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good tuesday morning. welcome to "squawk alley." i'm carl quintanilla with mookie betts and jon fortt. major averages in the red across the board and what is turning out to be the worst month of the dow and s&p. it's much larger than boeing this time although dow session low was minus 237 and you can see we're 50 points above that level right now. >> coming into the hour, apple is higher by about a percent and disney as well. that's all the good news in the dow at this point. >> industrial, energy stocks seem to be leading everything lower right now. boeing a drag but also some of the big industrial names in part because of the imf coming out and lowering it's global growth forecast. you got disappointing numbers from pent air as well. >> we'll learn a lot more about

that on friday. tech executives from facebook and google back on the hill today. this week marks a year since mark zuckerberg testified on the company's data practices. our julia boorstin joins us this more than with facebook's report card on the changes that were promised over the last year. hi, julia. >> reporter: mark zuckerberg is far from fixing all of facebook's problems. he has been far more transparent and has made a number of big changes to win the trust of regulators and also hold on to facebook's advertisers and consumers, but the number one issue that mark zuckerberg pledged to address when he was on capitol hill a year ago was user privacy and data protection. the company has made big changes there limiting developers' access to user data. it's extended most of european privacy laws protection world wide. it introduces a clear history tool to erase users' footprint and it's making all messaging encrypted. but these moves have not stopped leaks. hackers were able to access

information about 30 million users' acts in september. over 500 million users had some of their information exposed on amazon cloud servers. now, the second issue that mark zuckerberg had to deal with is offensive content. in the past year facebook has scaled to 30,000 employees focused on safety and security and also invested heavily in artificial intelligence. but those investments fail to identify the live stream new zealand mask -- mosque shooting. facebook created a war room ahead of the u.s. midterms as well as brazilian elections and it successfully removed hundreds of manipulative accounts and pages and did get through those two elections unscathed. election integrity is an ongoing battle. there have been widespread reports of manipulation on facebook as well as what's app and then we'll have the next test, the eu elections coming up

in may. there are a couple other big issues to watch going forward, one is newprivacy controls for the encrypted messaging as facebook integrates all of its different messaging apps and also whether facebook decides to dramatically limit who can live stream to avoid other issues like we saw with that mosque shooting. back to you. >> great report there, julia. with us now for more on facebook and the continued regulatory pressure from washington on big tech is casey newton of the verge and mike volpe. good morning guys. casey, let me start with you. julia broke it down nicely. privacy, offensive content, election manipulation. where do you think they can show the most progress? >> well, i think they're going to have to start with that offensive content. if you look at what's happening around the world right now, facebook is under siege. australia, the uk, the european union even canada all coming out and saying they want to place additional restrictions on these social networking companies to

make sure they're managing what users are sharing. facebook is going to need to show progress there in a hurry. >> mike, i'm not sure that this is all bad. i'm as big a free speech as i guess you're likely to find, i'm not sure that this is entirely about free speech just looking at the uk what is considering with this white paper that's out. isn't this more about having these platforms responsible for the type of content that's on their platforms where the people are allowed to say it or not and the impact of that on users responding to complaints in a timely manner and having some kind of consequence if they don't? >> i think it is about that, but it's a very complicated problem because there's cultural norms associated with this. the united states is about free speech and so the guidelines are the accepted behavior in the united states is going to be very different from that in europe, and so i think that while some of this is about business practices and decency, it also touches upon the law and

what is the constitution of the united states and so i think it's fundamentally very difficult to have global norms around this and while, of course, things can improve, it's very difficult to define that specific line as opposed to issues like privacy that are probably a little more clear and we can all agree that we want the privacy that we want. >> casey, in terms of, you know, coming up with those definitions, julia just reported that facebook's considering limiting live streaming, who can do it, where could some of these lines be drawn in the u.s. how is silicon valley thinking about this and the conversations that are taking place for example, in board rooms? >> sure. when it comes to something like live streaming there are restrictions that you could place on that activity and i think would still allow for a lot of free speech. for example, if somebody had created a new account, maybe you would make them wait a few days before you did a live stream or maybe you would say you need to have at least this many followers in order to live

stream, sort of prove you've been a good citizen on the platform before you do it. we'll have to start treating them more as privileges than as rights with these creative tools. >> somehow, casey, it seems like we've maybe gotten to the space where certain online tools we're starting to think of as human rights like live streaming and what not and trolling practically, even when i got into this white paper that has a lot of people up in arms because it's talking about regulating certain kinds of speech, we do that in the u.s. on tv networks and elsewhere. there are ratings, there are norms around what types of content is put in front of people. is this really that far afield of that kind of regulation >> i think it depends on what the final proposals look like but i got to tell you, when i read this white paper yesterday there were things in there that concerned me. the white paper says that the uk may want to regulate trolling. one person's trolling is another

person's good faith discussion. so i think a lot of the questions are around how is the uk going to define some of these terms and how are they going to implement regulations that can actually be enforced in a way that doesn't lead to a lot of censorship and a much less free internet. >> guys, we'll keep our eyes on that, obviously. stay with us. because pinterest is meeting with potential investors this morning in new york ahead of its ipo and our leslie picker is there live and joins us with more. hey, leslie. >> reporter: hey, carl. this is the big road show lunch here in new york. investors are expected to show up at the second floor event space behind me in about 90 minutes or so for when this begins here at hotel eventy. we're expecting executives including ben silverman and todd morganfeld to present to investors today. these luncheons are really supposed to help the executives explain and communicate the story of pinterest to investors.

the company is -- serves as a virtual bulletin board of sorts which various how-tos and inspiration on how to decorate a home or wedding, but it also provides investors a chance to ask their questions and get those questions answered by executives. we've been speaking with investors as well as advisers to the company and some of the main questions that they're expecting are that surrounding slowing monthly active user growth as well as the potential for monetization surrounding e-commerce and the ability to purchase things on the platform which you can already do but the company does not generate any revenue from that. ad revenue sustainability. that encompasses the bulk of their monetization strategy. how sustainable is that as monthly active users growth continues to flatten now, media are not allowed inside the road show lunch when it begins today at 12:30 but we plan to speak with investors as

they exit the lunch to learn exactly what happened and to get a sense of demand for this stock, guys. >> that's going to be key going into next week, we think, leslie, thank you. we talked yesterday about what's different about them, narrowing losses, ceo who you might argue not as vocal as some we've seen come to market in the past. >> pinterest is the indy film actor of ipos, celebrated, well-known among a small group but not well understood outside of that circle. casey newton, i wonder how you think pinterest ipo is going to affect the conversation in the rush toward ipos at large? there's the possibility of a down around here in the ipo that we don't know how that process is going to shake out, kind of a different feel around it than lyft >> i think it's not a company that has everybody super excited. it's been really slow to introduce revenue products. it's been a very cautious, slow

poke of a company. i do think that there's a lot of potential there. they're really good at some things that google is not. i would expect it's going to take a while before that stock is going to start going crazy. >> mike, what should investors be keeping in mind about pinterest? i ask that because we've got pricing between 15 and $17 a share. what's being called a down round in terms of this ipo and how much lower it is versus it's last round of funding. is that going to bode well when it goes public or does this mean there's more risks involved because i'm seeing a lot of debate within the analyst community on this? >> look, i think -- i'm finding pinterest is super interesting ipo and a super interesting company in this dimension. they're building an internet company in the old-fashioned way. they're very gradual in introducing changes to the product. it took a long time to build monetization. ben is a shy reserved thoughtful

guy. instead of trying to take all the money off the table, they're pricing a little bit lower and probably giving a little bit of latitude for public investors to make some money on it. now, it is a down round. there's been a lot of down round ipos out there. dropbox was one. square one was one. i don't think whether it was a down round or not is a relevant issue. what is interesting is ben trying to build an internet business in a very different style and fashion than the go-go aggressive approach that facebook or uber have taken and whether investors and more importantly consumers at the end of the day will embrace that approach and go for a different style of building an internet business. we wouldn't know for a few years but this business will be around. they certainly have their challenges, but i appreciate the fact that he's taking a little bit of a different approach from everybody else. >> but is it your view, mike, that their growth trajectory

maybe it more shallow but more sustainable over time? >> well, where they've been challenged is user growth. they have been sort of bumping up and down, i think, in the recent quarters. they've had positive user growth which is good. that will be a challenge going forward because they're in that 200 to 300 million user base. where they have done well is increasing monetization. they've done a pretty good job growing the top line and moderating their losses. i think they are challenged in terms of adding users and, in particular, with the challenge from instagram which is, you know, a close kin in terms of, you know, visual imagery based social network, i think they will continue to have some challenges on the user growth side. >> casey, just to bring this all full circle right now, pinterest is one of those other social media networks, maybe it's not go-go growth, how will it fit into this regulatory debate

we're having right now >> pinterest has been really thoughtful about some things that other tech companies haven't. so for example, they took the lead on banning the ability of users to repost misinformation related to vaccines. i think they've just tried to take the approach of creating a space that maybe has a few more restrictions on speech but is generally a safer for welcoming environment. i'm looking forward to seeing them do more kind of tests and experiments like that and seeing if there's another way forward for social networks. >> pinterest would argue, it's not a social network. we'll see if never buy that but they argue they are more of an individual portfolio that people use to gather -- >> it's an image sharing company. >> yeah, but it's not even so much about sharing as it is gathering. they would argue it's more of an interaction between a person and a brand, an idea. again, that's an indy film. that's a really abstract concept. i don't know if investors are going to understand that

quickly. >> that may be the pitch. the way to do it in this light of all of this regulatory scrutiny around google and facebook and around social media at large. >> casey, mike, thanks guys. appreciate it very much. >> thank you. getting some breaking numbers out of boeing right now. phil lebeau is in chicago with more. >> these are the monthly order and delivery numbers from boeing on the commercial airline commercial airplane side of the business and what's significant here is what happened with max orders following the grounding of that airplane on march 13th. boeing reporting zero new orders for the 737 max in the month of march. the company says that in terms of total orders, there were 44 last month but zero for the max and in terms of deliveries, remember, they stopped delivering after they were grounded on the 13th, they delivered 11 last month. compare that with february when they delivered 27. so those are the latest numbers from boeing regarding the 737 max. guys, back to you.

>> phil lebeau, thank you. when we return, apple back above $200 mark reclaiming the top spot in the list of the most valuable public companies in the world. up about 1% right now. where does the stock go from here find out after the break. take a look at shares of lyft down again this morning. trading below it's ipo price, 67.75 down 3.5%. we've got a lot more "squawk alley" straight ahead. ♪ 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.

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apple is on pace for its tenth straight day of gains, up more than 1% in today's session after closing over the $200 mark the first time since november. it's up 40% from the january lows. we're joined by both an apple shareholder and an analyst larry haberty and walter pisic. guys, good morning. walter, apple has had quite a run back up. it's at about, i don't know, 960 billion in market cap again at this point and yet, we had this big warning in january about iphones and china, unclear how much of that has changed. from now on is this stock trading more on multiple around services or the reality in what we see out of china and iphones? >> it's been an amazing rally given that we're facing a quarter where revenue and the iphone business is probably down 40% sequentially. the company has experienced

declines in revenue and earnings in the past. i think investors are maybe looking for an opportunity to buy it at a trough area in terms of the earnings growth looking forward, perhaps, to next year's earnings and looking for maybe an opportunity of when this replacement cycle which has been extending now for five years may start to trough and this could be the year that they're doing this. i'm not sure that services, john, i know they did that a couple weeks ago can explain this rally. i just think it's maybe -- look, you're buying apple at a time when revenue is down and earnings with expectations that maybe they can stable them out and win a growth back in 2020. >> it was the heck of an after-christmas sale if you bought it then, if you bought it then, you got a deal. what do you have to believe about the stock to buy it today expecting for the rest of the year >> i think it's going to be very, very difficult, jon, given what's happened that the stock continues to rally.

i had an old expression, pretend oil is worth more than real oil. you have this show and tell meeting that they had about the services and they showed but they didn't tell. they didn't tell you what they were going to produce. they didn't tell you how much it was going to cost. there were a lot of stars and you look at companies that don't know hollywood and start dealing with it and it can be a way to lose your money very slowly. >> it's a very hard way to make a living as an outsider. and i think so far, like netflix, the market has given apple a hall pass on spending money for content. netflix is spending $3 billion more on content than it's generating in cash flow this year and apple, i suspect, is going to be in the billion, $2 billion area and the question is how is this going to be reported, what's it going to do to cash and what's going to be the investor thoughts once that

happens? i think there's a stew pot of things where the investors all of a sudden could become hostile after the quarter's reported. i think right now we're dealing with pretend oil when we see the quarter, we're going to see that a lot of this stuff has cost and it doesn't have revenue. i can't see how that's going to be good. >> for so long the fight has been about what apple should do with all of its money. you're saying now if people will get mad if they spend that money on content >> just today the stock is up $10 billion. the numbers here get very, very daunting. if you're up $10 billion, you better have a business that generates $200 million in operating cash flow at some point or nice people like me are going to get displeased. there's been this enormous hall pass while all of this has been going on and these hall passes have a tendency to end and there's a couple extra things happening now that may cause them to end. the price of oil is going up and

wages are going up. that means margin pressure for companies. >> you're talking about consumer under pressure >> yeah. apple went from 100 to $200 because investors thought that it was a services consumer product company rather than a hardware manufacturing. so that multiple upgrade has taken place. i look at apple as a consumer product company. i've watched these companies for 40 years. when you start to see margin pressure for consumer product companies like a general mills or proctor & gamble some of the investors become queasy. >> do you agree with larry in terms of how much money apple is spend? >> netflix spends $15 billion a year on content. apple generates $65 billion of free cash flow. they're spending $16 billion on r & d so for apple to start what has been a ten year process for netflix to start to build up some level of content to see if

they can take a shot at delivering their customers some incremental services that they can generate revenue on, i don't think this is something that's going to derail the company given the context of those very large numbers that apple generates and if it turns out to be something meaningful for them in two or three years, great. in the meantime, what's happened in the iphone business, it was two-thirds of revenue a couple years ago or five years ago, it's now 50% of revenue. you've got the replacement cycle that's been extending for five years, that's probably going to be the bigger driver in the stock over the next 18 months and the services, really, is just gravy. as far as the multiple expansion, it's not like this stock is trading at netflix multiples. it's trading as a market multiple. it was 25% discount to the market six months ago. >> walter? >> yes. >> my question about this is whether apple is being aggressive enough spending enough money in services it relates to me for their retail move, when they went into retail it was not immediately

clear what the payoff was going to be. they had this almost airy fairy language about reaching the other 97% who were on windows, but it wasn't clear to investors then what that retail move was going to do. is this content idea of theirs bold and new enough? >> it is bold and it's new, but it's going to take time. look, they have 900 million recurring customers that are using their iphones every day. netflix has 150 million. they're not going to overnight three months from now have this massive library of content that's going to put them on the map overnight. look at netflix. used to send red envelopes and a lot of things that people are saying about apple today are the same criticisms that were being made about netflix ten years ago when they were shifting from sending people envelopes in the mail to developing what's been a great strategy for that company. >> yeah. we'll continue to see it play out this year literally, larry, walter, thank you.

>> you bet. and as we head to break, take a look at the worst performing stocks in the dow so far in this session. boeing, goldman sachs and caterpillar all lower. caterpillar the lowest of all. a lot more "squawk alley" still ahead. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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♪ welcome back, everyone. i'm sue herera here's what's happening at this hour. attorney general william barr testifying before house appropriations committee hearing says he expects to release a public redacted version of the mueller report as soon as possible. >> within a week i'll be in a position to release the report to the public and then i will

engage with the chairman of both judiciary committees about that report and about any further requests that they have. china demanding that a suspected spy who was arrested at mar-a-lago be given adequate rights while in custody. court documents show the 32-year-old woman allegedly lied to secret service agents to try and gain admission to president trump's palm beach resort. bank of america raising its minimum wage for its employees. it announced plans to offer at least $20 an hour beginning in two years starting may 1st of this year, it's minimum wage goes to $17 and hour. the move comes before ceo brian moynahan and other top bankers testify before the house financial services committee. you are up to date. back downtown to you guys at "squawk alley." morgan, back to you. >> sue, thank you. u.s. trade rep robert lighthizer proposing retaliatory tariffs on a list of eu goods. sylvia has that story for us.

>> reporter: the european commission has said that it takes note of the u.s. position, however, brussels has said that the $11 billion figure is overly exaggerated. brussels has said that this number is based on u.s.interna estimates, so as you can see there, the european union is challenging this figure, but all in all this is just another episode in a very tense relationship between the eu and the u.s. when it comes to trade. last year the u.s. has increased tariffs on steel and aluminum products from the european union. since then, the 28 european countries have retaliated. they also put tariffs on certain u.s. goods and let's remember as well what happened earlier this year when the president of the european commission met donald trump in washington. back then they agreed to start trade discussions, however, these have not formerly began. let's see how their relationship

will evolve in the coming months when it comes to trade. let's bring in steve liesman for more on the economic impact of this really seemingly never ending trade war, steve. >> morgan, there's a legitimate question as to whether investors ought to hunker down for the forever trade war. let me give you three issues here. one, is the mexico/canada steel tariffs even despite the fact that they signed the trade agreement. the steel tariffs are endanger the new north american trade pack. the u.s. wants to keep its threat of tariffs in place in any u.s./china trade deal. here's what art hogan for national security said. if the administration decides to pivot immediately to tariffs on european autos, any positive momentum derived from the end of the u.s./china trade war will

dissipate rapidly. i know this is essentially a kind of temporary thing that's used for negotiations, but there may be an argument that we ought to be ready for a longer trade war here. >> it's certainly coming up including in the imf report today, all the downside risks associated with these different trade tensions and if they continue to escalate. how are economists to factor all of this into their modeling for the year especially when you have a fed that is being patient and saying it's waiting and watching the data? >> i think economists initially underestimated the impact of these tariffs and initially when we asked the question it was like, .1, .2. what was not put into the models was this idea that the potential for the trade war to weaken overseas economies and for that to sort of slap back on american shores essentially. when we last asked the question of the survey, it was about .4 to .5% coming off of growth this

year because of a trade war. >> steve liesman, thank you. >> pleasure. after the break, the fallout for facebook one year later. why the stock and washington are telling two different stories? dow's down 156. we're back in a minute. announcer: the cnbc trend tracker live data board is brought to you by the cme group. cme group where the world comes to manage risk. california phones offers free specialized phones... like cordless phones,

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it was my mistake and i'm sorry. >> i'm so sorry that we let so many people down. >> this was a major breach of trust and i'm really sorry that this happened. >> we definitely know we're late. we have said we're sorry but sorry's not the point. >> we didn't take a broad enough view of our responsibility and that was a mistake and i'm sorry for it. >> we have acknowledged our mistakes, we are listening, we are learning and we are making progress. >> that was only some of mark zuckerberg and cheryl sandberg's apologize tour over the last year and yet, since then after a brief dip in the latter half of 2018 that stock has surged, up more than 34% since the start just this year. social network still continues to feel regulatory pressure on its data practices. where does the stock go from here is a downturn ahead or should investors be expecting more of

what we've seen recently laura martin joins us now. welcome. this does seem like it's going to be a bit of a bold bear debate because laura you downgraded facebook to hold. laura, i'll start with you why the downgrade? >> sure. so we're really worried about the headlines here and the government regulation and we're looking at this notion of network effect where facebook has had 11 executives depart, senior executives in the last 12 months and we think that's a lead indicator and a negative flywheel to actually having an effect of product development and earnings in the year ahead. >> youssef, why do you have a buy rating on facebook >> let me first start by saying last year was a terrible year for facebook for the stock. it didn't do all that well. the fact that it did well over the last couple months in part reflects the fact that 2018 was not that great and in part

because all of these issues around the headline risks that's exactly what they are, headline risks. if you look at the p & l and growth rate, talk to the advertisers, even some of the user growth metrics, they all continue to point in the right direction. so, yes, headline risks are there and things interestingly enough will probably get worse before they get better from a news flow standpoint, but the business model has been really not impacted much by it at all. and certainly, the valuation is very compelling even here. >> laura, i'm not sure where else people are going to go if they leave facebook. it seems to me like the coins for the realm for them are low turn, higher engagement. it doesn't matter if it's under the same model that they've got now even if it's encrypted messaging. what is the real negative case that people leave facebook and go someplace else? >> ah, but jon, you made it

happen an hour ago when you were talking about the white paper that the uk released. 66 million people are about to try to set the privacy rules for 2.7 monthly users of facebook and they're saying that if facebook doesn't do what the uk wants, one of their objectives in addition to fines or one of their recourses is to cut facebook out from uk and what we've seen facebook do is take gdp r standards and roll them globally because they have a global platform. if these countries are going to fragment and force facebook to take liability, like, for example, if they tried to meet the uk standard they would get sued in the u.s. for blocking freedom of speech because the uk is more locked down on that. they're trying to break these global platforms in individual regional distinctions and that's going to really blow up the economic model of facebook. >> is that -- does laura have a point, youssef are they gunning for a global

standard to make this easier and less expensive to teal with around the world >> look, carl, this reminds me of what the conversation was around early last year where gdp gdpr was coming down the pike in late may and everybody was saying the whole model was going to go away because there's a ton of restriction on data and without data you can't target and if you can't target you can't price effectively. and what did we see? user growth continued to grow even in europe, even in those countries where gdr were first instituted. i go back to the idea that, one, the -- the financial impact is not likely to be significant. two, if there is one company that has the wherewithal to really respect quote/unquote, the rules and play by them it is facebook considering how much money they're spending on this issue and third, don't forget,

the zuckerberg in an open letter last week came out and effectively pushed all the onus on the government. he went from saying, no, we can self-regulate to going around doing the mea culpa and now saying, you know what, we cannot regulate ourselves so we'd rather have somebody tell us what to do and we'll be the best in our class to do it right. >> laura, in addition to it being the one year anniversary of zuckerberg going before congress, today, in 2012, facebook bought instagram for a billion bucks, then users, 30 million, users today, more than a billion. is this a crowned jewel for facebook are there more monetization efforts to be made around this specific platform and if so, how are you pricing that into your rating on the stock? >> we agree with -- by the way,

this issue isn't going to go away because we're having a presidential election cycle here, so it's a very popular campaign issue to break up these big faangs and we're supportive of that. we would like to see facebook spin-off instagram and what's app. we would -- investors would prefer to buy pure plays in each of these things. instagram wouldn't lose that much being stand alone compared to facebook because of its scale now. we think all these individual pieces be run better if they had more wall street investor accountability rather than being buried in a conglomerate where facebook.com can cover a lot of their cash flow needs if they make mistakes. >> laura, have you done some of the parts on any of this, what instagram would trade for versus a core facebook? >> no, we've done in on google. we think it would double the stock price on google. we haven't on instagram because mark is saying he's going to marry it with what's app and messenger. he's actually talking about in a way of splitting the two companies internally in half and

maybe he'll spin them off as two separate pieces tied to messenger and what's app. >> all right. laura, youssef, thank you. facebook shares up another 2%. >> thank you. sticking with facebook, kayla tausche is in washington with more on a bill being introduced today that hopes to rein in social media companies. >> it takes direct aim at large tech companies in the way they send invasive prompts for users to accept terms that are more favorable to the companies. it's called dark patterns. when facebook messenger forces user to upload their phone contacts before being able to use the service. this bill would create a new regulator at the federal trade commission models after finra that would establish best practices as products evolve. it's just one small piece of the regulatory landscape where

lawmakers are looking the ways to scrutinize content. progress has been elusive since mark zuckerberg began that apology tour in washington after the cambridge analytica scandal. tech companies are now spending record amounts to influence this fourth coming legislation. facebook and google spent $35 million on lobbying in 2018. that's a roughly 15% jump from the prior year and twitter's lobbying spent in that time frame doubled. those figures may pale in comparison to multi-billion dollar fines depending on how ongoing investigations at executive agencies turn out. guys >> how effective is big techs lobbying operation out there i remember 15 years ago they hardly had any one out there, the older tech companies, the telcos had a big operation but

silicon valley stayed away. >> i think one thing they're benefiting from, jon, is fastime with lawmakers themselves. the ceo of google was here, he met with senator warner and i'm told they discussed this exact bill. the one thing they're also benefiting from is the graying nature of the senate which is leading the effort on regulation much of this is an educational push because they have an opportunity to actually teach a lot of these lawmakers about how their platforms even work. they don't have that issue on the house side which is becoming younger, but certainly they have an advantage where maybe banks didn't have that advantage just a decade ago during the financial crisis when regulation was coming to the floor there. >> all right. kayla tausche, thank you. and later, do not miss kayla's interview with vice chair mark warner and catch that live at 2:30 p.m. eastern on "power lunch."

i'm scott walker. here's what we're working on. so goes apple, so goes the market. stocks working on a 10-day winning streak, is the rally in good shape plus bank ceos about to get a grilling on the hill. we'll tell you what that's all about. whether the earnings this week will be a whimper or a reason to buy those stocks. >> we have a two fer on unusual

activities. carl deal do all that in about ten minutes. see you then. we are meantime getting an alert on uber. >> a new lawsuit alleges that uber didn't do enough a lawsuit' do enough to warn women about fake uber drivers in l.a it's being brought by three of nine individuals that allege they were sexually assaulted by these drivers. this also comes about a week after a university of south carolina student was kidnapped and killed after getting into a vehicle she mistakenly thought was the uber that she ordered. according to this lawsuit, uber was warned by law enforcement on at least five occasions of assaults in a section of l.a. where there are a bunch of popular nightclubs now, uber says it can't comment on the complaint but it does say that it's been working with local law enforcement, including the lapd to educate the public on how to avoid fake drivers for years. now, the bigger picture here, carl, this is a reminder that

uber has a long list of legal woes ahead of its ipo, even though they've taken a more conciliatory approach but there are issues that investors will have to consider and grapple with ahead of the ipo. >> feels like it's going to embolden those who argue that the best case for these ride sharing companies involves autonomous because whether it's driver safety it's a big liability in the shorter term. >> and a lot of uncertainties there, right that's still not an open-shut case that we're ever going to get there, that it's going to be perfect and if that's what you're resting your case for eventual profitability on, it's a big if >> deirdre, this breaks my heart to hear stories like this. it's really, really bothersome i know uber's been installing much tighter security measures for its own drivers and the processes they go through to get behind the wheel and pick up passengers but in terms of what

they could do in terms of outreach or education where fake drivers are concerned, what is possible >> so, uber has said that they have been taking measures to educate people on how to identify fake drivers. the issue here, and what this case is claiming, is that uber isn't doing enough now, the company, if you ask them, they will say that they have been putting measures in place, they had a campaign that started in 2017, and if you notice this is happening in areas of l.a. where there's a lot of nightclubs, so in some cases, it's people who have had too much to drink that aren't checking the license plate with the app and the driver with what they're seeing in the app, but this is a huge issue for the company and not just uber alone, too. lyft as well uber just happens to be spread out a lot more globally. >> thank you when we return, coming off a record close monday, can the sector's hot streak continue we'll tell you after the break -i call it my comfortable future plan.

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oh, way back in the fall of 2013, cowboy ventures founder aileen lee coined the term unicorn, referring to private companies that have a valuation of $1 billion. that label stuck even spurring new terms like decacorn, a company worth at least $10 billion. according to cb insights,

currently there are 335 unicorns in the private markets so in honor of national unicorn day today we're taking a look at some of the bigger names set to go public soon pinterest and uber both qualifying as decacorns as of the last valuation pinterest might have to have one horn shaved off. uber several times over there. another upcoming unicorn debut is slack and the numbers are based on the valuation at the end of each company's last private funding round. of course, you also have lyft and levi's that went public last month and were both valued over $1 billion chip bergh will join us tomorrow as levi's reports its first earnings report as a public company this time around >> in addition to that, tomorrow will have the brexit eu summit, cpi here in the states, ecb, fomc, bank ceos on the hill, and that's all in advance of the earnings parade that begins friday >> tighten your jeans.

>> crazy week continues. indeed intraday, dow has not moved around a whole lot it's been disney and apple that have been outperformed the rest of the components. and then we continue to battle it out around 2880 we'll see if that dynamic changes. i'm scott wapner stocks might be falling but one big name is rising again it is apple, going for a ten-day winning streak, its longest since 2010 is that the most positive sign yet that the rally's momentum is far from fading? it's 12:00 noon and this is "the halftime report. >> announcer: apple's run, up ten straight days, just over 8%. what's it mean for the rest of the market if we suddenly have a two front trade war in europe and china, which stocks will react first? and get ready to rumble. tomorrow, the banking ceos face a brand-new financial serv