asia take a look at what happened after you got some numbers there that showed exports in china surged back last month the nikkei was up by .7% the hang seng up by .25% the shanghai composite was flat. in europe this morning you are also seeing up arrows across the board. chevron announcing anadarko. price tag $33 billion in cash and stock. >> joining us right now, for this breaking news deal or breaking deal, i should say, exclusively, michael worth is with us. chevron ceo. we're thrilled to have you >> that's why he is here zoo literally as the news was crossing the tape, michael

was -- >> we got here fast. that's amazing were you walking by? >> we're thrilled to have you on this day, and really just want to try to understand this transaction. we should say our understanding is that it's a $65 a share in cash and stock that, by the way -- that's a pretty sizable premium almost 40% premium over where the stock traded just yesterday. tell us how this happened. we're alleges looking to make our portfolio even stronger. it takes a great company and makes it even better it really plays to our strengths in shale, deep water, and natural gas. it will allow us to continue to win in any environment and deliver great value for our shareholders >> we don't use him as an advisor, but -- >> you don't want to pay him

anything it was his idea? >> no, but this is something that -- >> yeah. >> he said anadarko for chevron. just speak to how you got to $65. >> we think it's fair for anadarko's shareholders and a good price for our shareholders. this really brings together two sets of assets that fit very, very well. it creates cash flow and will have $1 billion in capital synergies, and we believe in him so strongly that when the deal closes, we'll increase our share buyback from $4 billion to $5 billion a year >> that's something you are announcing as well this morning. >> it is >> the share repurchase. in terms just strategically, it's always a big question the price of oil right now and how you think about that relative to this deal. >> we don't think about the price of oil today relative to the deal at all where are.

>> you say oil needs to be at what price >> we had a $60 oil price. that's $10 below where we are today. we look at a range of oil prices, and we -- know, the one thing about oil prices is they never stay where they are. you have to be prepared. particularly for a low price environment for your business to be successful. i talked about winning in any environment. anadarko has a low break even oil price to cover their dividend and capital spending. so does chevron. as you put the two companies together, we'll have a strong balance sheet. we'll have a very low break even price. we'll be able to compete very successfully in any price environment. >> the total with debt assumption, the enterprise value is $50 billion for this deal is that -- >> that is correct >> and to pay off some of the debt maybe you'll divest $15

billion to $20 billion in asset. like what? your stuff their stuff? combined stuff >> when you bring two companies together -- >> $15 billion to $20 billion by >> over 2020 to 2022 three years. this will bring together a great set of investment opportunities. >> if you are planning to sell some assets this year. >> we have a program underway right now. a $5 billion to $10 billion from 2018 to 2020 we'll up that from 2020 to 2022. >> interesting it looks like your guidance for this year was -- is going to be on the lower end of the sale process in terms of asset sales. >> we said we would be $5 billion to $10 billion by the end of 2020. we'll shut that program down and be into the low end of that range by the end of 2019 >> in terms of the ability to do this, lng has had a bit of a rough time the reason i'm looking at that screen is trying to understand -- we should probably go back a lot farther. in termgs of understanding where lng is right now and whether

that price has effectively allowed you to do this >> lng is typically sold on long-term contracts, sbeked to oil, and so lng prices actually right now, spot prices, have come off considerably. anadarko has a great lng project in mows ak beak that they're developing we have a big position on australia. a position in angola this fits nicely we thit lng is a good business to be in for the long-term as the world continues to look for a cleaner energy mix, particularly for power generation >> you know, when you looked at cap-ex for your company, historically, people said they didn't -- investing in snuf in the way they had, frankly, probably even ten years ago. was that in part because you were waiting to do more mergers? is that because you wanted to give more money back to shareholders what's the thought >> we've got a very strong portfolio that we can grow cash flow at rateable capital spending and not as strong a capital program as we had ten years ago, so it was a reflection of the quality of our investment opportunities

this makes those investment opportunities even better, and we'll certainly see a step up in cap-ex with a larger company, but we expect to continue to maintain discipline in our capital spending and really hold capital spending at a rateable level, $1 billion lower than what the two companies would have been doing individually prior to this transaction. >> in terms of the anadarko team, who stays, who goes? what's going to happen here? >> we just announced it this morning. it's way too early to -- >> what i'll tell you is they've got great people chevron has great people, and one of the things i've learned as we've had transactions in the past with golf, unical, texaco, you sometimes underestimate how good the people are from the two companies as they come together. i think that's one of the great things about this transaction that we're excited about >> there aren't as many majors around, but are you the best fit for anadarko >> i would argue we are. our positions in the permian basin are complimentary. deep water, gulf of mexico -- >> you have the same type of

synergies, right >> that was going to be my question was this -- can you give a little bit of back ground on how this deal came together? was this an auction process, private auction process? how did this happen? >> we want to know everything that's happened. every -- everyone you have talked to, what they were offering we are companies we like and look for deal space, for when the timing is right, and we look for when we feel it's the right point to do something like this. >> there has been some deal space. emp companies have been pretty strongly valued in the market.

>> we don't really look to time these things there's good industrial logic behind this. good synergies can be realized in a good long-term combination that creates shareholders. >> anadarko shares are catching up with what this deal was again, this was a 45% premium at $65 a share. you could see right now since you have been talking, the shares are already up at $62.55. >> what happens if it goes above $65, andrew? >> that will be the question the reason i was trying to ask you whether there was an auction scenario or something else, was whether there was a possibility for somebody else. there's not a lot, but for someone else to try to top this bid and sort of how this came together in that regard. >> you know, our history of doing transactions is we've closed transactions, and when we step into a deal, we intend to close a deal, and that's the case here. >> just remember the good old days what was it? i think phil's petroleum

those were exciting to watch this is for us this is not for you. we just sort of -- because these are valuable assets, and there's not that many around >> we think this is a great fit. we think we are the right pash for anadarko to combine with if you look at our portfolios and where they fit together, i think we can create value here that nobody else can >> in terms of consolidation in the space, i'm starting to think -- i'm already trying to think about the says next domino to fall, at least in your industry, and whether your competitors are going to wake up this morning and see this news and say to themselves, guess what, we got to get on this. not on your transaction, but actually the consolidation train. obviously, this industry has gone through a huge amount of consolidation over many decades, but in terms of where we are now, sort of where you see the merger mania, if there is going to be a merger mania in your space. >> well, i think, joe, you're right. there are not many of the really large companies left those combinations get very difficult for a regulatory

standpoi standpoint in certain parts of the industry, the permian basin in particular, there are a lot of small companies, and we've seen some consolidation amongst smaller players already, and it might not be surprising -- >> we're going to want to make a full screen of other players today that are going up in sympathy with anadarko what -- who else those are the big ones i want to know the targets who else do you think would get -- garner some attention >> i don't want to speculate on who that might be. we have to wait until 9:30 maybe we can do it premarket >> is there a break-up fee >> there is a break-up fee >> how big is it >> that will be disclosed when we file a merger agreement later today. it's a sizable break-up fee. >> and in terms of the lng, the deep water space -- actually, let me ask you a different question we have this piece of it the regulatory piece you mention sort of regulators

writ large is there -- who has to approve this transaction what's the timing? >> this is the normal regulatory process with sec approval. there really isn't a down stream component, which is where you tend to get the ftc involved, and so we don't have marketing or refining assets coming as a part of this transaction from anadarko we expect that the normal regulatory approvals will be obtained in due course, and don't see any real issues there. >> go ahead. >> i'm just thinking i talked to you not too long ago, and we talked about how long you've been there you've been an employee a long time, but this is the mike worth deal this is your -- this is your inprint on the company now this is going to be a longlasting -- i mean, it's a big deal i'm not going to say the way joe biden said it, but this is a big fricking deal for chevron and for your company >> our company has grown over the years through a number of these kinds of deals i mentioned gulf oil going back to the 1980s

texaco in the early 2000s. in a real estate source business you need to acquire a resource, and this is a great resource opportunity. we're acquiring over ten billion barrels of resource. a nice resource addition and in places where we have great strength in the permian, gulf of mexico, in africa, and anadarko has done a very nice job of hydrating their portfolio. we've done the same. we think you put these two together, and you got a real powerhouse >> i just want to go through two other things on the release real quick. you talk about the synergies of $2 billion can you talk about where those come from? >> so about $1 billion of those will be cost synergies, and we have overlapping operations. we've got two headquarters, and so there's a typical cost subject erna synergy. you also see things in procurement. we both have helicopters and boats out on the gulf of mexico. there are efficiencies that we can realize in operations, and then i mentioned that we'll

bring together the capital programs of the two companies and typically you can high grade that there's corporate capital exploration. rationalize your exploration activities, and we'll high grade the project set to do the best projects that the two companies have >> go ahead. >> michael, you mentioned that oil price are about $10 above where this would be right now. if you were looking back at the first quarter, oil prices came under quite a bit of pressure. i think it was more like $53 do $55 a barrel for wti that's well below away we were seeing a year ago. what's that going to mean for your first quarter earnings, too. >> first quarter earnings will reflect the fact that oil prices were lower than they had been in the fourth quarter of last year. the refining and marketing business also was under a lot of pressure in the first quarter. we saw weak refining margin. i think across the industry, you'll probably see a down trend in earnings. first quarter versus full quarter of last year certainly here at the end of the first quarter and into the second quarter, things have strengthened >> it goes back a little bit to joe's question earlier

i know there are people watching and thinking what are those assets because they want to go buy those assets can you give us any hint in terms of what you are thinking about? >> it's premature. we don't really talk about those until we're in the market with them we've got -- both companies have a good set of assets, and i think there will be attractive opportunities for things that, frankly, are good assets that we just may choose not to invest capital in that would draw capital from other companies we'll talk about those as we've got specific transactions that progress >> and then, finally, the increase in the share repurchase, why pursue a share repurchase now based on this new -- is it based on this news? >> well, we're repurchasing at $h $4 billion a year right now because the deal is a good deal, and they've got strong cash flow we've got strong cash flow from operations you put these two companies together we're so confident in delivering the synergies and delivering even stronger cash flow in the future that we're willing to up the share repurchase rate on closing the transaction.

>> okay. congratulations on the deal. they always say congratulate the ceo usually five years afterwards >> i'll come back. >> please come back. >> early and often >> he so how it goes appreciate it. disney taking on the new streaming service. it costs about half as much. details next our guest host for the rest of the show lsh dan gilbert, chairman of quicken loans. he is smiling. not because of the year lebron had, but that probably didn't hurt an owner of the cleveland cavaliers. as we head to break, here's a look at the biggest premarket winners and losers in the dow. we'll be right back. bye!

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no matter what you trade, at fidelity down two runs in the ebottom of the ninth. because there's always another game on deck. with mlb extra innings on xfinity x1, you'll get up to 90 out of market games per week with mlb.tv included. get all the body sacrificing catches, home plate heroics, and 6-4-3 double plays. plus, with x1 you can get every stat and every score all with the power of your voice. that's simple. easy. awesome. order mlb extra innings for a great low price and get mlb.tv included with your subscription. go online to learn more. welcome back to "squawk box. our guest host for the next three hours this morning is dan gilbert. he is the founder and charnl of quicken loans. he is also the owner of the cleveland cavaliers. dan, thank you for being here. it's great to see you today. >> it's great to be here i missed that big merger >> yeah, i know. >> do they happen every morning? >> they're great >> yeah. great to be here >> great to have you

so much to talk about with you quicken loans is the number one mortgage originator in america we've got a lot to talk about with housing and so many other things >> can't wait to get to it housing markets, it's local. >> it is >> it's local. it's like they say overall not bad. >> k on. we're going to talk a lot more about that dan is here for three hours. very quickly, we want to get you caught up on today's top stories, though. disney unveiling new details at an investor presentation last night. disney plus is going to be launching in november at a price of $6.99 a month that's a little more than half of the cost of netflix disney plus will be an ad-free subscription service featuring original content also, programming from disney's biggest franchises, including star wars and marvel it will also be home to content that's been acquired from fox, including the simpsons david faber spoke to disney ceo bob iger about taking on netflix. >> well, i think netflix has done a good job of creating brand value and name value, and the product is considered of

great value to a lot of people they're still building their brand in many respects whereas in our case we start with a customer relationship that, in many respects, is visceral if i see the opportunity to buy disney plus and i can watch it on all these devices and i can download the movies and i'm going to watch original product, but i'm also going to watch things from the library, that's something i know that imauto going - i'm going to want. >> he says he is definitely stepping down from his post at the company in 2021. his latest contract extension was contingent on the fox deal closing. we're going to bring you much more of faber's interview with iger throughout the morning, and stay tuned for the full interview coming up at 9:00 a.m. on squawk on the street. boeing ceo dennis mulenberg speaking out about the grounded 737 max planes at a leadership forum in texas he said software changes will make the jet even safer by preventing erroneous angle of attack sensor readings very ar contain at this point. that's premarket because it did

rally yesterday as well. about 1.5%, i think. remember, it was back to the mid 390s and went back and tested that 365 once again. that's a technical level that fundamentals seem to work around where the 200-day moving average is it's crazy the way that works. big morning so far this morning. if it holds up mullenberg, that i don't feel is one of the reasons the dow is up 161 points mullenberg said that the company conducted nearly 100 test flights with the fixed software since the plane's groundsing last month the ceo didn't take any questions. he didn't provide any updates on the timeline for implementing the software fixes, but the comments were that it seems like the problems are either completely solved with it and that no incidents on these flights reportedly >> cross your fingers. >> these are, once again, really well trained pilots, again

i mean, there weren't many incidents dents in the yaigts ay >> we'll continue to see it's going to be a while before you see what the aviation authorities around the world decide to do with this, too. let's get back to our guest host this morning, dan gilbert, the founder and chairman of quicken loans, which is the number one mortgage lender in the country. dan, that's kind of amazing because you're a young man, and this is a company you started. what happened? >> i don't know how young i am he is a young man. yes. >> he is a young man >> thanks. >> you know how that goes. >> he said you both were >> he said that -- he said me. >> i thought you said andrew is a young man, ando is a young man. >> oh, that's nice oh, that is nice thank you. >> whatever i need to do >> you'll be back now. >> oh, man what was your question >> what happened how did you take this and build this company into the number one mortgage originator, and, by the way, what does that mean

>> that means there's 30,000 places you can get a mortgage in this country credit unions, brokers, mortgage bankers, commercial banks, jaime dimon. wherever you want to go, right you can go for a mortgage or it was, as jeff bezos, i heard him say this phrase once it's a get rich slow scheme it took 34 years for my -- or 33, i guess, to time that we became the largest market share for retail mortgage banking, and, you know, we're real excited about it we think we have a long way to go we're still under 6% overall share. you know, that's the largest when you have 30,000 of them doing it, and we're excited because it's a technology and culture really that did it for us great culture, great technology. we're in a commodity business. i mean, mortgages come out, and nothing special about our product. our rate is competitive, and the experience you're going to get and the ease and the simplicity and just the speed, the whole thing is going to be better with quicken loans. >> you mentioned jeff bezos, and just like bezos, you took advantage of the internet. that's a big reason why you were able to do this. >> it couldn't have been done,

frankly. unless you had an appetite to open up 3,000 physical branches ask try to manage that across the country, which we all know any business is very difficult, so that's an advantage for us, too, and the costs are lower, and the centralized processing environment like we have, and it's exciting. we're -- rocket mortgage is now more the brand that we're using, and we have a pga stop in detroit. i know that joe is excited about that >> yes >> we're going to ask you to play in the pro-am of that >> you are >> yeah. >> is this breaking news >> no. well, not as big as the merger thing. >> wait a minute depends on who you are i think. >> it's in june, and it's the first time ever there's been a pga tour stop in detroit we're excited about that rocket mortgage. >> it's detroit golf club, which is an old very esteemed course that people like, and it's -- >> we're going to look that up right now. get a diagram of the 18 holes. can i pick who i play with >> i'm going to defer to the ceo of quicken loans, a guest later. we should ask them that.

>> yes, we should. >> he is going to be here? >> he is on -- he will be -- >> yeah. this is awesome. >> the reason -- >> what's going on right now, in fact >> i heard about it. georgia, huh >> koepka. no one talks about him won three out of the last six majors, and he is six under. >> the reason you are excited about them coming to detroit is that you have also done a massive amount of work to rebuild detroit. i would say you almost single-handedly have turned things around for that you own more property there than anybody but the government >> yeah. you know, i honestly don't know what is in the government. certainly didn't do it alone, becky, and not only in our organization there's a lot of people that work years and years, and, man, there's a lot of company and people and the citizens have been there for years and years, too, and they were on their way. we came in and did our part, and we're lucky to have a high team member count over 17,000 full-time people, and it's not judge us that they go to work there they're really dedicated in some way, shape, or form in the

mission of detroit, and, you know, it's a diverse place, and it's exciting. we have to have a show from there one day with joe after his golf >> actually, we're going to talk a lot more about both mortgages and what you have been doing with detroit plus, the other hundred plus companies or so that you have been funding dan is going to be with us for the rest of the show to talk about all these things we're really glad to have you here >> i'm glad. it's been about a year and a half it's been too long >> we have a lot of cool tough coming up for dan in a bit when we return, we're going to talk about a booming business it's the second hand market for things like sneakers and wauchds. i actually was out in detroit, and you know why -- i went to the headquarters for this company. it's so cool we'll talk about it right after the break. it's a big business. back in a moment kevin, meet your father.

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welcome back recapping our big deal news of the morning. chevron announcing it plans to acquire hydrocarbon exploration company anadarko for $33 billion in cash and stock. deal enhanced the upstream operations and strength in its position in shale. deep water and natural gas as well we'll have a lot more on the deal, and we'll show you some of the tape and reaction to our interview with the ceo of chevron in just a little bit the second and third hand on-line marketplaces are growing. especially for apparel dan gilbert invested in one that

specializes in sneakers, watches, and other street. joining us now josh, ceo and co-founder of stock x >> dan gets the help in building the company. i get to help him bring in the rapper it's a good partnership. >> i don't have my hat backwards like that. >> we are the largest marketplace for sneakers, but it's about how we connect buyers and sellers. this is an actual stock market this is an actual stock market for consumer goods we bring buyers and sellers

together the same way the world brings buyers and sellers together, which is across a true market price we get to a true market price bringing a lot of data, and using a live bid ask model the same way the stock market works. >> i think what's probably more important, though, is you authenticate everything. buyers don't ship. buyers don't get it directly from the sellers they to come through you first >> it's synonymous, too. it is -- it takes on that attribute as well. >> because we stit in the middle of that transaction, you can be anonymous. you buy a share of nike stock from the new york stock exchange you don't know who on is the other end of that trade. it clears to the new york stock exchange.

>> my question, which i did ask -- >> is that leather or -- if it's not a warren shoe what are they sniffing for where zbloosh fake shoes often have lower quality glue, and that has a pungent smell. >> if it doesn't smell, it doesn't mean it's real that fake smell is very, very distinct, and a lot of times just by smelling it they say we know this is fake. >> my question was going to be how frequently are you getting people who are putting or trying to put fakes into the system and then what do you do about it >> it's actually way smaller than you would think because we authenticate, because we sit in the middle of that transaction, we actually only see about 1.5% to 2% fakes that come true >> it's sort of -- your question begs the answer. it's because we authenticate, and they know they can't get it by at the beginning. >> the first couple of weeks -- the first couple of months it was 15%. you know, this is never going to work if we have to cancel 15% of the sales, but what happened is slowly -- if you have a fake, if you want to scam somebody, go sell it on ebay or sell it where

people aren't check, right >> it's actually the more the latter i'm a good example i have about 400 pairs of sneakers, which sounds like a lot. >> 400 pairs >> there are people that have thousands, right i'm nowhere near a pantheon of a big collection i wear all of them we'll show you the picture after this >> he has a sneaker seller >> how scaleable is this into other categories you guys have grown this business by adding other categories, but sort of how do you see this going >> yeah. i mean, today there's four categories sneakers, street wear, which is clothing that resales like sneakers watches and handbags if you think about watches and handbags, they have almost the same supply and demand dynamics that the sneakers have where

brands leverage scarcity, and you put products into the market that everybody wants at resale, and for us any product that has finite supply, which is almost all consumer goods fit this model. >> were you, like, oh, that was a weakness in the ancillary -- >> i think we were all just -- that was an mazing athlete in whatever >> that's exactly what it was. >> if we win the lottery or the cavaliers win, i guarantee you we'll find the right sneaker that's for sure. >> you mentioned that handbags are a big thing, too >> yeah. >> chanel say -- >> chanel, louis vuitton, you know, gucci, mcm those are the top brands >> you authenticate those. >> silent h. >> hermes. >> i was calling it wrong. >> hermes. >> yeah. >> i mean, that's an interesting

thing that's playing out right now. you know, authenticate is a human process, and for us and all the products in all the categories, we acquire rio, we acquire fake, rip them apart, document them, create training manuals. you use apps, technology, and it's a career -- >> for expensive shoes >> for training. even the original ones in order to create the training manuals and it is a human process to do that >> versacy >> we do sell a few. >> we're the same. see? hermes and versace they're the best >> josh, thank you for coming in >> very cool >> appreciate it it is a big day for earnings when we come back. we're going to get results from jp morgan just in the next few minutes. we'll bring you the numbers and the instant reaction right now as we head to a break. let's look at yesterday's s&p 500 winners and losers

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>> good morning. recapping the big deal news due juror. today's due juror news

chevron announcing -- announcing plans to acquire hydrocarbon exploration company. i like that. really making it complicated anadarko, they find oil and gas for $33 billion in a cash and stock deal that will enhance chevron's upstream, obviously. the exploration emp operations and strengthen its position in shale, deep water, and natural gas basins both big operations in the permian and sin erj jynergiesyn. everything else to update you on still to come. mike worth had to say he was on set with us this morning the ceo. time for the squawk planner. earnings taking center stage today. we're expecting results from jp morgan in a few minutes. we'll get to wells fargo around 8:00 a.m. eastern, but with all this deal news in the disney news, we're probably not going to have time for these earnings. u.s. equities -- we have overload this is the wrong day for them >> you have a lot of news.

>> we're still going to try and do these >> yes >> all right i don't -- >> it's important. below my pay grade but we decide to do. we'll probably still do them, right? >> hey, good morning, becky. uber revealing about 300 pages worth of documents last night setting the decades old company on a path to a public listing. the prospectus detailed the making of a company that has spread its businesses far and wide in recent years from ride-sharing, food delivery, freight, and bikes to far-flung markets in latin america, india, and australia. digging deeper into the numbers, it's clear that top line growth for uber's core business, minus incentives to drivers, has been slowing in recent quarters, and the company concedes that it may never achieve profitability. uber says it incurred operating

losses of tease numbers are emblem attic of the fear says fiercely competitive industries that uber is trying to capture, but despite the sacrifices on the top line and bottom line, user growth is steadily declining. we call that monthly active platform consumers those are unique users that completed a ride or received a meal in a month. uber had 91 million map cs at the end of 2018. up 35% from the prior year guys >> when we come back, we have much more from the big energy deal of the morning, too chevron buy anadarko we'll tell you what the chef ron ceo told us earlier this hour. chevron down 2.5%. anadarko shares up 30% to $61 just below the $65 price target

offer from this deal earnings season kicking off, though we are awaiting those first quarter results from jp morgan, which right now is trading up 56 cents to 106.79. -so much of our future is ahead of us.

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time now for the executive edge recapping the mega merger of the morning announced right here on "squawk box. chevron planning to acquire hydrocarbon exploration company anadarko for $33 billion in cash and stock. anadarko $65 a share you are looking at that stock already up about 29% or almost 30 on that news. total premium much higher. the deal will enhance the upstream operations and strengthen its position in shale, deep water, natural gas bassines here is chevron ceo michael worth speaking with us earlier this hour. literally as the deal broke. >> we've been, you know, looking as our company has strengthened its financial position here over recent years, we're always looking to make our portfolio even stronger. it takes a great company and makes it even better it really plays to our strengths in shale, deep water, and natural gas. it will allow us to continue to win in any environment and deliver great value for our

shareholders >> the company also announcing a share repurchase program that had been at $4 billion it's going to move up to $5 billion. the company saying there's going to be $2 billion of synergies between the companies and also looking for oil. they say the transaction at $60 a barrel, and they look at this as a long-term basis we are awaiting quarterly results from jp morgan set to hit the tape it could happen literally any minute right now as we wait for those numbers -- >> it's happening. >> we have them right here >> it accident loo like earnings came in at $2.65 the share looks like the revenue number -- i think that we take the revenue on a managed basis, which is $29.85 billion. that is above the $28.4 billion that the street had been expecting. also seeing a couple of numbers. non-interest revenue $15.3 million. return on common equity 16%. return on tangible common equity, 19%.

a lot of other lines in here consumer and community banking revenue. marty, just a knee jerk reaction these numbers much better than people have been expecting >> what we're going so see now is the actual capital markets were probably better that was the one surprise we thought we can have this quarter. that's why they're strong when we get the first quarter results in >>. >> what else do you want to see right now? >> what you have to look at is credit first because the fear of recession is still kind of being bandied around to the degree that the credit costs say stay low and the positioning stays relatively flat and the charge stays relatively flat, we think we can dispel the fear of recession in the next couple of quarters because of the performance that we're going to see on the credit side >> we don't have the full release yet, so we're just roog at flashes on this i can tell you that the provision for credit losses is

1.5 billion. also, the company talking about the net share repurchases in the first quarter were 4.7 billion dollars. >> so that's flat, which is what we would expect for the credit costs. we're getting some revenue, which is the best thing that we can kind of see in the sense of that momentum. we're seeing costs relatively flat.ts then the third thing we'll look for is net interest margins. if they can stay flat this quarter, given what we had, which is that last rate rise in december, that was pushing deposit cost up. so this quarter is not the net interest margin quarter to perform well if we can hold flat, that's a good performance that we'll see in some of these banks that will lead to some revenues later this year >> so, the nonbanks did not really cause him, jamie and the company, much this quarter, huh? >> well, when you look at it, the transactions that we get in capital markets is really, you know, more the brokerage type of business so when we're looking at the nonbanks, the threat right there is really how much are they competing away in loan growth. so that's the back end we'll

have to look at with that particular statistic. >> do you think they're going to regulate the banks as much as the nonbanks the nonbanks, contrary to popular belief, are probably regulated more in the mortgage space. >> i was going to say, dan says this as a nonbank that's being -- >> yeah, we're also non-zero and non-hippopotamus we've never been a non something. think about it, your whole identity is a non something. this is a new thing in the last two years. >> talk about identity politics, this is sort of one. >> it sort of is what they're calling -- when they have fintech competition, i guess, it's just seen that the banks are launching an assault now that the regulatory environment needs to be jacked up why don't they just compete in the fintech? because i mean, they're big and well capitalized, they're smart people. >> well, we are seeing that they're competing. they're actually participating in the fintech, partnering with fintech, actually bring some inside when they can so, we're seeing an evolution of banking, which is, you know, adding a lot of convenience to customers. actually, a lot of folks talk about the mote around deposits

is actually getting eroded, when in reality, the relationship that the banks have created with their core customers is deeper than ever because of the relationship you have with your phone or online, which gives you so much convenience. it's just hard to change banks at this point. >> hey, dan, as much as you might feel like regulators are beating up on you guys, at least you weren't called ahead of congress this week what'd you think of that >> i didn't. i know jamie dimon and he's a friend, and we have a relationship with them, a large one, but they are all going out there and now sort of using these terms -- nonbanks, shadow banks -- >> calling for more regulation. >> and we're highly regulated. we're regulated by everybody you can imagine, 50 different state regulators, where they don't have their preempted i mean, i could go on and on, but i just think it's an intentional sort of, like, you know, they're competing. fintech is competing against jpmorgan and wells fargo, and all of a sudden, hey, washington, you'd better regulate them. i don't think there's any connection whatsoever between

taking a deposit and whether or not your lending's safe. it's a whole -- i mean, they're not really related so, but you know, that's just me i'm a little biased, so, you know. >> marty, what do you think? >> well, when you look at what we've had, is the regulation on the bigger banks, has the lowest loan-to-deposit ratio we've seen in 20 years. so, fintech has been able to -- and what we've seen in the lending side -- come in and take that void. so the two places where you've had incremental market share gains are community banks and in what we call the nonbank sector. >> yeah. >> because of the regulations. so, i would hate to think that we want to say that there's more regulation because we've actually constrained their ability to grow lending, at least on that side. >> yeah, but they could sell, like the nonbanks do, right? they're selling the fannie, freddie, ginnie mae -- mostly on the mortgage side, anyway. i understand what they're doing. it's just an interesting dynamic. i think you're right, it not going to be like fintech

companies take over all the banks. >> right. >> it's always some kind of, i guess inventory dven diagram. you take the middle part -- >> and what happens with the core relationships, the two eventually evolve together and then you have kind of the infrastructure and the interaction with customers that then the fintechs want and the banks can be able to leverage that. >> do you think you see the same thing as you do, you know, amazon and google and facebook taking out all the sort of innovative companies coming up -- some people have a theory that, you know, you'll never get bigger ones because as soon as they get big enough, they buy them and it's hard for the shareholders of those companies to resist. and the same, big banks, will they take some of the fintechs >> the winners, we've seen some of the big banks have disincorporated that into the infrastructure as they go through the process, which is kind of the natural way it works. and fintech goes back and creates another wave, then that gets embedded into the financial system, which the banks control at this point. >> it's like their farm club. >> it is yes, it is >> interesting >> going back to what you think about jpmorgan again, based on

the headline numbers you've seen, what do you think of the stock? >> so, we think that the banks in general are 15% to 20% undervalued. so as we go through this year, we have to fight back on two things -- the first thing is whether or not we're going into recession. the late cycle we hear talked about so much, that is only because we're ten years into this recovery in growth. that doesn't mean we've created enough growth to be late cycle so when we look at the discipline we've had, that's why credit's so important, is that the discipline hadn't allowed the economy -- even december reflects the fact that the economy kicks in really quickly because of the fear of what we had in the last time so, we think that that is too early to be calling this late cycle. we still have several years in front of us. the second thing is operating earnings so when you see the revenues you saw here, that's the second part of this. you've got to produce that, you know, earnings. >> all right i'm just getting the earnings release. let me tell you what jpmorgan chairman and ceo jamie dimon had to say

he said, even amid some global geopolitical uncertainty, the u.s. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong. skipping through very quickly, i don't see any comments about what he sees in terms of a recession, but that's pretty strong commentary. >> yes. >> on a very decent economy here >> so, it's really december and what we've seen lately are two fronts -- it's the recession and it's operating earnings are peaking out. and neither one of those thiesies are really right. what we believe is that the recession will be prolonged with what's happening with the federal reserve right now. we'll actually see that pushed out several years. and operating earnings -- look at the returns, 19% return from jpmorgan is the highest we've seen so far in the cycle. >> marty, thank you very much for being here marty mosby. coming up, much more from our guest host dan gilbert of quicken loans and the cleveland cavaliers. plus, stock from the big

deal of the day that broke here on "squawk box," chevron buying anadarko we're going to show you what the chevron ceo told us earlier this hour and going to check on some big moves by some of anadarko's rivals plus, disney strikes back, announcing a streaming plan that's about half the cost of netflix. details straight ahead 300 miles an hour, that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org.

big news for big oil chevron acquiring anadarko in a mega deal. >> it really plays to our strengths in shale, deepwater, and natural gas. it will allow us to continue to win in any environment and deliver great value for our shareholders. >> more reaction straight ahead. disney's game plan ceo bob iger rolling out new details about disney plus. >> one that no other content or technology companies can rival >> what this means for the magic kingdom, netflix, and the rest of the entertainment world banking on earnings season jpmorgan's rolling out results, and wells fargo's on deck. we'll go inside the numbers as the second hour of "squawk box" begins right now

>> announcer: live from the beating heart of business, new york, this is "squawk box. good morning, everybody! welcome back to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. our guest host today is dan gilbert. he is the founder and chairman of quicken loans and the owner of the cleveland cavaliers we've been talking to him all morning, although we still have a lot to get to when it comes to mortgages and what's happening with interest rates. >> great i'm here all morning, i think. >> okay, we've got some ground to cover here. >> unless you throw me out of here, i'm here. >> no, no, you're here let's check out the futures. big news the last hour on "squawk box" is pushing futures higher dow indicated up 165 points, s&p indicated up 13 and the nasdaq indicated up by almost 30 points boeing has been helping the dow futures, too, but again, big gains across the board.

okay, want to get to the deal that just broke an hour ago right here on "squawk box," chevron buying anadarko petroleum for $33 billion in cash and stock, $65 a share, premium about 39% based on yesterday's closing price. and chevron's ceo michael wirth joined us last hour, literally within a minute of the deal breaking, exclusively right here on "squawk box." here's what he had to say. >> we've been, you know, looking as our company has strengthened its financial position here over recent years, we're always looking to make our portfolio even stronger. so this takes a great company and makes it even better it really plays to our strengths in shale, deepwater, and natural gas. it will allow us to continue to win in any environment and deliver great value for our shareholders. >> and take a quick look at shares of both anadarko and chevron. anadarko up, of course, 30%, closing in on that price, but still a bit away as the

arbitrageurs set themselves up on both sides. chevron down about 4% this morning. >> and anadarko off about $62 when we were talking to michael wirth. >> part of it is maybe a timing issue in terms of when the transaction closes i don't think there will be particular regulatory issues, or at least i don't want to contend that there are we're also looking at shares of some of anadarko's competitors right now on maybe potential target list for some of chevron's rivals >> chevron hurting the dow, but jpmorgan helping, boeing helping, disney helping with the streaming -- >> yep, after the news from last night. jpmorgan reported stronger-than-expected results just moments ago, and wilfred frost joins us now with a look at the quarter, wilf we had the stock initially with a nice jump. we haven't looked at it in the last five minutes. how's it doing >> reporter: well, i need to see the stock chart to give you the live price, but eps beat significantly, $265 per share

versus 235, slight revenue beater as well the eps beat really because of better capital markets, but the meat of this earnings report is that the core business is doing fine, despite any moves we've seen in the yield curve and despite any fears you might have over the economy i'll start on that part of the business the net interest income actually up 8% to $14.6 billion, a little ahead of expectations. whatever the yield curve do towards the end of the quarter, don't forget there was a december rate hike that's helped jpmorgan here. the net interest margin up little more than expected as well to 2.65%. and even if the guidance on the call that the yield curve outlook isn't as attractive, volumes there of loans was better loan growth was strong, plus 5%. all of that does bode well, bode pretty well for the sector to suggest that the economy's not looking too soft and the banks are doing fine to the capital markets and the investment banking performance, that was a little bit ahead of expectations, not as bad as feared

trading overall, excluding a one-off, only down 10% people were talking as much as 20% or the high teens. if you dive into that, fixed income trading was $3.7 billion, only down 8%, the equity trading $1.7 billion, only down 13%. so that was where that eps beat mainly came through. and investment banking, as we knew was going to be strong in this quarter, essentially flat year over year again, that's the standout in the capital markets, likely to help all of the banks, including jpmorgan -- including goldman sachs and morgan stanley, but overall, the eps gave a 2% pop to the shares. came into the earnings season, of course, well priced, the banks overunderperformed in q-1 relative to market. >> wilf, thank you for that report. meanwhile, we'll dig into jpmorgan's results and turn to marty mosby. he's seen some of the numbers now. >> yes. >> your headline >> so, investment banking, advisory and debt placement, which are good read-through for

goldman sachs and morgan stanley, so that's a positive as we're going into the money centers. that was one of the, like we say, deltas that could be favorable this quarter provisioning's flat and that chart is only around two or three basis points, so very low credit cost, which is important. then the best thing wilfred just said was net interest margins were up this quarter. >> that's what you were watching for. >> yes so that was, again, a verification that the operating model for banks, these large banks, is still working, given the interest rate environment that we have right now. >> and you think that says something about the whole space, not just jpmorgan. >> yes, yes. because what we have is deposit pricing was getting elevated, so that was a hurdle to overcome in the first quarter. what peopleare missing is the fact that rates are still higher than what they were two and three years ago. so as you're rolling some of those, what we call back-book assets, and they come and get reoriginated, they get higher rates. and they're really over dda and equity that has no price elasticity

so as those assets roll up, you get a wider spread, which is a positive. >> you've been bullish on jpmorgan. >> we have. >> you've been bullish on the whole space. >> we have. >> but in terms of where you think this stock should trade, what's fair value? >> fair value right now is in the $125 to $130 range so that's where -- >> we've still got a long, long way to go. >> a long way to go. >> and what do you think the company has to prove, effectively, to get there? >> two things, and these are the seeds for this industry and this sector recession is not on the horizon. and the other side is that returns can continue to move higher and that's why that 19% return on tangible common equity was so strong this quarter. >> right well, the banks on their own can't prove that a recession is not on the horizon, but they might be able to prove the second point. >> well, they do actually prove. they're the litmus test to what the economy's doing. so we see on the banks' balance sheets what's happening in the economy. >> right. >> through loan growth, through credit costs, through even what's happening in net interest margins.

so, that is actually a really good signal, because those two things are intertwined so, the performance that we see in the banking sector, one, banks go down first because they're kind of the canary in the coal mine because of what happened to us last time, and then we're the ones that have to prove the case that actually we're not going into that recession. >> is technology and the internet causing deposits to be hotter and hotter, meaning people are moving money in and out based on rate quicker? is that really happening en masse? >> so, actually, this is a hotly debated topic right now. what we have is really two different markets on the deposit side, and we've always had this. 75% to 80% is core relationships. and those core relationships are tied to their primary bank more than they've ever been before. but the hot money, which has always been out there in the market, represents 20%, is much more fungible. so, it is actually going online and being bid away on your phone. so that's where you're seeing that happen. >> so, is that growing and making it harder for guys like

you to predict net interest margin for these banks >> actually, it's not. the important thing is if you look at the pricing of that hot money, it's tied to the market rate so in other words, what's always happened is the substitution is, if i have to pay the markets to fund my balance sheet, like y'all do, then i might as well offer a deposit at the same rate and then get a customer for it so, when those markets are still tied, it's no different than what we had -- it used to be in the sunday paper and the bank that needed the cds put out the hottest money. it's just in a different channel now. so there are different competitors. >> is it mostly young people doing this >> no, it's everybody. so, it has just replaced the channel -- which we used to say when we were at first tennessee bank, if we put the highest rate in the sunday paper, monday morning everybody showed up and lined the streets to come in now what you do is you actually see it in a whole different venue, which gets to other folks -- >> which the actual technology allows them to do it quicker and more efficiently versus standing in line, right >> right. >> and filling out paperwork. >> but the point is, that

hot-money market is exactly what we used to have. it's not bigger. the online deposits actually represent about 10% of the market right now, which is exactly what we would have normally seen in the past. it's just a different venue for it to happen. >> dan, you sound like you know a lot about this you've been watching it closely, too. what are you seeing? >> yeah, no, we're not a depository institution -- >> but you know something about it. >> i was just curious about whether the banks feel under pressure but usually, predictability in the banks' earnings, right, that's a thing with them, and deposit growth and loan growth and if people have access to technology so much and the mobile phone -- jpmorgan's at this rate, wells fargo -- >> right, move it over here. >> boom. >> but what i said is is it millennials? you said no. how do you know the answer. >> what you were saying earlier, let's just say the aging folks are sitting there and they're retired or semi-retired and you're in florida or wherever you're at, and you're looking at your -- you know, they've caught up on the technology and it's easier for them, for sure it's harder to get around, especially if you're in cold-weather cities -- >> they may have more money,

too. >> yes >> but this is a key issue in the sense of what their perception versus reality. perception is because that market, the hot-money market is very fungible and very elastic, that the core market is the same, and that's not the case. if you look at online depositors, it's all high-yield, money market and cds it's not core checking relationships. >> right. >> the core checking relationship is what matters to the profitability of a bank. so when we're looking at the fence and what they're being able to protect there, deposit betas are actually lower this cycle than the last three times rates went up, meaning deposit pricing hasn't seen the pressure in the core relationship. >> we have to run, but on the investment panicking side, what's your big headline >> debt advisory so what you see there is that will read for like we said for goldman and also super regional banks like keycorp and sun trust that have those businesses as well that was up strong this quarter. >> thank you, marty. appreciate it very much. coming up, it's already been a big morning on "squawk box." big earnings and a mega deal in

the oil patch. later, disney's streaming details. ceo bob iger spoke to our own david faber about the big news we have that coming up later in the hour. and the futures are on the move this morning. a lot of dow components with individual stories stay tuned you're watching "squawk box" on cnbc

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welcome back to "squawk

box," everybody. we've been watching the futures this morning, and on this friday morning, they are indicated sharply higher in fact, dow futures have picked up since we started the program, now indicated up by over 175 points s&p futures up by 15 the nasdaq up by 36. and jpmorgan shares are giving the dow an additional boost after its results that came out that were better than expected they came out with their numbers, which were -- hold on, let me go back to my page -- 265 versus the 235 the street had been expecting revenue also better than expected $29.5 billion, versus the $28 billion that the street was anticipating and that stock is up $2.50, a gain of 2 .3%. back to our guest host dan gilbert, founder and chairman of quicken loans and chairman and majority owner of the cleveland cavs people refinancing yet >> oh, yeah. i mean, they're -- first of all, there's a percentage of people that are always refinancing for other reasons. i mean -- >> is it everyone? >> no, definitely not everyone i mean, depends on where your

rate's at, whether you want to do something with your term, whether you want to move to some other kind of term let's say you're in a property, you know you're moving in a year or two and you're in a fixed rate that's way higher than a one-year -- you might want to go to a one-year armorif you have to take cash out cash out of your house -- there's good cholesterol and bad cholesterol. there's good loans and bad loans, right low-interest deductible is better than high-interest nondeductible. >> pretty amazing that -- i stuck with the floating, because i don't know, it's so much cheaper, right, than the 30-year. >> yep. >> and everyone's saying, no, you've got to do 30-year just in case and did you hear kudlow yesterday? >> i did not. >> larry says he doesn't expect rates to go up again -- he's no spring chicken, but he doesn't expect rates to go up again in his lifetime. >> in his lifetime >> in his lifetime. >> wow there was a survey from the "wall street journal" today, economists who don't expect it to go up at all this year. >> so who cares about floating rates, then? >> well, is there still a connection between the

so-called, you know, inflation and bonds and rates? i mean, it seems like it's been inflation rates, cpi or core cpi's been flat, within 100 basis points -- >> so that explains why rates haven't gone up, though, right there is a great relationship, i think. i think that somewhat explains europe, too. >> right. >> doesn't it? i mean, the japan lesson, we've all learned from that. they'd give anything for a little inflation >> it's also -- i think inflation's overstated, because you don't really have the quality component built into it, either, right? >> that's true. >> i mean, a car today -- or maybe not a car -- >> a phone. >> -- a phone. you know, how do you compare it from ten years ago the price is a little bit higher, but how much more do you get from it? >> do you remember -- i mean, so many different areas of life do you remember when your mother would say, i don't want to talk. it's long distance let's get off the phone. they still do that i don't want to talk, my mother-in-law -- no, is this long distance? it's like, it's free >> how about the airport will everybody drop everything they're doing, pick you up from the airport.

you can't have your friend pick you up at a movie or a restaurant, but you come to the airport, they'll drop everything picking them up at the airport do you have that in new york that's a big thing in the midwest. >> it's a midwest thing. it's definitely a midwest thing. >> no wonder the blank look on the faces -- >> i know what you're talking about, but only in the midwest, not here. >> it's a big deal. >> but to be able to get margins on these companies on -- they're so slim because of the transparency brought -- you know, the price transparency from internet, and they're still doing well companies are still able to eke out a profit. >> because of the efficiency of technology. >> yes >> sort of works hand in hand -- >> which is good i was thinking about something else, too, sorkin. i was thinking, i worry about automation and the american worker i do and i think -- i worry more than that than about capitalism's shortcomings i worry about how eventually a lot of these jobs, what are we going to do? how are we going to replace them but then again, all the way back to the cotton, when they first figured out a way to, you know,

all the machines the luditis didn't want that to happen and we've somehow gotten through all the creative destruction to a better place. shouldn't automation give us more leisure time and a better quality of life and everything else and does that mean -- >> or we just work more. >> but does that mean some day there is a ubi or something like that i don't know. >> that's the fundamental question -- >> what's -- >> universal base -- >> none of us, in that movie "wally" -- >> that was awful. >> nobody's doing anything they're all just watching augmented reality and eating chicken and waffles and stuff, which sounds gross. >> if technology's replacing something, it's replacing time so now people have time. so usually, they think of other things to create -- >> netflix >> you know. unless they're becoming one of those -- >> so we're going to live to be 150 and have absolutely nothing to occupy ourselves with except entertainment -- >> a lot of movies. >> sounds like our lives now. >> the new disney streaming channel, which i'm going to segue to, $6 a month.

>> although i'm back to -- i don't know if it's a midwest thing as much as it's a billionaire thing, about who picks you up at the airport. >> what i'm saying is i've heard people say, i can't come to that meeting, i've got to go pick up my aunt at the airport i go, there's uber, there's lyft, there's taxis, there's -- >> we were going to have the boeing story i was going to ask you a question you'd be like, oh, yeah, never flown on a boeing, unless it's a business jet, in 40 years -- >> i'm talking about from the airport, not to the airport. >> when's the last time you've been on a commercial flight? >> oh, i've been on them, a lot of times. >> in your youth >> no, recently. >> your youth? >> it just depends where you're going, you know? >> right if you can't -- right -- >> depends how >> if the plane is right -- >> if you're going to russia, you might -- >> i don't know. i don't know. >> dan will be with us -- >> we're going to talk to dan a lot more. >> embrace your success. coming up, we are following all of the big stories of the morning that broke right here on "squawk box" today and we have wells fargo's results on the way next. we're going to have more

reaction to the big chevron/anadarko transaction, $33 billion. that's right after the break "squawk" returns in a moment time now for today's aflac trivia question -- how old was tiger woods when he won his first masters? the answer when cnbc's "squawk box" continues 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.

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>> announcer: now the answer to today's aflac trivia question. how old was tiger woods when he won his first masters? the answer -- 21 years old welcome back news breaking right here on "squawk box" earlier this morning. chevron buying anadarko petroleum, $33 billion in cash and stock. the deal values anadarko at $65 per share, a premium of about 39% based on yesterday's close, and chevron ceo michael wirth joined "squawk box" in the last hour to talk about the share price. >> we think it's a fair price for the company. we think it's fair for anadarko's shareholders, and a good price for our shareholders. this really brings together two sets of assets that fit very,

very well. it creates accretive earnings. it creates accretive cash flow and it will deliver over $1 billion in synergies on the cost side, over $1 billion in cost synergies. and we believe in it so strongly that when the deal closes, we'll increase our share buyback from $4 billion to $5 billion a year. >> checking shares of anadarko and chevron right now. anadarko shares standing at about $60.60 it actually had crossed about $62 at one point and has come down a little bit. still up 30%, but does represent a little bit of an arbitrage opportunity right now if you believe the deal will close at $65. chevron, on the other hand, down about 5% that is expected, given how arbitragers do set themselves up and investors think about some of these things in the immediate aftermath of these announcements, but we want to understand this little bit better so right now on the squawk news line, john kilduff, from again capital, and cnbc contributor, is with us

i want to talk about the strategic rationale of the deal and whether or not you like it, but first can you explain how the stocks have moved this morning? >> well, a typical premium, obviously, for the acquired shares and a bit of a ding for the acquirer i think the markets are looking at a price environment for crude oil, andrew, that's, you know, mediocre you look at them, the forward curve all the way up to 2028 on the nymex price board futures. they're trading around $53 a barrel so i wouldn't say we're in a very high-price oil environment. nor, though, are we in a super low one. we're really in the middle ground, and i think it's sort of an area where, you know, the deals are going to get done. and i think that there's probably some question out there as to whether or not some of these really remarkable data points that have been put up by chevron about this in terms of it being, for example, free cash flow after just a single year here after what they're paying, and given the potential for the ups and downs of the price environment, particularly in the

permian, where the assets i think are dominant so, i think that's why you're seeing a little bit of, you know, qualms in the market for chevron's shares, and even anadarko's at this point. >> john, when you heard the news, your first reaction was what >> well, wow i mean, this is obviously a huge deal, but it also just struck me how i've been saying that the adults have come to the party in the shale play exxonmobil a couple of weeks ago, you guys had the ceo on he talked about how they have their costs in shale now down to $18. at $35.40, he was talking about double-digit returns they have cracked the code the smaller guys -- and you saw pioneer resources announce potential for layoffs and the calling of their workforce because they're getting squeezed they can't generate the cost efficiencies that the exxonmobils and now, clearly, the chevrons can, andrew so, it's clearly now a game where we're getting the big

players in there, and they name flick production discipline down the road -- >> interesting. >> that could make -- >> john, we've got to run. is there one or two targets we should look at in terms of other stocks you think are going to move as a result of this transaction this morning >> definitely pioneer, and i would say deadline on occidental. >> appreciate your time and perspective, john. it is already a big friday on "squawk box," and we have so much more to go today. in the next half hour, we're going to be tapping into disney's streaming details and what that will mean for netflix and the other media giants in the content wars as we head to break, take a look at the u.s. equity charts. disney's been up on its news all of this, that and jpmorgan helping out the dow, also boeing dow's indicated up 175 points, and that's even with the down draft of about 45 points created by a weakness in chevron's stock today. we'll talk more about all this when we come back, but it is an up day for the markets at this point. "squawk box" will be right back. [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day.

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as our guest host. he's bringing along the ceo who will join us and give us an update on all of the activity in the mortgage business. plus, did disney give investors what they wanted we're going to break down the big presentation from the entertainment giant. and then coming up at the top of the hour, results from wells fargo. the big bank following jpmorgan this morning we'll have instant reaction to the numbers. "squawk box" back in a quick moment let's build a better world for investing. let's hold ourselves to the highest standards of ethics. as investment management professionals, let's measure up. cfa institute. - i like to plan my activities before i take trip, so by the time i get there i can just enjoy the ride. with tripadvisor, it's easy to discover over 100,000 bookable things to do, from walking tours in rome to wine tastings in tuscany, and if you like what you see, you can book it with ease. just another way tripadvisor helps you make your trip

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welcome back to "squawk box. among our stocks to watch, fertilizer producer mosaic says it's suspending production at two phosphate mines down in brazil after the company was unable to obtain a deadline extension. that reminds me, when is april 15th >> you haven't filed yet >> to comply with new rules -- >> what's happening? >> to comply -- >> in a few days. >> i'm throwing a party on monday. >> yeah, it is that's your favorite deadline. a lot of people, it's christmas, or you know, some other date, easter for you, it's april 15th that's your favorite, most wonderful -- >> patriotic moments. >> i wish that were true, because no one is better at avoiding taxes

anyway look at what it says here -- >> look what you asked for. >> look what it says here, becky. because they got an extension to comply with new rules on the damn stability >> no, dam stability, d-a-m. >> oh, okay, all right i wondered why we'd make a -- >> water over the dam. >> we usually don't do that. anyway, pnc -- >> although lately. >> lately, yeah. ray dahlia said -- >> he said the gd -- >> i knew i had him on the run when he used the gd. anyway, the quarterly profit matched wall street forecasts. its revenue also came in above estimates, getting a boost from an increase in interest income as potential home buyers prepare for spring and mortgage rates have continued to drop, how's the season shaping up for the housing industry joining us now is jay farner, ceo of quicken loans and jay, it's good to have you here today i'm guessing dan's the one who made you come on for this, but we appreciate your joining us. >> well, i had to get up a

little early for dan, but my biggest question is if he needs me to pick him up at the airport tonight, so i'll be here waiting. >> jay, will you please pick me up drop everything you're doing. >> that's right. >> jay, let's talk a little bit about what's happening in the housing market right now what do you see in terms of demand for mortgages and how have lower rates that we've seen recently changed or affected things >> yeah, i mean, it's been a great start to the spring here we've got i think big demand things are up quite a bit. dan mentioned on the refinance side but also on the purchase side and probably a more normalized market, meaning what people are asking for the property and what people are willing to pay is very tight right now so, i think we'll see a lot of transactions happening this spring, and the properties will probably turn pretty quickly as well. >> so, how would you compare it with what we saw, let's say last spring >> well, i think there was a wider gap. and so, sometimes the appraiser might bring a property value back and it wasn't quite what the homeowner was looking for.

but right now we study this every month and clients' expectations and appraisers' values are right on top of each other, so that should mean it's a easier time, honestly, to buy a home then with interest rates ticking down, even better for buyers. >> how would you describe or explain some of the weakness we've seen in numbers recently i realize that real estate's a local market, but you've seen some pretty lousy numbers in places like california and other areas. >> yeah, what we've seen at the west coast is off a little actually, right now the midwest is probably seeing the greatest increase followed by the eastern seaboard so, i think we just saw a big run on the west coast in the last few years, so it's just taking a breather. but really positive news here in the midwest, which was lagging behind for a bit so, you know, those things happen, but all in all, still very strong. >> what about the issues that you might have in some of the s.a.l.t. states, the blue states that are now seeing, at least on the higher end, people not going to be able to deduct the

property taxes like they have in the past how's that impacting those markets? >> we haven't seen a lot of concern there. i think real estate has been a strong investment, so that doesn't seem to be a big topic of discussion. we're talking to those clients. >> hey, jay, how are you doing good morning, again. >> good, dan good to hear from you. >> good to see you up this early. it's like an eclipse, us seeing each other this early. i want you to know that. >> once every ten years. >> jay, i'm sure you're disappointed to hear jpmorgan, they released earnings this morning and mortgage volume from the first quarter of 2019 was $15 billion in total volume, off from $18.2 billion a year ago. i know quicken loans has a little bit of a different story. do you think -- is it this nonbank, shadow banking industry that's affecting them and their mortgage production? >> dan, i wish you were always interviewing me. these are great questions. thank you. >> was that a softball >> absolutely. i mean, obviously, we're proud of where we stand as the nation's largest retail lender and you know this bank/nonbank

thing -- i know you've touched on it -- but it's really not the way to think about how lending is done in this country. it's about quality of loan it's about the asset or balance sheet of the lender. and if you're a servicer, it's really about having the right technology to make sure you're taking care of clients, even if we do see a downturn in the marketplace. and so, all of the companies that are doing those things properly are supporting our economy, and we should be, you know, excited about that, and any regulation that we require to keep those who aren't doing those things properly in check is probably important, but i know you don't look at it this way and i certainly don't look at it as bank/nonbank, or as you say, zebra/nonzebra. >> jay, let's talk a little bit more about the technology, because for everybody who was watching at the very top of the show, dan was pretty clear about the fact that this is a commodity business anybody can offer you a mortgage there are lots of places that do what'd you say, over 30,000 places that do >> over 30,000, at last count. >> at last count but you guys have somehow managed to take 6% of the market you are now the largest mortgage

originator and you do that mostly through the internet how does that work what do you have to do >> well, yeah, we've had a centralized business model for quite a few decades now. and so, i think by focusing on that, we've been able to kind of get a jump-start over others but when you're dealing with a commodity, the service really becomes the key differentiator and so, we started focusing on client experience a long time ago, leveraging technology when that's required, but also making sure we've got team members -- and we've got 17,000 folks, mostly here in detroit, ready to take phone calls and chat and do email and talk to the clients any way that they want to communicate. and i think it's the combination of great team members and that technology that separates us, and dan can talk about the jd power awards, but we've got double digits when it comes to origination and servicing to kind of demonstrate that that combination really works. >> dan, the thing you've been doing for the last several years is the rocket mortgage application, meaning you go online, you fill out the form --

i did this myself without talking to you about any of it -- you get a quote back in 15 minutes? >> we can actually give you a full-blown approval. when we launched on the super bowl a few years back, we said as little as eight minutes, but it was really like two minutes, but in all the testing, nobody believed two minutes. >> none of the consumers would believe two minutes -- >> so we pushed it up to eight minutes, but now maybe until they get used to it, but it's really true. and people say, well, is that not safe it's actually 1,000 times safer. you have a closed system of verification over digital wires or fiber or whatever you want to call it, to verify income, verify assets, verify value, verify credit. when less human beings are touching paper in between, less fraud, more honesty -- >> less human beings means less fraud, more honesty? >> if it weren't for people, everything would be great. just kidding. >> how do you verify people's identity in two minutes? the reason i ask is because we were actually having a conversation yesterday, even about facebook and verifying people's accounts and all of the

issues that are around that debate in the industry the world you're in, it's a complete kyc, know your customer, by regulation to do that. >> sure. >> and all these other companies say they can't do it, it's impossible. >> we have a 32-point proprietary algorithm checklist. you can get acre set to database comparing driver's licenses and voting registrations versus, you know, where you are now and your social media profiles and all happened in realtime, and we're pretty advanced on that, and rocket loans and jd may want to say something about that, which is not rocket mortgage they've actually pioneered it within our holding company and that kind of technology and stuff. you raise a great point, because it's probably the number one sort of fear of the whole banking industry >> i'll jump in there just for a second, because as you mentioned, dan, it's the data. so, by bringing in data, in particular think about maybe bank account data. there are deposits, there are withdrawals that we can track and match that up with what people are telling us, and that's just one element of the things we're able to do, so

we're well passed just a social security number are questions. there's all that data that's secure that we can bring in to really verify that we're talking to the right person. there's now technology called biometrics, so we can capture somebody's voice, of course. and then when they call right in, we know exactly who they are. >> really? >> yeah. >> that's creepy. >> you don't want somebody else calling and saying it's you, though. >> what if i have a cold >> well, there's a whole adjustment for the sinus -- no, i don't -- >> adjust by the season to cover that no but that's just so many layers is exactly how we protect people's identity. >> but there's a -- i was talking to a large credit card company executive. the scams that people -- they will go two years in legit business and build up their profile and build up their credit amount and then they'll hit you big with the big -- >> how do you find that? >> there's -- >> algorithms? >> it's a challenge, but, you know, it's a challenge. >> wow jay, thank you for joining us. it's good talking to you today

of course, dan is going to be with us for the rest of the program. >> thank you so much. >> which is good news for him. >> right. coming up when we return, details of a transformation of the mouse house? the happiest place on earth. disney plus, we'll talk about it did bob iger and the mouse house just change the game in the streaming wars we're going to kick off that plus discussion next. and we've been watching anadarko's competitors after the news broke right here on "squawk box" that chevron is buying anadarko you're looking at a number of stocks up big. apac ualst.5hep mo 7%. i'm working to keep the fire going

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they're renting or downloading movies in their homes or buying products, visiting our parks, sailing on our cruise ships and i could go on and on. and now that's true with pixar and "star wars," across multiple businesses if suddenly your customer business is much tighter, if the proximity between you and the customer is better, then you're going to serve them a lot better across your platforms and you'll monetize, you know, that -- i call is broadened, deepened relationship. >> that was disney's ceo bob iger sitting down with david faber last night the company unveiling details of its disney plus streaming service, which will launch on

november 12th and costs $6.99 a month. disney also expecting to spend $1 billion next year on original content for the platform for more on disney, the impact on netflix and its rivals, jim stewart is "the new york times" columnist and cnbc contributor and tom rogers, executive chairman of win view, the first president of nbc cable and cnbc founder and a contributor, and our own julia boorstin want to get everybody's reaction i thought it was pretty impressive, i have to say. and at that price point, i thought, everybody's going to get this what do you think, jim >> it's interesting to me that this is an entertainment company moving into the technology platform we've had technology moving into entertainment. and i think what disney really showed, they know entertainment. they know how to put on a show they did a fabulous job. and i think they really made it clear that they've got a dazzling array of content to offer consumers. >> and they really have the brands that are going to stand out. and if you're trying to convince consumers to sign on when you have marvel and you have "star wars" and you have pixar, that's really

competitive, and that really gives them an opportunity to actually go head to head with netflix. and it will be interesting to see whether people sort of treat netflix like basic cable, just kind of something you kind of have and disney is their extra thing. and maybe people will sign on for more than three services, which is sort of the number people are talking about, or maybe disney will take away share from someone else. >> that was going to be my question for item. one of the things they talk about is a potential for a bundle, not only with the disney plus service, which seems like it could turn into a must-have, at least for families at almost a minimum, and then you have hulu on top and the espn plus service on top does that take from netflix? tom? >> well, i think -- hi, how are you? good to see you, andrew. >> good to see you. >> i think they did a terrific job on disney plus look, you've got kids' networks declining 20% year over year, and it's been going on for a while, so they've got to do something when it comes to kids and family my question's really related to

espn, plus, and hulu, where the big underreported story has been the parent company of this network and at&t owning 40% of hulu and what did that mean? and it looked like it meant that there was enough governance rights that those companies had that hulu as a global play was in question, meaning they would have to agree to it, and there are all kinds of questions as to whether or not they would. and to your question, andrew, about bundling, which would make a whole lot of sense, if there was a general entertainment hulu bundle piece, a sports piece, a kids/family piece. but the bundling there may not be something that they have the right to do. so, there's a lot of open questions, i think, related to the hulu governance. >> what do you know about that, julia? >> last night they did say they were looking at the possibility of offering espn, hulu, plus -- espn plus and disney plus with hulu together at a disappointed price. so, they did say -- once they say they might be discounting a

bundle, we can expect them to discount a undle who knows how discounted it would actually be. but iger said they're wary of trying to push a bundle on people here. they want to make sure it's clear that you really get to choose a la carte. this is not like the old days of paying for a big bundle cable channels you really get to choose, and there's no need to buy them all together. >> see this for the first time last night made me think this truly is actually going to transform this company, and thunderstorm a transformative event. should we consider it that >> i agree with you. i think it's not just transformative for disney, but we're really seeing now this digital revolution entering a more mature phase. it's transforming all of entertainment. by the way, talking about the pricing, cold wind blew through the media empire when they said something below $7 that is a very aggressive price. i don't think it's going to take away from netflix, but it's going to constrain the ability of these other over-the-top providers to keep raising prices this is very aggressive. and i think --

>> constrain netflix from raising prices >> i think it will, yes. i think it's setting a new kind of marker here for what you should have to pay for an over-the-top monthly service. >> this is the same thing uber and lyft are doing for consumers, too, right? competition keeps prices down. great for us i don't know how anybody makes money off of it, but it's great for us. >> there's going to be a "j" curve on the disney investment i think they've got to do this but eventually, it's going to shake out. it's going to happen in broad sharing, too, where you're going to have some kind of oligopoly here and they will have pricing power. they will be able to raise prices, but not for the foreseeable future. >> tom, how long do you think this price literally sits at $6.99? and when you look at netflix raising prices now, how much of that is in advance of this to try to take as much out of the system as possible almost defensively? >> i think netflix's price increase was very, very smart. i think disney coming in at this price point initially is very smart. but again, remember, disney is a

big company. it's way beyond the kids/family franchise. think of espn. they said 8 to 12 million subs in the next five years for their espn plus product. they're going to lose much more than that in terms of cord-cutting and skinny bundles over the next five years they're getting $7 a home today from traditional espn economics. they're going to translate pricing in espn at $4.99, getting a lot fewer homes than they're losing that's a big question mark for a huge asset to the company. again, hulu, this is a global game this is not just a u.s. game netflix is going to have 300 million subs globally. disney is a global brand, and the question is, does it have a global distribution franchise now? when it comes to disney plus, i think clearly, it will, but hulu internationally, big question

mark espn, they were clearly saying not an international play, beyond a little bit of latin america. >> julia, one thing i noticed is that they are not going to be taking on the movie theaters, because none of this stuff goes on until it's not only in the theatrical realm, but also the inhome theater that was something i was surprised by. >> disney is perhaps the only studio not interested in collapsing the connection between the theatrical and movie release, because it's such a big event -- >> but you won't get this until they squeeze out every other dime across the platform. >> they're in a rare position of doing well with the theatrical business and if they protect it and insolate it with that month's window, they'll get people to continue to go see "captain marvel" or "the avengers" in theaters. >> remember how many times you were going to get put out -- satellites were supposed to put you out of business back then, remember that? who needs it i mean, would you be -- would

you like leave and become a day trader now if you were in charge of nbc cable or rent a hedge fund or something? would you be looking for a way out or not >> you know, it's a great thing to look back on, joe, because when i was getting cnbc started, people said, hey, the networks can't make it into cable it's not going to happen and look what happened all the networks are big into cable, but they went from one b-to-b model to another. this is b-to-c this is to the consumer. this is a transformation no other company has made for, and you've got to say, hey, they've put their muscle behind it, but will they be successful is still an open question >> okay. tom, we want to thank you. jim, we want to thank you. julia, we want to thank you. and david faber will be with us in the next hour, bringing us part of that interview with bob iger, the ceo of disney. coming up, we have heard from jpmorgan, now wells fargo is on deck with results. the numbers and instant reaction are straight ahead "squawk box" coming ghbarit ck ♪ hoo!

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wells fargo is next up, just seconds away. breaking news on energy, chevron buying exploration company anadarko. >> it will allow us to continue to win in any environment and deliver great value for our shareholders. >> all the details on the $33 billion deal, straight ahead. and disney tries for more magic. details on its streaming service are live can it make a play to dethrone netflix? it's a huge morning here on "squawk box. the final hour begins right now. >> announcer: live from the most powerful city in the world, new york, this is "squawk box. 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 becky quick and andrew ross sorkin futures are sharply higher boeing's doing well. jpmorgan was doing well. wells fargo is now trading higher we've got marty here i'll give you a quick rundown on

some of these numbers. looks like $1.20 a share versus expectations of $1.09. do we have the same revenue deal here, becky, with -- >> no, jpmorgan has the managed services -- >> only jpmorgan -- >> revenue number of $21.6 billion versus the $21 billion the street was expecting. >> that's above as well. >> that's $600 million above. >> net interest margin 2.11, interest income $12.31 billion the $5.9 billion is the quarterly net income and the provision for credit loss is 845 million. all right. you can see that stock up $1.25. it was up -- what is that, 2.62%? it was up a little less than a percent before the numbers on the back of jpmorgan. >> there are some comments from the interim chief executive officer, allen parker. obviously, just very brand-new in this job. he says "since assuming this role, i've been focused on leading our company forward by emphasizing my top priorities -- serving our customers and

supporting our wells fargo team. meeting and exceeding the expectations of regulators and continuing the important transformation of the company. he says they still have a lot more work ahead and their leadership team will be dedicated on making the company customer-focused these are the first comments you're hearing from him on this. say that the cfo, john truzbury, also making comments on this just want to see if anything stands out here. just talked about continued derisking of the bat sheet and consistent profitability. >> there's nothing in here, marty, that's like, no wonder sloan's out of there i mean, there were other reasons why he's out of there. >> yes. >> this is not bad. >> this is not bad news at all that was probably part of the decision on his point, too, is he felt like they had a reasonable quarter going so they could kind of transition past this and he really just wanted to kind of clear the deck, so let the company kind of move forward. and what we're seeing here is revenues again exceeding expectations it's not really coming from net interest income probably,

because when you look at the margin, their margin is actually down, which we kind of thought would be a little more evident this quarter, and they have a little bit higher in provision so the fact that they're actually exceeding expectations, that's going to be some of this other capital markets and that underriding investment banking, some other pieces of the puzzle on the fee income side. >> return on assets of 1.26%, return on equity of 12.71% and then the return on average tangible common equity 15.16%, too. >> which are all better numbers. and again, that profitability is what we're looking for with the banks. as they're pushing those returns higher, the return on capitol, they're doing that through two ways one, they're not having to generate too much operating earnings they're giving their shareholders the excess capital back so as that burden goes back, you actually only have to increase your earnings 5% to 6% if you can get double-digit eps growth and you can get the returns moving up another full percentage point, which is what we're seeing here. >> to that point, they also say

they returned $6 billion to shareholders through dividends and buybacks, up from the $4 billion they did a year ago. >> yes, and the other positive catalyst we think will carry this hidden value we've talked about is that return of capital will improve even upon last year's big numbers, which isn't really expected because they went up so much last year. what's missed is that the earnings has gone up 30% over the last year, so payout ratios really holding flat will have a good 25% to 30% increase in some of this share repurchase and dividends, only because of the earnings that we saw last year >> average loans $ 950 billion, up about $3.8 billion from the fourth quarter. >> we're seeing loan growth across the board now, so that's a good sign and going back and one of the things we did see in jpmorgan as we got to look in a little more detail is talk about how the economy and the banks kind of come together is credit card volume is up 10% merchant processing, which is tracking credit card purchases, is up 13%.

so that's where you can see some indicators that the economy can be tied back into what's happening with the results we're seeing here. >> andrew, every time a company says something about buybacks, now i hear from your people. >> who >> just people it's like -- >> on twitter? people on twitter? >> they're not hiring people you have now conditioned people that really don't understand any of this -- >> i don't think it's andrew who did this i think there are some politicians it. >> you think it's a knee-jerk, oh, buybacks -- >> it's the politicians. it's not andrew. >> i hope you're happy that you've now conditioned these clueless people that it's just always bad. >> you were looking for the argument and now you've found it. >> it's always bad, these buy -- are you happy? >> between these two. >> some arguments? here's the argument -- >> are you happy >> am i happy? >> are you happy that now the average joe thinks buybacks are, like, horrible, and that they're taking people -- people that were working aren't going to have jobs anymore? >> i'm glad that the public is now thinking about buybacks and thinking -- >> having the discussion. >> having the discussion about what buybacks mean and --

>> okay, you love those discussions. >> -- and what it represents having said that, for those who don't think capital allocation matters, there's no doubt buybacks work in certain cases do we wish the money was used for more productive means? it'd be great. the question is if there isn't something out there -- >> may want to reduce the float of your company and the other shareholders benefits. >> i understand that. >> it's a way of giving cash back -- >> it's one way -- >> -- the owners of the company. it's not always bad. >> it's not always bad i just wish there was other investment opportunities. >> take an econ class. >> is that better than the dividend provide that -- >> that's not what he's saying -- >> he wants to tax it like a dividend. >> that's a good question, actually -- >> well, it's just returned capital. >> is it better than a dividend? look, i think the broader question is we would all love for there to be more capital spending, but you need demand -- >> right >> -- to get you to that. >> unless you're in china, where everybody keeps their job and you just keep producing -- >> well, because technology is not as capital-intensive as

capital -- >> yes, that's a huge part that's important. >> let's diffuse some of this. if you look at the return of capital, as you're giving capital back to shareholders -- andrew, when you're saying you wish they would be invested -- if a company doesn't have the opportunity to invest it, they give it back so somebody else can invest it. >> 100%. >> so it will still work its way back into the economy. the difference between dividends and share repurchase for banks in particular is the fact that dividends have to be sustainable. >> right. >> where share repurchase can come in and out, depending on what your need for capital is. what we've built is we didn't know how much our stress testing losses would be as we started the process. we're now a decade in, so we know what the number looks like, so we can now be much more assured that we have that cushion at the top that the banks don't have the ability to be able to redeploy. we need to give it back to shareholders so that another sector of the economy can use it more productively. >> what about companies like apple with, what is it, 100

billion plus what should they do with it? >> i know, i've just got this started. just keep going. i need help. look -- >> dan, you brought up an important point, though. capital expenditures have dropped, but that's also happened as you have all of these, the businesses that don't require capital, something like an uber, like a lyft, all the hot ipos, all the technology companies that are out there. >> we finally decided amazon should have come -- that's when i finally got him sort of on the same page with this stuff, when amazon decided not to come -- and for one day, you were woke to the woke, but then -- >> woke's a big word the young, that's what they're using. >> they're all woke, i know. but then when you actually have to walk the walk that the woke the woke actually makes you do, it's suddenly -- wow, we just lost $25 billion in taxes in new york how are you feeling? >> and millennials would respond that's sick or that's dope >> is he right, andrew >> it's too easy -- >> i -- >> marty, can you stay >> yes. >> for next week >> the other thing is, capital

expenditure has had a cloud out there since the recovery started a decade ago it's been government shutdowns, it's been trade, you know. whatever it's been, there's been a cloud over people's expectations so, if we can build the confidence and we can remove what's left of the remnants of those clouds, i think people can invest in the economy and invest in their businesses. >> do both of you think we should stick with capitalism still or with the system we used, basically, hang on to that for the most part, most aspect >> but joe, i have to ask you a question, because ironically, where capital is needed more than anywhere now -- and i think even you would agree -- is the public infrastructure -- sewers and roads and water. >> yes. >> and so, it's ironic that -- >> could we do a gas tax even trump's talking about that, maybe. 25 cents a gallon? that's regressive, though. we have to give people, on the low end -- >> people who use it should be taxed, versus people who don't use the roads.

>> right. >> but i have to tell you something. in the state of michigan, which for some reasons take too long to get into, have horrible, terrible roads and the legislature and the governor hasn't been willing -- not this governor, but the previous one -- to even add a gas tax, when gas tax was cut or when gasoline prices went down in half. so, no one would have even noticed and it would have fixed the roads, so they were reluctant -- >> but what happens is they use it for something else. >> right, it will go to not fix the roads and tunnels of all the people who are driving on them and paying that congestion pricing. it's going to go to fix the subway. >> you've got to direct it in the law itself, right? i agree with you. >> they always find a way around that, though seems like politicians. anyway. >> okay. thank you, marty. >> thank you, marty. and dan's going to be with us for the rest of the show we should mention wells fargo's cfo will appear on "closing bell" later today. when we return, senator elizabeth warren wants to slap a new 7% tax on high-earnings

corporations is the potential a trillion-dollar proposal a game-changer, or is it dead on arrival? house minority leader kevin mccarthy will give us his take when he joins us just ahd.ea stay tuned you're watching "squawk box" on cnbc you.

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welcome back to "squawk box. recapping the big deal news of the morning. we learned about it right here on "squawk box." chevron announcing it plans to acquire hydrocarbon exploration company anadarko $33 billion is the price tag, cash and stock deal in hand, chevron's upstream operations tries to better position its shale as well, water and gas. the ceo hailed the combination of the two companies right here on "squawk box" minutes after the news crossed the table >> we've been, you know, looking as our company has strengthened its financial position over recent years, we're all looking to make our portfolio even stronger so, this takes a great company and makes it even better it really plays to our strengths in shale, deepwater and natural gas. it will allow us to continue to win in any environment and deliver great value for our shareholders. >> once again, take a look at shares of chevron and anadarko you're looking at chevron now. it was off as much as 5%, a

little over 5% at one point, as arbitrageurs and others try to set themselves up on the deal, if you will. anadarko trading at $61.37, still below the deal price of course, questions about how quickly the transaction will close, and people also looking at potential new targets as well senator elizabeth warren unveiling her new corporate tax plan, and the super rich are not going to be happy. warren said on msnbc yesterday that the proposal would levy a 7% tax on profits over $1 million. >> the point is not punitive the point is to say, you had a great idea, you built a great business, good for you but remember, you built that business using workers all of us paid to educate. you built that business using roads and bridges to get your goods to market, roads and bridges all of us helped pay to build. you built that business protected by firefighters and

police officers that all of us helped pay for and we just want to make sure that when you make it big, put something back in so the next kid has a chance and the kid after that and the kid after that that's what this is about. >> for reaction to senator warren's plan, we welcome congressman kevin mccarthy of california, the house minority leader and leader mccarthy, thank you for being here let's talk a little bit about this what do you think of this plan is this proposal going to go anywhere once it gets to congress >> i don't think it's going to go anywhere. remember, article one, section seven, all tax reform starts in the house. so i don't see the house generating this, but i don't know we've got a new majority in the house, and they're at their 100-day anniversary today, and it sounds a lot like what they've been wanting to do, raise taxes. but the real damage that will be done, after we've fought for three decades trying to lower the corporate rate to make america competitive, to get more people working, where we've got unbelievable numbers from

unemployment, unemployment claims down to almost a 50-year low. this is the answer that elizabeth warren and the democrats are giving us, just want to tax more instead of keeping more people working. i don't think it will succeed. i don't think it could pass. >> you know, i'm still trying to figure out exactly how this works, but my understanding is that it would only apply to companies that somehow are not paying the 21%, the new, lower corporate tax rate that went through, that this would be -- andrew put it well, i think -- kind of an amt applying to corporations is that -- >> how many years did we work to try to get rid of the amt that was only going to start out to affect three or four people, that went in to affect almost everybody across we took many decades to get rid of that. but all she wants to do is go after the companies that are creating jobs. remember, corporations don't pay taxes. people pay taxes if corporations are lowering their tax rate so we were the least competitive, now we're the most competitive, what it means, corporations are spending the

money in r&d or paying salaries and others i think she just has a tough understanding of economics on a basic level, and i think it's just a play that her presidential campaign is not going well if you look at her first quarter, it did not go well. i don't think she's going to be able to stay in this race, even, and so, she's throwing anything up as she can. just as her beer commercial or whatever she did, i don't think this will work out, either. >> that was just like president obama's -- you didn't build that speech wasn't it? >> yeah. >> i was listening to it it was identical i guess in certain corners that helped president obama, but in others put him up for a lot of derision when you said that, because -- >> you know, i always thought that that comment was taken out of context -- >> i'm sure, i'm sure. >> because clearly, we're all blessed to live in this fabulous country. warren buffett will take it. i think one of the great entrepreneurs of our time is sitting right next to me i think he would say it. and we've all been the beneficiary of that. and i think the issue is -- and i'm not necessarily a fan of

this particular tax, but i think the issue is, if you need to get a certain amount of revenue to try to pay for the roads and the schools and everything else around you, you've got to figure out how to do it >> the people that -- the personal people that run the company pay taxes. and what we're talking about is a global economy where we want our corporations to succeed -- >> absolutely. >> -- to hire more workers, to expand -- >> absolutely. >> -- and to compete better globally, so hitting the corporations doesn't make any sense if you know anything about -- >> and fundamentally, just strip everything down and say $1 trillion in private-sector people and companies who will invest to create jobs and wealth, or $1 trillion, that same $1 trillion with the united states federal government. that's really what it comes down to what is going to create more >> who spends it wiser >> exactly. >> if you look at any poll, the company that america trusts the least is government. it's the least efficient and really, i don't think president obama's comments were taken out of context, especially for any entrepreneur look, when i was 21 years old, i started my first business, and there's three lessons i learned.

i was the first to work, i was the last to leave, and i was the last to be paid. i think any entrepreneur that worked and put the sweat in to create a job, they understand, yeah, they put a lot of work into this. yes, they're very thankful they understand living in america gave them that opportunity. but the idea to say you did not create this business i think goes to the foundation of what entrepreneurships understand and i don't think he was taken out of context and i think that's why he got blowback, and for the same point i think where elizabeth warren is wanting to tax the job-creators we are now at a 49 1/2-year low for unemployment claims. that means more people are working. why? because we lowered the corporate rate from 35% to 21% i give it that no democrat voted for that, that it was only the republicans who were able to get that through, but it's benefiting all americans, whether you're republican, democrat, green party. it is making america stronger -- >> as we add $1 trillion to our debt that's the other side of the

equation, leader. >> you understand the greatest addition to debt is the mandatory spending on the entitlements going forward you understand that every day, 10,000 people qualify. it will happen that way for the next 16 years -- >> and on both sides of the aisle we have not been able to solve that. >> correct but you know, in the house last term, we actually tried to make reform to that, and we lost by a vote in the senate every single budget that we passed when we were in the majority dealt with it in balance. you know, the fundamental think that president obama said, the constitutional thing that the house should always do is pass a budget we're at 100 days. you know what the democrats have said they're not passing a budget their own chair of the appropriations said in a closed room, they don't deserve to be in the majority if they can do this nancy pelosi, the speaker, has said for years, show me your budget, show me your values. well, you know what? the only thing they have done in this new 100 days, radicalism, they do resolutions. if they -- 20% of the time is spent on resolution, not on

bills. imagine if we spent 20% of our time lowering the premium or going after the deficit or putting in infrastructure. we would be stronger but i don't think -- >> leader -- >> i think america does deserve better. >> i think that when somebody who's running for president says i want to add a $1 trillion tax and doesn't say at least in minimum what it's going to be directed to specifically, versus just raise it for the general -- >> they don't have -- they don't have -- they never outline how they're going to use the pool that they raise. sometimes it looks like a cap on the rich, rather than trying to raise up the people on the bottom. >> and one other thing when they say the fair share argument that they use, do you know what 1% of the top 1% -- >> 40%. >> it's 47% or 48% of federal tax receipts -- >> i think through quicken loans or maybe through roth ventures, too, you are the largest taxpayer in the city of detroit. >> i'm sure. >> and you have i think 17,000 people in detroit but 30,000 people more broadly. what would a tax like this mean? would it change your business at all? >> like you said earlier, i

don't totally understand what it is it sounds like it's almost like a casino tax, like off the top of revenue it sounds like but i don't know if that's it. >> i don't quite get it. >> hey, leader, while we have you, can i pivot the conversation i wanted to get your thoughts on stephen moore and his federal reserve nomination as a governor i don't know if you saw, there's a viral video going around from last night he was on with erin burnett on cnn where he got trapped into -- i don't know if i want to say trapped, but he basically was seen effectively lying he went on television and said he wasn't for the gold standard, and then she showed five clips where he was for the gold standard it was almost embarrassing >> well, i'm sorry, i have not seen that video, but what happens any time somebody is up for a nomination, they'll go through a hearing. and i think those are the times that you can ask the questions and actually get an answer going through, and the senate will have a confirmation. but i know stephen moore -- >> do you think he's qualified to be on the board of the fed? >> i think he is qualified, but

i don't have a vote in that. the senate will. but any time somebody is qualified, you also have to go through a hearing. just because you're qualified does not mean you're going to make it. but if the question is, is he qualified, yes, he is qualified. >> what about herman cain? >> i don't know that herman cain's going to continue moving forward. i know herman cain the senate, i understand that he probably does not have the votes as today and he probably will pull back from that nomination >> okay. >> leader mccarthy, i want to thank you for your time today. it's good talking to you. >> coming up, this morning's big movers they have the futures trading near session highs, up 233 points now on the dow. we'll talk about the earning beats from wells fargo and jpmorgan here you can look at those stocks both up jpmorgan up 3% we're also watching the shares of anadarko and chevron coming ndf the $33 billion cash a stock deal announced this morning. stay tuned -i call it my comfortable future plan.

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welcome back to "squawk box," everybody. we've been watching the futures this morning, and on this friday morning, you are seeing a big surge in the futures

dow futures right now indicated up by about 230 points above fair value this is coming as we've heard from disney, last night with its over-the-top plans that stock is indicated higher jpmorgan handily beating expectations that dow component is indicated higher as well you do have chevron with its big announcement of its takeover of anadarko for $33 billion, putting a little bit of pressure on shares of chevron, but dow futures are up significantly boeing is another dow component indicated higher as well s&p indicated up about 18 points and the nasdaq up by 41. all right, coming up, highlights from david faber's big conversation with disney ceo bob iger coming off what could have been the biggest shareholder meeting ever for the mouse house. details on disney's big bet on streaming, straight ahead. stay tuned bck x"n atching "squawbo o cn measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager

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down two runs in the ebottom of the ninth. because there's always another game on deck. with mlb extra innings on xfinity x1, you'll get up to 90 out of market games per week with mlb.tv included. get all the body sacrificing catches, home plate heroics, and 6-4-3 double plays. plus, with x1 you can get every stat and every score all with the power of your voice. that's simple. easy. awesome. order mlb extra innings for a great low price and get mlb.tv included with your subscription. go online to learn more. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. and among the stories that investors are going to be talking about today, chevron is

buying anadarko petroleum in a $33 billion cash and stock deal. it's worth $65 a share, based on yesterday's closing prices, a premium of about 39% for anadarko's shareholders. chevron ceo michael wirth told us earlier that his company struck a good deal >> we think it's a fair price for the company. we think it's fair for anadarko's shareholders and a good price for our shareholders. this brings together two sets of assets that fit very, very well. it creates accretive earnings. it creates accretive cash flow and will deliver over $1 billion in synergies on the cost side, $1 billion in cash synergies and we believe it in so strongly that when the deal closes, we'll increase our share buyback from $4 billion to $5 billion a year. >> checking on shares of both chevron and anadarko -- chevron, a dow component, indicated down over $5.50, a decline of about 4.2% anadarko shares catching up with this offer price 31% gained today, a gain of

about $14.80 to $61.51 the faa is going to be meeting here today with major u.s. airlines and three major pilot unions that meeting will involve airlines that fly the grounded boeing 737 max aircraft. the faa says that the meeting is to gather facts and individual views as it determines what needs to be done to restore the aircraft to service. and jpmorgan chase and wells fargo are both trading higher in premarket. both reported better-than-expected first-quarter earnings jpmorgan earning $2.65 a share for the quarter. that was 30 cents better than the street was expecting, and that stock is up by just over 3% wells fargo reporting profit of $1.20 a share. that beat the consensus estimates by about 11 cents. and wells fargo's right now up by just under a percent, a gain of 40 cents. and the back and forth between jamie dimon about wages. wilfred frost was on the call. >> yes, indeed

in light of jeff bezos of amazon challenging other retailers this week to match his $15 minimum wage for his employees, i asked mr. dimon whether he was planning to match brian moynihan and bank of america's new $20 minimum wage, and he said while he applauds what jeff bezos is doing, they're not immediately planning to increase their minimum wage to the $20 of bank of america's, but they're always reviewing the pay structure and want to take care of their employees at all levels of the bank, and made the point that they are, in fact, just higher than bank of america until bank of america's new policy comes into effect. i asked him whether the questions on capitol hill that he faced from representative porter which were direct on pay were fair. said "questions are fair, it's a democracy, but when looking at wages, you'd better be looking at other areas, not just banks." he went on to say and implied that they take care of their entry-level, straight out of high school employees better than the government, better than

cnbc, better even than "the new york times," andrew, because a reporter from there also followed up on this topic. and making sure that people compare facts with facts with those types of jobs and suggest they're well ahead of the market on that. switching focus to the numbers overall, it's pretty upbeat from him and marian lake and the analyst school itself has just kicked off, so we'll be listening to that. >> wilf, want to thank you for that meantime, we want to get over to david faber. joseph. disney's ceo bob iger sat down with david faber to talk about disney's reveal of its streaming service. let's get right to david faber there was dueling tieless, handsome men, from what i could see, was it not, faber >> yeah, it was. i appreciate that, too, joe. i think he's got me beat he's about 14 years older than me and he still looks darn good. so, you and i should be as lucky. >> never in front of the camera, either, but it looks like --

>> no, well -- >> it looks like he could have been and he and his wife walk around, like on top of a wedding cake. i mean, they are perfect are they not >> it's incredible, it is. >> it's annoying. >> it's annoying i told him that, too. >> did you >> but we didn't spend time talking about how good he looks during the course of the interview. we did spend a lot of time talking about the future of disney, given that yesterday was a very important day for the company, not to mention, of course, it seems to be very well received by the analysts in attendance and investors who were there, given at least the stock is going to be up meaningfully this morning with a lot of positive comments out there. listen, they gave us the targets we said they might they came with full transparency it was hours of content coming at you, and then christine mccarthy, the cfo, stood up there and basically laid out the numbers in terms of 60 to 90 million subs they expect for disney plus by fiscal year 2024 end, the original content spend of at least $1 billion early, then going up to $2 billion over the next few years licensed content expenses. this is an important component of that. it's not just what they're going

to be doing in her company in terms of paying license fees to themselves, in a sense, but it's the license fees that they're giving up in terms of third-party sales. those are very significant and some people say, listen, you've got a great business there. you know, you're talking, what, $2.5 billion in incremental income as much as this year, going up to even more in years to come given the veracious appetite of the likes of netflix and other platforms for your content. but you're not going to do that anymore. you're keeping it all to put on the platform, and that is a big give-up. so, i did ask mr. iger, why is it worth going that route as opposed to the very profitable route you've been following? >> i'm an optimist i'm a realist, but i'm an optimist and i've been at the company for 45 years i've been president or coo since 2000 and i have, you know, a strong understanding of or a deep understanding and appreciation of disney and its brand and its

relationship to consumers. so i'm pretty optimistic about the ability for this thing to work, particularly when we make it accessible because of the content, because of the user interface and because of the price. so, i believe this is going to be successful. if in five years' time it proves -- i mean, i prove to be wrong or we prove to be wrong, we're still making great content that's going to be in great demand globally. >> chris, he's talking about the idea that, listen, because i brought this up, what if it doesn't work what if all the content -- you're a prisoner now of your service. you're not licensing your content to anybody else. you're making it all for the service. what if it doesn't work? you heard his answer at the end there, guys. but for now $ 6.99 is the price point. losses to free cash flow will be significant, but investors seem willing to look past that. perhaps some anticipated losses would be a bit more. perhaps some had anticipated less but i can tell you, they are happy about the projections of

60 to 90 million they are 60 of hulu, 64% control the company, although they'll have to deal with their partners both atnbcuniversal, our paren company, and right now at at&t and then also espn plus, which is not seen as a replacement for espn, but they expect to have 8 to 10 million in subs over the next few years, getting profitable a bit earlier than the other platforms. they don't expect profitability on disney plus until 2024. but joe, you kind of feel like they've got to make the move they are, and they've done it and they did it with a good deal of transparency. and as you can see, right now at least disney seems to have very strong day ahead -- >> can i say, in the premarket it's up 6.5% if it holds onto this gain, it's going to be its best one-day advance since february of 2015. >> long time. >> david, congratulations on the interview. did he speak at all about what this bundle might look like, this idea of disney plus matched with the hulu piece? and i know it's complicated

given the ownership structure of that, plus the espn plus piece and what that might look like? >> yes we talked a bit about that, and i actually -- we did a couple of different interviews we did a live interview for asia right after the meeting. then we actually did another interview which we're also going to begin sharing all the parts of at 9:00 a.m. as well, guys, and we did get to that they are not offering any specifics on a discount, if you actually are a customer of each of those services -- espn plus, hulu, and disney plus -- but they feel as if they serve somewhat different audiences and andrew, they don't really see -- the question is, you're going with scale with hulu and with disney plus around the world, right they talked about also rolling out hulu eventually internationally as well. by the way, they see two-thirds of disney plus subs by 2024 being international of -- >> i thought there was conversation of being a discount with a bundle. >> yes, there is an expectation

of a discount, but they didn't give us a sense as to what it will be, and they are still planning on pursuing sort of the separate hulu path and the disney plus path with different interfaces, and there are those who wonder whether that's the right way to go. >> david, a clarification on that somebody asked a really good question on twitter this morning -- if i buy at the disney package and i already have espn paid for through my $250 cable bundle, do i have to pay for espn again do you know the details on that? >> well, espn, if you have it on your cable package, you can authenticate it to get it wherever you need it -- >> but it's separate from espn plus espn plus has always been a separate product. >> right espn plus is a separate product. the ifc, with different sports on there, but not really replicating in any way what's on espn and disney plus has no sports. disney plus is -- it's "star wars" movies, which is in terms of hours of content the least of it it's pixar, it's marvel. it's the disney studio and it's nat geo. that's what you're getting with this. >> hey, faber, do you remember,

whenever disney was going to acquire something and people would say, oh, well, people want their stock because it's going to $150 or $160. i mean, they would just say that five years ago, i can remember all them saying that so, this has been like a four-year almost saucer for disney it's gone nowhere in four years. it's broken out now. that's a new high. so, my commentary -- so, it's going to be a $220 billion company or something, when you've got some of these other companies at $500 billion, $600 billion, $700 billion. is this disney winning and the other content companies are big conglomerates, do they get marked up, too are these companies worth more now, even though we sort of think of the sexy, new media companies being worth more but this is a breakout for disney i'm wondering whether the other ones get marked up in sympathy or whether disney's winning. >> i think in some ways, you could view it -- listen, we went

into yesterday wondering if netflix would get hurt and it's low on the opening, because they have subs of disney plus you would expect netflix's growth path might be impeded to some extent. but frankly, the way that they are -- enters not abandoning, but the way they're basically saying that's the old world, we're moving to the new world, i don't think that's necessarily a good thing for those who are still relying on carriage agreements for the bulk of their content and don't have a direct-to-consumer strategy that's robust. there are very few people, joe and our kids are older now, but how could you not have this when you had kids there's no way i've got every single one of those dvds which i paid, what, 15 bucks for -- >> that was my point. >> that's going to be available in the library in this thing yeah how could you not have it if you have little kids >> you remember disney in the past remember they had that crazy roy disney and they brought in isner and it went up ten times and then it did it again with -- but it's been doing nothing for the past -- >> nothing >> i wonder if now this means something, that it's onwards and

upwards. >> this may be the inflection point. they certainly want it to be viewed that way, joe. >> okay. david, fabulous interview. we'll watch the rest of it on "squawk on the street" later today. >> thanks. meantime, coming up when we return, quicken loans founder and chairman dan gilbert weighing in on the capitalism versus socialism debate that's been heating up in america plus, your biggest morning movers, including key financial names fresh off quarterly earnings we've got all the details straight ahead in just a moment. will it feel like the wheend of a journey?p working, or the beginning of something 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.

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welcome back to "squawk box. all week we've been comparing and contrasting old-fashioned american capitalism with what some people are call socialism may be making a comeback, at least part of a debate in popularity among certain segments of the u.s. population. earlier this week right here on "squawk box," hedge fund titan ray dalio spoke about how capitalism has turned him into one of the world's richest people but also how he thinks it may not be working for everybody. >> now for a variety of reasons having to do, for example, with the development of technologies in which it's profitable to replace people as a result of those technologies -- >> okay, automation. >> -- we are losing a middle class. >> okay. want to get to our guest host for his take on this dan gilbert's here, quicken loans founder and chairman and in particular, look, you have revitalized detroit, a place where a lot of people would argue that the middle class has been hollowed out. >> yeah. you know, it's disappointing to

hear ray say that, because you know, we see examples of folks who have created wealth or earned wealth or traded to get wealth, whatever it might be, and then take that position. to me, it sounds like a nimby, you know, not in my backyard and wealth is created. it's an abundance-creating exercise it's not a, you know, pie that you split up every year. and i think that what we have to get back to is understanding that wealth is created by people i mean, people create it they create jobs, they create wealth, and we need to get more people to do it. >> what do you think because one of the statistics he talks about a lot is that he says that in 1970, 90% of americans -- you were born in 1970 90% chances that you'd have a better chance of doing better than your parents. and today that number's come down to 50%. what do you think has happened >> well, i think what happens is, you know, statistics -- i don't know if you know this, but metrics -- 52.378% of statistics

are made up on the spot. and i think -- i don't really know how that statistic -- >> yeah, that was exactly right. you might have been off by a decimal. >> when somebody throws those things out -- usually when you lift the hood up and go deeper -- >> but i think pretty much across the board, most economists qwould say that economic mobility in america has gone down, not up. i don't think that's any question. >> it's not in america -- and you know full well why it happened, andrew when the rest of -- when 600 million chinese come out of abject poverty, the inequality around the world went down in developed countries it went up because the labor went -- >> yes, i understand that. the country is what do you do about it >> we're doing -- wages are starting to go up again now. >> they're starting to -- >> because the differential in china no longer makes it worthwhile to go there now it's all right to bring back here now because the labor disparity has leveled. >> but it's -- >> and the shipping costs -- >> it's coming back here

it's coming back. >> there are people -- we're seeing more people come -- >> but capitalism is simple. the definition is it's the means of production are owned by the private sector and to say that you want to reform that, suddenly, the government become the owner and means of production is owner. it is ridiculous >> i totally do. >> why can't dalio just say i want to raise taxes. he's the same old thing. raise taxes on the rich and redistribute it. just say it. >> it is more of a guilt test. why don't we identify things that are needed and then maybe -- >> he came up on thinks own. this $10 million submarine he's driving around >> why don't we identify whether it is infrastructure and that. i want to penalize you for creating jobs. that's not going to get the economy.

we do have things that we need education retraining into the digital academy and infrastructure let's figure out how to get the verses saying pointing to -- >> you just bought dictionary.com and you will turn into a money generating enterprise >> hopefully, or lose all of our money. i am not worried because barry dillar is very smart, he sold it to us. oakland and downtown and california we'll look into that we'll look into micro dictionary, too. if you go to a restaurant and you don't understand all the words. >> right >> there is a menu micro dictionary >> who owns the urban dictionary >> there is this person that's not interested in selling.

>> you tried >> oh, we talked to them >> have you read it? >> there is this grammar play we are making green eggs and ham and conjunction. words are big. >> thank you, stick around earnings season is underway, we got a few market names dom chu is here, he's got a lineup of what's moving ahead. >> good to see you, thank you dan gilbert for bringing back the schoolhouse rock memory. banks for frbrexit will stay focus. 400 sho 400,000 shares of premarket value. better than expected results and profits and revenues, stronger performance than consumer lending, jp morgan is america's biggest bank also watching what's happening with wells fargo up around and

now down, it was half a percent when i came down here. profits and revenues both beat projections and total deposits of wells and higher expectations so we'll watch those shares. shares of tmz financials are slightly higher. the regional banking giant posing benefits were in line interest income though shares again fractionally higher. banks are a huge part of the focus, will they save the market, over the course of the past year you can see the s&p 500 verses the bank etf, bank etf have been under performing but as of late year to date, andrew, it has been in line with the market so maybe those banks trying to stage that come back >> thanks for it dom we bought you breaking news,

chevron crowe joins us at 6:00 a.m. tee 6:00 a.m. eastern time >> jim cramer has been pushing this deal. >> we don't want to use him as an adviser >> no, i know. >> for the years he said for receive ron. >> let's get down to jim cramer. what do you think? >> yes, i just think it is so great. i have been saying this since jim hacket they did so many good things in order to get the balance sheet back that was a fabulous interview by the way. i think people who are thinking let's just bolt. chevr

chevron, big yield and a lot of cash flow. what will exxon do will they do pioneer we don't know. any one of these i feel like has to make a move >> do you think there is a typical large play >> typical, i got to tell you. what a bargain they're creating a lot of bargains here. receive r chevron is such a good company that company always has unbelieverabu unbelievable management and great cash flow. people bother to look at this is not celgene. >> this morning you think pioneer is on your new list. >> mr. sheffield is a personal friend i think it is a fabulous company. it is ridiculously well. they had a couple of

misquarters. it is about -- 30 years, that guy was like middle management >> david faber got an interview on your show with bob iger, what do you think of the enthusiasm of disney last night >> i also said how many people in this country have children under the age of 12? you really not going to take this it is almost un-american i get it >> we got seven dwarf analysts recommended. >> i have never been call that >> i want a cut. >> i will take a percentage. >> we also want to thank our guest, gilbert who have been here for three hours, fun hours.

>> relative, that nasdaq, the speed of the game. >> was it fast >> we single handedly rebuild detroit. it is one of the great stories it is absolutely is. >> i only come here once and a while and treated really nice. you guys are gatre >> thank you very much, we got a lot more of "squawk" coming up in just a moment 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

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faber got bob iger's interview

seconds away this interview is going to be good because a lot of that move and dalio is saying a lot of that move is from disney stock make sure you join us on monday. "squawk on the street" is coming up right now >> they are still building their brands in many respect we start with a customer relationship that it may respect viscer visceral ♪ >> disney's stock is set to open at a high. good friday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer and david faber is i