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 in los angeles. his interview with bob iger

moment ago improve china trade data and, jp morgan kicking off earnings with a stronger quarter and commentary our road map begins with chevron announcing a $33 billion acquisition, report revenue in profit at jp morgan, they have earnings at wells fargo and uber, long awaited ipo the biggest since alibaba. what we learn of what could be a $100 billion debut start with disney shares up in the premarket. disney plus launched on november 12th it will include contents from disney, marvel and pixar and the entire 30 years of the similar some

we'll hear from iegger more tha once >> we did an interview with bob iger, really long. we sat down again and talked a bit more broadly of some of the issues we discuss so often here. one of the key issues being the idea, jim and i batted this around a number of time. if you are disney, have the ability to move from the business model that has worked well for you but no longer working as well to a new model you will have the opportunity because of the strength of your brand. will the new world, when it comes mature, have the same margin recharacteristics and profitability of the great world you are coming from, namely creating content carrying on cable network that you pay a great deal of money. i began on the broader idea of you are going from here because you have to. will this be as good

this is what he had to say >> if you measure against the present, the present does not stay the present fairly long in today's world, it is changing so much. the marketplace has never been this dynamic meaning speed of change is much faster. that's technology and consumer behavior driven by technology. it is economic and how things are marketed any way you look. you can't measure against what it is today. you have to measure what you believe it is going to be tomorrow one of the reasons why companies fail to innovate is they continue to measure it against today. so if you are in the business of selling film, physical film, you want to keep sale as much as your film as possibly can. you are not really thinking and you believe you may hit a speed bump here and there whether the economy. you are not thinking it is going away >> your business is not about

films but capturing business >> let people take pictures no matter how they want to take it. you are getting measured by quarterly earnings and annual earnings and next year and how much you grew. complications with near term verses long-term it becomes difficult to innovate it often causes companies not to think about what is that business model going to look like tomorrow? >> jim, of course, investors had a little bit of time to digest so many of the numbers we got yesterday. the company was quite forthcoming and transparent, what they'll be and the losses it will be associated with the launch of this service overtime. both in marketing cost and technology cost and content cost

and perhaps most importantly lost license fees because of all the contents that's pulling from all the platform you heard the big picture, i am curious to get your thoughts this morning as disney looks to be having a strong day as it stays up as much as it looks like >> i got two thoughts. one is how much you made right before the end of the show which is that how can you not take it? it is a reasonable price i bought every single property of disney. my kids was kind - specificity matters more than numbers. they did say next year the company is tough bob iger's contract ends before that 2024, they are using $9 or $10, i have never seen a company other than perhaps flips an amazon where we are looking out

four or five years and buying a stock. he has transformed this company back to a gross stock in a way that people are saying finally, gunpoint one wi i have got one with the earnings and the balance sheet. wow. >> big >> and getting people to believe in those out years we talk about these. there is going to be years they were straightforward in term of potential cost here. license content expenses mid 2 billion by 2024. less than a billion as they see it operating losses will peak between '20 and '22 fiscal year. right now investors seemed focus on that. the losses are not even greater than anticipated i will tell you jim, you have to come and you come to 60 to 90

million which is stilwell below what netflix have up there two-thirds for disney plus 40 to 60 million for hulu. when you come to those numbers, you think it is going to be low, right? >> one of the things that's interesting, everyone is waiting for this meeting to be over with this stock will be up. but this is a huge stock, did you not get the sense that everyone has been championing forever and finally their unleash. >> they got to be pleased of how it is being received so far. there is a lot of free cash flow that's not going to be for this company for a while. you are right. the investor base seems very

happy and sort of believe and given the leadership for mr. iger for many years now. if you consider the fox deal apart of it. he has interesting things of how they view the fox deal or whether or not they had done it if they had not embrace the idea of streaming they are believers at this point. my question then becomes okay, what about netflix how many services will people have i know we have been putting up virtual npd products, they're not apple to apple comparison. this is more about hulu the actual service and hbo and netflix and amazon that's what we are talking about here in terms of real competitor a price point at $6.99 that a lot of people can access what does it mean for netflix and the overall ecosystem that disney is still a huge part of

but focused in a different way of distributor >> yeah, we have not had 7% dow open to the upside since decades. that's how big of a move it is >> what's supposed to happen >> you did tell people to be cautious or aware going into the meeting. >> what iger did that i did not count on we know he has been saying why the heck can netflix get away with this. he's taking his estimates down so low that he's now netflix >> what is netflix's answer from aside spending $12 billion a year on their originals? >> what he's going to say is the more the merriemerrier, we are o thrilled >> i would say wow people are -- they have the money to spend

this is a nice price you know what, i am a cutter, but i want disney. millennials are having kids, they are so wacky. i guess you are saying you don't have to choose >> exactly t tvs are like that. i think apple is the one that has to work. you know how much i like apple apple tv is -- i don't want to say informative. this specificity is incredible this is a bargain verses what you would do as a parent i mean look, "snow white," how many times i have to watch that? it is painful. dad daddy, can we watch it again okay >> guys, we are going to obviously the netflix question is key one we went into it in details, we'll have a lot more from iger in the second sit-down we did.

people have not seen, we'll make it all available on cnbc.com a lot on netflix do want to talk about the big deal this morning as well, chevron announcing an agreement akw acquiring anadarko here is what i want to share with people though there was another bidder there that had been dancing with anadarko for quite some time apparently at the end, it got the old stiff farm because anadarko clearly prefer chevron. petroleum bid more than $70 of share for anadarko and has a cash opponent and overall that was higher than the cash portion

of the deal that was accepted by anadarko some potential structural issue or anadarko may not have been comfortable with you can imagine chevron being as big as it is, you may imagine as well that after pursuing this asset for quite some time and having bid significantly more than the bid that was accepted by anadarko is considering its options. does that mean it will do anything well? if you are occidental then you are a bit larger than anardarko. with that said, are you going to go after them to a hostile fashion? it can make you a target, i don't know guy, we want to let people know

that this was competitive and that certainly from the occi people perspective, they are wondering what do we have to do here we have the better price >> david, i do know anadarko is a company that'll take over 30 years. so david, there is simmer ex and pioneer. when you said this about occi, i have to believe this is the first time that it makes sense everything goes up it is usually a fool's game. these companies have language because permanent is going to landlock is the speculation gaining this time worth playing >> i don't know. perhaps it is. i am curious to see your thoughts, do you think occi and

anadarko will make a good combination? >> everything is in anadarko is jealous of chevron because it is a great stock. occi i don't know she has double downed on premium and i think decent prices but people love chevron. we know why, chevron was on "squawk box" this morning, they laid out the vision of being up to the buy back. this is one that anadarko are thrilled get i think we want chevron. >> they did say raising the buy back from four to five once the deal closes, here is what chevron said this morning on "squawk." >> we think it is a fair price for the company and anadarko shareholders this brings together two sets of assets that fit very, very well. it creates a crude of cash flow and we'll deliver over a billion

dollars on the capital synergy >> the promise now is big oil is moving into big shale. ramifications were devin >> today there is a bunch of downgrades in goldman. one of the things that's interesting, i thought he's going to say and the bidder was exxon. exxon was just around this week. they need to do a premier acquisiti acquisition, too this is the gold rush that nobody thought will happen >> now, listen, how long do we sat here and wonder when and if anadarko will finally go there is not a potential buyer

there. they adopted chevron and occi for years off and on, again and again. clearly in this case, playing occi would appear, making sure they got the deal they wanted from chevron it is been around for a long time it finally happened, jim how many times have we heard the rumors or i pursue to make calls only to find out they were not ready. >> anadarko are hurt by colorado initiatives. they have a lot of colorado. when i saw the initiative lose, i thought the stock is going to go up. at the same time, david, i know hall has more fire power amazing interview. first time, she's got to do something. just because i think she's got the fire power she knows how to integrate

her integrate has been great david, she does not have the pete that chevron has. she got to do something. >> well, this was it this was it jim. they were very much hopeful at least in terms of expectations will they be able to get this to the finish line. >> we'll see what the proxy says when it comes out in terms of the background perhaps if you are occi, you take a great look at it. you consider your options. it is a rare thing but it is not in conceivable >> well, i will say okay it is conco, it is pioneer, it is not eog. they're got going anywhere sheffield and sheffield's

parsley and his son. i think they got the best assets i think occidental's pioneer will be something >> guys, cover in the media, oil and gas and now banking. two of the nation's biggest banks kicking off, jpm rising in consumers and ip >> wells also posted an increase jaime dimon, economy continues to grow and financial markets are healthy and business confidence is strong >> one of the things that i am blown away by is that was a great theft. we got your trading going on david is still with us, i hope >> do you know every month got better and ended at march. on fire, a lot of this is deal activities there must be many deals going

or it would not be -- what do you this i >> there is financing activities associated and you got a couple of big ipos may get done some point. that's where a lot of the money is as you will know. often times those kinds of deals can be profitable, jim, that's interesting. we s we'll see if we'll get more. i am hearing there is more to come this year and we'll see if things pick up a bit and the financing relating to it as well >> in the u.s. europe is on pay to their worst start of mma in decades. >> right >> we are so used to jp morgan kind of not doing what we thought they would do. they're the best 9.2 billion in profit. they reported this number. >> i mean, david, dimon

delivered, i got to hand it to him and also the wells they put up good number. what jaime dimon did makes me feel like you got to go buy a bunch of companies maybe a chance of goldman. the bearish market, it is obviously day one but you don't think it is playing out. >> it looks like an ill-advised call >> david, ill-advised or suboptim suboptimal >> i like suboptimal ill-advis ill-advi ill-advised. >> we got to wait for 498 other companies. >> it is in earnings season. we love to hear what marian lakes says and will. i do think the bar is lower by the endless commentary and piling on lyft then you start

thinking maybe you are not going to get a big deal again. you have occidental is looking to buy someone it does make you feel that the people who are negative are going to make a switch pretty soon, like maybe tuesday look, they did not get boeing to crack. boeing was supposed to crack and it did not we'll get to all of that a ton of interesting numbers in there. we'll get jim cramer's mad dash. also, ahead sara's interview of greenspan. we are looking at 2900 for the open since october 5th we'll be back in a minute. the biggest week in television is back!

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. the biggest call would be apple about how china and install base trends, her work is premium quality. china. apple, 300 basis points and marks greater than any other smartphone brand in china. largest year of the increase for iphone this stock is trending >> carl, i find it fascinating

march, great month for china >> share gains in china. do we assume price cuts worked here >> no, apple tells me that was a vat decline. this was not they were taking care by cutting. they just happen to get a price break. i wish they should have talked more i was worried of some sort of boycott. i thought there may be something with the government, listen, we want you to buy. this is incredibly positive. the stock should be much more. everyone is so focused on disney >> you are glad to see a new streak go to a sale today. >> i went to google maps and i took the waze. >> we don't talk about them often they did come out with a reduce does it point to sentiment not being over heated despite ten days up. i think it is nice to see

something positive cell phones everyone is written off cell phones miss very positive you know who's going to be talking about 5-g today. the president of the united states expected the make some comments about improved 5-g roll out in the country maybe he'll talk about who's first in terms of countries around the world >> wow, this is big. a lot of people who don't want to sell their apple because they know they have to buy it back for 5-g phones and they're afraid to lose it. nothing will shock me of how exciting this company is and how enthusiasm people have for it. >> david, i know you are back in the mix. maybe the president does give us a clue as to how the white house sees 5-g policies in the years ahead. >> when i think of 5-g qualcomm and apple are going to court next week. speaking of 5-g. not to mention the ftc, we are still waiting for that judge issuing the ruling

it bears watching as part of the 5-g discussion what's going to happen are they going to go to court as perhaps likely or possible if they figure something out. >> my daughter graduated. >> that's fantastic. >> there is the opening bell at the cnbc realtime exchange celebrating jumia technology, largest ecommerce operator in africa we'll talk to the ceo in "squawk alley. and verb at the nasdaq quickly on china, jim. export numbers did improve,

14.2 critics argued they continue to be addicted. remember the country exists on stimulus because they are not a democracy. they got to continue to provide jobs at all times. carl, i think we are close to the old time record. i know for the s&p and a lot of it is fallen into place quickly. think about it, china and disney and apple and jp morgan. it is hard to be as bearish as you were everyon 12 hours ago you want to look at the red and say what the heck? >> 10-yr did get to three-week high goldman pushes back their forecast for the first hike. they think it will be a hike before we see a cut. they added another hike to their

2021 forecast. when do we start talking about powell here? >> i think we'll hear from a bunch of companies that are not nearly as possible as what we have heard today i think it is difficult to flip-flop again. you just can't be in and out provided inflations staying low. a lot of this because of digitalization i think starting today, i want to transfer and say digitalization means fire people these efficiently ratios are incredible >> no one wants to sit there i want to fire you will see bank of america is so digitalize it is extraordinary. that just means you keep on seeing fewer and fewer people and the company is making more money. >> look at the big company talked about, automation and walmart and bank of america. at the same time raising wages for employees. >> you can raise wages provided

fewer employees. by the way, i don't know if anyone caught the side show between dan bartley on twitter >> you should follow me on twitter. why? you are really boring. no, shoot. >> that got some play. the big losers on the s&p are chevron for obvious reasons and netflix and occi, too. >> is david with us? >> yeah, i am here i am listening and watching. i am watching disney, it is up almost 11% >> did he have that check shirt whatever it was or did we get rid of that? >> we got rid of the check shirt. he was looking good. 11% move for disney. >> yes, jim, yes >> is it just a wall street story line that netflix is the loser? is that something we play here, a faang kind of narrative that

is really not what's at stake at all? >> i don't know. let me paint a picture for you.nyou. i want to share new things from mr. iger, we talked a lot about this i asked him whether disney helped to create netflix by licensing all that content to them he didn't love the question but he sort of took to it eventually, of course, it helped them of course, it will allow them to grow and to then put money into originals which will continue to allow them to grow he would not do it differently you can create a scenario, jim where netflix is be hold and basically, it does not have the brand, it does not have the brand loyalty of a marvel or star wa "star wars" or disney or pixar

it has already 150 million subs around the world and still loses 2 billion or $3 billion. i did ask iger as well whether or not, again, they sort of regret in some ways and not having done it sooner and what it will mean in terms of the relationship with netflix. take a listen. >> we did extremely well licensing our content of netflix. we are launching this product because we are ready to launch it we would not have been ready two or three years ago >> why >> it takes technology it takes content and takes the talent to make the content it takes a marketplace that you can argument what netflix have done have been good for us because they exceeded the mark place to robust over the top content distribution presentation and so i like launching when we are launching. the lead that it is a great time for us the acquisition has a lot to do

with it. something interesting that i have observed and i don't think i have said it publicly. but, we announced that we are doing this in 2017 >> right >> just less than two years ago. june of 17 that we decided to do it that led to the purchase the opportunity to buy fox came up later that year in fact, just a few months after the board approved us buying the majority share of, rupert and i sat down and talked about transactions we would not have done that transaction had we not decided go in this direction we were buying tv channels and more movie making capabilities and etcetera and so on

we evaluated what we were buying through this new lens. wow, what can national geographic mean for us? what could it mean having access to their library, not to monetize it through traditional means but do it through this bam. the light went off >> bam, 30 years of "the simpsons," that's excellent. i am not kidding >> that's a perfect example of what i am talking about. maybe proves a point which speaks to why people don't acquire companies, too because you try to measure what you are acquiring in a traditional sense. our decision to buy pixar and marvel was made because we believe that great story telling would stand the test of time no matter how much the mark place is disrupted whether it is

cable or satellite or movie theaters, traditional television, you name it, a great story, well-told was going to succeed. >> riepght. >> as an investment or financial proposition no matter what >> and there it is from mr. iger in term of discussing that important relationship with netflix that helped netflix grow and others it is not going to be a different one as they square off with netflix down 3% and guys, disney has not has a day, if it helps holdup for a very long time >> we are up almost 11 point .5. i am not sure how far back we have to go this was i guess really a cage talk that's been led out there are so many people who

just said can i see them cut the number and buy that's what happens in a way of the near term is as little worst than i thought and the far term is much, much better this is now a story you are so right. they have lowball next year. now, bob iger, he's not doing anything i am saying is coming up with some bozo numbers. this is a good number. the people owning the stock are going to put a 12 or 13 or 14 number and out 24 or 25 and maybe more this may be the cheapest entertainment stock out there. >> that's what it comes down to. when they say disney plus service will be profitable you know jim, i don't want to lose sight of things theme parks are doing well their box office as we talk

about so often are dominant. they are going to benefit from the synergy of the fox deal. we'll share that with you later. it is not so much jim, it is still eroding. espn is not the answer it is a service offering different product mixed. right now they're fnot transitioning people it is not as though there are still not things that are in the ecosystem that are concerning and not to mention the expense of doing it. >> i don't know how if you are a sport fan, it is urgent. i don't gamble >> we got disney at an all time high jpm four-month high. s&p total return is above the september closing high keep in mind we are getting some breaking news out of the white house on 5-g as we said earlier

eam eamon javers has that. >> reporter: they're going to be rolling out a couple of niche tifrs arou tiniche -- initiatives around 5. two niche tiinitiatives they'lle talking about today. building the largest spectrum beginning on december 10th the other one is a $20 billion fund that they're going to be announcing later today that's going to be a world of broad band opportunity fund. the idea is to get companies investing in under serve ad and unserved area in terms of broad band they want to make sure the entire u.s. population can benefit from the transition to 5-g. that's something to watch for later today. we'll see the chairman of the fec making the announcement

later on today with the president. >> i keep on thinking of john legend and the national inquire of t-mobile merging to sprint. the justice department is independent. maybe we need to two combined? >> t-mobile has been -- >> we'll see here. >> what have we not gotten to >> quick thought on uber, not as bad as the year before >> i keep on thinking this is one where someone can send post lyft, oh, it is not clear they're going to have great growth or it is going to be overseas it is more about, it is uber eats i have been to uber freight. it is not wrong to characterize it as that lyft is like this giant shroud

over everything. i was doing work on pinterest to my team, i want to know everything lyft-life, it is being code for are you kidding me >> anesthesiologitotal of the g are in five markets. san francisco and london and new york >> there you go. i thought lyft wuould be better the rest of the guys telling me this is going to be great. i think this one is better than lyft the concentration and the belief that you have to have great worldwide growth verses disney where you got worldwide growth its got earning and multiple and ceo. i look at uber, i got to burn a hand you are going with seven in the bush oh, i don't know, i don't know of 7 >> lyft is not having a good

day. almost breaking 59 anadarko leading s&p, jim did talk to them on "mad money" in late march take a listen to that. >> it will be a good take for any of the majors. anadarko got holdings all over the world, it contributed to the company's sickening 4 deep percent earnings the far running vp, chevron or exxon. i would pass on occi, i bettany oil company buying anadarko or occidental will see the stock going higher >> i have admired anadarko during the 2000s i feel it is a class act they have been under rated because of different things that have happened. missed the last quarter.

i was sicken by that last quarter but i think they were, too. chevron obviously not. chevron will finish up the next three or four days it is a good deal. taken 50 points or so off the dow at this point. >> yeah. >> i think that in the end chevron being down seven seems a little full. >> all right, so dow is up almost 300 points and s&p 2910 let's get to bob pisani. >> what a day, 3-1 we are getting close on the s&p 500. look at what's leading chinese stocks are leading banks also are leading and energy leading on the anadarko deal as well semiconductor is leading

china data is tremendous that's the reason the global market moved up around 4:00 eastern time a.m bank lending was higher than anticipated and stimulus is working a little bit exports were up 14% and marks moved up all of this happens after the close in china bank earnings, better than expected all those stocks are trading up including pnc and big regionals. all up about 2% as well. it is the comment from jaime dimon that helps propellant a second rally in the preopen. he hits on all the points. >> the u.s. economy continues t grow and inflation are up and financial markets are healthy. business conference remains strong this is a crafted statement hitting on all points of the bull u.s. economy strong.

inflation tamed. it supports the bold thesull ths hopefully they'll find some bottom in the third quarter, there is no imminent recession we are seeing flat issue earnings you can see this with the numbers coming in recently there is several company reported before jp morgan reported, 25 companies, 29 companies today and they beat by 7.5% point the reason it is happening, they cut the numbers too much in december now they're realizing that they cut too far and the numbers are going to end up in positive territory. right now remember first quarter numbers are down 2.5%, that number is going to go positive if the trend we are seeing continue overall a quick note here, notice the

production name out there. sec and anadarko and look at pioneer and apache finally i want to note, 29.30. that was the old s & p 500 highs. we are talking 20 points away from that historic high and breaking through that is a big deal guys back to you >> bob, thanks cannot keep our eyes off the yield as well. back to 255, rick santelli >> disney is super exciting. all the ride sharing interest rates today are super important. look at a one-week of twos, we taken out the recent last

friday's extreme especially on the ten-year you see last friday we had a high of 245 and right now it is hovering at 255. the big one, technical area is 255.5. let's say it is 256. the entire curve makes their spike load yield you can see it when those maturity are tend, never look back. now that it is brushing up against as it did last friday. it is proven to be resistance. at the end of the day if it gets through, it is significant look at bund, last week they were in the positive territory and we are dragged back positive today. here is an interesting chart let's take a one month chart of the dollar index verses 10 years. it should be intuitive, boy they can certainly seem to have periods of divergence like

today. where you have twos up on a day of five of the week. fives and tens up six on the day and the six on the week. here and down on the week, but a asterisk, it is holding, the big trademark of the dollar index really over the last three months has been that it has been pretty squashed at an elevated level. when it comes down, don't be disappointed let's pay close attention. my favorite chart of the day, listen, i know bonds and fixed income are supposed to be the brains, but it is pretty hard to dispute that stocks have dragged up from a global perspective, sovereign interest rates carl, david, jim, back to you. >> rick, thank you very much rick santelli. still to come, the global economy trade and the fed. we'll talk to former fed chair alan greenspan later on this morning. best day of the month for the dow, banks up 2.5%

disney clinging to 130 and the dow industrials trying to avoid their first week down in three weeks. we're back in a minute ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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disney leading the dow, up almost 11% 129 and change. >> i want to talk about the industrials for stock trading. you said something about china and stimulus china stock i follow is called fedex. and fred smith, the founder and ceo, came on mad money, stock at 174, dropped to 172. look at it now 194, after the worst quarter so far of 2019 that i followed. worst quarter, stock up huge that may be another theme of the earnings season. >> hasn't looked back. very few down days year to date. >> that's why people who say, listen, it will be a bad year, it may be a bad year for earnings, good year for stocks >> that's -- i think that's what people are worried about, right? >> well, if the fed cuts -- if

china comes back, a lot of ways to win look, you wake up and the president is talking 5g. let's go buy apple he's like an analyst firm. did he go up did he take apple up to go against old street or new street or bad street or good street >> you like making fun of new street. >> cat almost 142. it has been struggling to get back to levels it saw in october. >> i know. i know well, we -- october 3rd and 4th, the days that really just was horrendous and to get back over them, it is going to take a lot of different sectors, including health care, which is really not been good at all. don't talk about how bad health care has been. people are very worried about health care stocks, think they're bad. >> we're talking about big wholesale change in the nation's social approach. >> yes that is roiling the whole group. >> jim what do you handle tonight in. >> a group roiler. we have dr. caforio.

giovanni and talking about celgene deal looks like it is going to close. matt boss runs the best conference i go to, retail pulse of the consumer. don't listen, jay powell darn good. >> jim, we'll see you tonight. >> this was fun. we are in business >> been a good friday. "mad money" 6:00 p.m when we come back, more of david's interview with bob iger as disney is up 10% plus we'll check in with former fed chair greenspan. dow is up 263. ♪ (vo) i know what you're thinking. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪

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good friday morning, welcome back to "squawk on the street. i'm carl quintanilla with sara eisen. david faber out in los angeles after talking to disney's bob iger we'll have a lot more from that interview in just a few moments. for the time being, take a look at the market, pretty good friday here shaping up as the dow is up 262. almost erasing losses for the week, full percent the banks are leading. good china trade numbers jp morgue within good results out of the first quarter and wells as well. chevron buying anadarko,

megamergers in the energy space. disney record high and uber s1, so much news. >> the only thing i would add is the china data trade was better and so were credit and loansing the risk on mood. >> rick santelli >> our april read is a miss. 96.9, 96.9, we're looking for something north of 98. 96.9 is the weakest number since february let's go through the internals, shall we following 98.4, and if we look at the one year inflation aspect to this number, it dropped to 10 to 2.4 look at 5 to 10, it dropped .2 from 2.5 to 2.3. but also remember, export, import prices were hot, hot, hot on a year over basis as well

we have to pay attention to prices sara, back to you. >> all right, rick santelli, thank you very much. dow moving higher. road map starts with disney. stock pop. up 11% on its streaming strategy, a new plus platform. what ceo bob iger has to say about all of it, his position on fox and much more. >> $33 billion deal in oil chevron making a massive acquisition. we'll get you details. >> also this hour, former federal reserve chairman alan greenspan, his take on rates, the markets and the president's attack on current fed chairman jay powell >> we'll start with disney, of course the stock which is up over 10% this morning, a very positive response to a day long awaited yesterday in which the company did present its plans for its disney plus service. overall for its direct to consumer business, which is as they said during the presentation, the most -- the single most important effort they are making currently at

disney company, of course, that is known for the brands that it has in -- that are being consolidated on a platform that is going to try to attract as many as, well, they say, 60 to 90 million subscribers over the next five years. yesterday they gave us a great deal of content and then they gave a lot of the specifics that wall street had been hoping for in terms of those sub project n projections for disney plus, hulu, and even for espn plus as well they also laid out how much it all is going to cost because the costs are quite significant. both in terms of building the service, marketing perspective and technology perspective, and, of course, in creating content specific to the disney plus service and in forgoing license fees that otherwise would have received by third parties when disney sells its content to them one of those third parties, of course, is netflix, which has benefited greatly through the

years by being able to provide its subscribers a great deal of disney content that relationship is coming to an end as is its relationship with what was fox content. it will take some time for those things to run off and for those licensing agreements to end. but essentially disney is now in the business of producing its content for its own direct to consumer service and i did ask mr. iger whether in fact that was worth doing is it worth forgoing the $2 billion plus they could have this year and more than that the next few years for creating this direct to consumer distribution platform >> i think there are platform economics that trump license fees to third parties. we can start with the affinity that people have to the brand, they want to be connected to it. but obviously, the ability to have a direct relationship with the consumer gives us, i think, an opportunity to -- in having

that relationship to monetize much more effectively. knowing your consumer gives you the ability to as a for instance give them a more compelling experience and have a connection if you look at the disney consumer, they're going to movies, movie theaters, renting or downloading movies in their home, buying consumer products, visiting our parks, sailing on our cruise ships and i could go on and on. and interestingly enough, now this is true of marvel and pixar and "star wars," across multiple businesses, if suddenly your customer relationship is much tighter, if the proximity between you and the customer is better, you're going to serve them better across your platforms and you'll monetize that broadened deepened relationship. >> unclear exactly how that will be monetized, but that is a hope of his the question, of course, sara and carl, netflix has 150 million subscribers and still loses money. how does your service make

money? he talks about that deep connection to the brands and they're not going to populate it with quite as much volume as netflix has. so they won't be spending as much money on the content. by the way, a lot of that content also runs in movie theaters, somethinging we ta iw about as well in terms of win w windowing. there is a belief they will be able to be profitable by fiscal year 2024. maybe 75 million subscribers to this service and don't forget hulu where they also expect to be 40 to 60 million subscribers, again, around the world. these are international offerings. >> david, the stock move, you have to go back a few years to see a move like this for disney stock. it is up 10%, 11%. we knew this was coming. what did they reveal yesterday, the price, the offering, what is it that is wowing wall street right now? >> well, i think the price is seen as very competitive we put up some of the competitors. the real competitor is hbo, hulu

itself, not the hulu virtual, it is amazon, though you can't break out that price and netflix. you talk about the price at 6.99, people see that as fairly compelling i think there were different expectations in terms of cost. and certainly it is going to kft a great deal they laid a lot of it out for us in terms of operating expenses and lost license content expenses, original content spend. and those operating losses are seen as peaking in the next couple of years. and then the profitability i think they may not -- they made net expectations and exceeded it in terms of addressable market and how large their subscription base will be and where the price point is, encouraging people to the extent that, yeah, we're seeing almost, well, you know, stock been up as much as 12% a little while ago and still having a very, very strong day as people are -- investors seem to focus on the

out years, not the years where they will be taking the hit to free cash flow and earnings per share. >> day one, 18 pixar films, all the "star wars" films, david, 30 years of simpsons and they laid all this out yesterday any implications for other legacy media who have decades worth of content ready to go, really explains why netflix had to go pedal to the metal for the past five or six years. >> i also wonder, carl, how many can you have out there we have been talking about and wondering about where disney plus would be priced very few people questioned the idea of whether it would be potentially successful given the deep affinity as iger likes to say of consumers with all those brands, "star wars," marvel, pixar, of course, disney itself. you can imagine if you are -- the parent of young kids, how can you not want to potentially

own this with all the disney channels -- things as well that will be available, you think it is an automatic particularly at that price point but to your point, carl, how many more services can be out there and really succeeding, warner bros., is it really going to be able to gather enough people to off set the potential losses they're seeing in terms of the bundle. is -- or other are others going to be able to do the same. it points to the continued weakness of the old ecosystem and the fact that disney is moving firmly away from it, still has a lot in there, but firmly sort of forging its path away from it, what does that say about the old way of doing business >> i'm still in the youtube baby shark video phase. but i guess disney comes next. >> that's 15 bucks, not seven bucks, that's where pricing matters. >> they don't care about ads when they're less than -- >> that's true meantime, chevron, as we said earlier, buying anadarko today, $33 billion cash and stock deal.

the deal values anadarko at 65 a share. that's a 37% premium to thursday's close earlier today, chevron's michael worth talked to "squawk box" about the deal. >> we have been, you know, looking as our company has strengthened its financial position here over recent years, we're looking to make our portfolio stronger this takes a great company and makes it even better it really plays to our strength 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. >> and then this morning, david, you moved the ball forward more with reporting on oxy and as we continue to look at another sea change in an industry. >> yeah. this was a sought after asset. that's not really a surprise, many of the shareholders of anadarko expected a deal through the years. the question is when it would come and when they felt the time was right. apparently that time is now. signing up that $65 a share deal, not quite worth that now

by the way given the decline in chevron stock price. most of it, 75% of it, is made up in chevron stock. it is 1625 and cash. what we have reported this morning is that occidental petroleum was there and had been wooing anadarko for quite some time, engaging with the company. and had made an offer that is higher than what was accepted from chevron sources close to the situation tell me that in fact anadarko's bid from ocip was up but apparently anadarko felt the larger chevron offered more certainty, offered a currency that it seemed to be happier to take in this case. an occip deal would require a shareholder vote of its shareholders the question is, once we see the proxy, once occip gets a better sense of the background of this

transaction, to how it was conceivably being used to get chevron to come up higher, what will it choose to do will it try to mount a bid and deal with the 3% breakup fee unclear. we don't see it too often. probably not, but something for shareholders to keep in mind >> will it go somewhere else we're seeing a lot of action in some of the other shale players now. noble, diamondback, big moves higher the idea is this could spark some sort of land grab, especially in the permian. >> yeah. that's a good point, sara. that is a key question again, this thing has been going on for a year and a half from what i understand in terms of the desire of occip's part to get something done with anadarko but they do look elsewhere given they were very anxious to do what would have been a very large deal from them you're talking about a $50 billion market cap company, doing a deal of equal size when you throw in debt with anadarko.

it would have been a takeover, not an moe, given how much cash they put into it >> chevron for its part down 5%. david, see you in a bit. let's head to banks, earnings season kicking off, jpmorgan, wells fargo reporting better results wilfred frost digging through the numbers and listening to the conference calls, what have you heard so far >> both trading higher following their earnings beats the main point is their earnings and the jpmorgan management comments do not suggest major negative impacts on their business from the much feared and talked about yield curve here is the jpmorgan cfo marianne lake. >> yes, it's true that a -- would have a small net drag. we're not immune to that there is a little pressure as a result of that if it is persistent at this level throughout the year. we continue to grow and while long end dates may be a small drag in the short-term on

earnings, the credit on the balance sheet and you could argue patient fed and lower rates for longer may elongate the cycle. there are pluses and minuses. >> net interest income saw a healthy jump to 14.6 billion wells fargo's net interest margin at 2.91% was a little soft with net interest income only in line and flat year over year, 12.3 billion the eps was flatted by some one offs credit quality was good for both overall trading was down over 10%. investor banking was strong as expected it was flat year over year at 1.7 billion. on other topics, jamie dimon said he would not arbitrarily chase the minimum wage, but did applaud jeff bezos, his push for other retailers to match

amazon's minimum dollar wage wells fargo has a lot of issues to cover as well as just the earnings all the banks trading up >> headlines just starting to cross. we know you'll be all over that. wilfred frost covering the banks, big story today. when we come back, the former chairman of the federal reserve alan greenspan is with us we'll get his take on rates, where the market goes from here, global growth and a whole lot more plus, uber's long awaited ipo filing, finally got it dow up 224 coming off the sn aial highs. dieynd jpmorgan lead the index. we'll be right back.

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program visit right now or call during business hours. stocks around the globe rallying this morning. the u.s. getting a boost from strong earnings. europe and asia rallying on the heels some of upbeat economic data, all of this falling on the backdrop of recent investor caution over a possible global slowdown i did speak with the vice chairman of the federal reserve, richard clarida in washington. here's how he characterized the outlook for the u.s. economy >> i think the outlook, we had a strong year last year, 3% growth and i think growth may slow a bit this year. but the unemployment rate is at a 50 year low and inflation is, you know, at our goal or slightly below the u.s. economy is in a good

place. >> joining us exclusively now, former federal reserve chairman alan greenspan mr. chairman, great to see you as always. good morning >> good morning. >> so do you agree with that characterization that the u.s. is in a pretty good spot right now? >> i would say in the very short run, because one of the things that i don't think we recognize is that the real gdp change is very largely a function of stock price change in other words, a 10% increase in stock prices, the s&p 500, gives you a 1% increase in gdp, over a one quarter lag so that in a sense what we're seeing now is i think some improvements, fairly significant improvement, in the short, very short run -- very short run range of the economy

but i don't think it is going to stay there i think it is -- it is going to begin to fade out because europe is not doing well, and we still have a problem which there is very substantial fiscal problems associated with entitlements >> yeah. i know you've been flagging that for a while. you say it is going to fade out, are you talking about the stock market rally, or the u.s. economic growth picture or both? >> i'm not forecasting the stock market rally i'm saying that the stock market rally to date is already built in a significant rise in gdp in the current period and it is a 10 to 1, 10% rise in stock prices, equal to a 1% rise and the real gdp change. so that there is a bit of a stock market aura about the

current economy. >> so you see it is short lived. this is a decade long expansion now that we are in we got an ipo today, mr. chairman so how much longer do you think the recovery can last now that we're going into past a decade >> well, i think the real major problem is over the long run we got this very significant continued drain coming from entitlements, which are basically draining capital investment dollar for dollar with any major change in entitlements and entitlements are going to rise why? because the population is aging. there is no way to reverse that. and the politics of it are awful as you well know

>> mr. chairman, got the minutes this week, from prior meeting. and over and over again, they talk about the current weakness in the view of many participants being temporary, fading, likely a bait, most participants indicated they did not expect it to persist beyond q1 is your view that you would have been in the minority if you were in that meeting? >> no. i probably -- my basic view is that short run looks reasonably good longer run fades very dramatically and in large part because the rest of the world is sinking and remember brexit is having a negative effect on the united states as well as all of those other problems that are in europe and in a certain sense asia

>> do you think -- >> east asia aside from east asia, the global economy is not doing well. >> yeah, do you think that the inverted yield curve ultimately is going to turn out to be a recession indicator here >> i'm a little skeptical about that correlation i have -- i don't use it, particularly, and i don't find any real reason to use it. i want to know there is some correlation. >> national economic counsel director larry kudlow making some comments in an event yesterday in washington that really stood out to us he said interest rates, quote, may never rise again in my lifetime do you think that's true >> say that again. >> so larry kudlow told people yesterday he doesn't think the

interest rates will rise again in his life. >> don't hold your breath on that one >> do you think the next move will be a cut or a hike? >> well, forget the federal reserve, the real major issue is what is happening to the yield on a ten-year note or as i like to use it, very critical variable is the gap between the 30 year treasury yield and the five-year note yield. that is a measure of a degree of willingness on the part of corporate management to make investments in the longer run and it works rather well and it is a very important indicator of the economic outlook >> mr. chairman, leverage loans, again, the minutes, pay some respect to what they said, they said an economic deterioration if it occurred might be

amplified by significant debt service burdens for many firms to what degree does that constitute something you're watching on your radar >> i would say that that statement is true whenever the economy weakens. obviously a number of firms are in trouble it is really the same statement. in other words, say s&p earnings per share, and the economic outlook, you're not talking about two different things >> you've been sounding the alarm a few times in this interview about entitlements and the rising debt load we got news this week that wasn't encouraging on that front. the deficit is rising faster than expected. it jumped almost $157 billion in march alone. we're looking at a 15% increase from last year where does all this go with both parties seemingly advocating more spending?

>> well, that's exactly what the key issue is deficits per se don't have a political effect because there is always if somebody can put in three extra million dollars on a particular program, that has no effect the political impact from deficits occur only as they ultimately generate inflation. and inflation is a toxic -- really the toxic problem with respect to the economy and the markets. i don't see that -- when -- for example, richard nixon imposed wage and price controls on the inflation rate, was only 4%. and everybody thought that was a terrific idea until they saw the consequences these deficits which are

programmed, as you know, got significantly larger, a trillion dollar plus, it is only when they spill over into increased money supply or more exactly unit money supply that we begin to see the political impact of inflation and a counter force. i'm not surprised at all that the cbo or omb puts out huge forecasts of the deficit and nobody seems to mind they will mind when those things get monetized. >> yeah. and finally, mr. chairman, do you think that the president is putting the independence of the federal reserve at risk if you nominate someone like stephen moore to the board of governors, not to mention the fact he constantly bashes jay powell and calls for an interest rate cut >> just remember, this is not

new. i was in the fed for almost two decades. and i have an awful lot of that. just remember, every governor takes the oath of maintaining the constitution of the united states, that includes the -- the acts that generated the fed in 1913 so if they don't listen to outside commentary, they're in good shape there never has been a governor impeached. and i grant you that the president does have a choice every four years of changing the head of the fed, the chairman,

but despite the general rumor, it is one vote, one person, not one vote for governors and another vote for the chairman or two votes for the chairman it doesn't work that way i'm not at all concerned about who makes outside remarks, provided the fed doesn't respond to them. >> thank you for your perspective. >> thank you. >> always good to talk to you. former federal reserve chairman alan greenspan. >> you heard that bell during our interview with the former fed chair that was jumia technologies another new issue with the nice opening gain 32%. we're going to talk to the ceo on "squawk aey" telllar on this morning. we're back in a minute and manage my portfolio. since i added futures, i have access to the oil markets.

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the bombing struck near a shiite residential area no one immediately claimed responsibility, but sunni militant groups have claimed similar bombings in the past against shiites. the u.n. commissioner for human rights calling for wikileaks founder julian assange to be given a fair trial following his arrest in london he is facing extradition proceedings initiated by the united states. >> we are following the case we expect all relevant authorities to ensure that mr. assange's case is dealt with full regard for due process for his due process rights and rights to a fair trial, including in any extradition proceedings. >> southwest airlines has decided to keep its fleet of boeing 737 max 8 jetliners grounded for two months beyond its original june deadline it will suspend service until at least august 5th southwest has 34 of those planes and that is more than any other airline. you're up to date. that's the news update at this hour

carl, back downtown to you. >> sue, thank you very much. uber as you know now has released its long awaited ipo filing leslie picker has more there are a lot of interesting numbers in there good morning. >> a lot of interesting numbers, a lot of details 300 pages worth in fact. the overarching questions investors are focused on this morning, can uber jump start growth as recent numbers show it has stalled. some investors are willing to concede profit in lieu of significant revenue gains, but in uber's case as you see here, particularly in recent quarters, neither is really present. uber has been expanding to new businesslines, pushing beyond ride sharing to food delivery, bikes, scooters and freight. it is also expanding internationally, operating in far flung corners of the world like australia, india and south america. and as the prospect ous reveals, it has been investing half a billion dollars last year into research and development for its autonomous driving unit and other projects commercialization of driverless

cars could one day help propel uber to profitability, investors say. of course, that's a long run thing and there is no guarantee that will happen, guys. >> uber eats seems like a fast growing more important part of the business than many investors i think expected is that what you're hearing and what are they doing to grow that business >> so uber eats is a newer part of the business. they only have been generatinging revenue from uber eats in the last few years that slowed. there was about 400 percent growth last year we saw the growth slow to about double. so it is slowing over time it is a key growth priority for the company, of course but it is is one of those things where as they diversify and as they move into different markets, we are starting to see those growth numbers come down, especially by the time they get to their ipo in early may.

>> thank you when we come back, presidential candidate pete buttigieg sits down with our own john harwood hear why he thinks america is in the process of changing economic attitudes. look at the markets now. we're seeing a nice rally. dow up 217 points fueled by disney and also better bank earnings and energy m&a. more "squawk on the street" after this let's build a better world for investing. let's always put investors' needs above our own. as investment management professionals, let's measure up. cfa institute.

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have happened if disney had not already made the decision to move firmly into streaming, allowing it to view that asset in a different way than it might otherwise have if it had just been the same old disney i did ask him, given the high multiple paid for fox because of the participation of comcast and bidding for it, the decision to spin off or sell -- sell the rsns at a price that may not be nearly as much as what was paid for them, whether or not it still ends up being worth it. >> we're very early into the process. i never second guess decisions we have made i'm not going to second guess this one, not at this point anyway i'm confident, sitting in the audience today, and watching what we were presenting, and seeing national geographic be part of it and the simpsons be part of it and some of the films from the fox library and knowing there was a team in place in that room that has done a phenomenal job of creating

scripted television over the years made me feel great about that acquisition. >> there is $2 billion or so in synergies that a lot of analysts pointed out. i think already been -- >> well, we talked about that number, yes. >> are there more to come? there has been job losses associated with it as there would be when you put these two together is there more to come or are you largely through the job cuts >> no, no, we're just beginning consolidation process across the world. we have been candid about that with people in the organization. there is work to do to get to the synergies that we talked about, which were cost synergies. we have consolidation ahead of us. >> there is more to come there. >> yes. >> do you think the $2 billion number is -- >> we're not updating the number >> specific to the process itself, a couple of things as well to get to the sale of the rsns, these regional sports networks continues. i've been following that somewhat closely as well doesn't seem as though it has been going particularly well am i going to be surprised >> in what direction >> in the upside

major league baseball may be there, we're kind of getting fairly close to when you would want to have that deal kind of near or done, completed. >> our commitment to the justice department of the u.s. government is 90 days after closing. >> the apple board, another thing i just was curious about can you stay on that board >> well, obviously when you sit on the board of a publicly traded company, you have to be very mindful of your responsibilities fiscal responsibilities to the shareholders of that company and i have been. when the business of direct to consumer television or movies is discussed, i recuse myself from those discussions. there aren't many of them. still very small business to apple. and i'm not at the point where i believe it is problematic, but it is something i have to continue to monitor. >> and espn, we haven't talked as much about espn plus, in the marketplace, 2 million subs. but how should we view espn, the network itself, still carried

on, what, 80 something million subs or something along those lines and espn plus. the programming is different to a certain extent are you expecting espn subs to continue to decline in the traditional model, in the bundle and does espn plus pick that up along the way or are they two different sort of models >> i think right now espn plus and probably for the foreseeable future, near term, is an extra service, meaning it is not designed to replace the traditional business model so if -- it is an add-on it is a place you can go to get more and engage more. or get different you want to watch an ivy league football game, it will be difficult to find that on espn, but they have the rights on espn plus and so on a lot of what we have licensed for espn we can't put on because there is just so many hours of the day. this is great in that regard i think that will continue for a

while. we believe that there are sports fans out there that want -- that do want more espn and want it in this fashion, which basically means easily watched across devices, over the top, not connected, not have to have a cable subscription service they want to watch, some sports, access to some we're not making any predictions about the health of the bundle or how many subscribers. as you know, the business is seeing some -- >> he we started this conversation in 2011 one of our view interviews back in august of that year is when it sort of started to reverberate in the marketplace the sub numbers are going to continue to decline at espn. >> i think the sub numbers for the expanded basic model will continue to decline. we'll see what happens with espn we don't have anything to say about it in between earnings calls. we typically comment about sub figures during earnings calls. >> that seems to be slowing as

well. >> i'm not going to update numbers on that, but i think what this does, frankly, it gives ugive s us the ability to have a platform and relationship with the consumer that should the traditional model start failing us, which it is not yet, there has been -- >> you know when it is >> i'm sure, yes, i'm sure we will, but i don't see that -- i don't see it happening during my tenure here. not that i'm pushing off the problem to somebody else, just don't think it is a problem we're going to have. but if it is a time when the channel, the linear channel is no longer viable, then we have the ability to flip the switch and go in this direction >> when you talk about your tenu tenure, of course, 2021, two an a half years away. you seem to indicate in the meeting you'll stick to it this time your time is -- but you're going to be right in the middle of this enormous transformation of the company, this transition we

talked about is that going to be frustrating to you >> won't be frustrating to me at all. the most important thing is that the company get through the transition seamlessly. i believe that two and a half years from now or roughly two years after we launched this massive initiative the company will -- it will be well on its way and the company will be well on its way in terms of success here and it will be -- that will be the right time for a transition. at the ceo level the fox acquisition will have been assimilated, we'll be be off and running on the direct to consumer space now would have been, and the reason i stayed, now would have been tough the timing was not right for the shareholders of the company. i actually would have been fine, you know, setting all this aside and going off and who knows -- >> potentially running for office you were thinking about it. >> that's old news not current news. >> plenty of current news for

disney shares are off the highs, but still having a very strong day, up 8.5%. the continued analysis and response to all of that current news we got yesterday, carl. >> good stuff, david both on the apple board and succession and future plans. david faber with robert iger there. disney not the only name off the highs. dow well off session highs, up 174. we lost 2900 for the time being. "squawk on the street" continues in a minute. so, you're open all day, that's what 24/7 means, sugar. kind of like how you get 24/7 access to licensed agents with geico. hmm? yeah, you just go online, or give them a call anytime. you don't say. yep. now what will it take to get 24/7 access to that lemon meringue pie? pie! pie's coming!

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announces his candidacy this weekend is one of the biggest surprises of the 2020 race so far. he says modernizing americantaxe rich more. he sat down for a speak easy interview with john harwood and answered the accusations of socialism. >> the crazy thing about arguments like that is how uncoupled they are from evidence we don't speculate on what happens in a western society that delivers health care to everybody or has more special mobility or invests in a higher rate of infrastructure and education. we know what happens you're better off. the american dream is slipping away you're more likely to experience that in denmark than in america. while people can think up of all kind of excuses why something that worked in other societies and hasn't worked here, the reality is when we tried it here, it served us pretty well. >> you said that progressives

need to be mindful of the distance they have to travel and sensitive to that. do you think progressives also need to be mindful of the distance that some in business have to travel when they think, hey, they're coming after me? c? >> i think a lot of this is tonal. one thing i learned in the business community and even more as a mayor engaging the business community, is that while -- we like to think of business as the most numbers driven discipline in america. in my experience it's one of the most emotional. what's really important is that people not feel that they're being attacked or, at least, they understand if we're attacking a certain way of doing things or a certain system that this is not motivated by just angst hatred. it's being motivated by serious and legitimate concerns about where we're headed. >> we have seen in the last ten, 15 years astonishing change in terms of cultural issues like

same-sex marriage. do you have any expectation that we'll see very fast change of opinion on things like economic issues >> i think there's a tectonic change in economic and you can see is by the fact that the republican party experienced a hostile takeover on economic populist. this is not another four year cycle. this is not just another election. and i don't just mean the character or personality of the president. we're living through one of those moments just as when the new deal consensus gave way to the reagan consensus. we're living through the end of a 30 or 40 year era that defined american politics and helps to explain why democrats and republicans behaved in office and we're at the dawn of a new one. we have to make sure we have an account of economic change as well as social and political structure to handle that change especially in the new machine age with automation transforming our relationship to the workforce. we have to have answers on that. >> john harwood with us from

washington. john, fascinating interview. i'd like to get your reflections and thoughts on whether there is room for centrist view on the democratic side? >> we see him rising in the polls. we've had new surveys showing him in third place in both iowa and new hampshire. he raised $7 million in the first quarter which is some of the better known senators in the race. what makes him remarkable is not just that he's 37 years old, not just that he is the first openly gay candidate or that he's a naval intelligence veteran of afghanistan, he's also a former mckenzie management consultant. he has been deeply immersed in american capitalism and that's where his critique comes from and it lends it some credibility. >> john, thank you. let's send it over to jon fortt with a look at what's up next for "squawk alley." good morning. >> let's talk about a couple of ipos. it's up 44%. we'll talk to the ceo on the

first cnbc interview and uber s1 also out. we've been watching lyft stock a lot. what's ur begot in its filing that's different we got all that coming up on "squawk alley." -driverless cars... -all ground personnel...

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time for our etf spotlight. the energy sector in focus today. the xle off its highs this session sparked by chevron agreeing to buy anadarko. the market ponders who may be next. >> plenty of news to handle this afternoon. >> oh, yes. we're watching wells fargo. how about that turn around in the stock after comments on the conference call from the cfo we've got an interview you don't want to miss, we've got wells fargo cfo just lowering their net margin guidance and talking about how that will impact profitability. he'll join us at 3:00 to talk

about that and a whole lot more including, who's going to be the next leader of that bank very much up in the air right now. >> can't wait. sarah, see you this afternoon. dow's up 194. "squawk alley" starts in three minutes. (video games have evolved.addle)

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good morning. it's 8:00 a.m. at disney headquarters in burbank, california and it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪ good friday morning. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt. busy morning obviously. we'll start with disney. still up almost 9%. shares are up following the unveiling of