make sure you join us tomorrow before we go, we want to show you the board right now. the dow is close to 200 points higher and nasdaq is looking to open higher as well. that's 62.75 higher. make sure you join us tomorrow "squawk on the street" begins right now. ♪ good monday morning, i am carl quintanilla with jim cramer david faber is off welcome to april a nice start to the future we are going to look to see if we can break above the march high of 2860 we do have some yields backing up around 2.44

chinese manufacturing did exit contraction and territory, easy concerns of a slow down around the world. major indices posed by major gain april as we now reminding ourselves is positive a lot. last decline for the dow in april, '05 believe it or not. >> that was something. that was some bad years. i do think a lot of people left the market we know there are $60 billion out of stocks. hundred billions into bonds which was amazing. a lot of buy backs played a role and there were no ipos other than lyft because of the government shutdown. the bear market of december was a race now we are in a level where can we take out those october

numbers and can we go through the january numbers of last year before the first tariff. if we get a trade deal among the financials, we are going to take it out >> you are a 2900 pretty much that could happen not too far from here. >> there is a trillion dollars in ipo is coming lyft was 2 billion if everyone does $2 billion. i think you are okay if we start to do 4 or 5 or $6 billion it takes away the big scare that around the world there is a slow down we'll be pulled down by that i am waiting for people to say listen, we'll take off any hope of a 50-base point cut i think that'll important to know >> take a listen to larry kudlow on friday. >> i am echoing the president's

view he's not bash fuful of that deal i concur with that view. looking at some of the -- the economy locks quite healthy. we just don't want that thread there is no inflation out there so i think the feds actions were probably over done >> so the reaction to the basis point. >> i think it presumes we are in a crisis mode. retail sales being down. that's not a crisis. china is not a crisis. sales down 2%. none of these is indicative of a really terrible time i think the spring houses season is going to be good. >> how about page one of the journal today, spring home buying season shaping up to be the best in years. >> i thought it is a terrific

vehicle. there is a downgrade of lenard today, what it it does not make sense i would not say it is an ideal time because tomorrow something can happen it was a fiery speech. that speech i am going to spend some time talking about. larry was sensational. there is this whole thing going on washington post has an article of saying those things what a disaster this would be if morgue got appointed for fed chair. >> as for china, there is two, stimulus is kicking in and working. >> yes >> other is it enhances its

bargaining stance. >> we saw the numbers. i think it really hurts us i think it makes us so that the chinese can say we don't need this at the same time, there is a possibility that this is the end of the stimulus. you got this one time lift that it is going to go bad and the kp chinese are facing manufacturing. i think there is still good chance of a deal if navarro is driving it she committed to stopping fentanyl >> they have not cut back one bit. there was a good opinion piece in "the washington post" recently which there has been no sensation of fentanyl.

>> so if you are not expecting resolution on trade any time soon and we start getting some larger ipos, why are you more cautious than you seem to be >> i think the earnings won't be that bad i am counting on the financials to show you they are not that bad with this yield curve. that plus the fact that - right now they look like they're responsible. there was a surge of buying that came in the last minute of retail buying. 75 makes it horrible for a lot of the cloud companies even though it is not a cloud company. i should be cautious but i do think that every time we go down, the president goes to his trade people listen, we had the greatest stock market in the world. don't screw it up. he is so focused on stocks he's bull market and chief >> as are we >> as are we >> we are looking for down 3.9 for the quarter and at the

beginning of january, we were up 2.9. it is one of the largest cuts to estimate >> that's something. before i get two negatives, car max comes out on friday. the stock is up 10%, autos were not strong forbes gives you excellent number on the lincoln navigator saying those were valuable implying that maybe ford is a better number. i just think the numbers are going to surprise into being not that bad and the same way we got a costco number that was pretty good and a walmart number that's really good. it is hit or miss. >> on retail sales, you mention the positive revisions, some say it is not indicative of a rebound of household spending, you don't agree?

>> gary freedman talks on the conference call and i think he got a good read on it and it was the stock market, january and february that hurts sales. the wealth effect that'll make it really good over comes 10 billion after we were and we were just 10 billion and, next thing you noel, there is so much supply and we do have this window where the companies can't buy back >> we are getting into that now. >> your comment about how april's goods embolden me to be positive >> there is still a lot of people trig ying to figure out w much the market can bounce back of what powell did

there is people in the network that says powell did not pivot or powell did this purposely it was a disaster. he had to go all the way to be able to believe say listen, this is not the president was right. i spoke to larry on friday he both agreed there was nothing of the president not being allowed to criticize. if you got more on the fed i thought what he did was -- >> that's the thing lately >> the president's economic counsel advisers >> we should lock him up as a cnbc contributor >> mark zuckerberg says the internet needs some new rule he says we new new regulations and privacy and data portability and he goes onto say lawmakers tell me we have too much power

over speech, i agree we are creating an independent body so people can appeal our decisions. never addresses breaking up the company but seems to embrace the european style of regulation >> i read the piece and i thought it was awful i remember who wrote it. a man who -- a company that there is a fabulous article. it is always on newyorktimes.com you can always get it. how they refuse to own this. maybe this is the new zuckerberg and he got some religious -- i prefer the old tim cook. i thought they can go deep tim cook when you go to his podcast introduction last week, it was about what facebook is not. maybe facebook is suddenly good. i do think that the headlines have been not bad for facebook that allows the stocks to come

back >> there were some headlines on information on whatsapp. they must have something up their sleeves product wise >> i think it is a big mistake to sell facebook look, let's say you are a regulator, but if you are in congress and you say hey listen, the guy came, he didn't seem like he was that gooed oddd of y look at what he's done what more can we add let's sit down with this independent committee. it worths something with the stocks >> still beating the index major indices for the year >> some of that is over shot can we give him his due, the peace that he sticks with it is exactly what the people really want i have been critical of him. i read the piece, good

i wonder whether these people departed or agreed >> when we come back lyft had al successful debut on friday what can we expect from uber and pinterest, we'll look to see if we break about the march 21 highs, which was 2850. back in a minute $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity when yowhat do you see?itical issues facing our world, we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world

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. where it fits in and all the companies that are considered high growth without yield with the nasdaq this will be right in the middle of 75. if it goes below the offering

price, then you will have people panic. they'll panic. lyft is a good company that they got a great balance sheet. this is a decent price it looks like there is no appetite for this ipo. its got a whole 72 i think it should be worth it. >> does it matter? >> in today's closing bases, just add all >> now people did make a lot of money if they got in the deal. they can flip. i think at 87, a lot of the brockers brokers release the buyers you would want tosell other nasdaq companies if this thing is 72. you would sell others and buy this one because it is going to

be cheaper than a lot of the big cloud companies, i keep on wondu are comparing it to those anies. >> because it got high growth and because they started out losing money sales force started out losing money. you got huge enterprise migration to the clouds. do we know about ride sharing as a $900 million losses. >> close your ears, people who work at lyft i think they got 40% of this market and uber got 60%. when you have a doaply prices tend to rise and not fall if one of them raises prices, the other one got raised i think it is going to happen. pricing goes up. that's one of the reasons why

the government may not want sprint to merge with t-mobile because you need more players. this is only two companies once they come public, wow, i think they can do a lot. >> the projection of no profit for seven years. you think they are conservative. >> which is one of the reasons why i really like the deal if they price it. if they learn the lesson from this and price it tightly, remember there is this big wave of market buyers at the open and they'll extort things as they did. this is a very good company. it is not a bad company. i am surprised everyone seems to given up on it so quickly. >> well, below 75. we'll keep an eye on it. >> people like cannabis company and they don't like a company that has 40% market shares i think the autocompanies are being hurt by them >> that's right. we'll watch all of this.

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♪ 8.5 minutes until the opening bell time for cramer's mad dash with some thoughts on amazon today.

>> i have been waiting someone to come out to say this how powerful amazon's web is aws is the start cloud of start up and developers. you will see a series of companies that use this. amazon web services is such a powerful engine. people are going to have to thinking you know what, i may have sold this stock right here because you are worrying about retail they're buying it here because they understand amazon web services is so powerful. that's the hidden gem that you will hear more and more about. raising target to 2085 wow. let's watch this one this was one of the early meter on the downside. >> of all the break-up scenarios that we talk about, does core retail and aws seems like an easy target? >> yes, it does.

although i don't think anyone is driving you toward it. microsoft has such a powerful web service. that's allowing someone. if you are a government regulator, microsoft is so good that it is hard for me to say i am going to breakthese up because there is a monopoly you can't say i am not going to subsidize amazon amazon does have tremendous number of ipos that need them so badly. i really like the story. >> we should mention, too, retail sales this morning, non stores including these guys. >> yeah, i think one of the things you have to watch is all the retail numbers i think, it is hard to find omni channel you have great articles in forbes, they have no online. it is so much fun to go to the stores

everybody else is still scrambling if you are going over what bed bad bath is trying to do, they are under siege. this is incredible move online you see some companies are trying to say listen, we are still some place you should go to >> yeah. >> others are saying it is inevitable we got to go there >> we can't wait to hear more about home depot and others. >> this is christmas time starting next week we'll watch amazon today and get the opening bell in a few minutes. cnbc and arnco is getting to ring at the nasdaq don't go away.

you are watching cnbc's "squawk on the street," cnbc and acorns do you think it is important for people to understand not just how to buy and sell but be stock owners >> yes, we had them on last

week thi i think it is vital that people vote it is kind of like how i feel about voting in an election. i think we are given this chance to vote in the united states, you got to take it you are given a chance to vote with a stock that you own. don't just throw it away it is electronic away. don't throw it away or delete it it is important that you know things the annual comes and they are much more easy to devour if you think they are not good, vote against them. tim sloane resigns we know there is a lot of pressure you got to go in front of washington he did a good job. why? because he had the best years ever people did not like tim sloane, this is the way to do it don't just think it is rubbish

it is so vital >> it does bring up once again the issue of voting rights especially with new issues where you don't have that saying in some cases >> we brought that up. i just think that i know it is allowed. i wish it were not i do think you have to think about it i look at the snap ipo and snap has the most restrictive least joke votes so to speak that's a shame when you have something like a procter & gamble and there is a fight to get on it and the stock goes from 70 to 104, there is something positive i just think please vote it is not hard you can go on our website and look our information >> by the way, that's the opening bell the nasdaq, it is cnbc and

acorns at the big board, the canadian minister of finance here as we said a moment ago, april is financial literacy month. cnbc and acorns are going to reveal the results of their invest in new savings survey majority of americans are confident in their ability to save in retirement than three years ago. 36% of those surveys say they are not saving because they can't make ends meet and the other 31 is paying more debt instead of saving more money that's a tough box to be in, jim. >> i though those are very good survey, the first thing you need to do is health insurance. because that can wipe you out.

no matter what you save, if you are wipe out and your health insurance does not matter. even if you are strapped or put in a little money so that's my advice to people my daughter lives in oregon. there is no companies that write insurance there. she has to beg to get the catastrophic you just find a way to get catastrophic and try to take control, use index funds i actually wish 401-ks can be run by yourself so they can go where ever you are it is a shared economy where somebody is delivering and later they are teaching and actors i see it all the time. it would be great to be able to own your 401-k but that's not the way it is done >> that's our next point 75% of americans surveyed manage their own money. the highest percentage of

managing their own money are millennials and the oldest group managing their own money is 65 and up >> i want to encourage millennials to take the most aggressive fund of 401-k you had your whole life to make that money back. do not go bonds. their $100 million go to bonds you are not going to do well maybe you will end up with the new generation of faang. show more sense and don't just buy cannabis >> for more on america's savings habits on cnbc.com/investinyou there is some good information there. >> what a great initiative i did so much teaching on "mad money," because i want people

in i meet so many people, it would be so great to have my picture taken with you because my great, great grandfather watches. no, i want a little better demo. >> slang for who watches millennials are turned on by these ipos which is one of the reasons why i don't want lyft to go down i want people to come in and buy uber or kind of the balance sheet. i just want people to understand, you can't make money in cds people my age, you got cd at 3 and a quarter. that's a pretty good thing i want you in nvidia >> today goldman sachs' utx. all these names are bouncing on china. >> how about them? anything thin tech people love it i just encourage people to not be conservative when they are younger. some people will really disagree

with that. i happen to look at the longevity lifetime when you are older you are going to struggle. get that health insurance. that wipes you out >> jim, all doubt components are green. >> wow >> even the proctor of mcdonald's of the world. 2856 is not quite surpassing the march's levels >> no, we don't. cisco, he's in an app for cnbc which was terrific but he lost for unc which was not good how about this one, second best, ibm. they're trying to close the red hat deal that's not close in the second half then united technology, that's a total chinese stock and get this, carl, apple, remember at 140 when apple's best days were behind them. what happens to that narrative where did that go? >> lyft, jim, i am told is down

72.50 here >> if it does not hold that level and became public, that's going to cost a lot of people skeptical of the next couple of deals. where are those buyers at 187? >> what happens to them? i caution people who are selling that's not a bad company >> you should be selling other companies at this point rather than this company that are very high multiple price sales. there is a lot of company that are quite expensive. i was hoping facebook, this would take the pressure off. there are other theory of facebook the more they are legitimate, the less money they're going to make i don't know about that. in the end, instagram is doing so well. instagram the preferred way when you are with the retailer, they are always looking at how they are doing on instagram >> that's true >> that's edncouraging for facebook >> i forgot the piece on google.

even if they make well intention moves to respond to critics and regulators, that in itself will create all these disruptions that would demonstrate just how powerful they are if it makes any sense. >> you go to youtube, youtube seems like a battleground where people worried of what's advertised against them. i think alphabet has been a poor performance. i think people feel like their upside is going to be capped by all the things they did wrong. they're not breaking out waymo and they are silent on all these stuff. if they came out today and say we would endorse it, would their earnings go down alphabet in the end when i talk to so many consumer product companies and retailers. they feel they can't reach young people without going on amazon or alphabet or facebook. they don't think they can reach them it is very interesting, apple, faang initiative, it is being

done because they want people to read it is not done because they are hoping people will find new ads and magazines. advertising is based on the web for that generation. our generation, we watch tv, that generation, it is a netflix generation there is not that many ads >> not on netflix for sure >> we do have some mma kellogg, it would be weird to see kellogg without kebbler. >> i remember how high the stock were when they bought that >> this is the new kellogg this is not just the kellogg of ce cereal >> kellogg is a company that's struggling so much >> contrast that with how well

sm smuckers is doing and mccormick is doing kellogg is one of the have not's. some natural and organic for general mill they raised money in the 40s and now it is going up beyond that look at that run that's based on actual learnings and not based on take-out. >> it is not sentiment in the space. although you argue lately that the space wants a winner >> we need winners look at pepsi. this guy ramon is calling for higher and faster growth that's driving for people to buy that stock and its got a 3% yield. >> proctor is doing well and one of the best performers in the market i think it is so exciting to watch this group come back >> all right they like clorox again and of

course, you got this big wave of boeing and technology off of china. i don't see a lot of negatives other than lyft goes into th the '60s and then you will say wow, be careful of ipos. >> boeing back of 380. this morning of golden cross, s&p's golden cross converging of the 200 upside there has been 11 crosses and 20 days later, you have ten of 11 times. >> well, you know what, it is one of those patterns that works. the other so, stock market is up tremendously you have to question that one. there are many things until we get earnings and we got this little windows to make it so we can gravitate up >> while despite the

preannouncements and warnings. >> i think so. we need to see the banks do well >> look at wells fargo at 48 i think that's going to be inexpensive stock and if tim sloane, just talk about how the quarter goes, that could be very, very interesting very interesting you know what, i got to tell you one of this things that's very exciting i believe that the goldman card is going to matter >> really? >> the apple joint venture card? >> i believe it. i think diavid solomon is going to be out there talking about. he was in the audience, the apple's big show the cards seem interesting to me i would move money over to the marcus >> i get really good rates i got to be very sure. i know i was going to tell david and this is not not my niece's or the fire fest part.

this is not the fire fest part or billy mcfarland park >> goldman is trying to get back for that 50 days >> is it great not to talk about malaysia >> yeah. lyft is below 72 what does it mean? >> oh jesus, i thought it was priced very well we need more appetite because we got a lot of deals coming. three deals coming this week yeah >> jeez! who's selling that they're taking that bad boy down wow. >> how loud of the megaphone on this sentiment can it be set aside anyway when you compare it to china's growth >> we are in a position where the ipos are the biggest risk o

t the market because there is so many coming. that's a bad time for the market i didn't want that >> people know so many deals are coming >> we are at the initial highs obviously. we did see some pronounced weakness in the first few minutes of utilities, for example. >> i am not asking for r stabilize like it is a dog sit at 70. there is a lot of stocks that tra transports a little better the banks do well. if a lot of the banks are downgraded, we'll have a decent -- >> we did get a downgrade on wells fargo today. >> at wells fargo, people think it is disarray because tim sloane, that was pretty abrupt i spoke to him right before when we talk about how great it was, warren buffett of 100% >> well, yeah, resigning, what

>> no y, you are not. >> let's get to bob pisani on the floor. >> good morning, bob >> a good start other than lyft. the global markets are doing better chi china's pmi is doing good. shanghai near a 52-week high japan was up european numbers are not good. europe is trade to the upside. here in the united states, what you want to see moving if you like risk con. and banks are doing better and consumer staples generally is to the downside right now want to keep an eye on the old high, 29.30 that was the historic high that was back at the end of september we are doing all right you heard of the mention of

golden cross, this is where the 50-day crosses the 250-day it only happens 13 times in 1980 i asked our old friends from kensho, 13 times in the 1980s that this happens. 12 out of 13 times it is traded to the upside. the average game is 6.7% going to the next poll generally, this kind of trend is an upward trend, positive momentum overall again kensho seems to like this as well if you look at the dow jones industrial average, it is the best month for all the dow it is the third best one for the s&p 500. this is since 1980 december is number one and novice number 2 and april is number 2 you saw what's going on with

lyft just remember something here priced at $72. it opened at $86.70 on friday and it closed at $78.29. it is now at $69 if you want to look for now, it is what's coming down the pipe the most immediate thing that's coming down is trade web it is a well-known electronic trading platform, bonds as well particularly they're going to try to price wednesday night for trades on thursday on the nasdaq it is pretty big it is 600 and something million dollars at the midpoint. it is not as big as lyft it is still substantial and we'll see how that trades. again you want to look at what kind of demand there is and after what's happening with lyft here wonderful to see our chairman, mark kaufman bringing in the opening bell i talk for years that americans

are not saving enough for retirement you look at the numbers. fidelity has a big share of the 401-k business in the united states vanguard account, 65 and older, ar average investor, that's 192,877. that sounds like a good amount of money but that's the median that's a pretty, pretty small number you take 5% of that reduction when you want to withdrawn out 5% a year, that's only 3,000 a year that's not a lot in the retirement accounts. if you look at everything else, pensions, only a third of americans collect pensions now and the average is about a little less than $10,000 a year. security, the average social security check is $1,400 a month. that's $17,000 a year. you add this up for a person that's over 65 and what their retirement is looking like on

average, it is about $29,000 if you own your own house and live in a low income, relative li ly low tax state, you can survive on it. these are the lucky ones a lot of people don't have 401-ks you are looking at the lucky ones here. we need to all save a lot more for our retirement we'll be talking about it throughout the month we got some other stuff cnbc/invest. take a look at that. we are backup to 150 points though >> nice start for the day. >> we'll get to the bond pit, rick santelli is in chicago. >> absolutely. not only plenty of data but as we see, the turn, the ship is turning with respect to interest rates. it is a process. look at one week of two-yr, you can see slowly consolidating

if you look at two-week of tens on top of s&p is very enlightening you can see we are cross fertilizing each other to the upside the strong equity today given us one of the best bounces off the cycle lows as far. ten-year note looking at today's chart, last week they closed at 237. right on the technical mark traders have been paying attention to when does it get much better to the upside yield and downsizing size you see on the left. when we traded below that a couple of weeks ago, that was the below curve yield of the year bu bund yield, the last time they were positive was many weeks ago. many are paying attention to that as a resistance level

hovering at 97 that's at the top of the range going back to the summer of 2017 carl and jim, back to you. >> thank you, rick santelli. >> dow is at 160 here. s&p is 28.82 we do have transports out of correction and we'll keep an eye on all of these things as we continue with coverage back in a moment we're carvana, the company who invented

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keeping a close eye on lyft today, the friday intraday high, 88 and change. fell below 70, recovered somewhat but down almost 10%. we'll get stock trading with jim in a minute.

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time for jim and stock trading. >> a broker recommends a stock, based on what we think is pretty good anyway. and it works and norfolk southern this morning. bank of america merrill lynch has a piece about how this new way they're doing precision scheduling is working. jim squires is a great executive. people are disappointed he wasn't trying to get a better expense ratio. it looks like that it is coming through and i would encourage people do not think it is up too much it is a good sign. >> real card traffic hasn't been

setting the world on fire. >> don't give up rail traffic has not been great. a lot of it may be fracking. norfolk southern doesn't have that >> transports have had -- >> i've been historically like union pacific. >> jim what is on mad tonight? >> i'm doing mean tweets because it is april 1st, everybody. we haven't done any april fool's to be april fool's is always a great thing. we got to -- come on we got to have a little fun with a day like today remember growing up in school, april fool's was like the most important day of the year! >> yeah. >> we're going that way. >> we have been looking for bad corporate april fool's jokes. >> true, true, true. >> jim, we'll see you tonight. "mad money," 6:00 p.m. eastern time we'll keep an eye on shares of lyft, dow session high, up about 212. and we're up 165 don't go away. i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement...

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good monday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen at post nine of the new york stock exchange. david faber has the morning off. dow opens up 200 plus. didn't get past the march highs on the s&p lyft falling below the ipo price. tons of data, to rick santelli in chicago rick >> we have three bits of data, i'll go chronologically, business inventory, a january number, up .8, much bigger, looking for a number on half of 1% rear view mirror, .3 revision from .2 from .6 to .8. february read on construction spending, another big surprise, we're expecting iin inin inin i up 1%. we almost doubled our last look from 1.3 to 2.5. finally, our march read on ism,

national number from manufacturing, looking for a number a little bit north of 54. we have 55.3 so it is a trifecta of better strength 55.3 is the best level since january's 56.6 but obviously in the middle there we had a u-turn, we traded down to 54 and change. we could go through some of the internals, can't we? 57.5 on employment, that's up 5 points and prices paid, moved from a contracting 49.4 to an expanding 54.3, new orders, 57.4 that's about 3 points higher outside of the weakness, early this morning, in retail sales, the numbers have looked pretty solid. sara, back to you. >> yeah, looks like the market likes it ten-year yield pops and so does the stock market road map for the hour will start with lyft in reverse, the ride sharing company down big, falling below its ipo price on its second day of trading.

>> new internet rules, facebook ceo mark zuckerberg calling for stronger regulation in a new op-ed. >> larry summers weighing in on the rate debate and why he's honing in on tax reform. we will start with the markets, though the dow up over 220 points right now. strong start first day of the new quarter. technology and the nasdaq entering q2 after the best first quarter for them since 2012. for a closer look, let's bring in investment strategist ann catrin peterson and andrew sizeros sizeroski. the data is painting a confusing story. manufacturing activity looks set to rebound >> thank you for having me on i new york this morning. they will focus on

manufacturing. what we have seen as a weakness in manufacturing across the globe because of the trade tensions, so this is something that really investors want to look at. this will be give a boost to market sentiment in our view when it comes to the retail sales side, this is particularly interesting and important for the u.s. because the consumer is the driver of the u.s. economy so i think going forward, the overarching theme still is for growth, some slowdown, but in between we might see some rebound as trade tensions fade, we might see a resolution here and according to which also manufacturing might rebound a bit. >> it goes with, andrew what we got out of china, private survey showing that manufacturing activity expanded unexpectedly we have been asking whether we can call it a bottom in global growth and what it will mean for the markets. is that where we are >> i think we're getting past some of the early q1 weakness we

saw. we had obviously in the united states we had a government shutdown to start the year and i think as we kind of thaw out this spring, the data will start turning around and we're going to start kind of going back towards trend growth after a weak q1. there is a lot of reasons to be optimistic going forward. >> there is a big discussion about q1 earnings expectations, right? which are negative q2 is nothing to write home about. revenue expectations aren't as bad. looking for 4% plus. wi can we get by on that? >> i think in line with some rebound in the economic data we might see also some small rebound in earnings, but to be fair, the margins, they will be compressed from two sides. as we had later in the year top line growth. >> are you -- earnings

recession, quote/unquote, your best case? two quarters >> no, it is not >> andrew, how about you >> so i think at the end of the day, our earnings growth seems to be slowing from last year but let's keep in mind how strong of a year 2018 was. so i think now we know we have central banks on the side of risk markets and after kind of going into the year thinking that quantitative tightening was going to be this big problem around the world, it seems that central banks reversed course and kind of made a dovish pivot everywhere i think that gives markets a boost going in for the rest of the year >> so andrew, what is your strategy right now we have been talking about, all the superlatives around how great the first quarter was. we should include how bad the fourth quarter was we're even here and back to five-month high in the market. where do we go next? >> so i'm a bond guy and so looking at yields, if we have a kind of slightly inverted yield curve now, i think that was giving a lot of people some concern, but i think that the invert the and flat yield curve

this time isn't sending the same signals it has in the past quite frankly because the main reason being that an inverted treasury curve has not corresponded with an inverted bank curve and bank margins have been increasing as the fed's been hiking rates in the treasury curve flattening. that's a positive and something as we go forward that you're not going to see banks contract lending alike they typically would in a flat yield curve environment. >> and how would you answer that question? >> i was going to ask your thoughts on where we go next in the markets and maybe tying in andrew's view, he says the yield curve doesn't matter. >> i think the yield curve inversion this time is different from past inversions because it has been driving -- driven by the long end, not the short end. that said, coming back to our view on markets, we would be

still be a bit skeptical about the rally in equities that we have seen since the beginning of the year so clearly what you can see is that the markets on the one hand, risk sentiment on the one hand and economic data on the other hand, they're marching at a different beat so in our view to become more constructive, on global equities we with like to see a more convincing civilization and rebound in economic data and today's manufacturing figures might be a good sign in that, but let's wait for more convincing data here on a broader base, before we become more constructive. >> you want to see china data continue to moderate or would you want to see germany turn where would you look first >> i think europe is, of course, in terms of size, not as important as china and the u.s., but still 20% of the global economy. and we would have to see some rebound here in european data. we have seen a long strike of disappointing data in europe, but also due to some technical

factors, some idiosyncratic factors like the protests in france or disruption in the auto sector in germany. so this might well go out of the data in the coming weeks >> andrew, any implications for the bond market of the politization of the fed, the president is tweeting about it, larry kudlow on cnbc friday calling for a cut. >> yeah, certainly doesn't make the fed's job any easier i do think that powell and the rest of the fomc will look past this now, obviously, i'm sure they would prefer to not have the administration kind of signaling where they want rates to go. at the end of the day, the fed will rely on the data. if the data comes in stronger than expectations, the fed going to continue eventually to normalize rates. they're in a prolonged pause at this time. as we go on throughout the year, if the data improves, i look for people to start putting rates back in play and look for yields to rise on the treasury curve. >> what is your expectation for

hikes or cuts in '19 >> so i mean the market is pricing in, if you look at the fed funds future curve, they're pricing in two cuts over the next year and a half that's off base. at the end of the day, the fed has signaled they're in a pause. there is no doubt about that but the one thing that i think will be more important than, you know, the past numbers which is it used to be that we looked at the jobs numbers every month and those were the most important, i think the biggest thing going forward is going to be what inflation does and inflation expectations, and those have started a trend higher if we look at financial conditions and inflation expectations, they have kind of reversed to where they were in october even though the fed made this extremely dovish pivot. i look for the fed, i think we could have a rate hike by the end of the year in the fourth quarter. and i think that at the end of the day you'll see -- you can see more hawkish language if the data improve and inflation starts trending higher i haven't given up yet >> andrew, thank you ann katrin, thank you as well.

more with larry summers later. we want to check on the lyft pricing now. it is down about 10% as you can see. second day of trading. after it popped on it ipo day, it closed near the session lows of the day, up a little more than 8%. steep drop today so if you bought on that ipo, you know, around the pricing, at $72, now we're below that price and you're down. >> especially if you're locked in not able to get out at least at this point jim's point earlier this morning, was that it had to hold 72 to remain a positive comment on the overall market. obviously that failed the question now is how it might affect pricing for others who are still in the pipeline. >> right, certainly not as positive as the reaction so far that we got from levi's. the question is how much do you make in a second day trading how much do you read into first day pop and the second day pop

the first is going to be when the company reports earnings and the questions about profitability, and the fact that in -- they have a risk factor, we have a history of net losses and may not be able to achieve or maintain profitability in the future a lot of people pointing to that. >> yes we're going to have a lot more on lyft as we continue this morning. when we come back, jim stewart is with us, talk about the company's outlook and the wave of tech ipos still on the way. later on, former treasury secretary larry summers on the big rate debate as the president continues to suggest the fed cut. "squawk on the street" will continue in a me wh e montitth dow up 190 ♪

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shares of lyft moving sharply lower after making their nasdaq debut on friday shares closed up more than 8% after pricing at 72. the stock now trading below that level as you can see, 7135 off the lows of the session. for more on the ipo market and what performance means for the likes of pinterest and uber and others, joining us at post nine is jim stewart good morning >> good to see you. >> how interesting is this to you? >> i find it very interesting. until today's trading i was going to say the lyft ipo was close to perfect because typically the investment bankers want to see a roughly 8 to 15% rise, more than that, they're giving away too much

money, less than that, they haven't provided an incentive for the early people to commit to an ipo. this looked great. and to see it fall below the opening price, i'm very surprised because first of all there are people out trying to support it and secondly it is not people who bought it $72 a share. they didn't buy to lock in a short-term modest loss so it has got to be people, i assume who were investing at way below 72 and that worries me a little bit because those are the early investors, those are the people who have insight into the long-term prospects. not a good sign if that kind of person is bailing out. >> what benchmarks do you think they deserve in terms of valuation. jim this morning was talking about comparing them to service now and sales forces and some cloud companies. does that make sense to you? >> it is tough to find a comparable -- >> in a new market. >> exactly and i heard all kinds of wild suggestions that -- i heard on

cnbc last week somebody saying, compare it to a telecom company, where is that coming from? but you look at the auto companies, i don't think so. not the rental car companies, we don't have numbers on something like airbnb. it is tricky with that i look at the price to revenue numbers for a lot of recent tech ipos, similarly the markets weren't all that clear when they went public. and it was -- it opened at about 11 times revenue, which i -- was really quiet low compared to, say, well, snap is -- snap is one of the worst, 58 times revenue. and it looked pretty reasonable on that basis. as i said, one day's trading doesn't tell us that much. you're investing in a story here the numbers in a stock like this, in an untested marken, unproven market are -- i don't want to say irrelevant, but way subsidiary to the vision that they can articulate.

and, yeah, they have big losses. amazon had big losses for years. i personally believe in the company and the market i think there is a lot of potential there. exactly where it should trade right now, i don't think anybody knows. but we'll see over the next week or two, that will be keat. >> so many unicorns including uber what do you think about the comparisons to the 2000 dotcom bubble does that ring true at all >> not really. i think, again, as i said, you know, you look for the story, you look for the numbers we're seeing some companies like lyft, uber soon, who are going public with big losses i think in the wake of the dotcom bubble, we did go through a period where companies wanted to wait until they had some real profits to show. that was the hallmark of the dotcom thing no profitability whatsoever. but i look back on that era now and the stories weren't all that

good either for some of these companies. >> do they need to paint themselves as revolutionary kind of new industry companies. >> yeah. and nobody knew then, digital era was so new and everything sounded possible and people just crazily throwing money at these things valuations then not just in the new companies but across the board were crazy really way out of -- way more than they are today. again, i think 11 times revenue, lyft, that's not a crazy valuation. and, again it doesn't have profits. but it has a lot of revenue and it has very strong revenue growth and it has, i think, a very solid business model. but i do think looking at these, each one, and, again, one of the problems in the dotcom bubble, it was so indiscriminate you can -- anybody can walk in and do an ipo. and i think now people are looking closely at it on a case by case basis and you have to do that the -- i'm quite excited to see

airbnb if they come up i think they got a great story they got a built in, you know, network effect that is very impressive i think they have a really good story and interesting to see the numbers. i think a story like that is really good. slack, i don't know that story as well. i'm sure we'll be hearing more about it you look at the numbers and the story and i think if people are discriminating, some of these will do great. others may not do so well. that's a healthy sign. >> can you blame investors for selling other stuff to get ready for some of these? do you think that's a bad move >> no, not necessarily i mean, again, i think there is a growth kind of mania going on in the markets, going on for some time, the faang stocks did so well, got so much attention everybody wants the next faang that makes me a little nervous the value investors have been in the wilderness now for quite a while. we all know their day will come back, when this gets a little excessive. i think there is maybe a

slightly undue hunger for growth at any price but i don't see it wildly out of range. are we -- you know, again, when snap went public at 58 times revenue, that made me a little nervous. 11 times revenue doesn't strike me as a mania at all >> we'll keep our eye on the price today. trying to find some legs here, but it is an interesting story we won't understand fully for a while. thanks, jim. jim tewart facebook ceo calling for regulation backing tighter internet privacy and election laul laws julia boorstin joins us with more >> mark zuckerberg said he thinks regulation is inevitable. he's telling us what he thinks that regulation should look like this in a "washington post" op-ed and on his facebook page, outlining new rules for the internet for four key areas. harmful content, election integrity, privacy and data portability. zuckerberg saying he wants regulators to set the standards,

but what counts as terrorist propaganda or inappropriate content or whether an ad counts as a political ad. he advocates for a global framework for privacy regulation based on european rules or gdpr. he also advocates for common standards for transferring data. but zuckerberg's advocacy for laws won't help with ongoing investigations there are three. the ftc, the justice department and s.e.c. all right now investigating facebook and just last week hud charged facebook with enabling discrimination but this could help facebook work with congress as both sides of the aisle scrutinize the platform mark warner saying, quote, i'm glad to see that mr. zuckerberg is finally acknowledging what i've been saying for the past two years. the era of the social media wild west is over facebook needs to work with congress to pass effective legislative guardrails but representative cicilline is

negative, tweeting facebook is under criminal and civil investigation. it has shown it cannot regulate itself does anyone even want his advice a couple of analysts told us they're bullish on zuckerberg going on the offensive and putting the onus on regulators, but all of this comes amid reports from india that widespread fake news on whatsapp could impact the upcoming elections. facebook has been deleting hundreds of pages to address this issue, but this all speaks to the risk of manipulation in all of facebook's issues going forward. facebook shares trading nearly 1% higher. back over to you. >> julia, also the cynical take out there which wall street journal editorial board picks up and others, which is he's just trying to deflect from the ultimate regulation, which would be breaking up his company and others an idea gaining traction and being put out there by presidential hopefuls. >> exactly we heard about so many calls to regulate facebook, but the one that would be most damaging is not regulating privacy

that they're already working on, the threat of breaking up facebook, facebook owns whatsapp, messenger, instagram and really making a big push to integrate these services when it comes to messaging but i think one of the points that he's proposing here, which is data transferability, this idea you should be able to easily pull your content, all of your contacts, all messages off facebook and bring them to another platform, that is the part of his proposal that is from where i sit designed to help address those concerns. because if you can easily pull off facebook or pull off instagram and take your data elsewhere, that helps address the accusations that facebook is, you know, monolithic and prohibits anyone from competing. >> got it. julia, thanks. speaking of washington, when we come back, a tax bill that could actually pass. we'll tell you about an issue garnering support from both sides of the aisle and getting another check on the major averages at this point your session highs, dow up 220

points s&p 500 up .8% starting off q2 with a bang. very bullish bang. stocks got another leg up after we got data at the top of the hour showing manufacturing activity here in the u.s. actually is doing better than expected "squawk on the street" will be right ckba -so much of our future is ahead of us. ♪ -it's all about the big picture. with miguel, our certified financial planner™ professional, we looked at business insurance, our mortgage, even our plans to adopt. -it's not about this fund or that fund -- it's about us. -welcome to our complete freedom plan. -it's all possible with a cfp professional. -find your certified financial planner™ professional at letsmakeaplan.org.

welcome back to "squawk on the street." time for our etf spotlight mike santoli taking a look at some q1 winners and losers in etf land. >> yes actually not really many outright losers, it is winners and laggards the overall market was so strong coming off a very depressed spot, but there were distinctions among the very sectors. if you look at the top of the charts, the winners out there, tech is obviously the story with some oil service names the ark, this is disruptive technology based on long-term secular winners. the market loves those igv is software. those two areas have been incredibly strong for a long time what i do find interesting is it really was two stories over the course of the quarter. first two months, risk on, risky aggressive high beta stuff that

did really well. and then in march, it was much more defensive that's where you see, by the way, the oih had that run mostly in the first part of that quota. if you look at the laggards, little smattering of more cyclical areas than some financials so the airlines did not have a good quarter that's the jets. gdx, gold miners, not the kind of market, and health providers. so you had some policy noise and some stumbles on the fundamental front in health care services. so that's been the trend now i think the question for today is whether in fact it is time and we're seeing the data in china and here, it is time to stop playing defense and maybe the market will get more cyclical and go on offense again as treasury yields lift, that's the catalyst for it. one day, not even one day, one hour so far. that has been the pattern so far. >> it is reflective of the fact that people got so shaken by what happened in the fourth quarter of last year that the

worst december since the great depression that there was still an urge to play defense, even with stocks rising throughout 2019 and just not a lot of embracing of the comeback story. >> inflows were mostly bond and sectors like health care and telecom and basically yield. so, yes, it is very much the playbook of 2016 bond yields are low. we can play stocks but only in a safe way that's why now is the question as to whether the data and who knows all this fed talk is going to cause a shift in that attitude. >> how important are these march highs of 2860? >> they're important in the sense that we spent really all of march trapped in that pretty narrow zone around 1800. i do think it will be significant to have a little bit of a notch above that. i don't think that people are saying that it is kind of this trigger if we get above it that all of a sudden we melt up but i do think that the market proved it only had very benign little 2%, 3% pullbacks along the way, that's a net positive

and the question is do you -- are people going to overanticipate this inflexion point in the fundamentals, and when cyclicals can work again or, you know, or we have to sit back a little while and wait. >> the picture remains confusing at least today's data, no doubt about that thank you, mike. to sue herera, news update at this hour good morning, sue. >> good morning, carl. good morning, everyone here's what's happening at this hour the house judiciary committee will prepare subpoenas this week, seeking robert mueller's full russia report this as the justice department appears likely to miss an april 2nd deadline for the report's release. the panel headed by democrat jerry nadler will vote on the subpoenas on wednesday new york's democrat controlled legislature passing state wide ban on single use plastic bags starting on march 1st of 2020. individual counties will have the option of charging 5 cents for paper bags in nepal, villagers who survived a powerful rainstorm that killed at least 28 people and injured hundreds more,

searching for food and shelter today as rescuers struggle to reach remote areas the storm swept through villages in a farming region in southern nepal. and a comedian with no political experience is leading in the first round of voting in ukraine's presidential election. running on a popular anti-corruption message, he has 30% of the vote with the current president a distant second with 16%. the top two candidates advance to a runoff on april 21st. we'll keep track of that one for you. that's the news update this hour guys, back downtown to you >> sue, thank you. wanted to draw your attention to shares of kellogg the food company announcing plans to sell keebler and famous amos business to nutella owner ferrero. that deal first reported by cnbc.com expected to close by the end of july. and just for some history here,

kellogg bought keebler in 2001 for $4 billion in cash and debt. so just shows you the kind of weakness in consumer packaged goods, especially at big companies. this deal is indicative of a few things happening in big food trends, that is. all the new ceos and a whole new wave of them announced in last year or two focusing on growing sales. for the past few years, all about cutting costs. and they're also focusing on divesting nonperforming businesses like this one that aren't growing, which is also a big change from the past few years, which they were just adding brands, general mills buying annie's and blue buffalo. you're seeing some of the results, general mills doing a little bit better. campbell's soup is selling its international business but these are still sort of show me stories in terms of the actual results because none of them are showing tremendous sales growth pretty much at all. >> i wonder how much market share tate's has taken from keebler and amos, right? >> tate's in the hands of mondelez good example of how millennials

and younger consumers are going more for the pure stuff that doesn't have artificial ingredients and, you know, is a little more premium in terms of -- >> and has decent shelf space. you see it everywhere. it is interesting. >> true. it has been distributed. that's a big factor. they have to buy up the small brands that are growing like tate's and resonating and sell off some old school ones like keebler. up next, former treasury secretary larry summers weighing in on the global slowdown and the great rate debate. and it is the first trading day of april here is a look at last month's dow leaders. "squawk on the street" will be right back

not much common ground on capitol hill these days, but there is one issue that has support on both sides of the

aisle. retirement ylon mui joins us with more. >> this is one bill that could pass despite all the revisions we have seen in congress the house ways and means committee, it will begin considering a bill tomorrow that is intended to make it easier to save for retirement. the proposal is being spoernbeiy richard neal and kevin brady, called the secure act and among the things it would do are allow 529s for student loan repayment, repeal the maximum age for i.r.a. contributions, currently at 70 1/2 years old, require companies to allow long-term part time workers to participate in a 401(k) plan, and allow you to withdraw from your i.r.a. for a birth or adoption without a penalty. in a statement, the chairman called the bill bold and bipartisan and said boosting americans' financial security and retirement supports families and strengthens our economy. but let's just be honest here, this bill is not a game changer and it avoids a lot of the

thorny issues like social security, the taxation of 401(k)s, even the universal savings account that republicans had championed while they were rewriting the tax code this could still have a big impact on your personal finances it is also a really good example of the kinds of very practical technically focused kinds of bills that could actually move in this congress back to you. >> thank you continuing this conversation earlier this morning i sat down with larry summers to discuss his new proposals for tax reform so i asked the former obama and clinton administration official what he thought was wrong with the proposals by elizabeth warren and alexandria ocasio-cortez. here's what he said. >> there are things we can do that correct subsidies, that remedy injustices, that close loopholes, that would be good to do, even if we didn't need any revenue. these kinds of provisions like raising rates or taxing wealth,

we may need to do them at some point. but we should start with things that will actually help the economy, rather than things that interfere with at least to some degree with incentives to work and save tradition has always been to start with tax shelters, with closing loopholes, with broadening the base. if you don't do that, you're likely to be disappointed by the revenue yield because people are going to find all kinds of ways to avoid the taxes, you're going to punish people and discourage some of their economic activity without actually generating much revenue for the federal government our loophole closing plan raises about three times as much revenue as pushing the top rate up to 70%, as the congresswoman propo proposes we think it raises a lot more

revenue than wealth taxes realistically will raise. >> i read your proposal, and two themes stood out to to me, simplification of the tax code and trying to spur economic activity the white house would argue that it just accomplished that with its $1.5 trillion tax cut. >> tax code is a lot more complicated, the distinctions like pass throughs, and all of that, it is introduced into the code, it is set up a variety of new kinds of opportunities for sheltering it's made the rules, for example, if you sell real estate, buy new real estate, more complicated than they were before, so it is certainly not simpler. and it is certainly not fairer in a sense that the benefits went to people with the highest incomes. and if you just look, growth slowed down from the first quarter to the second quarter, the second quarter to the third quarter, the third quarter to

the fourth quarter, and on the forecast from the fourth quarter to the first quarter, to it doesn't look like it set off any kind of growth boom. very much the opposite so i don't think those claims can be made for the white house and, look, it is very easy in the short run to produce a little bit of benefit if you cut taxes. the problem is that it is not a long run sustainable strategy because the government has to pay one way or the other for what it spends and that's why we have got prospective deficits that are larger than we have had in peace time, certainly when we had a good economy than we have ever had before so i don't think that's any kind of long run approach i think you're frankly in the performance of the economy so far this year. starting to see it, and, you know, the markets rallied, but

that's because it's figured out that the fed is going to do whatever it can to hold the economy together and that's come as a source of relief. but that would be a serious mistake to confuse that with strength. >> the white house's latest call is to cut interest rates larry kudlow coming on cnbc friday advocating for a rate cut of half a basis point, though he says the underlying economy is quite good does this make any sense >> i don't think very much you don't cut interest rates from 2.5 with urgency. because you're feeling great about the economic future of a country. it is just not something that has got any precedent in economic history you do it when you are alarmed and worried.

so i don't -- i think it will be premature to cut interest rates by 50 basis points, but i've been generally dovish on monetary policy. but the key point is you can't brag on an economy and say it desperately needs urgent monetary stimulus and you -- that so desperate in need that you're prepared to take unprecedented steps in politicizing the fed it just doesn't add up >> right they say they want to protect the economic recovery that trump helped generate, given the fact that there are head winds from overseas and from some of the trade war. >> the trade war is generated by them there was no anxiety of the market about trade wars until they started in doing things

like threatening to tax canada on steel because of national security or tax european car imports as if a volkswagen is a threat to our national security. so i don't think those claims make any real sense at all to be honest. >> and then there is the issue of politicizing the fed. the president is tweeting about what fed policy should come next, larry kudlow is out talking about it on cnbc and they're about to propose a nominee to the fed board, steven moore, who has close ties to the president, wrote a book about trumponomics do you think we're at a moment where fed credibility and independence is at risk or is that just being overblown? >> i think it is a serious concern. look, these are not new policies in the world

they are the policies of latin american countries before they have serious economic reform they are the policies of authoritarian populists throughout emerging markets, and so there has been a huge opportunity to study them, and they lead to very bad economic performance. and so this is a serious mistake. i have a lot of confidence in our institutions i don't think jay powell is going to listen, but this is another source of anxiety about american leadership in the world and seriousness of purpose >> larry summers, the former treasury secretary of the u.s. he went on to say, look, we have this privilege, we have the dollar, we have trust in our institutions and when you continue to have

policies like that, that undermine these institutions, like the fed, which is pretty sacred and independent as an organization, summers calls it dangerous. now, he's been very critical of this administration, specifically economic policy in the past but i thought what was notable is he had plenty of criticism for fellow democrats as well saying that alexandria ocasio-cortez and elizabeth warren have the wrong idea when they talk about taxing and raterate s. >> he's saving some barbs for the left as well no question about it good interview. shares of lyft getting hit on its second trading day. as you see, 70.40. we'll talk to lyft investor and grammy award winning rap artist comillionaire. dow is up 233. sshis d quk the street" is back in a moment. at carvana, no matter what car you buy from us,

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one technician has two stocks to play catch-up in the space find out what those are on trading nation.cnbc.com. more "squawk on the street" is coming up.

dow up 215 back to the cme group in chicago with rick santelli and the santelli exchange. rick >> good morning. thank you, sara. i would like to welcome my first guest of the week, peter turve of academy securities. let's get right into it. with all that volatility at the end of last year, when we started talking in 2019, it was all about watching the ges, anheuser-busches, at&ts, big corporates, supposedly corporate debt was going to have to go on this big diet. how did it all turn out, peter >> they bet on the diet. budweiser did a huge bond yield that allowed them to refinance their debt and stretch out the maturity at&t did a similar deal and at&t is now tied their ceo

compensation to balance sheet management i think people got the message they're very careful about their balance sheet going forward and that helped the stock market rally. >> now, you know, there is also this ongoing worry that over the next couple of years, corporations are going to have to issue a lot because of maturing debt. do you think do you think that process, considering what you've just described and observed, is this going to send ripples into the market or can the market accommodate? >> i think the market can accommodate. people will be surprised since the tax cuts companies are generating more free cash flow we'll see debt paid down naturally and companies will be careful to maintain that and we won't see this slew of downgrades we'll see triple-b companies remain triple b. >> now, let's switch gears we just had former treasury secretary summers and to listen to him, boy, you would never

guess we were in a record setting first quarter. the thing i want to concentrate on most, there's a difference, people, between hiyperbole and talk you watch the markets as anybody. do you sense that any of the fed potential apintees like spointe kudlow or stephen moore to push the fed under their thumb? >> i think some attempts backfired so maybe that's why we did the rate hike in december to prove we're independent. the fed is very independent. i don't think we'll get a rate cut. they will do things but do it because the fed believes it's right not because it was tweeted about by some people >> i understand that this administration is different. they are disruptive. they are not necessarily sticking with precedent. but certainly looks to me like

it is more a talk than action, finally quickly when you look up and you see all the different spread between high yield and investment grade do you think that they are too tight or just right or do you think that they are going to continue to widen out a little bit with respect to high yields. >> we'll see high yield weaken a little bit there's been a lot of fast run so i think that's where we'll see a positive on the high end side >> excellent peter, always interesting to talk to you about the credit market sara, back to you. >> rick, thank let's sent it to jon fortt what's up next on "squawk alley" >> a lyft investor, you might know him better as chammillionaire. he's invested in ring. see if he's selling. lyft is down but there are a lot more ipos coming that's coming up on "squawk

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. welcome back to "squawk on the street". i'm dominic chu. stocks are posting a positive start to this quarter. as we take a look at industrials

one of the best bright spots so far in early trading thanks in large part to a number of transportation related names american airlines, alaska air but railroad stocks as well. norfolk southern, union pacific. those gains are helping to lift the dow transportation index that group is now down 8% from its all time high back in mid-september. transports ones to watch in industrials. i'll send it back downtown to you guys at the exchange >> thank you very much meantime pretty big afternoon with these gains >> see if the rally sticks and what lyft does later today we have morgan stanley he's chief mike wilson, his note nougs fon how to positr q2 he's raising a big red flag

about tech earns that's coming up quick programming note tomorrow i'll be with you here live in washington we have an exclusive with christine lagarde at 10:00 a.m., "squawk on the street" >> goodto get her take on some of the numbers we're getting from these pmis. >> can't wait. see you this afternoon "squawk alley" is coming up next dow is up 234. [knocking]

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build for what's ahead℠ good morning it is 8:00 a.m. at lyft headquarters in san francisco. "squawk alley" is live.