good morning welcome to "squawk box" here on cnbc we're live from the max market site in times square i'm andrew ross sorkin, and melissa lee this morning and joe kernan let's see how the market is setting itself up for the morning. futures are pointing higher right now. let's show you dow looks like it would open up 42 points high are. s&p 500 up close to six points higher the nasdaq would open 13 points higher let's show you what's happened overnight in asia. snoo the shanghai deposit up let's show you what's going on in europe. european equities across the board are in the green

you're seeing the best picture there is the dax and cac finally, treasury yields, the ten-year right now is hovering just at 2.493. >> time for the squawk planner, and it is a busy one the ecb will announce its latest rate decision at 7:45 a.m. eastern time that will be followed by mario draghi news conference it's expected to hold interest rates steady, but could take measures to ease the burden of negative deposit rates on banks. >> 2:00 p.m., we'll get the latest from the minutes of the federal reserve. on the earnings front we are expecting delta earnings results at 7:00 a.m. eastern time, and we will bring you a cnbc exclusive interview with ceo ed bastian. uber reportedly will seek to sell as much as $10 billion worth of its stock in its ipo.

reuters reporting the ride-hailing company will make its ipo registration documents public as soon as tomorrow the company will then kick off its road show on april 29th. uber seeking a valuation between $90 billion and $100 billion that would make it one of the biggest tech ipos in history sources say most uber shares will be sold by the company. the rest by investors looking to cash out uber's ipo coming just weeks after rival lyft's nasdaq debut. shares falling more than 6% since going public manly on profitability concerns. that's an interesting issue. frankly, all of these companies have profitability concerns. both of these companies have said historically for the foreseeable future uber has a wider ranging business

>> uber, lyft, pinterest so many of these companies are -- >> amazon. >> are revenue stories they are revenue growth stories. >> the problem is for uber and for lyft, i mean, they're starting off their life as publicly traded companies without a clear path to profitability. i mean, if they're in this place where they're land-grabbing for market share, and they are subsidyizing every single ride so they're losing money on every single ride, had you do you get to profitability at that point there's no loyalty amongst the drivers. no loyalty amongst consumers >> the question is how does this look different to amazon >> it sold off everybody couldn't believe it. then it's all the way back to 75 above, and then monday it's down about four, and now i saw 67 we're back down well under water. the profit concerns, nothing has changed. >> the trading has becomemore

efficient because now shares can be sold short because shares were delivered also, there are options that started trading last week. zroo they don't get paid enough. he said white house lawyers have been in touch with his department about a congressional request for president trump's tax returns, but he hadn't spoken to them about how it's being handled. he said he planned to follow the law. now, his second hearing didn't end so well. he got into an argument with committee chair maxine waters over whether he could leave for a meeting.

>> instead of having the press conference continue with members that have been waiting i thought i originally heard was 5:30 rather than 5:15. is it possible you could give us another 15 minutes to get to -- >> i have a foreign leader waiting in my office at 5:30, okay i agreed to stay longer. it will be embarrassing if i keep this person waiting for a long period of time. i wasn't going to have a press conference i was going to have a short press gaggle i'm not going to do that i'm happy to come back here and answer more of your questions. i respect the committee, skps we want to have a good working relationship with you. i hope you'll understand i'm already going to be late if you would wish to keep me here so i don't have my important meeting and continue to grill me, then we can do that i will cancel my meeting, and i will not be back here. i will be very clear if that's the way you would like to have this relationship. >> thank you the gentlemen, the secretary has agreed stay to hear all of the rest of the members. please cancel your meeting, and

respect our time >> i -- >> who is next on the list >> my foreign meeting -- you're instructing many he to stay here, and i should cancel -- >> no, you just made me an offer. >> i didn't make you an offer. >> you made me an offer that i accepted >> i did not make you an offer let's be clear you're instructoring me -- you are ordering me to stay here >> no, i'm not ordering you. i'm responding i said you may leave any time you want you said, okay if that's what you want to do, i'll cancel my appointment and i'll stay here so i'm responding to your request. if that's what you want to do. >> that's not what i want to do. what i told you was i thought it was respectful that you let me leave at 5:15. >> you are free to leave any time you want. i may go any time you want. >> please dismiss everybody. i believe you are supposed to take the gavel and bang it >> please do not instruct me as to how i'm to conduct this committee. >> shortly after that secretary mnuchin was advised by a member of his staff that he was not

required to stay, and he left. secretary mnuchin will be on the exchange with kelly today at 1:30 p.m. eastern for an exclusive interview. almost sounded g-1-like. i made you an offer that you couldn't refuse. it almost started to soubd like -- >> i don't know if she appreciated the other side of that offer, though where are the other side was i'll stay, and i will never come back. >> everybody has to go back from 1815 to get to where john -- >> they said 1850. >> who was the senator who literally pulled out a gun of a session? >> in the 19th century at some point.

>> get something for us. three minutes of just bickering. three minutes of beckering >> it's riveting >> it was. >> it says something about where we are right now >> it does thank god that never happens here onthis set between anybody. >> i think it is glad you're here >> i'm glad i'm here too >> you don't mind absorbing it from both sides and translating and then telling him what i said it's okay. >> come on no comment >> you have five crazy testosterone fueled guys

>> that's true i'm used to it the buffering. >> airline is holding an all hands meeting in new york according to an inindividualation obtained by cnbc jetblue could add flights to london and other european cities from new york and boston hubs. the company declined confirm today's meeting. >> coming up, saudi aramco's international bond drawing a record breaking $100 million that's interesting the way that you see -- there it is they got it quickly. i'm happy to be stuck with you investors draw a line under the khashoggi plan i guess they meant that -- >> even those oversubscribed and there's $80 billion -- >> they went over the line >> i think they meant that this is different this is a bond offering. there could be a game changer

for a potential aramcoipo. there's a look at the biggest premarket winners and losers in the dow. happy to be stuck with everyone here so with xfinity mobile

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today.

saudi aramco he's first international bond drawing in record-breaking $100 billion in orders brian sullivan joins us now with more on that story we were talking about the front page of the financial times this morning, brian, where it said effectively that investors are drawing a line on this offering. we were under it we were discussing what that really means >> it means that the market is going to look past some of the other issues jamal tosh the main one, obviously. >> to be clear that doesn't mean they're selling $100 billion in

bonds. it simply money that they could possibly sell $100 billion in bonds because that's how much quarter interest there is. they're only going to sell $12 billion worth of bonds to what do you attribute all of this demand, and he really said it's because the company wasn't really known that much before. >> i think the bond has concerned the true valley of aramco it hasn't been very well known, and the prospectus that came out with the bond, i think, has shown very clearly that it has exceptional financials i think they came to realize that this was an opportunity that they should jump on to, and that's why you had such a large

subscription >> you are over there. you looked at the company felly, but this is the first time the world has really looked at the books, and the 86-year history of aramco, saudi aramco. it's the first time we've gotten an idea of the numbers i think that $111 billion profit figure just blew everybody's minds. that's why you see this incredible interest. >> brian, there's two schoolings of thought, though, on what this offering means one is that this is a great, enthusiastic sign as a precursor to this ipo, this exotic ipo we talked about it for so long there are others that say, look, if they can actually raise $100 billion through a loan like this, they may just do this, and maybe a couple more over the years, and there may never be an ipo. where do you -- >> i'll lean towards one, and i'll tell you why. saudi arabia also, andrew, as you know, is trying to build out itself as a financial center the saudi arabia exchange. this would be the preeminent listing on their own market. measure up?

a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org

i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement. plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪ ifor another 150 years. the fire going ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature.

♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪ investment opportunities beyfirsthand, like biotech.ne because your investments deserve the full story. t. rowe price invest with confidence.

sniefrmts welcome back a new report from the financial times says at&t has discussed selling its hbo europe business in an effort to reduce a debt pile-on. hbo europe has contact in spain, scandinavia, and much more of eastern europe comcast owns sky, as mentioned, as an obvious buyer. sky distributes hbo content to the u.k., germany, and italy, and either network has commented on the comcast the parent company of cnbc

hbo and the hbo europe pieces have been complicated because hbo europe takes on other shows beyo beyond strictly hbo shows. it also then creates even more challenges, i would imagine, to not have that piece if you are trying to build your business around this content. if you are building content for the whole platform and then you have to sell off some of it to comcast on the other side. i don't know it's interesting remember, wynn is going to acquire it you can see it jumped off yesterday and then backed out. wynn walked away after the

details of the offer became public through a leak to an australian newspaper levi strauss swung to a profit in the first quarter the first set of results since it went public last month. revenue rose 7% on strong growth at its retail stores, and its on-line business levi ceo chipburg will be on squawk alley today for an exclusive interview at 11:00 a.m. eastern >> this is interesting, though, because they had mentioned china. that's a market that's largely undertapped. a strong percentage of sales and 20% of the global apparel market that did well. also, even sales through wholesalers did well despite all the store closures we've seen across a lot of its partners this is really being seen as sort of the example in the ipo market one that went public.

>> we have earnings, economic data on tap. central bank news. all on the docket as we head to a break. take a look at yesterday's s&p 50000 winners and losers itching for a treat.

itching for an outing... or itching for some cuddle time. but you may not know when he's itching for help... licking for help... or rubbing for help. if your dog does these frequently. they may be signs of an allergic skin condition that needs treatment. don't wait. talk to your veterinarian and learn more at itchingforhelp.com.

welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back to "squawk box" here on cnbc take a look at u.s. equity futures ahead of the open. we are now about three hours away the dow looks like it would open about 43 points higher the nasdaq open higher as well at 14 points high wresh the s&p

500 a little over six points a couple of big stories to tell you about. probably the biggest right now a lot of investors going to be focused on this for the next couple of weeks. uber apparently plan to sell around $10 billion worth of stock in its ipo the ride sharer will make a registration document public on thursday that's according to people familiar with the matter an ipo this big would make uber one of the biggest tech ipos of all time the largest since alibaba. uber seeking a valuation between $90 billion and $100 billion that range reportedly influenced by the poor performance of lyft since its ipo last month lyft at 67.40. 72 dollars of the ipo price. it went up as high as 89 >> the fist day. >> first day this then came down again. >> imagine for uber, it had been valued potentially at $120 billion. there are some rationality supposedly seeping into this mark.

>> zoom is a little different, but sort of how people are thinking about it is very interesting. >> also, let's talk about this one. we all like jetblue, right are you a jetblue guy? you're not because -- >> you're a private guy. >> well, no, it doesn't go where i'm going. >> if i'm going to california, i'm trying to do something i'm trying to do something to sit in the front whatever it is whether it's miles >> i see >> my credit card all -- anything that's spent goes for miles. just to try to get -- it's all

about trying to get the upgrade, right? >> you can't -- we've talked about this >> i know we have. >> used to be you could buy a coach seat and use the miles to upgrade. now it's -- you got to either go the whole thing or nothing >> in florida you can usually you can go united on one of those little ones, and there is no front, so you don't have any fun. >> you might have some fomo on this jetblue has some new roots coming up on-line. about a new york to london route. i think it would be very interesting to see and whether that would actually. again, i don't know what kind of -- what sfgs levelled they'll have to do a mint service across it. maybe across the water you look at that stock

>> if you have an opportunity to try mint, if you get -- if you are lucky enough to get in the front of the plane, it's a good place to be. yeah >> oh, let's see if we can -- are these things really working? they're calling it a what's working series counting on you and tyler here it continues today spotlight on sector that is can make you money joining us now, mandy, chief equity derivativing and michael tyler chief investment officer at wealth management both of you have some similar vows on emerging markets in china which we'll get to i want to start with this, manny, because i like it >> it's not -- with all these moves since the beginning of the year, it's not embraced. >> no. i think the temptation is to

stay with s&p almost back to its all-time highs that investors have gotten back into the market, and that's absolutely not what we're seeing. among institutional investors, particularly hedge funds, we're actually seeing people add to shorts rather than longs, in this market, and everall levels of growth exposure is far below away we saw at the peak last year, right? you can see in terms of hedge fund returns, average return it year up 6% to 7% with s&p double that there's still cash on the sidelines, and there's still room to go on the upside, i think. >> people lowered their s&p targets. all the people that were at 29.50 went to 27.50, and now they're caught at 27.50.

how do you interpret that? >> that's a great question one of the things that we noticed is there hasn't been that demand protection this year, and i think one interpretation is people are very complacent. i think it's more a factor they haven't added to exposure. they haven't added to their stock exposures. therefore, they don't have the need to hedge. until we see that growth exposure level really going up, we expect still fairly muted dough mann demand for protection. >> michael, you want to -- you take us to emerging markets in china, and then mandy can chime in i think she's also bullish.

that would have also hurt emerging markets now look what happened in just the last couple of months. the fed pivots to a more dovish tone that's great for emerging markets. the latest news out of china, manufacturing numbers, and so on, are all looking like they're beginning to turn it around and begin to reaccelerate a little bit, and, of course, if we get a trade deal with china, that's a big plus as well all of that says that china is working right now. china also msci has made china a larger portion of its emerging markets indexes. that's driving the entire emerging market space. i think that that still has some room to run. >> how close are the meerjing markets to recouping what they lost last -- at the end of last year >> i think they're not quite there, but they're getting pretty close that's why i think they still have some good room to run they can take out the highs from last year and continue going the value wags are quite reasonable >> do you agree? >> yes we're constructive

i think what's interesting from the opgs market rg all the flow has been on the bullish side, and not just that. we're seeing outsized option activity one of the things we want to highlight is if you are looking at a-share etf, and that tracks the chinese domestic market, we're seeing about 7 times the usual volumes this year versus last year. more importantly, it's on the call side. we're seeing calls trade more expensive than puts. that's very rare for equity indexes. >> in terms of fixed income exposur exposure, are you become to treasuries away from corporate -- because spreads have collapsed does that mean that recession fears are going away >> comes back to what mandy said there is complace ensy in the market, and that's in fixed

income too where the fixed income market is telling us that although they expect the fed to cut rates, which i don't believe, by the way, they also think the economy is strong enough that there's really not a lot of risk in corporate credit. as a result, spreads are tight, and we're not being paid to take risks. if i'm not being paid to take corporate risk, i'm going to shift some of my exposure to treasuries whe treasuries >> mandy, what derivatives do you have for fixed income? >> not fixed income, but tying with credit spreads back to the tight. what's interesting is within small cap exquits, they've really trailed this rally, right? >> in correction territory right now. >> exactly >> i think they're down. they're lagging the s&p about over 10% we actually were looking at up side in iwm, russell 2000 index as a function of lower rates and credit spreads tight eening and overall improvement. >> not as bullish on the s&p do we not hit it and stay there or what?

>> we may touch it or go past it, but i think by the time the year is out, i'll be happy with if we get to around 2,950 or so. one of the key things is that guidance at the end of the fourth quarter, january time, the fourth quarter earnings report were really muted, and a lot of people are now expecting that we're going to see much better guidance coming out of the first quarter earnings, which, of course, start on friday and continue through the next few weeks if it turns out that way, i'll be thrilled, and then i can raise my target. for right now i have to be more cautious >> you think we have a down quarter in the first quarter with overall s&p earnings, michael? >> we could. it's going to be pretty close to zero a couple of percent either way coming from 25% on the up side in the third quarter of last year, and i think 14% in the fourth quarter last year, that's a really fast slowdown what we can hope is that that's a function of slowing economy which we saw the government shutdown certainly had an

affect, and maybe by the time we get to the second quarter, we're starting to see the more macro numbers picking up we should see a pickup in earnings the rest of the year. >> we're getting upgraded. pulte homes and kb homes from an underperform you like xhb, and you are saying a risk reversal. >> there's a down side priced into the sector. therer they're trading at high premium relative to call if you are constructive on the sector, selling puts to buy calls, it looks to be an attractive trade in derivatives market now >> michael, do you like home builders or housing market in general given interest rates and where they are >> yeah, i do. rates have come down that's really -- some mortgage rates are down that's really helped we're back well below five at this point we are looking more at some of the sectary plays like the home depot type stores and as well as some of the distributors as i think a slightly better way, but, sure, the home builders, i would agree, do look attractive.

>> all right thank you. thank you both michael tyler, mandy you came and you gave without taking now i'm going to send you away now. >> good to be here >> anyway, thank you >> coming up, dimon, morgan, solomon. the country's top bankers on the hot seat on capitol hill in front of the house financial services committee we'll get you ready for the capitol hill grill with the ceo of the financial services forum, kevin frommer, the ranking member of today's hearing, patrick mchenry, and mike mayo, the if irs to testify in the aftermath of the financial crisis you're watching "squawk box" on cnbc ♪ hoo!

- travel is supposed to be stress-free but if you don't book your must-dos in advance (horn blasts) things might be a little rougher. that's why tripadvisor makes it easy to book over 100,000 tours, attractions and experiences ahead of time. so whether you're headed to the city of love, or the city that never sleeps, you can be sure that you'll never miss out on can't miss adventures! ♪ hoo! read reviews, check hotel prices, book things to do, tripadvisor.

the "squawk box" up 46 poins. the nasdaq has indicated up 15 s&p looks like it could be back on the winning track today after its eight-day winning streak was broken yesterday up again this morning. the nation's top bank ceos

lady to washington d.c. today. they will testify on how each has adapted since the financial crisis that hearing expected to kick off at 9:00 a.m. eastern today we will have full coverage throughout the day right here on cnbc this one should be interesting it's the first time in ten years. >> i think it's going to be a true bipartisan grilling i think you're going to see -- i mean, clearly on the democratic side, i don't know if you are about to be getting the kind of questions that tim sloan received from aoc, but i think they're going to be -- >> jaime is there. >> jaime is going to be fielding questions from aoc are we taking this did -- >> i can't wait for that to happen >> maxine waters is going to ask questions. i think on the rrn side, by the way, there are going to be questions, too including and i would be very interested to see if the questions are asked of people like mike corbat and mike moynihan on the issue of guns and other issues like that

i think you're going to see it literally -- >> why you do think? just because you've written about it, you think there's going to be questions about it >> i know that's on the list of things that you're going to be hearing. >> so they're giving accepting credit card purchases for guns you want the banks not to do that >> how many banks -- some banks have already said we're not going to do it, right? >> bank of america and citigroup were the first really to step out and say we are not going to finance -- >> finance >> we're not going to finance gun manufacturers. >> what will the police use? they're not going to make any -- if they don't get financing for smith & wesson, i don't know what do police carry now it's okay that they carry them, right? >> yes, but i think the issue has always been -- the issue -- you are mixing the issue the issue is are those same companies -- >> i apologize i apologize. how about let's talk about -- >> i'm curious >> do you want to go on to pro-choice pro-life after this

this is not our -- >> i'm asking the question let me ask -- let me just say two things on the topic. one is the issue isn't arming police officers. the issue is what type of responsible controls can be put on retailers via the manufacturers? what kind of technology they can put on the guns and things that historically they skrnt pursued, and what's happening is there are companies out there, clug some banks, that are trying to be responsible about this to put some pressure on them to actually try to be more responsible than the sales of these things >> do you want to pass any laws? would that be a better way, right? >> 100%. >> but you can't do that, so you want to pressure the banks >> at a time when we talked about how there's a vacuum of leadership in washington -- >> the leadership that wants to do what you want to do. >> well, joseph -- >> i'm getting him he called me joseph. i'm getting him going. so they have the wrong opinions, and they're in leadership opinions that's -- they're in leadership roles. that's horrible. >> you should be in washington

grilling the ceos who made these decisions. >> okay. >> by the way, they have received a lot of accolades in addition to the critique that they're going to get today, but thief received a lot of accolades from customers and employees. >> people love this college skanlds. >> then just one last piece. i have never said that and have never advocated that credit cards should be eliminated to buy guns what i suggested is that you could use credit cards to track -- >> the purchase. >> -- bad -- bad actors using guns, and, by the way, we use our banking system today, for example, to track sales of human trafficking. if you believe that's a good thing, you think it's a bad thing? maybe we should -- >> i don't know whether i -- he is conflating human trafficking with legal gun owners? >> i find that this topic is very interesting, and i think that it's interesting that this will come up i think more broadly, more broadly, people would be looking for questions about regulation and should we continue to

deregulate the banks and will that be on the plus side for the bairng banks? >> that's better that's better. you could just get rid of that thing that the idiot constitutional founders decided. just get rid of that and -- i would just do it if you want to do it, just do it >> that's not what we're trying to do. >> confiscate them throw them in a big steamer, melt them all. >> it's alive and well at this table. >> let's tell you about another story that joe did say people like this story. they really do it's a sad story in some ways, though actress laurie loughlin and her husband are facing new charges in the college admissions scandal. a new siting indict charging them with money laundering in addition to conspiring to commit fraud. that comes a a daf actress fell iflt huffman and 12 others agreed plead guilty. this whole case is getting

stepped up the question, of course, is when you add money laundering on top, what kind of prison sentence you're talking about >> it should be stepped up >> significant >> it should be stepped up, i think. >> how long would you put the parents in prison for? >> that i don't know i do think that there should be time served. i think students should be expelled and credits should be annulled i think there should be some severe punishment. coming up, we have a lot more on "squawk. disney expected to unveil specifics of its streaming service today. how nervous should netflix be? we'll break that down as we head to a break and what's happening in european markets right now. at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem

& the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of this baby yeah, that procedure seems right. & that one too. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when your patient's tests come back... your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

you need decision tech. oh, wow. you two are going to have such a great trip. yeah, have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan, invest and protect kind of help... sorry, little paws, so. but have fun! send a postcard! voya. helping you to and through retirement.

another big analyst callout this morning on shares of disney bmo upgrading and raising the price target to $140, just a day after up a grades from cowen and most of the nathanson. bmo likes the plan for theme parks and the streaming service disney plus. meantime, disney is holding an investor day tomorrow, expecting to reveal details of its streaming platform let's bring in mark mahaney who covers netflix among other stocks mark, great to have you with us. >> good morning, melissa. >> i want to get a sense of how worried you are about disney's dtc product. in a year, will you be more worried about disney's dtc product or fortnight, which has competed against netflix for

eyeballs >> yeah, actually, melissa, you're making a big point, which is there is a lot of competition for netflix, anything that takes away from entertainment dollars and time would be a competition for netflix. i think disney is a legitimate competitor to netflix. i'm really curious about how they package this offering, what price points they put out there. my guess is, in order to really be competitive with netflix, they probably need to come in somewhere in that $ 8 to $10 a month range, but we'll see it will also depend how well it's packaged and marketed, but with disney you would expect a good offering. there are two key points you are seeing the unbundling of the cable tv bundle, so you're starting to see an accelerating decline in paid tv subscribers, and people are switching over to these a la carte services, and our survey work suggests that 60% of u.s. consumers would be willing to pay for at least two streaming services so our strong guess is that netflix is going to be one of them so to answer directly to your question, no, i don't think that the long thesis on netflix

changes just because disney's about to launch a competing service. >> hey, mark, though, there's a lot of confusion about how much detail we get. you saw the apple presentation got people excited to some degree, but we didn't actually get specifics. what do you really expect? >> well, i think the apple, from a netflix perspective, i think the apple presentation was actually pretty disappointing. there weren't a lot of specifics. there wasn't a price point and it was almost like, in software, you'd call that a vaporware event, where you didn't actually have new details on the new shows you had a lot of, obviously, really important actors and directors up on stage, but you didn't get the details that you wanted so it was kind of that kind of announcement i would hope disney would do a better job than apple did. i thought apple was disappointing. >> i want to ask you about how reed hastings addressed competition coming you pointed this out in one of your notes, but on the last conference call, he said in the u.s. as an example, there's a billion hours of tv content being consumed daily

right now we're winning 10% of it so, you know, the takeaway there is that there's still a lot of tv hours out there for other people to win, like a disney, but you did say just now that $8 to $10 in a bundle would be very competitive. would that actually take away from netflix i mean, how are we viewing that billion hours of content in the overlap of that content between netflix and a disney >> let me try two things first is that i think there are about a billion paid cable tv subs worldwide and a number of paid streaming subs worldwide. there's probably in the 200 to 250 million range. somewhere in that range. and our guess is that those two numbers are going to meet over time you're going to have the paid cable tv sub numbers declining or stagnant and the streaming subs are going to rise it's one of the reasons why i think you could still get a double or a triple in the total number of netflix subs worldwide. they've got about 150 million today. we think that goes to 300 million within three to five years. so, one, think about that as the opportunity.

then in terms of hours, you're well over two hours per a netflix sub per month -- sorry, that's on, almost on a daily basis. i think that can continue to rise, but modestly from here. >> hey, mark, very, very quickly because we have to run what do you think the total number in the united states, the average american family will spend on all these services combined -- the bundle, unbundled, exclusive takeout, the actual broadband piece because i think people are wondering how many of these services can actually make it. >> shoot, that's a damn good question and my guess is you're doing like -- you're doing something like 50 to 100 bucks a month or something like that, all in entertainment spend. my guess is that number's probably a little higher, but something in that range. netflix would take about $15 of those from you. >> fair enough okay. >> mark, thank you mark mahaney of rbc. >> thank you, melissa. quickly on shares of disney, we did see that ramp up. we mentioned the upgrades in recent days, but look at the stock over the past two years. the stock over the past two years has done almost nothing.

yes, it's traded up and down in terms of ranges, but $116 versus where we are today, $117 >> we commented on it when everyone was saying, look, when it's at $150, the murdoch family will have this, you know, it will be worth that much more when it's $150, and it was asking -- how do you know it's going to $150? why don't you mortgage your house and put it up -- and it's gone nowhere. coming up, we're getting delta air lines' first-quarter results at the top of the hour stock, top-performing u.s. airline stock, plus eluveanxcsi interview with delta ceo edward bastian, coming your way next. even better? when you prepare for retirement with pacific life, you can create a lifelong income... so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today.

whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus

containing this information. read it carefully. when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility.

emerson. consider it solved. ceos of the nation's largest banks headed to capitol hill we're going to speak to the ceo of the financial services forum about the state of the bank industry ten years after the financial crisis the sorry parade one year later. >> it was my mistake, and i'm sorry. >> i am so sorry. >> and i'm sorry for it. >> where facebook and tech names stand as possible regulation looms. plus, the squawkward moment brought to you by -- >> take all the time you want -- >> please dismiss everybody. i believe you're supposed to take the gavel and bang it -- >> please don't instruct me as

to how i'm supposed to conduct this committee. >> the treasury secretary and maxine waters get into a heated exchange highlights straight ahead as the second hour of "squawk box" begins right now ♪ this magic moment ♪ so different and so new ♪ it's like any other >> announcer: live from the beating heart of business, new york, this is "squawk box. good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with melissa lee this morning and joe kernen take a look at u.s. equity futures this hour. we are in the green as we're just about 2 1/2 hours away from the market open. looks like the dow would open up about 65 points higher, nasdaq up about 17 points and the s&p 500 would open up about eight points higher. joe? here's what's making headlines at this hour uber is planning to sell about $10 billion worth of its stock in that upcoming initial public offering it will make its plans public tomorrow this is from a reuters report.

uber is said to be seeking an overall valuation of between $90 and $100 billion the federal reserve will release the minutes of its march meeting at 2:00 p.m. eastern the central bank left interest rates unchanged at that meeting. fomc members reducing their forecasts of how many rate hikes there may be in the rest of this year and the government will be out with the march consumer price index in less than 90 minutes. economists are looking for a rise of 0.3% in the headline, inflation, with ex-food and energy rising by 0.2%. delta air lines just out with quarterly results want to get straight to phil lebeau with all the numbers and a very special guest phil >> reporter: hi, melissa they have released their numbers. and remember, they did guidance last week raising their guidance for the first quarter. delta earning 96 cents a share, 6 cents better than the consensus at 90 cents a share. revenue also coming in better than expected at $2.47 billion

a couple key metrics people will be focused on -- operating margin of 9.9%, up 1.2 points in that regard, year over year. and then the profit margin 8%. so when you look at the pretax margin, i should say, of 8%, and total revenue per available seat mile -- that's the key metric within the airline industry -- up 2.4%. let me bring in ed bastian, ceo of delta thank you for having us out here today. and we'll talk more about why we're here in your engine maintenance facility, but let's talk first about the first quarter. i think a lot of people looked at the airlines, including you guys, and were worried about a month ago. what have you seen in the first quarter? >> well, our first quarter was a great start to the year, and thanks for coming down to our newest member of the family here, our engine test sale facility demand was really strong top-line growth of 7.5% in the quarter, our highest revenues in the march quarter in our history. as you know, march is typically our seasonally weakest quarter, so we feel really good about that

costs are in great shape our unit costs were down a little bit on a year-over-year basis. the company ran a great operation. our people did an amazing job through a difficult winter season we had the best operational performance for the winter season in our history, and customer satisfaction scores hit all-time highs and that promoter score of over 50 throughout the winter you put that all together, it's what you said -- our margins expanded ours earnings per share were up 28% in the quarter, which we think from an s&p 500 business should put us in the top 10%. >> reporter: there's still a lot of hand wringing, generally speaking, that we are in an economy that while it is strong, there is weakness on the horizon. in the second quarter, your guidance is out. you're looking for revenue to be up 6% to 8%. are you noticing any of that weakness so far? >> part of our strength is our brand, no question about it. we have brand preference in the industry, and that brand is growing. the strength of that business is coming largely from the corporates, our corporate demand in the first quarter was up -- >> reporter: up double digits. >> -- 10% in the first quarter

second quarter we expect that to continue to be strong. we run a great operation we have a great product and service, and customers are responding. >> reporter: i want to quickly shift gears to the 737 max you do not have any in your fleet. >> we do not. >> reporter: so you haven't been directly impacted in that regard and it's only about 1% of all the fleet in the united states, but it brings up the question, as your competitors have to adjust their schedule at all, is there any opportunity for you to pick up some share, so to speak, in certain markets, or is it so small that it's really hard to say that, you know, certain competitors won't be able to do as much in certain routes? >> it's very, very small in terms of impact, as you said, to market share and listen, our hearts go out to all those that are impacted. this is not something that we want to compete around i'm confident boeing will get to the right answer with respect to the fix, and we're all cheering for them, hoping that they get that product back in the skies as quickly as possible. >> reporter: does it change your outlook on potentially being a customer for that middle-market airplane that they're talking about, announcing at some point

maybe later this year, and then ultimately having up and built maybe 2023-2025 range? >> not at all. we have the ultimate confidence in boeing. they're a great partner. we operate -- our largest fleet provider is boeing in delta, and not just in delta, but many of our partners around the world, and i know we'll get to the right answer here. >> reporter: you started flying the a-220 from airbus at the end of january, beginning of february has it delivered what you expected in terms of operationally giving you some of that flexibility, yet a differentiating aircraft >> well, it's our newest product that we've got in the skies, the airbus 220 it's a domestic product. i think it will be the nicest domestic seat in the sky as well, and we encourage as many people to fly it we started it up in the northeast -- >> reporter: you've got a lot more elbow room. >> we have 90 of those coming, a more spacious cabin. there are clearly teething pains. we have only ten in operation, so we're learning the tweaks so our operational performance is maybe a notch or two below where we will ultimately be, but

customers love it, they're raving about it, and i encourage everyone who gets a chance to try it, fly it. >> reporter: and melissa has a question for you melissa? >> i want to go back to the midrange aircraft that boeing's expected out to be named the 797. if it gets to a point, ed, where because of delays in the 737 max and the back log of production there, the 797 gets pushed out, could you then opt to go with airbus to replace the midrange, aging aircraft that you have in your fleet >> well, that's going to be the big question for us for the next decade, because we have about 200 aircraft between our 757s and 767s that will need to be retired. airbus with the 330 as well as the 350 are providing us some great international wide-body lift at the moment again, i'm confident boeing will work through this issue, and we're hoping to be launch customer on the end of may or the 797 as it's been termed, but we'll stay close to boeing and see how they progress. >> is there a make or break time

frame? if boeing said, we're looking at a one or two-year delay to the 797 midrange, you know, is there a time frame at which you'd say i've got to go with airbus at this point, we've got to replace those jets >> i think it's too early to speculate, melissa we'll see how they do. and clearly, if it takes -- if it's outside our window, then it's going to be a challenge for us, but we're hopeful that that's not going to be the case. >> ed, one of the other questions that a lot of people have when they're looking at the market right now is capacity you're increasing your capacity, what, 4% to 5%, i believe, in thesecond quarter. >> right. >> reporter: and later today jetblue's going to be announcing what we believe is going to be the beginning of flights over to europe, likely out of boston, maybe out of new york as well. how is that international, specifically transatlantic, market looking as you see some of that increased capacity coming on, let's say over the next year? >> well, while we had a very strong first quarter, i'd say the transatlantic was the part of our system that was choppy for the winter period. there was a lot of capacity in

the transatlantic for this past winter you know, the spring period looks good, though the summer looks good, particularly in the transatlantic. it's a very seasonal market, you know, strong summer demand, very weak winter demand so again, i think when we look at delta for this current year, our transatlantic's going to be fine and we'll see what our competitors do. >> reporter: i want to quickly ask you about the engine maintenance facility, the reason that we're here. this brings in your mro business brings in about $1 billion in revenue, and it's not just delta planes that you guys are servicing. it's some of the competitors as well is this part of what you're looking to do with delta in terms of, look, it just can't be are people flying or not flying -- it has to be this -- american express, the relationship on the credit card and other ways of diversifying the revenue stream >> well, that's absolutely the case one of the reasons why we had the strong first-quarter revenues that we had is all of our other businesses, our mro, premier express new renew

contract renewal, work we're doing in other parts of le leveraging our strengths in terms of our system is in the base here. we are in our newest member of our family, the engine test cell facility, the biggest ever built anywhere in the world, first one in north america in 25 years it cannot only test engines at the highest thrust capable in the industry today, it can test engines that haven't even been designed for the future. so this is going to give us decades of performance it's going to give us an opportunity to double the size of our mro the mro that you mentioned that delta operates is the largest in north america. we're going to double that to about $2 billion over the next five years and by the way, also a big shout-out to american express. we're thrilled with the new relationship -- >> reporter: just renewed that relationship. >> it's another source of diversifying our revenue strength today we get about $3.5 billion of revenue from amex. our most important commercial partner, as we are theirs. the new deal's going to double that to $7 billion by 2023 so, another vote of confidence in the brand and the strength of

the business, and that's why we're able to sustain, despite some of the macro headwinds you talk about in terms of some choppiness on the economic outlook. these various businesses have different revenue streams and different economic forces that tend to be much more durable and resilient for us. >> reporter: andrew has a question for you andrew >> i just wanted to ask you. we had the head of one of the maintenance unions on the program a couple weeks ago after the terrible tragedy with the 737 max. and one of the issues that came up completely independent of that is that so many of these airplanes are maintained outside of the united states and what he was suggesting to us on the air was that the work being done outside of the united states in terms of maintaining these planes was not up to par and that oftentimes these planes were coming back to the united states, and effectively, american labor was then being used to actually recheck and often fix the fixes that were made elsewhere do you agree with that is that something we should be concerned about? and is that something we should change

>> i don't agree with that at all, andrew. the u.s. aviation system is the safest form of transportation in the world. the faa is right alongside us with respect to our maintenance practices. i don't know specifically what he was referring to. delta, as i mentioned, we operate the largest in the u.s., largest mro business, third-party business, in our industry we have the best mechanics we have over 10,000 amts on our property, and i have no fear for the future of our business when it comes to safety safety is paramount. it's the lifeblood of what we do >> reporter: ed bastian, ceo of delta air lines. today, guys, in their engine maintenance facility and what you don't get to see that i get to see, i get to see the big test facility inside, right? >> absolutely. we get to turn it on. >> reporter: you like that, guys see? get some perks to the job. back to you. >> you could swing by another georgia city while you're down there, phil, right >> reporter: oh, go over to

augusta? >> i'm just saying do you feel -- >> reporter: let me tell you something. >> yeah, go ahead. >> reporter: joe, later i will send you a picture flew in last night, went to the rental car counter, no cars. literally, no cars all empty spaces in there. and it was me and about 50 of my favorite travelers standing around going, i had a reservati reservation. >> i believe it. >> reporter: clearly as seinfeld would say, you can't keep the reservation. that's because of the masters. back to you. >> just, there's a lot of anticipation, i don't know, among, i guess only some people, but it's very exciting starting tomorrow. anyway, thank you, and thank ed. coming up, the nation's top bank ceos heading to the hill today. they're going to testify on how each have adapted since the financial crisis cnbc's going to have coverage all day. and then later, one year after mark zuckerberg's testimony on the hill, what's changed for big tech, and is regulation coming? we will discuss. ayuned you're watching "squawk box" on cnbc the future of technology investing

lies beyond the tech sector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit.

pgim: the global investment management businesses of prudential.

the global investment management [ distant traffic sounds ] [ loud traffic sounds ] [ music replaces the noise ] the new galaxy s10 on xfinity mobile. the phone and network designed to do more. switch and save today, and you get a new galaxy. say "get a galaxy" to learn more. welcome back to "squawk box. the futures right now have actually added to the early premarket gains, up 6,942 on the dow. the nasdaq is indicated up 18 and the s&p back on the winning

side of things after its eight-day streak was broken yesterday. it's up eight points this morning. a few stocks on the move this morning that we're watching bmo upgrading disney to outperform, raising the price target to $140 bmo likes the upcoming star wars theme parks and the new streaming service. this follows call upgrades earlier this week. that stock is up 4% ahead of its investor meeting tomorrow. levi strauss reported quarterly profit of 37 cents a share, revenue $1.44 billion in its first quarterly report since its march initial public offering revenue was up 7% compared to the year-ago quarter we should note, there aren't any comparisons versus con census with no analyst initiations yet. chip bergh will be here for an exclusive interview at 11:00 a.m. major bank ceos heading to capitol hill to update lawmakers on the state of the industry since the financial crisis we have team coverage from washington and we'll be monitoring the events live. also, kevin carfromer,

president and ceo of the financial services forum time for the aflac trivia question the first color 3d film opened on this day in what year the answer whecn'ssqwk x"onnuesbc "ua people know aflac... aflac! ...but not what they do. so we're answering their questions. aflac is auto insurance, right? no. uh uh. is it homeowner's insurance? no... uhuhuhuh! is it duck insurance? nope. ahhh! do they pay me money directly when i get sick or injured? yeah. aflac! you got it. you know aflac! boom! get help with expenses health insurance doesn't cover. get to know us at... aflac dot com.

>> announcer: now the answer to today's aflac trivia question. the first color 3d film opened on this day in what year the answer -- 1953 welcome back to "squawk box. treasury secretary steve mnuchin spent much of yesterday testifying before house lawmakers from two subcommittees and said that white house lawyers had been in touch with his department about a congressional request for president trump's tax returns, but he said that he hadn't spoken to them about how it's being handled. he said he planned to follow the law, the law being historically that congress, by the way, can just demand them his second hearing didn't end well, though he got into an argument with committee chair maxine waters over whether he could leave for a meeting. you've got to watch this

>> if you would, instead of having the press conference continue with those members who have been waiting here so long and i think what i thought i originally heard was 5:30, rather than 5:15 so, is it possible you could give us another 15 minutes to get to these members >> no, i have a foreign leader waiting in my office at 5:30, okay i agreed to stay longer. it will be embarrassing if i keep this person waiting for a long period of time. i wasn't going to have a press conference i was going to have a short press gaggle i'm not going to do that and i have assured you, i'm happy to come back here and answer more of your questions. i respect the committee and we want to have a good working relationship with you, so i hope you'll understand. i'm already going to be late if you'd wish to keep me here so that i don't have my important meeting and continue to grill me, then we can do that. i will cancel my meeting and i will not be back here. i will be very clear if that's the way you'd like to

have this relationship >> thank you the gentleman, the secretary has agreed to stay to hear all of the rest of the members. please cancel your meeting and respect our time >> i am -- >> who is next on the list >> i am canceling my foreign meeting. you're instructing me to stay here and i should cancel -- >> no, you just made me an offer. >> no, i didn't make -- >> you made me an offer that i just accepted. >> i didn't make an offer, let me just be clear you are instructing me, you're ordering me to stay here. >> no, i'm not ordering. i'm responding i said you can leave any time you want and you said, okay, if that's what you want to do, i'll cancel my appointment and i'll stay here so, i'm responding to your request. if that's what you want to do -- >> that's not what i want to do. i told you -- >> what would you like to do >> what i told you was i thought it was respectful that you'd let me leave at 5:15 -- >> you are free to leave any time you want. you may go any time you want. >> then please dismiss everybody. i believe you're supposed to take the gravel and bang it. >> please do not instruct me as

to how i'm supposed to conduct this committee. >> i think there should be a reality show called "steve and maxine." steve and maxine together -- >> hanging out, going to starbucks, arguing over lattes. >> remember when snoop dogg did the reality show with martha stewart? >> right. >> i just think that this could be a fun -- >> was there a reality show? >> but they love each other. there's really -- >> but there might be some love there, underneath it all. >> was there a reality show of martha and -- i didn't see that. >> yes. >> it has to do with cannabis. >> it had to do with cannabis. anyway, we should tell you, shortly after that whole dramatic exchange, secretary mnuchin was advised by a member of his staff that he actually wasn't required to stay, and, well, he just left secretary mnuchin will be on "t" "the exchange" at 1:30 p.m. eastern time for an exclusive interview that hopefully will turn into a little bit of a postmortem on that conversation. seven of the most prominent bank ceos will testify on the hill this morning, in front of

the house financial services committee, where they're going to be grilled, i guess, about regulations and how banking has changed since the financial crisis ten years ago joining us now is kevin fromer, president and ceo of the financial services forum, which is made up of eight ceos from the largest financial institutions kevin, you got everyone ready? everyone got the answers everybody on the same page >> good morning, joe i think it's going to be a hearing and a good opportunity for these ceos to have a great discussion with this committee about the stateof the financia services industry, the state of their own institutions, the big improvements that have occurred since the crisis, and the way that they're serving their customers, the large companies, the small companies, and individual consumers, millions of them around the country so, i think it's going to be a great opportunity to have this discussion to see where we've been and how we're going forward. >> you did send out, i guess, a memo to stakeholders entitled

"big banks help america do big things." looks like "the washington examiner's" the only place that would publish this i guess that's not surprising. >> well, these institutions are responsible for almost half the lending -- consumer lending, commercial and industrial lending -- three-quarters of the capital markets they're underwriting in debt and equity offerings, and they're very significant for the capital markets and for the growth of the economy. and so, those are important issues that the committee should take stock of. and frankly, the lawmakers and regulators and the institutions themselves have helped lead the way towards where we are now, where we have this incredibly strong system. and you need the system and you need these institutions for this economy. >> there was a group -- i'm not sure -- i don't know the group well -- but they sent something out that -- and your response was there was a gross mischaracterization of the character of the nation's largest banks and the health of

the nation's largest banks and in an attempt to politicize a serious hearing. so, what was the gross mischaracterization and how was it mischaracterized? >> so, this particular report described the various types of government support that came forward during the crisis, and it included direct support for institutions as you know, there were around 700 institutions, banks, that took t.a.r.p. funds, for example. all of that was returned those investments came back to the government with a very significant appreciation and profit there were a number of other facilities that were not intended to provide support directly for the banks but actually support the asset classes and the economy as a whole, and those things channeled through the banking system, but it was a mischaracterization to declare that type of assistance and

those particular programs as directly supporting banks. it was more about making sure that this economy was healthy and strong to mitigate financial panic and to minimize damage to the economy at that time. >> kevin, the most recent bank ceo to go in front of the house financial services committee under democratic control was tim sloan, the former ceo of wells fargo. how much is that a blueprint of what bank ceos should and should not do and what they should and should not expect? there was some contentious exchanges between, for instance, sloan and ocasio-cortez. so how much has that been a postmortem ahead of these hearings today >> my view is that you have 60 members of this committee. all have different views, different priorities, and this is an appropriate time for them to bring those views forward, to ask questions of these industry

leaders about the way that they run their institutions and it's very typical. this is a very typical environment. it's really business as usual. i think all of these industry leaders, even though many of them have not testified before, have prepared carefully and have important things to tell these members about the way that they run their institutions and the system, the strength of the system as it is right now. so, i think they will be responsive to constructive questions, and they will answer them to the best of their ability. >> do you think tim sloan made mistakes in that hearing do you think that's what ultimately resulted in his retirement or resignation? >> i think he handled himself extremely well he was composed. he responded to the questions. he gave direct answers i believe his appearance before the committee was quite strong, as a matter of fact. >> so you don't think that that performance ultimately led in

any way to his leaving the company and to this idea that regulators and washington ultimately didn't have confidence in him? >> i think he answered the committee's questions. he spent hours before the committee. he was very polite and he was, you know, he expressed himself very genuinely on behalf of his company and himself. >> do you think we need a nonbank individual to take over for wells fargo? i guess you would not necessarily think -- that was warren buffett's idea, but i think it wasn't impugning bank ceos i think he thought it might be easier to deal with egulators. is that where we are now in the world? >> i would imagine that the board is going to consider a diverse slate of candidates for that position, and that's what i would expect them to do. >> hey, kevin, how are you advising the ceos to speak today on the issue of guns

i know it's an issue that i imagine is going to come up today because of the stances that bank of america and citigroup did take >> explain how, you know, their companies make decisions around the customers that they serve. they do this every single day. they make judgments based on creditworthiness, reputation risk they take into consideration, obviously, the sentiments, the views of all their customers, their employees and other stakeholders that is their responsibility, they and their management. so i would expect that they're just going to articulate how they view their customers and how they address, understand, and serve their customers. >> kevin, you're so diplomatic in describing how the ceos are going to respond to questions. i mean, it's really amazing. we just played a tape of maxine waters sparring with the treasury secretary yesterday you don't think that the environment has changed for

these bank ceos when they go in front of the house financial services committee, which is now controlled by democrats? are we entering for banks a more treacherous period in washington >> i think the commentary around these institutions has to change it needs to change it needs to match the condition of these institutions. it needs to match the condition of this financial system, which is extremely strong. don't take it from me. take it from former and current regulators that is the state that we're in right now. and i think the commentary needs to get closer to that reality. i do think there are going to be members that ask specific questions about issues, and they may be pointed in the way they do that. you know, that is not atypical for a hearing. yesterday's situation a little bit more atypical, i would say, but i don't expect that kind of dynamic in this hearing today. >> is it a positive, the fed's move to ease how often the

living wills are, you know, how often we look at that? is that a positive is that something you are lobbying for >> i think it is a natural outgrowth of the experience that these institutions have had over the last several years you go back and look at the rigorous nature of the work that they do. these living wills are elaborate, very detailed roadmaps, and these firms have become increasingly good at performing that exercise and demonstrating that to the regulators, and that's why the regulators are going in this direction. the same holds for stress tests. the experience of the stress testing has demonstrated to the regulators that these institutions and their capital planning processes are fundamentally better than they were during the crisis so, i think that's what this reflects it's a natural evolution. >> kevin, are you going to watch live are you going to dvr it, get popcorn? what are your plans for this how are you -- >> i expect to be in the room and attending and -- >> oh, you'll be there that will even be -- that will be even more torturous -- i mean, even better!

a better seat, kevin anyway, thank you for bringing it here to us before it happened >> thank you, joe. >> okay, we'll see you. coming up, stocks on the move this wednesday morning. plus, the ecb is ready to make a decision on interest rates at 7:45 eastern mario draghi will speak at 8:30. we'll be monitoring his news conference and bring you any market-moving news as we head to break, take a look at u.s. equity futures they're solid in the green today. we'll be back. ♪ hoo!

- travel is supposed to be stress-free but if you don't book your must-dos in advance (horn blasts) things might be a little rougher. that's why tripadvisor makes it easy to book over 100,000 tours, attractions and experiences ahead of time. so whether you're headed to the city of love, or the city that never sleeps, you can be sure that you'll never miss out on can't miss adventures! ♪ hoo! read reviews, check hotel prices, book things to do, tripadvisor.

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today.

still to come on "squawk box," it has been one year since facebook's ceo, mark zuckerberg, was grilled by congress over the data privacy fumbles has anything really changed? we'll discuss big data and the battle brewing with lawmakers. and draghi and the ecb his news conference is ahead we'll be monitoring for any market mrks moving news. police, dimon, moynihan, solomon, the country's top lawmakers in the hot seat on capitol hill we'll hear from analyst mike mayo about what he expects

excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.

dear tech, let's talk. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. e-commerce deliveries to homes

(video games have evolved.addle) why hasn't the way you bank? virtual wallet from pnc bank helps make it easier to see what you're spending, stash more into savings and stay on top of your finances in a digital world. just one way pnc is modernizing banking to help make things easier. pnc bank. make today the day. welcome back to "squawk box. let's check on futures positive across the board. the dow looking at 62 at the open, s&p looking to be up 7 1/2, nasdaq looking to be higher 17 points at this point.

time for this morning's "market movers," and dom chu is going to join us with more i'm glad you're here for us, dom. i did a few movers earlier, but i'd rather just toss it over to you and really get the lowdown. >> did you guys miss me? i mean, i've been gone for the last couple days, so -- >> can i talk to you about what starts tomorrow? we'll talk later, how about that >> we will talk tomorrow because it involves azaleas and green jackets and everything else. >> yes. >> i know it does. we'll kick it off with a check on apple shares, down fractionally just about 150,000 or so shares of premarket volume we've got dueling ratings actions. hsbc downgrading the stock to reduce from a prior hold they cited a longer-term time frame to realize the benefits of its services growth strategy, but bank of america raised their target price to $220 from a prior $210, citing more robust iphone upgrades among other things in the current cycle. that's something to watch. shares of disney, meanwhile, just up about fractionally or

so, 15,000 shares of premarket volume, helped along by an upgrade by bmo to an outperform. they crated potential upside catalysts from things like the upcoming streaming service and theme park upgrades as well. shares up about 0.75%. then there are shares of under armour which are up about 2% to 3% at this point, just about 5,000 shares of premarket volume an up great by citi from a buy to neutral helping here. they like the renewed focus on driving profit growth and some margin tailwinds there as well so we can watch those. and then, of course, yesterday afternoon one of the big calls on wall street, what happened with pinterest because atlantic's saying they now have an outperform or overweight rating on what's going on with pinterest before the ipo even happens they like a $23 target price that's 44% higher than the midpoint of the $15 to $17 ipo pricing range. they love the ongoing robust user growth there and better prospects for monetization of that user base so, melissa, another one of

these pre-ipo upgrades d.a. davidson did it with lyft, now these guys are pinterest we'll see what happens with the uber ipo as well. >> you would think the analyst commentary ahead of the ipo would be tempered given how lyft traded afterwards and seeing what the analyst community did prior to its ipo. >> it doesn't seem like they're being shy with this, right i mean, they are getting headlines out of this as well, and this is, of course, another day after they've already done this thing so they're trying to get some news and headlines out of this, so they really do believe that there is a bullish prospect for this but like you said, the lyft ipo probably gave people a moment of pause. of course, if you look at that versus levi strauss, you wonder whether or not there's any kind of a theme developing here not one to say yet, melissa, but maybe levi's does give people lieutenant more confidence in what's happening with these ipos. >> dom, we didn't do so great on the final four thing why don't we -- >> no. >> why don't we do a masters things who's your dark horse? who do you think >> my dark horse i'm going to

say is kevin kisner, not that he is a dark horse because he just won the wbc match play, but if there's a guy out there who's from near augusta -- he's from akin, south carolina, knows the area well. i think he's one of those to watch. >> will be fun to watch tiger also, obviously. >> yes, with the new irons he's making going to make them available to everybody now. thanks, dom. breaking news, because we mentioned earlier a story in the "financial times," reporting that at&t was considering selling hbo europe this was the story that we had discussed a little bit earlier just getting a statement from john stankey, ceo of warner media, saying "we normally do not comment on speculation, but when a news outlet is advised that their reporting is factually inaccurate and reported anyway, we feel compelled to set the record straight there is no truth whatsoever to the "financial times" story saying at&t is or has considered selling hbo europe it's completely baseless and inaccurate hbo europe is a valuable asset

for our growth plans in europe." so we do want to bring you that news as we were getting it, and i just got that email from at&t, john stankey, ceo of warner media. okay, coming up, the sorry tour one year later. facebook trying to repair its reputation, but has anything changed and is regulation of big tech inevitable? "squawk box" will be right bac k. [ loud traffic sounds ]

[ distant traffic sounds ] [ music replaces the noise ] the new galaxy s10 on xfinity mobile. the phone and network designed to do more. switch and save today, and you get a new galaxy. say "get a galaxy" to learn more.

the ecb leaving rates unchanged, saying rates will remain at present levels, at least to the end of 2019 let's take a check on stock, u.s. markets here. equity futures indicate a higher open not much movement off the back of this decision, also not much movement on the back of the decision in europe with the dax higher by half a point keep in mind that europe overall croes to eight-month highs at this point taking a check on the ten-year german bund, of course, paying very little at this point, actually negative, 0.003%. quick check across the dollar here, down 0.1% on the dollar index, 96 .91 the recent level and futures indicated a higher open here in the united states. let's talk facebook, because one year ago, mark zuckerberg testified on capitol hill as part of an apology tour for privacy issues and other concerns >> it was my mistake, and i'm sorry. >> i am 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. >> now one year later, zuckerberg is calling for federal regulation how did we get here and where are we going we want to welcome "new yorker" magazine's staff writer and frenemies author and ed leaf from "the new york times," cnbc contributor. we thank both of them for being here a year later, after those apologies, how much do you think actually has changed >> very little it's actually gotten worse i think last year he was dealing with a public relations problem. this year he's dealing with a branding problem his brand has been harmed by this, and repeated -- it's privacy issues, it's fake news issues, it's monopoly power

issues. >> but here's to me the question -- a, there's the overhang of what kind of regulation's coming, but b, if it was the problem that we all are talking about, i'm not sure the stock would be where it is, i'm not sure the user engagement would be where it is you would have thought that people would have left in droves, and they haven't. >> and advertisers would have left in droves, and they haven't. >> yes. >> they haven't. there's no question about that but on the other hand, if you look, their major competitor now is not another social network, it's governments, and it's governments around the world and governments are bigger than they are and if you look at new zealand and you look at russia and you look at china and you look at the u.s., there's growing bipartisan support in the congress in this country -- >> okay, so ed, here's the question -- what do we think that bipartisan support is for everyone says they're for regulating silicon valley, but what does that actually mean >> i think it's a nice political football, right, for elections coming up, and i think they want actual regulation. i think they want new rules in place. i think there are calls for different regulatory bodies to

overlook these kinds of things i don't think anything will happen this year by any means. i think it will be a while, and it's a useful political tool -- >> let's talk specifically about what kind of rules will be put in place one thing i talked about yesterday is it seems to me semi preposterous that anyone can go on one of these services, go on a shooting rampage and broadcast it live, right should there be limits on how many people you can broadcast something live to? should there be 30 or a minute delay? >> or can you broadcast live at all, right that's the other thing so, the uk has a law they're trying to get into place now where it would sort of hold facebook and others liable for even having this content up in the first place. so first of all, illegal content like that and/or harmful content, which is a much broader thing to sort of try to define and a hard thing to define i think -- >> once you put those liability rules in place, all of a sudden you think therefore that has to change the behavior of facebook and they have to put controls in without identifying the actual controls, it forces the controls. >> right and so, right now we have sort of an after-the-fact situation,

where whether it's a copyright thing or something like terrible videos like that once it's up, it's their responsibility to take it down people in congress and other grofts are looking at well, maybe you can't put it up in the first place. that would fundamentally change the way facebook workz and that's the line they don't want to cross. >> but if you can't put something up in the first place and broadcast it live, does that extrapolate to the business of posting things and that's the question of do you hold them to a standard of a newspaper or a network in terms of content? and that completely would change the game for them. >> yeah, and it's really hard to do i mean, the whole promise of social networks is that it is live, it's communication, people freely talking back and forth without any intervention in there. and how you do it is really complicated. i covered the microsoft trial in 1999 and 2000. and the court said -- and the justice department said let's break up microsoft how the hell do you do that? and the truth is, the internet was going to break them up, as

it did. >> one of the things that's fascinating to me about what mark zuckerberg said in the last month, both in terms of saying, please regulate us, but then i thought even more importantly, said look, we're actually going to pivot the whole business ultimately, or at least he says he wants to. >> create more of a private messaging -- >> to a private messaging service that probably looks something like wechat, might even look a little bit like its own current messaging service, whatsapp but by the way, with whatsapp, they've limited the amount of -- you can't just have a million friends and proliferate messages, fake news or otherwise, to huge groups of people at one time, despite the fact that, by the way, even when it gets to a small group, sometimes it proliferates itself. >> wechat is an interesting example. in china, it's effectively the mobile operating system for a lot of people. it's the one app that does everything -- it's amazon, google, facebook, twitter all in one. >> it effectively layers either ios or android that's the brilliance of it. >> that is the brilliance of it. the other thing, too, that a lot of people don't know about wechat is as a citizen on wechat, you're only allowed to

post so many times a day so it's already got these built-in limits in terms of how it operates as a media, sort of like a media function or sort of media sort of app. so, i think if facebook really wants togo that route, there's a lot of things in place already that might solve those problems. >> but does that undermine the ultimate business model? because their business model at least currently is an eyeball model. if you can't broadcast live and can't send your message to as many people as humanly possible -- >> i think long term, facebook's model is i own the user model. meaning fine, if it's not eyeballs or advertising, as long as i don't lose my connection to the user, that's fine. i'll change my business model if i don't lose that connection whether it means payments or other forms of commerce i can tag into, that's fine, too. >> but ed, 97% of their income comes from advertising. >> advertising, right, yeah. >> and how you get away from that to a subscription model i mean, it's free because of advertising. and it's very hard to imagine how they can break from that, that model. >> for instance, with instagram,

they're moving away towards monetization in commerce you're diversifying your streams of revenue because you're saying, hey, you know, you can hit the buy button on something that you see on instagram, which would be very powerful theoretically. and also, by the way, a pinterest killer -- well, a real threat, potentially, to pinterest as well. >> to your point, even if that were the pivot, that's still even an advertising model, too, because what they're really doing is taking an affiliate fee off of each sale as opposed to getting products in front of eyeballs. >> ken, i feel like you understand this better than anybody. in terms of just the way the political winds are blowing, we're talking all about this, but again, the specifics are difficult. when do you think we get to the specifics, if we get to them at all? >> well, you've gotten to some i mean, elizabeth warren has come forth with an antitrust plan, which has gotten some notice. >> by the way, given your history covering microsoft, what do you think of her plan >> not a lot right now i mean, i think it's really dangerous to think about how -- how do you break up these giant

companies and split them so they don't talk to each other and stuff? i mean, i think it's worth a shot, and i think her idea is a correct one. the definition we have used for antitrust -- is the consumer harmed -- is an old question we need to ask do these guys have too much power? she's asking that and i think she's right about that. >> and you think they do. >> of course they do the question is what do you do about it and there are several things it's not just antitrust and breakup. it's should you be allowed to buy competitors like instagram as facebook was allowed? what about privacy issues, right? so, these were all other issues that are worth government regulation, or talk about government regulation. >> okay. the one and only ken auletta, one and only ken lee thank you. we have a recap of delta's quarterly results and the state of the airline sector overall since the boeing fallout we'll speak to former continental airlines ceo gordon bethune.

and then later, banking analyst mike mayo, an officer and a gentleman, joins us to per view today's meeting on the hill between ceos and lawmakers mayo and lawmakers are going to discuss today's events and talk about the state of fanal incis. ♪ hoo!

- travel is supposed to be stress-free but if you don't book your must-dos in advance (horn blasts) things might be a little rougher. that's why tripadvisor makes it easy to book over 100,000 tours, attractions

and experiences ahead of time. so whether you're headed to the city of love, or the city that never sleeps, you can be sure that you'll never miss out on can't miss adventures! ♪ hoo! read reviews, check hotel prices, book things to do, tripadvisor.

uber on route to your portfolio. new reports this morning that the ride-hailing giant could launch one of the biggest tech ipos ever. a clash between democrats and the u.s. treasury secretary plays out on capitol hill. >> i've sat here for over 3 hours and 15 minutes i've told you i'll come back. >> this is a new way, it's a new day, it's a new chair and i have the gavel at this point. >> we'll bring you the details of that testy exchange and seven bank ceos walk into a hearing room. it's not a joke. it's about to happen today, and we've got an interview with a ranking member of the house committee leading the grilling as the final hour of "squawk box" begins right now. ♪ don't you dare look back, jus keep your eyes on me ♪ ♪ i said you're holding back

>> announcer: live from the most powerful city in the world, new york, this is "squawk box. ♪ ♪ ooh, shut up and dance with me ♪ no sports teams in cincinnati, but we have some good bands good morning and welcome back to "squawk box" here on cnbc, live from the nasdaq market site in times square i'm joe kernen along with andrew ross sorkin and melissa lee. becky's off today. the futures have been up 60, 70 or so on the dow, now up 50. the nasdaq is indicated up 16 and the s&p indicated up six treasury yields are about where they've been, right around 2.5% on the ten-year. okay, got a couple big stories that investors are going to be talking about today. the top one -- uber planning to sell about $10 billion of stock in its upcoming initial public offering it would make its plans public tomorrow that's according to reuters. uber said to be seeking an overall valuation between $90 and $100 billion that's less than the $120 billion that some people had

talked about earlier and may come off the back of the lyft ipo, which, of course, has not had the success that some people were hoping for. we'll hear more on this story later in the hour with our own leslie picker. meanwhile, jetblue may be gearing up to announce a transatlantic service for the first time the airline holding an all-hands meeting in new york, this according to an invitation that was obtained by cnbc and jetblue could add flights to london and other european cities from its new york and boston hubs the company declining to confirm today's meeting but lots of eyes in the airline industry going to be focused on that. and then, at&t this is pretty remarkable. they're denying a "financial times" report today that hbo europe's unit may be put up for sale john stankey, the ceo of the company's warner media unit, telling us -- and you don't see people come out this vociferously -- "there is no truth whatsoever to the "financial times" story saying at&t is or has considered selling hbo europe it's completely baseless and

inaccurate hbo europe is a valuable asset for our growth plans in europe." he goes on to explain that normally they don't comment on things like this, but they clearly had had some kind of back-channel conversations and said this directly to the "financial times" yesterday and clearly are upset and frustrated by the fact that they ran the story anyway. >> i think what's interesting is he also said "has never," effectively has never had those talks. so, there is not a grain of truth in that report from the "ft" today. meantime, treasury secretary steven mnuchin spent much of yesterday testifying before house lawmakers for two committees he said white house lawyers had been in touch with his department for a request for president trump's tax returns, but he hadn't spoken to them about how it is being handled. he said he planned to follow the law. his second hearing, well, that didn't end too well. he got into an argument with committee chair maxine waters over whether he could leave for a meeting. >> if you would, instead of having the press conference

continue, with those members who have been waiting here so long and i think what i thought i originally heard was 5:30, rather than 5:15 so, is it possible you could give us another 15 minutes to get to these members >> no, i have a foreign leader waiting in my office at 5:30, okay i agreed to stay longer. it will be embarrassing if i keep this person waiting for a long period of time. i wasn't going to have a press conference i was going to have a short press gaggle i'm not going to do that and i have assured you, i'm happy to come back here and answer more of your questions. i respect the committee, and we want to have a good working relationship with you. so i hope you'll understand. i'm already going to be late if you'd wish to keep me here so that i don't have my important meeting and continue to grill me, then we can do that. i will cancel my meeting and i will not be back here. i will be very clear if that's the way you'd like to have this relationship. >> thank you the gentleman, the secretary has agreed to stay to hear all of the rest of the members.

please cancel your meeting and respect our time. >> i am canceling my foreign meeting. you're instructing me to stay here and i should cancel my -- >> no. you just made me an offer. >> no, i didn't make you an offer. >> you made me an offer that i accepted. >> i did not make you an offer just let's be clear. you are instructing me you are ordering me to stay here. >> no, i'm not ordering you. i'm responding i said you may leave any time you want, and you said, okay, if that's what you want to do, i'll cancel my appointment and i'll stay here. so, i'm responding to your request. if that's what you want to do -- >> that's not what i want to do. i told you -- >> what would you like to do >> what i told you was i thought it was respectful that you'd let me leave at 5:15 -- >> you are free to leave any time you want. you may go, any time you want. >> okay. then please dismiss everybody. i believe you're supposed to take the gravel and bang it -- >> please don't instruct me as to how i'm to conduct this committee. >> shortly after that -- >> need to go to lunch.

>> hug it out? >> we look like ozzie and harriet compared to -- oh, that's dating myself but right? i mean, we're like domestic bliss compared to that, i think. >> i think there's some love under there. >> i'm not sure about that by the way, shortly after that, secretary mnuchin was advised by a member of his staff that he was not required to stay he did leave at that time. secretary mnuchin will be on "the exchange" today at 1:30 p.m. eastern time for an exclusive interview. >> you're going to stay until the end of the show, right you don't have anywhere to go? >> i have a meeting. i have a meeting somebody's waiting for me. i'm late. >> i'm going to use my gravel. i'm going to throw my gravel at you out of the driveway. >> i'm sorry i'm sorry. >> well, you made me an offer to stay. >> then he'll never come back again. >> look, if you want me to stay today, i'll never come -- which you'd accept >> yeah! that would be an offer i -- >> jump at that deal. >> make me an offer i can't refuse that would be one of them. >> we should tell you that the

mnuchin exchange perhaps just a taste of what could come when the ceos of seven of the nation's largest banks testify on capitol hill later today about how the industry has changed in the past ten years since the financial crisis, and our good friend, wilfred frost, who has been waiting, i know, delayed because of us. wilf, nice to see you. tell us what's on tap. >> reporter: andrew, as you said, ten years on from the financial crisis, this hearing is designed to be a review of the progress banks have made and the state of the financial system, but we know it's going to be much more pointed than that lots of topics like executive pay, diversity, buybacks, cybersecurity and consumer data and forced arbitration, all likely to come up. from the executive side, two of them have been here before -- dimon and moynihan the other five have not. that increases the chances that mistakes might be made, that the script might not be stuck to and on the lawmakers' side, this committee is 60 strong -- 34 dems, 26 republicans, no doubt

already energized after last night's clashes with secretary mnuchin you were just talking about. and i for one am interested to see how those lawmakers address the chairman and ceo of jpmorgan, jamie dimon, after he issued his 50-page shareholder letter, the vast majority of which was criticism and advice for politicians just like the ones he will be facing today guys, the hearing starts in under an hour, and we are awaiting the arrival of those ceos >> yep, you're right where the action is, wilf. have fun thanks and we'll see you later. joining us now, congressman patrick mchenry. he's the ranking member of the house financial services committee. we can't have you on without saying that you've got the best name for a politician -- >> thank you. >> really! i mean, it's like, you're the son of like patrick henry or something. isn't that what mchenry means? >> yeah, the mc means "son of.

>> yes throw you ring in with the other 20 why not? they won't get the nomination anyway why don't you do that? >> i'm a happy person, that's why. the exchange i got to see yesterday between secretary mnuchin and chairwoman waters is kind of like sitting between you and andrew -- >> that's what we said makes us look like ozzie and harriet, we said i know. >> i feel like melissa, actually, this morning -- >> or becky. yesterday we had -- >> yeah, or becky. >> congressman, you're already predicting this is going to probably, you know, not be as bad as what we saw with chairwoman maxine waters, obviously, and mnuchin, but you think democrats are basically going to say that the banks are too big, and you know, that we haven't done anything. but your point is that, yeah, they are too big because dodd/frank made them too big. >> right i mean, ten years ago, we had the same crew of executives -- they were different executives, but same sort of

representational set of banks -- testifying before the committee in the midst of the financial crisis ten years later, what's going on what's the nature of this hearing today? what is the legislative purpose? i think that's a head-scratcher. our markets are strong our institutions are strong. we've got headwinds globally the imf report of reducing global growth is problematic the question of brexit, the issues of chinese debt, these things are significant but the real significant question today is the nature of dodd/frank these institutions are bigger because dodd/frank required them to be bigger, and we have fewer banks now than we did precrisis, driven largely by regulation so it's a result of their policies they put in place, the democrat party agenda, that is the full culmination of this hearing today by which they're going to beat these companies up for complying with the law that the democrat party got through the house and the senate and signed by a democrat president.

>> so, you want -- your interest is in insuring greater competition and consumer choice. is that antithreatical to a lot of things that you figure your opposing viewpoints that you're going to hear? it's kind of the opposite of what we'll get, isn't it >> quite frankly, i mean, we have a debate about our free markets and the nature of our markets right now. >> yeah, we do. >> that is the fundamental debate in politics everything else is obscured with sort of the circus atmosphere of yelling or tweets or whatever it may be but the fundamental debate is about the nature of our markets. and i believe in free markets. i believe competition works. and i think consumers benefit from that. >> congressman, you've been tough, though, i think it's fair to say, on tim sloan i remember some of the hearings -- >> yes. >> -- in a similar way to the way maxine waters approached him. >> well, in that hearing, you have one of the large financial institutions, the highest head count of american employees, that has been fined by every

single one of their regulators over the last two years, is still not complying with the very things they said they would comply with, and you've now gone through two executives in 2 1/2 years. i think the nature of that hearing was fundamentally different than bringing these seven gsibs in front of our committee today, fundamentally different. >> congressman, warren buffett was quoted over the weekend in the "financial times" suggesting that the next ceo of wells fargo should not be somebody historically from wall street, from a goldman sachs or a jpmorgan, but from somewhere else and the rationalization that he provided for that was effectively that the constituency in this case may be washington do you think that's the right decision and if so, who would you recommend, what kind of person >> no, i think it's for the board of directors to decide who is best going to lead their institution, return value to their shareholders and do right by their institution

it should not be me as a politician or an elected official, even with the position i have on the financial services committee, to make a decision like that or to be directive of that warren buffett is a major shareholder of wells fargo he has a very different position in the nature of what they should be doing. i think returning value to the shareholders is a fundamental issue. doing right by their consumers and growing their platform is a fundamental issue. >> so you like the cameras i mean, do you predict there will be sound bites that we're running tomorrow, congressman? >> are you going to be there tomorrow, joe? >> yes then there will be blood -- >> there will be sound bites. >> there will be blood is it more "survivor" or more of "the bachelor" or what kind of reality? i don't know whether the cameras help because what is it that happens to these people when the cameras start rolling? >> so, you have seven banks, three different business models, really i just wonder how many questions custodial banks will get, right? because they have a very

important role in the financial system, financial ecosystem. i don't know if there's going to be a great deal of direction given to them. the questions i care about, though, are about regulation, about complying with the law, and global systemic risk, which is the hearing we should be having right now, not about this sort of circus >> well, i just wonder whether cameras help or hurt we all want transparency, but then i see the way these politicians act and i don't know anyway, congressman, thank you. >> thank you >> okay. coming up, the details on this morning's marquee earnings report from delta air lines. that stock is higher by 2.5% in premarket trade. we'll speak to former continental airlines ceo gordon bethune about delta's top and bottom-line beats and what they e oabout the overall healthf thbig, american carriers stay tuned to "squawk box. i'm working to keep the fire going

for another 150 years. ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪ onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering.

welcome back to "squawk box. delta air lines out with first-quarter earnings, the company beating on the top and bottom lines last hour, delta's ceo, ed bastian, spelled out just how good the past three months were. >> demand was really strong. we had top-line growth of 7.5% in the quarter, our highest revenues in the march quarter in our history, and as you know, march is typically our seasonally weakest quarter, so we feel very good about that costs were in great shape.

unit costs were actually down a little bit on a year-over-year basis. the company ran a great operation. our people did an amazing job through a difficult winter. >> joining us now for more on delta's first quarter and the broader airline sector is gordon bethune, former ceo of continental airlines and a cnbc contributor. we love having gordon on, because you're always so helpful as we try to think through what is happening here. you look at delta and you say to yourself, this is a broader trend for the whole industry or do you think this is delta-specific >> well, i think he's showing them how it can be done, so it can be done and will be done i don't know if you're going to overtake delta any time soon, but they've certainly got a good team going and that 10% operating margin is achievable. >> how far behind, though, is your former company, united continental, in terms of catching up? >> well, it's hard to measure in time, and you can measure it in revenue, i guess, but at the same time, united enjoys one of

the best networks, the best fleet, top-level management. so they're making real good progress over there. i'm kind of pleased at what i see. >> one of the big news stories today, in addition to delta's earnings, is a little bit of speculation but also some reporting that jetblue may be about to set out a whole new set of routes that would go over the atlantic to places like london and elsewhere throughout europe. how do you think that changes the game >> well, it keeps pricing pressure across the north atlantic jetblue's a really good company with a good product. they've got the airplane now that will do that route successfully, just as much as southwest is flying to hawaii and opening new markets that heretoforethey've never participated, latin america. so the game is changing and the pressure is always going to be building from the bottom with price pressure from these low-cost guys that are very, very good. >> who's the most exposed, at risk, in terms of jetblue's

entrance into those markets? >> well, i think the big hubs out of jfk, which would be american and delta, would be threatened by nonstop service from jfk to, say, london that's going to temper it, but they're not going to run those guys off because they have a different product. but it does keep a pricing pressure on the low end because it's a good product. jetblue has a very good product at a very reasonable cost. >> gordon, as we see the boeing situation unfold, you know, for the ceos of the major airlines who may have to replace aging aircraft, at what point do you think that there could be a switch to an airbus product? we asked that question to ed bastian in the last hour about the 797 that's expected to come on to market, the midsized jet, and he said we're not quite there yet. but you know, if the production delays continue, if there are production delays and that pushes out the 797, that could impact the purchasing decision at what point do you start thinking, you know what, there is going to be an impact on the

future orders? >> well, melissa, it's a real long-term game, so airplanesar long lead time times to order, so you just can't flip your fleet and your training and your whole workforce. so boeing makes a really good product and they're going to fix this airplane, so i have no doubt boeing has always done what they said they're going to do it's unfortunately they've had these fatalities, but you're not going to replace the max 8 with an airbus overnight. it's just not going to happen. >> i don't know whether i asked you the last time, have you flown the max 8 yourself >> no, i haven't just the 57 and 67. >> but for a carrier like a delta, for instance, gordon, i mean, they've got -- they actually have the a-321 neos, right? so they have many, many airbus aircraft in their fleet as well as some of the older boeing planes that need to be replaced. for them, it wouldn't be a wholesale switch to another carrier. i mean, they have sort of the maintenance, the infrastructure, that sort of thing in place

already. so is it really a big deal to switch i mean, if you're thinking five years out and you've got to get in line for a plane, maybe the decision gets pushed up to now >> well, melissa, it's a factor, and i don't want to say it's not. it's just a long lead time factor, and quite frankly, does it make sense from a pricing viewpoint? all these factors will come into play i think what's mainly going to drive it is how quickly we restore the max 8 to service and when it is, not if, but when, it will make a determination for how people see their fleet plans. >> gordon, how much faith do you have today in the faa? because there is sort of a mixed picture. on one side, clearly, the safety record here in the united states is remarkable. i mean, it is a remarkable thing. and yet, in terms of how the max 8 was handled by the faa, there was a moment, at least, where it looked like perhaps the faa was too close to boeing. >> it's a symbiotic

relationship it's not adversarial at all. they have one of the better working relationships, which as you mentioned, has driven unprecedented safety records in our country, in our lives. so it's not a gotcha kind of business they work side by side there's no hiding and there's no covering up. and they're on top of the table with everything they do, and that's the way boeing does business that's the way our faa does business. >> okay, gordon. it's great to see you, as always thanks very much. >> thank you >> you bet. >> glad to be here. coming up, the leaders of america's biggest banks are all in washington today and about to get grilled on capitol hill. lawmakers will undoubtedly want to talk about stopping the next financial crisis, but wells fargo's mike mayo says the banks have a good response in just how strong they are. mike will join us ahead of what could be a wild day for the banking industry when "squawk box" returns oh, wow. you two are going to have such a great trip. thanks to you, we will.

this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement.

we see hat emerson,kthroughs when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

coming up, some breaking economic data. march cpi numbers are due out in just minutes we'll have the latest read and instant reaction after a quick break.

i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement.

we are just seconds away from march cpi data. the futures have moderated their

gains, 35 points -- 33 points on the dow now, as you can see. the s&p indicated up five. the nasdaq is indicated up ten points or so we'll take a quick look at the ten-year, which was above or below 2 1/2, right in there, 2.499. rick santelli is at the cme in chicago with the numbers >> all right, our march read on headlines, cpi expected to be up 0.4%, arrived as expected, up 0.4% no revisions to this data. strip out the all-important food and energy, it's up 0.1%, half of the 0.2% expected sequentially, following up 0.1%. by the way, headline sequentially followed it unrevised up 0.2%. year over year, here's a jump. expecting 1.8% 1.9% 1.9%, 0.4% higher than our last look and if we look at ex-food and energy year over year, it was up 2%, headline up 1.9%, as i

pointed out. if we go for the core index, what i'd like to point out is, is that we are seeing a little bit more with regard to the energy movement, not so much when you strip it out. that's an important distinction we need to pay attention to, and real average earnings. year over year up 1.3% if you look at weekly earnings year over year, up 1.3% as well. both of those are definitely cooler than our last looks, which were up 1.9% and 1.6% respectively so, you could argue a little bit hot on some metrics here not too much reflected as joe pointed out rightly, we've been kind of hugging 2.5%. just a whisker below it, free-holding equities holding on to some gains and even though the dollar index has lost the 97 handle, the ongoing story for months and months is the fact of how solid it's been on the retracements and how it hangs in the upper range of what really is a 21, 21 1/2-month issue

going back to the summer of 2017 joe, back to you. >> all right, rick santelli standing by in chicago thank you, rick. okay, joining us right now is cnbc's senior economics reporter steve liesman, who is keeping an ear and eye on what's going on in europe, but also what rick was just saying. steve. >> yeah, andrew, maybe a little inflationary in this report here, and i'll tell you why. obviously, rick pointed out the headline number, up 0.4%, and that raised the year-over-year rate to 1.9% and the core rate did drop by a percentage point, down to 2% -- or sorry, by a tenth of a percentage point but when i look down the list, i see two items have fallen -- 1.9% we talked yesterday about the inclusion of the big data in here maybe a lot of that was from the big data that came in. that's an interesting development there. but then looking further down -- transportation up 1.5%, gasoline up 6.5%, prescription drugs up 0.6%, recreation and services

both up 0.3% so it's something to watch there's a lot of talk about there being no inflation out there, and i think what people mean when they say that is there's no inflation above the fed's target, which is 2%, but inflation remains around target. and now we have to wait to see how this recent rise in oil prices works its way through the system it's supposed to be excluded from the core, but it does tend to bleed over there. so, something worth watching i don't think the fed's going to be very, very sensitive to 0.2%, 0.3% above, but certainly the idea that it remains in that area would argue against the idea that some have advocated, andrew, to a rate cut. >> thank you, steve. by the way, we haven't seen much of a reaction in the futures right now. we know steve is monitoring comments from ecb prison mario draghi, so we'll talk to steve later in the hour. now we're bringing in jim iuorio, cnbc contributor and managing services director what's your take i would think a touch of

inflation within the range is actually a good thing when it comes to corporations and their margins. >> well, no question it's a good thing when it comes to the macroeconomic picture in corporations and their margins, too, but i'm still of the camp that much of this big, upward move since december 24th has been on the fed's pivot to dovishness so, for the cpi number, we look at it. if we can group it into the area of nothing to worry about for now, that's the best thing, but make no mistake about it, a little bit of wage growth inflation could be the very thing that spoils everybody's plans for a dovish fed we want to believe that, one, the fed is going to be dovish, two, the big economic picture doesn't exactly warrant that -- >> osorry, we have to go jamie dimon is arriving on capitol hill to testify before the house financial services committee as we speak. i don't know if we have a live picture. actually, he's already in the hearing room, jamie dimon along with many other bank ceos. sorry to cut you off, jim! we were very excited about jamie dimon making his appearance.

>> is he walking one leg -- >> puts the pants on one leg at a time, just like everybody. >> one step at a time. >> so jim, you were saying wage pressures on margins were a concern. >> sure. >> and here we have prices going a little bit higher, which is a good thing. >> yeah, but it's not enough to worry about that the fed pivots back yet. >> right. >> it's interesting, the psychology of it, too. because now that the fed is pivoting and they're mostly dovish, i think it's going to take quite a bit to push them back no one wants to seem like they're waffling back and forth constantly, so this is kind of a sweet spot for stocks, and you've seen it in the eight days of rally recently. yesterday when we tried to retrace a little bit, we really didn't have the heart for it so to me, i think it's still green lights. >> the cpi, the energy component, the core versus the overall. i think this really underscores what could be a major theme in earnings season, and that is the rise we've seen in oil we're seeing wti and brent at five-month highs, and we've also got a stronger dollar year on year, and these two could be

things discussed greatly on conference calls this season >> yeah, there's no doubt about it and if you look at the chart of stocks and the chart of crude and gas, they both bottomed on december 24th and they both had a huge run-up since then so those things are definitely trading as risk assets right now. i don't think crude in the $60 range is anything that anyone's going to sweat too much about right now, but crude above $70, if it ever gets there, then i think all of a sudden we're talking about the problem. remember, crude is a two-way street we have a lot of oil sector in our country, too, so higher crude prices do well for them. so, right now, as long as the consumer's not being pinched too bad and companies' expenses aren't going up too much, it's kind of at an equilibrium. >> jim iuorio, tjm, thank you. we have new reporting out this morning on ubor's expected ipo. wall street getting excited about these numbers. leslie picker has more on this story. leslie >> hey, good morning, andrew we're expecting to see uber's ipo prospectus as soon as tomorrow that's according to a person close to the matter that i spoke

with this morning. uber had filed documents confidentially back in december. the source says uber plans to flip its s-1 public, which will accelerate the process towards becoming a public company with about $10 billion worth of shares listed on the new york stock exchange in early may. that timeline, though, is subject to change based on market conditions. a reuters report out last night says uber's advisers have tempered expectations for valuation. the ride-hailing service had initially been aiming for $120 billion and now is looking at something between $90 billion and $100 billion cnbc has not independently confirmed this new valuation target part of that level-setting, though, may be influenced by two recent ipo processes that have been under way lyft had a somewhat volatile debut at the end of march, which some investors blamed on stretching for valuation by raising the range they had initially marketed pinterest set terms this week with a much more conservative valuation, especially compared

with their latest private funding round, and investors we spoke with at the pinterest road show yesterday seemed to think that this range was fair. >> for pinterest, we've already seen atlantic equities, i believe, come out with a recent report, very bullish, seeing 23% up side from a price which, i mean, we don't even have a range yet at this point, so this whole thing is interesting but in terms of the common themes in the q&a, what is coming out on pinterest? >> with pinterest specifically -- so, a lot of people are looking at closing the monetization gap between what pinterest is able to garner from each of its users and comparable companies like facebook and twitter, that are also ad-based and are able to generate a much higher per-user revenue basis. now, pinterest says that it's in its early stages of monetization it only started providing ads on its service a couple years ago and so, they say that they should be able to close that gap without providing any specific time lines, of course. >> great thanks ipos -- >> it's not slowing down any time soon. >> no, and that means you'll be

joining us, which is great all right, coming up -- leslie picker. a rundown of what you need to know ahead of the high-stakes hearing on capitol hill with the ceos of the nation's biggest banks. have lawmakers exhausted their anger at wall street over the financial crisis top bank analyst mike mayo is going to weigh in after a quick break. ayuned you're watching "squawk box" on cnbc let's build a better world for investing. let's create jobs, build bridges, insure prosperity. as investment management professionals, let's measure up. cfa institute. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together.

welcome guys. life well planned. see what a raymond james financial advisor can do for you. plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪ [kno♪king] ♪

memories. what we deliver by delivering. thwho hold themselveshe to a higher standard. they are called "cfa charterholders." demand the best. demand a cfa charterholder. cfa institute. let's get to wilfred frost in washington. top bank ceos are starting to

arrive for a big hearing today wilf >> reporter: hi, missy yes, indeed, the hearing kicks off in about is minutes' time. jamie dimon, ceo of jpmorgan chase is in the committee room as we speak. he went there three or four minutes ago, came up a back staircase briefly in the corridors, where we are, and then into the room and i do think all of the ceos are taking sort of nonconventional routes into the building they haven't come past me here at the main entrance, and i did see the goldman sachs legal team they confirmed david solomon got here about 20 minutes ago, so he, too, has arrived, albeit not going past myself or kayla tausche. likewise, the state street communications team confirmed hanley is here somewhere in the building so, i do think most of the ceos will be here in the building just checking out who's arriving there with some fanfare, but it's not any of the ceos we await the start of this hearing, which no doubt will be heated i mentioned earlier about jamie dimon's shareholder letter last week, an avert criticism toward

the state of politicians we'll see how they react to him and all of the other ceos. guys >> for more on today's hearing, we welcome mike mayo, wells fargo's security managing editor and senior bank analyst. i know you always come prepared, but talking about being prepared, what is the one question using the jamie dimon and other executives should be prepared for that they may not be >> ooh, that they're not prepared for. >> yeah. what do you think the out of left field question will be? >> well, i think -- >> or what is your out of left field question for them? >> let me give you my best answer let me give you the best answers and questions from each side. >> okay. >> so, i think in terms of congress asking bank ceos, i think they can legitimize these hearings with one data point, and that is, this decade, savers have lost out on $500 billion of interest due to lower interest rates that are in response to the financial crisis

so, if you're moaning about being here in terms of the seven bank ceos, there's been a wealth transfer, historic wealth transfer from savers to others, and that's due to the banks and the crisis so, i think that's the best argument, that direction the best counter -- >> what's the answer to that there's no good answer that's -- >> well, that's why you're here. so, therefore, let's make sure it doesn't repeat again. and i think the banks can respond, saying we are the strongest we've been in a couple decades, and there's one metric that sums that up more than anything else, and that would be the bank bond spreads over treasuries have declined from 700 basis points down to 100 basis points so, mr. congressman, mrs. congressman, i know you're worried about the health of the financial industry, but i have $1 trillion of bank bonds that beg to differ. so, that's the best -- >> basically, we're almost as safe as buying a u.s. treasury bond. >> well, 100 basis points more risk. >> right. >> do you think they are safe enough to undo some of the restrictions on living wills because that's one of the things that's on the table now.

>> well, look, the regulators did a great job. and jamie dimon in the ceo letter says regulators should take a victory lap, and he's absolutely right but the response to the financial crisis was a little haphazard. it was needed. it was appropriate but now you can do a lookback. do not sacrifice safety and soundness one iota, but you can certainly improve the efficiency and transparency of it. >> and what does that mean but come back to living wills, because the entire premise of getting rid of too big to fail is reliant on this living will idea, and there is now a move afoot by the fed to make the living wills a little less rigorous >> well, i think you need to allow big banks to fail. i mean, that's the whole point you could almost write a book about too big to fail. that's a nod to you -- >> thank you. >> but no, this is a very serious issue. the reality is, if you had one of the biggest banks fail, it's not a good scenario. so you need to prevent that from happening in the first place so, this is more of a thought experiment at this point because you're not having one of the top

three banks fail and everything be okay. having said that, i mean, you've doubled capital, you've tripled liquidity over the last decade, you have the fed stress test the banks are strong enough to absorb not just one financial crisis, but two financial crises so it's just a thought experiment at this point. >> how much of your bullish case on banks today is about regulation coming down >> zero. >> zero. >> we have zero in our earnings models about regulation coming down and now, look, you do have the trump appointees in charge of the bank regulatory agencies there is some potential for some deregulation but we're not relying on that one bit. >> do you have in any scenario, a scenario in which regulation increases with a house-controlled house financial services committee, with hearings we're going to have today? we saw maxine waters confront secretary mnuchin. it was very testy. i mean, it's a different environment now. there's headline risk. >> wow i saw that exchange. that was remarkable. i think the importance of

today's hearings is that sound bites have the potential to turn into policy that have the potential to turn into legislation, and then regulation so, i think this could be a sign of what potentially is to come after next year's presidential elections. >> please weigh in on warren buffett's comments over the weekend regarding wells fargo and the next ceo of that company. he made the comment that it might be advantageous not to look to a traditional executive from wall street, from the goldman sachs and jpmorgans of the world, but maybe to look to other places in corporate america in large part because of the pressure that's coming from washington >> well, i will not address comments related to wells fargo specifically, but let's -- look, wall street is not wall street is not wall street you have seven banks testifying today. so, bank of america, jpmorgan and citigroup, by the numbers, if anybody cares about the numbers, they're more main street than wall street. surprise now, clearly, goldman sachs, morgan stanley's more wall street, and then you have bank of new york and state street, which people don't really

understand who they are. they're basically a banker's bank, all right? so when you talk about wall street, all wall street's not the same oh, and by the way, jpmorgan, they were a source of strength during the financial crisis, so don't paint the whole industry with one brush if you look at the testimony, there's 67 pages of testimony that was released yesterday. >> right. >> you look at the testimony, and you know, citigroup and morgan stanley, they're talking about how strong they are after coming back from the crisis, and that's right, because both of those banks almost failed, in our opinion. okay, that's right and then you look at jpmorgan, though they're not talking about, like, their strength they're talking about, quote, inclusive growth they're talking about being a partner with, you know, a lot of constituencies so don't paint the whole industry with one brush. wall street is not wall street is not wall street it varies. >> what will the catalyst be for bank stocks? >> you know what, you have the greatest earnings stability in over two decades you have the strongest balance sheet in decades. >> that's great, mike, and you could have said that last quarter and the quarter before, and still, it didn't really move the needle >> well, look, i mean, every

quarter, every year, every few years the banks don't mess up is another justification for revaluation of bank stocks so for the first time in my career, going into this year, we recommend all five of the wholesale banks -- citi, bank of america, goldman sachs, jpmorgan, morgan stanley -- our favorites are citigroup and morgan stanley, first time ever. by the way, where were these hearings in 2005 and 2006 when i was kicked off from being on your show at that time, and i was kicked out of bank ceo meetings, and you know, all that stuff? where were the hearings? and i actually called up the s.e.c. when i was fired at early part of last decade. where were the hearings then where was everybody then now you're having hearings when the industry is stronger than it's been in decades but i think it's fair because savers have paid so much i think it gives us insight into what might happen over the next couple years, but the industry is doing fine, even with this justified lookback. >> mike, thank you for coming in real quick -- >> yeah, so real quick one thing we hopefully can all

agree on is let's reduce the red tape, all right? so, let's have regulation. let's have -- >> he brings the tape with him. >> but we should just throw it we should just toss that tape. >> let's get rid of this here, joe. >> why do you think we can all agree on that? >> because let's keep regulation and banks safe >> i mean there is a lot of people that love regulation and love big government. regulation is fine >> you know where you are. improve the efficiency do you like red tape do you like more red tape? >> you like red tape let's get back -- thanks for taking this up where we belong, too. appreciate it. >> he's been listening to draghi at that news conference. steve. >> let me get you caught up of comments that mario draghi is

making right now we want you in the last meeting o f the new loans that'll go to the banks to the economy, those details will be announced in meetings he does say an ample degree of confirmation is necessary. slower growth have been confirmed since the last meeting. he expects the slower growth to continue in the coming years global head wins are weighing on euro growth. he's concerned of protectionism out there. it is tilted to the downside inflation, this is important for the europeans, single mandate, inflation is all that matters to them more stomach limulus is coming a bit of weakness in the your ro euro on this. we wonder how much into what

extent the federal reserve follows. all right, steve liesman, keep us updated we'll get to jimbo, see if cramer has comments on this or the hearing or where we are ten years later. who should we put in for tim sloane maybe an oceanographer do you have a preference for that job, jim? i just think that we are in one of those moments where the democrats are in control there is people who do not like bankers. if we go back to some of the hearings in the 30s. there will be hearings where they'll call up rich people and they'll scream at them they bought the guy who invented the singer sewing machine up and they just pounded.

let's just pound them and make everybody feel like we pound them i don't know >> right we are right there again with all this stuff >> yeah, i know someone who's the daughter of someone who was called up and at the end of it, they say rich people are bad here bankers, they're bad. let's call these guys up because they are bad i don't know if there is much more doeing. i don't think you will get someone saying thank you for paying $20 an hour >> exactly there is camera. for us it is great get these people grand standing right for the most part? >> can they say they're sorry? they did not do anything oh, i apologize. you have to say that you did not do anything but at least your testimony would end quickly. >> joe, this is the world we are

in and you and i are driven crazy by it. >> it is true. i can see. i can see and i don't like inequality but i don't want to cap it i want to bring everyone else up i rather do it that way because i am not sure it is a zero sum game >> my old friend larry kudlow always explains to me, jim, bigger pie, bigger pie i said what do you mean? democratic party wants a bigger pie. they just got hijacked >> we should see some of the new stars today, too you know that people keep on saying you are obsessed with aoc, it is not us, it is the media. it is kind of a circus they changed it. >> i said that, too. there is a live shot of jaime dimon. >> look at his suit.

guilty that's an expensive suit lennon -- never mind >> that's also -- >> has she ever hired anybody? >> well, you got cramer here you got two-minutes left to talk to him he's saying all this stuff about -- he's kind of debating, i think. >> what did he do wrong? >> going back to the issue you and i were talking about before which you may think he did something wrong. the company decides to distance itself from gun maker and there is a whole number of republicans and lawmakers who plan to grill him. >> he turned money down.

he also turned the nfl down. maybe they'll focus on that. he's going to be a high draft pick >> here is a question, jim are the hearings going to move the needle on the bank trade banks every few years they don't mess up, they don't make a mista mistake. that was it. i thought that was a fabulous question ended the narrative >> i don't think how long it is going to last. >> come on, thumbs down, joe look at that guy, who's that guy? ridiculous anyway, to tune to on cnbc

1:30 p.m., eastern, steven mnuchin will appear on the exchange following yesterday's fireworks with the house financial service committee. stay tuned, "squawk box" will be right back

make sure you join us tomorrow, you are looking at live shots of jaime dimon, "squawk on the street" begins right now. >> dimon and moynihan and solomon, among the big ceos are getting ready to testify in front of congress. good wednesday morning, i am carl quintanilla with jim cramer and david faber with the new york stock exchange. future is positive there is a lot to watch including ecb and cpi, we'll get fed minutes this afternoon that bank hearing is going to be front and