that's also maybe somewhat consensus. even if you -- were we in midcycle in january of 2006 when this part of the curve inverted the first time almost two years left of an expansion. >> and if someone went to cash, they would have massively not only underperformed but done a disservice to their clients. in some ways, maybe people getting defensive makes sense but do you want to miss out on four years of further gains or 10% further year this year >> single tracking active managers or have you abandoned that >> we have, but it's just -- there's something structurally wrong with active management today, which i think has to do with flows have made their job impossible, and i think -- >> it's just impossible to keep up with the average is what you're saying because of the flows into the -- >> and the cost of management is high when interest rates are higher, active management will get a

tail wind because they are earning money on their cash or shorts but i think we're finding active managers responding to this to be longer timed and that's where you let beta work for you over time >> tom lee, thanks mike, thanks as well when we come back, an historic deal in the ride-hailing space uber is buying its middle east rival. and mcdonald's making its largest acquisition in two decades. we've got the details on these deals, next.

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endorsed by aarp. learn more about why you should choose an aarp medicare supplement plan. call today for a free guide. some deals to get to this morning. uber is buying its middle east rival careem $3.1 billion the deal consists of $1.7 billion in a convertible note. convertible into uber stock. and $1.4 billion in cash still needs regulatory approval and could be awhile. if approved could be the largest technology deal ever seen in the

middle east. not a place typically known for entrepreneurism. other than in israel >> right >> our next deal >> which is our next deal. interesting that uber is choosing to do a deal of this size prior to an ipo, which is upcoming fairly soon as we know. i think they'll start a road show a couple of weeks from now. and it is structured that the stock portion of the convertible portion you'd want to structure it but it is structured or would hit to convert at a higher level than the last round of private financing for the company. you have to wonder whether they'll be inquisitive in other areas like freight or uber eats, both of which are obviously important business initiatives at the company when they have the currency that is underrated. >> uber and lyft are distinguishing themselves from each other ahead of the public

offerings if you'll choose one or the other lift clearly more of a straight-up ride-sharing play. they don't have the eats businesses or freight businesses and much more of a domestic play and uber just gaining more of a global footprint ahead of its own ipo. it also tells you if you'll buy into uber you'll buy into competitors as well, including this one and shows us a little bit of the strategy when it comes to expanding overseas because policy and regulation and fighting local authorities has been a challenge for some of these companies. so here's a way to get in on it. >> keeping careem as a separate service. not incorporating it into uber or not as the plan is under way. >> arianna huffington will be on in a few moments another smaller deal, an interesting one, mcdonald's buying a tech start-up hoping it will help it sell customers more of what they want, especially at drive-throughs buying dynamic yield an israeli company for $300 million the company uses ai to give

consumers personalized experiences. the deal is mcdonald's largest acquisition in 20 years. going back to chipotle what this does in practical purposes is lets those drive-through windows or boards have more items based on what you might want based on the weather it will sell more coffee when it's cold outside or offer more mcflurries if it's super hot outside. different times of the day, different regional preferences really trying to get a personalized selection, menus for its customers. >> not personalized enough it will recognize my face or car and then -- >> i don't know about that but maybe that's where we're going >> the israelis are good at facial recognition, too. it's a little scary, but -- >> you want your preferences >> let's send it over to sue herera for a news update from her back at hq >> good morning, everyone. here's what's happening at this hour oklahoma's attorney general will announce an opioid settlement

later today with purdue pharma for $270 million it's expected to be the first of more than 1600 opioid lawsuits against various drugmakers the move comes after the oklahoma supreme court denied a request from drugmakers to postpone the start of the trial. israeli aircraft bombing targets across the gaza strip earlier today. the second day of cross-border fighting between hamas and israel the violence was triggered by a surprise rocket fired monday from gaza that slammed into a house in central israel. according to forbes, verizon wireless will soon offer free robocall blocking tools, thank goodness, for its customers. it already offers a blocking app that costs $2.99 a month, but a free version is expected by the end of the month and mixed martial arts star connor mcgregor announcing his abrupt retirement from the sport on monday night. he offered no explanation but he was arrested recently in miami for allegedly destroying a fan's

home you are up to date that's the news update this hour guys, back downtown to you sara >> sue, thank you. as we head to break, we're about an hour into the trading session. and stocks are going strong. off the best levels of the session but still 216-point rally right now for the dow. apple up about 2%. boeing, nike, all fueling the dow's gain the s&p 500 up almost a percent. all major groups within the s&p are higher led by technology also energy having a very strong session. plus an interview you won't want to miss. arianna huffington is here at apple enters the streaming content race plus her next move joining diesel peltz's company social app twenty

welcome back to "squawk on the street." i'm sara eisen with david faber at post 9. carl has the morning off let's check on where we stand

with the markets rally mode today, rebounding off yesterday and friday's losses in particular as treasury yields stabilize. the 10-year yield goes back about 2.40 psychologically important level helping stocks gain some ground. s&p 500 up almost a percent. all groups higher led by energy, technology, health care, consumer discretionary all going strong >> let's get to rick santelli at the cme group in chicago for the santelli exchange. rick >> thanks, david i like to welcome my guest jim, managing director of morgan stanley global fixed income. jim, thacnks for joining me let's get right into it. everybody seems to be focused on interest rates globally and definitely investors domestically watching our yields tumble from 324 down to 237 yesterday in ten-year. in your writing you said the 10-year note has a short rate path dependency. i agree with that. let's share it with the audience

what you mean. >> sure. so, look, it's -- the reason why ten-year yields are low, it's not a mystery. it's just math when i talk about a short rate dependency what the 10-year yield is, it's the overnight rate rolled over every day for ten years. if you have a short-term rate path like what the fed set out today through forward guidance where they're not really going to move interest rates, i don't think they'll hike in 2020 if you believe in the future there could be a recession in three years and rates go lower, once you take the average of that short-term rate over a period of ten years, that brings down that long-term average for the ten-year note down to levels that i would say would be more fairly valued around 2.25%, possibly even lower depending on what path short rates actually take and that's why fed policy is so important. not just to the front end but also to the back end >> let's stick with this theme there's a lot of attention and rightly so to inversions in the yield curve. now when i look at inversions, i

think about all of the things that are going on to cause the curve to behave that way and one of the issues is that there's an ongoing fed presence raising short rates. i think that that is not the case this time your thoughts? >> so the way that we at morgan stanley are thinking about this for our clients is that effectively what the fed is doing is keeping short rates higher however, when we look down towards the longer term, as long as given us foreign guidance toward a flatter curve when they look at an inverted yield curve they say that's a recession signal you have to ask why. typically the fed tightens policy, increases short-term interest rates to the point they're trying to cause a recession or significantly slow down the economy that is not what's happening today. the fed is saying that short rates are going to stay stable however, that they don't really plan to increase those short rates over the long term that brings down long-term

rates. when you bring down long-term rates, one of the issues is high levels of corporate leverage it allows them to delever over time it also reduces their interest coverage meaning the cost of their leverage and refinance their bonds at more attractive rates. all of this is positive. all of this extends the economic cycle and doesn't tell me that there's a very strong signal for a recession. it's an indicator. flat curves tell you there's slower growth in the future. however, the signal strength is relatively slow because we have to ask why the curve is flattening just not that it's flattening, but why is it flattening >> excellent that probably explains why there's so many corporations and even foreign governments doing some issuing and they all seem to be doing it right here in the usa. jim, thank you for your time today. sara, back to you. >> rick, thank you up next -- arianna huffington is with us live from post 9 to discuss her latest board seat teaming up with diesel peltz on a reunlach of a

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social app twenty officially launching today. it helps users connect in real life rather than just on your phone backed by companies like livenation, madison square garden, rock nation and celebrities like dj khaled joining us to discuss the app's launch and the broader tech space, arianna huffington who has joined this company's board, as well as twenty co-founder and ceo diesel peltz welcome back nice to see you both >> arianna, how did you connect with diesel and join this company? >> well, when diesel came to me to discuss twenty a couple of years ago now, i was so excited

that people of diesel's generation, he's just 25, and his co-founder mark french are launching something that is so needed because every day we look at the stats and thrive global my company is working on that. that show depression and anxiety among millennials who are addicted to their phones and social media growing suicides are up 70% in the last decade so what twenty is doing and why i'm so excited to support it is deal with the social isolation by doing something counterintuitive using technology to help you disconnect from technology and connect with your friends in real life. >> how does that work, deese snell we think social media, facebook it's pretty anti social. >> so it's seeing who your friends are, who is around and ultimately allowing people to meet up easier

on twenty you can't share what you've done in the past only what you're doing now and in the future it makes it more seamless. >> we've had you on before the company used to be called something else you sort of had a relaunch take us through what happened and what you've learned and why you're doing this again. >> sure. at the time we were on last time it was focused around the partners we got involved live nation, rock nation, msg, endeavor have identified and share a common vision of bringing people together in real life and what's happened is we're doing a lot of testing most leen recently on a handful of college campuses and over 25,000 real-life experiences enabled through our product. >> what did you learn from your previous incarnation that you're now applying here to try to be more successful? >> sure. so i would say the main learning we got is really focussing on how we introduce the product experience in such a way it's all about creating a plan with friends. being able to share in the

future and focussing on that sharing capability that's really different from other consumers >> do you have to be invited how do you identify who your friends are and making sure it's a group you want to be a part of >> you have to be friends with them on the service first and foremost we explicitly tell people don't add everyone unlike any other -- a lot of other social networks it's all about adding the people you actually want to spend time with in real life as you go through our main feature is called hangouts which is about creating a plan do you want to grab a coffee later? she can invite her friends and then we can change things as plans evolve >> it's actually built for millennials but anybody of any age can join i'm on it. and one other thing that's so important and the change that has happened is that the world is now much more aware of the problems of our addiction to social media we are aware of it as parents. millennials are becoming more aware themselves so the need is now much greater

and much more acute. there is an amazing documentary by sanjay gupta last night about the exploding amount of stress, and a lot of it is provoked by social media, by our phone, by the fact we sleep with it, use it in social interactions. we're never apart. so i think this is a very important cultural moment when millennials themselves are finding a solution to a problem that everybody is now acknowledging. >> but arianna, millennials are still on facebook. it's still very crowded. they are on snapchat, younger. it's a very crowded space for social media so how do you position yourself among advertisers and among consumers to break in? >> first of all, this is not a technology play. of course, millennials are going to continue to be on social media playing games, doing all the things they're doing the philosophy of twenty and the

practice is to set some boundaries so you also have time with your friends. that you also engage in real life it's not either/or but to make it easier to engage in real life it's more and more important because contrary to what we thought, if you spend a lot of time scrolling through instagram or playing fortnite you end up feeling depleted and empty rather than connected. >> arianna, media, speaking of it, you've been involved, broadly speaking, involved in media for a long time. i'd love to gettior sense if you watched it all or paid attention yesterday to apple's presentation and what you thought of it given their increasing focus on media, broadly speaking, and whether they did an effective job yesterday. >> i think they did because what apple is doing is focussing on premium content. you know, we have at one extreme youtube and everything that we see online that's user generated

and very mixed bag and we see that what the world and consumers want is more curation, better content, better experiences. what jeffrey katzenburg is doing to produce short videos. >> but there's so much out there already. there's 496 scripted shows for 2018 we've never seen premium content like that in our lives >> that in itself is a bit of a problem because what's happening is that it's an infinite loop. you start watching and then the next show comes up and the next show so i think that's one of the things where we need to set boundaries i mean hastings from netflix said his main competitor is sleep. they're not just taking time from each other. they're taking time from what else you should be doing, including being out with our friends and not watching anything >> and another thing they're doing, i noticed you're a vent

ure in pinterest how do you think about the growth prospects for that company versus some of the other ipos that we're getting. >> i think pinterest is super unique in its focus around enabling offline interests based platforms and rather than focus on total number of engagement or growth they've taken a very interesting approach around how do we actually connect people to what they are fundamentally interested in offline. how do we inspire people to do that that's similar to what we're doing on twenty where our product is how do we connect you to the things and experiences most important to you offline. >> arianna, interesting to have you on a day in which uber announces an important deal in the mideast. $3.1 billion deal to buy careem. should we expect uber to be aggressive in trying to consolidate whether it be in their core business or in uber eats or freight once it goes public is this a sign that acquisitions are still to come with the

company? >> well, obviously, this is a very important acquisition because it deals with profitability of the company because if you are constantly competing and using incentivesr writers against your competitors. and as you are getting ready to have an ipo, it's really great to see this consolidation happening. >> how close are you watching the lyft ipo this week >> well obviously i'm watching all ipos this is an amazing time to have as many tech ipos coming to the market >> how many years have you been on that board? >> three years >> and you're happy with the leadership >> he has been amazing, yes. he's been a great ceo and we have a great chairman of the board now, ron fisher, who is also on the board of apple

and so being able to have the ipo as dara told the board and the employees in 2019. >> now that she's on the board, how hard was that to get and what do you have to learn from her as you try to take this to a broader place. >> first and foremost, we are fortunate to have her involved her perfect sfspective is valuae when we look to get anyone involved or any of the partners we have is the common thread of our mission and shared vision of helping people connect in real life versus digitally. i think she's valuable and will continue to be as we grow the business. >> is nelson involved in the business >> nelson is giving strategic

high level guidance from day one. super lucky to have his counsel as well. >> lot of big names there. let's send it to jon fortt with what's next for "squawk alley. >> good morning. as we are talking about, apple is trying to change the game in digital content when it comes to streaming and it is changing its strategy we talk to the founder of roku find out more on "squawk alley." 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,

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welcome back to "squawk on the street." the s&p 500 has the best levels of the day every sector is in the green as you see behind me. utilities, right there, lagging the overall market, one of the underperformers today, led by shares of entergy and he did sen international and duke energy and others those stocks are a focus, despite relative underperformance, the utility sector hit a record inter day high, extending a win streak to five days in a row certainly a sector to watch. i will send it back to you, david.

>> thank you, dom. dom chu with s&p up 1% right now. that being the statistically relevant -- more importantly, what is the dow doing in the last hours of trading, which are so important for all of us. >> and so much suspense in the final hour of trading. we're going to hit that, believe it or not, on "closing bell," what the dow does. shares of carnival on the move we have a strong dollar, oil prices, the ceo arnold donald will be with us 3:00 p.m. eastern. you have a sense of what he is seeing from the consumer >> that was a surprise people want to hear that and understand what was behind that lower guidance >> we'll have that and talk fed. sarah bloom raskin on the rate curve and rates, whether stephen

moore is confirmed to be the next member of the fed board of governors. just how controversial that pick is. >> quite controversial. >> very. he is very political and he is also pretty much fiscally focused. you don't think of him for fed nominee. he also wrote a book called trump nomics "squawk alley" is next we are more on apple's content play don't go anywhere. measure up?

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