. >> we're happy to have you here this morning of course with us a day after the big news the first question certainly to those of us that follow this dispute closely is given the various nature and tenor, how did you even get to a settlement >> a deal like this, it doesn't

come together overnight. it is a company that we like the focus on the energy now is very much on let's get the products out it's one that we work on products together. that's one that we're doing now. we all know where they were and it was far apart where was your leverage in the settlement talks was it the coming of 5-g and inability to have a phone on the market with the right chip set that gave you the leverage to get the settlement >> no, it's a mix of things. it's a licensed deal across all of our technologies.

>> that's a huge milestone to get to a lot of issues to get through that we want to work together on products we have a multiyear product deal so each side found something that was useful. there was a payment that also went back to qualcomm. >> we digit disclose the size of the payment and really i would say today i look at all of that as in the past we're now focused on products moving forward and doing everything that we want to do. >> we want to talk to you about the future this is a two-year battle. there were some fairly nasty things said on both sides. i guess how did you bridge that

cap -- gap personally in terms of your talks. trying to understand how it is >> look we always talked about the timing i talked about the timing. it turned out to be similar to that we were probably a couple up the reality is two great product companies. it's natural for them to want to work together. we have in the past and found out a way to do that in the future i'm happy that's the situation. >> back to the deal. you won't tell us. you're getting $13 of phone.

he said that in open court i think i've seen the transcript i would assume it's less than that are you going to ever tell us? >> no, we won't. >> it won't be on your conference call when you report your numbers >> no. >> why not >> a deal like this it's a lot of back and forth and it's best to keep it confidential. we did try to give an indication at least to our business so we gave something on the website. there's about $2 of additional earnings as a result of this deal broadly when the products begin to shift

and we're just happy about it. >> you said we had a lot of talks. i spoke to tim cook in january there really weren't a lot of talks. like none. was it subsequent? >> jim, getting back to the deal, these things don't come together without the senior people in the company talking a lot. we have a lot of discussions you're not going to put that together on the morning of opening arguments and we're happy to have it together. but i can tell you the clear focus is let's get the products together >> are you going to do anything special? it makes it so periapple's 5-g s better than everyone else. >> you're just neutral i have to believe that apple gets something special from you,

steve? >> we give everybody the best support we can >> is there anything that makes it so that apple can get this faster i don't feel apple is behind is apple behind? >> i will never talk about a person's product plans but i will tell you that qualcomm is excited and we have the entire team working to support them. >> one of the things that you did well in this case is in the mix of all the back and forth, the heated arguments, you went pedal to the medal on rnd and in the end, from an outsiders view, that scared them into the idea of what might happen as samsung gets a lot of these things. >> i don't want to characterize why they did things. i will tell you that we did put the pedal to the medal on 5-g. it's the right thing to do for this company it's a lot the impact is just going to be

tremendous not only in the hand set space but outside of the handset space. that's going to be a good thing for our customers and shareholders. >> is there a good time for products to hit shelves or is that for apple to say? >> there's obviously the beginning ramp of 5-g broadly. we launched a phone about two weeks ago on the verizon network. the first of many worldwide and we're excited about it >> you have a history of buying back stock got a lot of money what are you going to do >> process this deal right now. >> i'm trying to get you to say something that we all say hey, steve really broke some news on cnbc we're not really getting there yet so far so i'm going to -- what's the process >> yesterday was an interesting news day. >> does this take it all off the

table in terms of those overcharging and linking chips to intellectual property in a way thatwas inappropriate? >> you know our perspective on that if you go back over the last 15 months we sign major agreements. we did a big deal with apple we had an issue still with one large oem which is huawei. we did an interim agreement with them when we look at the history, we're actually getting things knocked off the list with big customers that have a lot of leverage we have a lot of value and we're able to show that we think in the history. >> concluded sometime back but have yet to hear from the judge, is that still a risk for you or qualcomm and it's business

model? >> it is we're waiting for the judge to rule we'll deal with that when the judge makes the decision. >> can that impact that ruling in some way regardless of what it may be? >> i don't think so. we're just happy to be able to do it. it's obviously right in the middle of a trial. but the court is going to make its decision. >> there's been concern that perhaps things did not look like they were going your way. >> we were quite happy with the way the trial progressed if you look at the record, we had a very strong and put on a very strong case it's in the hands of the judge and we'll await her decision. >> i want to go back, carl mentioned your r and d spend you chose to increase in the midst of this fight when you were under a lot of pressure in

terms of cost. you don't miss the transitions it's very important in order to maintain your leadership position and also it enables you to really open up and expand your business in the new areas more so true on 5-g than any other g transition we wanted to make sure that we were able to position the company to do that we brought a lot of cost discipline as you know what's special about the 5 >> 5 is really designed so that

other industries so automotives, self-driving cars, connected infrastructure really set up to use cellulars for the first time at massive scale so our problem is how do we scale that across new industries. >> good problem to have. looking forward to tackling it with all of my energy. >> i'm going to play it, a little clip of an interview i have with tim cook we're going to get and clear it up. >> the issue that we have at qualcomm is that they have a policy of no license, no chips, this is in our view illegal and so many regulators in different countries agree with this and then secondly they have an obligation to offer their patent

portfolio on a fair reasonable and nondiscriminatory basis and they don't do that they charge exorbitant prices and they have a lot of different tactics they use to do that. >> the truth is we haven't been in any settlement discussions with them since the third calendar quarter of last year. that's the truth so i'm not sure where it's coming from. so to me, that is war. we have to learn the past. so what really happened ere.

>> the relationship is focused on that issue. i've had a lot of discussions within my team and the apple team that's the focus. >> we can assume you don't get to a settlement without talking. >> yes. >> it doesn't happen with mi mindmeld or another communication device that doesn't involve actual speaking. >> yeah. we talk all the time the companies to get to an agreement as complex as this you have to talk. >> all of that name calling gets behind so tell us that everything is great you love each other. >> i have a dog and children and all of these things. we are two product focused organizations. we're working on products.

we have done it in the past. we love doing it we're good at doing it and i can tell you that's where the focus is that's what i'm excited about. >> is ig so great that my phone which is a good one, do you think that i'll go buy a new one when 5-g comes out >> i always think people should buy new phones and i'm looking forward to you buying new phones as quickly as possible. >> how about the dog you have been available to us through thick and thin which we appreciate and there's been plenty of tough times. it's hard to actually imagine the ceo in some ways who has faced down more potential crisis whether it was in china originally when you took the job and settling there, south korea, hostile bid from broadcom and the nastiness that followed there. losing a lot of board members and somehow managing to avoid getting taken over as a result of the u.s. authorities kind of stepping in.

and over all of it the dispute with apple are we done with the drama >> i hope so but the reality is when you're working on technologies that are meaningful and relevant to many industries worldwide you're going to grab attention and as long as you have a technology lead you can work your way through that we were able to do that in the past certainly over the last five plus years i'm sure it's going to be more calm but i can tell you, i'm very happy to have that technology position. >> what do you tell others about not taking your eye off the ball. >> i have a tremendous team that's excited about technology. when you look at what happens in qualcomm there's probably 30 people that worry about all the drama that effects this set. the entire rest of the

organization is focused on making great products and if they continue doing that it's easy to work through these things even though it looks like a lot of drama. >> let's just think about the future a bit here is qualcomm now with so much behind it conceivably but you didn't acquire it, you didn't get acquired. you have peace with apple and peace with governments more or less around the world at this point although we don't know the outcome yet, what do you do now? do you think about another large deal for example or even getting into automotive? >> we're going to process this we're going to work on the 5-g ramp that's ahead of us. and in many respects creating in the industry we have the ability to do that even more and have more options

to do the things that you mentioned. >> well, back in december, president trump said that china is now open to that deal the clock has run out. it's a great company they're fabulous they still don't have a guy. i want to broker that deal because that would make it so that you would have a much higher price to earnings multiple why did you close the door why did the clock run out. president trump got this for you. why not get this done. >> it makes a lot of sense but the chip may have sailed on that one but rick and his team, wonderful company, great position we really miss having the opportunity to do that earlier the door has not closed. the trainhasn't left the station. >> there's no fee. >> i want it to be at 100. if you say listen we're open to

all possibilities we get it to 100. >> i appreciate the suggestion it's a good one but we're focused on working through the details and supporting our new big customer. >> let's end on that note in terms of the future, verizon has lit up a couple of cities at least early on where are we on the time line? >> we're at the beginning of the 5-g launch take a look at how many networks worldwide and how many phones are launching in the first year of the ramp of 5-6 versus the ramp of 4-g. you're going to see a faster ramp on 5-g than 4-g. >> why >> a couple of reasons is one, the cost per bit of providing it because the spectrum is so high so the economics for launching this is actually quite

attractive particularly at a time when there's so much demand for streaming video. so you're seeing the business models done. the other thing that's interesting about the 5-g launch is that it's happening worldwide. it's happening in europe it's happening in china in the same year that it's happening in the united states and in korea and japan. next year we had the japanese olympics for example i can tell you that for the people that are in the 5-g roll outs the problem is how do we do this faster, not boy is it going to happen? it's all about how do we get this faster and faster and faster people that come on your show are calling me up all the time let's get it faster. let's get it faster. that's a good place to be.

>> there's a real desire to get this rolled out and a lot of momentum and activity going on and we're happy to be apart of it. >> can you get it? what do you think? >> i'm not going to talk about apple's portfolio. >> okay. >> we appreciate you talking about some things with us. we very much appreciate you're being here and look forward to talking about 5g in the future. >> we didn't find out how much you're getting per phone. >> how the deal came together. >> but we didn't find out the dog's name. >> what's the dog's name >> we have two, actually but i'm going to keep that confidential. >> i have never failed except for 1979 and he told me i was a space cadet. i loved him too. >> thank you for being here. >> the ceo of qualcomm. >> still got a big show ahead. we haven't discussed netflix,

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>> you're watching squawk on the street the opening bell in 5.5 minutes. as you can tell, we talked a moment ago having gotten to the slew of

results including netflix that began trading positive in the market. >> it's not the kind of story that you should react to headlines on because it's second quarter forecast what he did was the opposite he said look -- he said something that i just love you have to look at it by whether people like the content. w can't model a stock like that but i don't think you have any choice you produce the right content and say wow it's a necessary bargain. they talk about how many people

watched frontier 52 million households. >> what does that mean you watch it in it's entirety. >> that we don't know i don't think. >> but don't you feel like you have to go watch it? this conference call is the greatest advertisement for why you must watch this $15.99 product. versus how much it costs to go see it how much would be it you will not go to see, it's directing. deniro. >> how about beyonce today she's almost all of the top trending topics are about her and what she dropped on netflix last night. >> so that's how you value it. it just doesn't lend itself to a headline cut forecast. it just doesn't work like that

pepsi didn't raise despite organic up high. >> i thought pepsico had every bit of ability to say listen, we're done with four and we're right to five period >> that's going to be later this year when i go back and forth with them i didn't raise. frito is just killing them. >> up six. >> it's unbelievable but for all the trouble that kraft and kellogg have for snacks. >> they don't have the hot snacks when i say hot, doritos refreshed it's line. >> they make so much product, it has a hot taste.

david, millennials, some of them like it hot. >> that's what i understand. you told me, yeah. >> they like the hot sauce. >> they do. >> they do. >> ibm looks to make it ten straight gaps lower on earnings. >> red hat is going to be monumental for them. they didn't care what the gross margins were or the earnings were i only care about red hat. there was a decision that's what the investors won in on the conference call she wanted it. she's a bull and he had a good

revenue. >> you're never supposed to look back we heard that from him morgan stanley was a great quarter and margins were fantastic. so i like that quarter very much. >> it did. stock not looking up that much but it is looking up a bit 70 or 80 cents or so but certainly an increasing activity from the end of the last quarter. >> march was a good month for almost everybody whether it be financial or retail march was a come back month and

we have to remember that march is -- that is the prelude to this quarter that's what i care about. >> let's get to the opening bell here. >> s&p 500 at the cnbc real time exchange it's the madison square garden company celebrating the world welterweight champion this saturday and pinterest, zoom tonight, journal suggests pinterest is likely to raise the range. zoom has done that as well. >> if they raise the range, they want to try to get it so that people, the last round. >> there's this possibility that zoom is going to have a higher

value than pinterest. >> that would be strange. >> given the great interest in their cloud conferencing >> that would be something. >> we do think it's about to go profitable but everybody know there is are leaks among the shareholder base are they going to clear that up unlike lift? you need to pledge. >> it's more often than not although i don't know how late the last round was and whether you can short the stock or hedge yourself they got a lot more votes but there's sunset provisions at lea least. >> transports are going to have a nice open here they beat by 11 cents.

revenue in line. i see comments on guidance for the year actually. >> they basically talked about how they need to get competitive against trucks and they said, listen, we are not reliable. it's an incredible call. it was incredible at how bad they were at trying to get it on time so they talk about how trucks are much more reliable but they're going to bridge that gap and that could explain why they weren't good the other day this running a railroad better, this precision railroading it's for real it's not smoke and mirrors it's real. >> it flies in the face of worries about an inventory overha

overhang almost everything was good and it was an amazing quarter. my hat is off to them in terms of being able to get more money. >> they layed off a lot of people and made a lot more money. more of a technology play than people realize. >> thoughts on sprint today. this journal piece. >> the stock did weaken yesterday. it was late in the afternoon the wall street journal reporting that the staff at the department of justice had at least started to question some of the key arguments being made by sprint and t-mobile in terms of the efficiencies and other things that will underlie their documents as to why they should be allowed to merge. now apparently the meeting took place a couple of weeks ago. it doesn't mean that the deal is going to be opposed. in fact, often times when the staff is opposed to something and also the head of competition in this case, which we don't know, but in the past, they

bring a case or they make it clear they're going to that's not happened here but we're getting closer june, in fact, they expect to know one way or another. the clock has begun ticking at the sec. there may be another meeting scheduled at the near term i'm trying to nail that down, frankly, unclear between t-mobile and the doj but we all know this is very uncertain. numbers 3 and 4 getting together as we talked about so many times. conceivably on the face of it. given the importance of a wireless phone to every person in this country and the bill they pay perhaps first, you could make an argument as to why it's not a great thing for the consumer to have three and four get together t-mobile and sprint made a different argument that the consumer will benefit with 5-g, the ability to bring broadband wire leslie into the

ha home and others. and to be able to compete with it. >> and we simply don't know where he stands. >> he was really buttoned down would not go off script. >> he did sweet something. >> the premise of the story was incorrect. >> it was summarized and untrue. out of respect for the process we have no further comment we should trust the process? so a little spin there this is a buttoned up process and i don't know i think t-mobile is worth more away >> the question is more for sprint and soft bank and what it

will mean there in terms of its future the former ceo has testified in front of congress about not good things occurring. >> right. >> and just a difficulty of that company in terms of being able to wage a real competitive product in the marketplace if they're not allowed to get together. >> this whole situation, this is all about 5-g and i try to focus on 5-g as much as i can. it's not enough. i mean, scisco stock has been going endlessly. why? 5-g. now it's about technology. when you go on that netflix call, 2% penetration on your cell phone he knows with the nicer, bigger cell phones that's how people are going to watch it. that's why the penetration is still low.

it's 5-g and holds the key to so many different things and we can't talk about it enough. >> no, we're going to be talking about it a lot more. and it was interesting how they were trying to bring it into the marketplace. the stock was up 23% by the close yesterday on the news of the settlement with apple and up again this morning we know it's a six year agreement. we know they're getting paid for intellectual property and there's a new agreement as well to provide chips to apple. and we know peace has broken out. do we know how we got here well, we asked steve to explain. >> it doesn't come together

overnight. it takes talking between the teams and tim and i had a lot of talk together and we ended up in a deal that both companies like and if you look at the focus of the energy now, it's very much on let's get the products out. it clears the way for a much more natural relationship between the two companies. >> apple is going to need to rely on qualcomm for 5-g chips, particularly because intel is not going to be in the business any longer they were making opening arguments while they were near a settlement is it billions they're getting paid for apple most likely but again he said i'm not going to tell you. >> i want to run a quick clip that explains why we were so caught up on cook versus him. >> you have people that are

naysayers. they keep telling you over and over again you're going to come to the table you have to. wait until you see them cave are you going to cave? >> no, the truth is we haven't been in any settlement discussions with them since the third calendar quarter of last year that is the truth. so i'm not sure where that thinking is coming from. >> look, i mean, having been in a six year lawsuit, my lawyers talked and i didn't even know and they talked to get schedule and things like that so i think that the mis -- i just didn't think that steve -- steve wasn't -- i'm not saying wasn't forth coming but these whole talks mean nothing and you can say well listen forget what tim said and what steve said because it all worked out but we're just trying to talk about really it.

>> this was heated and nasty and there was back and forth about who was actually telling the truth. now maybe they weren't in settlement talks maybe they were just talking about other things maybe the talks between them took place after that interview. but if you're a qualcomm shareholder you had quite a couple of days $82 stock price. >> the company rolled the dice people were worried about everything because if they lost to apple they could have been finished why isn't apple up more? we have no way to build a model on 5-g so next christmas, i believe next christmas could be the biggest, not this year but next year could be the biggest apple christmas in history

so do you want to sell the stock now? >> it clears the way for 5-g out of apple you got these reports out of reuters that they're talking to suppliers of sensors for self-driving cars. you saw that today. >> yeah. and now, of course, we asked, you asked, buy back, dividend, didn't really get an answer. large deal, didn't really get an answer the only thing that we do know in terms of what it all amounts to for the company is what we got last yesterday $2 a share as product shipments ramp now the market move already seems to have taken account for that $2 additional in eps jim right now. >> right but i would say you have a multiple year path for qualcom that we didn't used to have you have a level of certainty. they do own 5-g.

they are the owner of it we can hear about huawei and the chinese being ahead. how about the fact that they're the next one that's going to have to cave these guys are smart guys. now if anyone remembers 1999 which i know he doesn't want to talk about history but remember when they were going to go to 1,000. >> yeah, we were joking about it earlier. >> the fact is, totally in the seat, everyone needs 5-g and the stock could go even higher it could go higher the nasdaq is hitting an all time high. >> yes. >> >> if they lost it was over there's so many shorts in that one. there's a lot of shorts. >> no, it's true there was a great deal more at stake. >> he didn't comment on it but it's not insignificant we'll see what the judge has to say although people don't seem

to be concerned about it any longer. >> anyone that talked to him was so confident >> what cards are you holding? turns out he had the 5-g card. >> it was flush. >> wasn't like he drew the king. he had it. >> yesterday at this time the stock was barely up for the year now it's up 43% approaching a $100 million cap. >> we don just offer great programming. had you watched this man break the story, you would have caught 17 points. you broke the story.

>> they did have the press release out. >> you got to watch. >> you got to watch. >> that should be our new tag line. >> ignore us at your own risk, pal. >> dow down 35 is a reflection of ibm but we do have the all time high first time since october 1st. let's get to bob. >> ibm and u and h are waiting on the dow card. we see shanghai and japan all on that side. china gdp has been coming down it was in the mid 7s and now it's in the mid 6s if you look at that and this stability means a lot. jp morgan had a big note overnight basically calling the bottom in china. q-1 is expected to mark the low point of the growth cycle. it's taking effect

that is the bottoming story that's moving the markets. we are at 52 week highs in many global markets russia had a 52 week high. shanghai is. the bombay sensex at a historic high saudi arabia high. with the s&p less than 1% from historic highs the big sectors are also hitting new highs in the united states the e technology and surprisingly consumer staples are all at or less than 1% for historic highs. the key stories besides china bottoming, is the earnings better than expected look at these earnings beats in the last 24 hours. a typical earnings beat is 3%. netflix, 31, morgan stanley 19, pepsi 5, only ibm is a bit of a disappointment it's trading to the down side. they're all up except for netflix is flat. ibm is down. of course they were light on

revenues over in europe they had outstanding numbers and was basically also calling a bottom saying things will be improving in the second half of the year industrials are strong boeing finally getting materials. that's a problem everyone is astonished that this story medicare for all seems to have traction. united health saying this is very broadly owned company and stock. it's up -- there's a five year we're talking about 100 3% gain in the last four years and looking a little bit vulnerable but that's the other reason besides ibm that dow is down dow is down but the s&p is to the upside. >> thank you very much rick santelli in chicago good morning.

>> good morning. >> a week ago we had a low yield of around 246. we're hovering 259-260 it's been orderly and very steady and many technicians of course are pointing to the fact that it looks like a wave pattern going on look at a two-year chart these are areas that can hold. we have a lot of history here from 2017 as you see on the left side of the chart. when it comes to foreign exchange, we all like to pay attention to the dollar index and above 97 but the issue is with over 50% of the dollar index euro currency it's hard to imagine a big thrust through until we get under 112 and as you see on this chart going back to march, the euro versus the dollar it seems to always hold up to 112. it's the level to watch. finally a year to date, the dollar versus the yuan it's deteriorating in favor of the chinese currency

the lowest level on a closing basis. >> we're celebrating a special anniversary today. the launch of cnbc on this day 30 years ago, he actually has a nice piece written on our website about the original mission. >> holy cow. >> why would you do that >> i did not expect that. >> as we were saying, bringing data and information to investors in ways that were closely guarded before. >> right we broke it all out. there was a paper of record. that's what happened. >> this is horrible. >> 25 pounds oh my. >> i remember you back then. >> yeah. >> had a little bit of that

curly hair. >> i was so unmedicated. >> you were out of of control. >> completely. >> but entertaining as could be. >> there you go. >> rick hasn't changed at all. >> he looks exactly the same. >> i want to know if we have a cnbc museum. back in the day, mark hanes was one creative guy we used to have big fun in those early days >> there's a ton of people at the front and at the back. >> i used to watch it in my storm at law school. >> i think of him all the time of course holding that desk together back at hq.

there's so many people that aren't here but keep this ship movi moving. >> that's right. despite our ability to keep it moving on our own, right >> yeah. >> pepsico beating the street on earnings and revenue you'll hear what they had to say about the quarter and international growth stock up record high for the nasdaq 100 for first time since october don't go away. we're carvana, the company who invented

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most of the dow components are in the green with ibm and unh, the index down some 60 points, that's a fresh 52 week low on unh at 209. we're back in a minute arnings r, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade.

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good wednesday morning welcome back to "squawk on the

street." i'm carl quintanilla with sara eisen and david faber. dow down 31 on the weakness out of ibm and unh s&p unchanged. ton of earningings to get to including netflix and morgan stanley and pepsi. trade deficit near an eight-month low and about to get some inventories let's get to rick santelli. >> february reading on wholesale inventory and trade sales up .2 on inventories pretty much as expected. no revisions to last month's up 1.2 which by the way was the strongest level since 2012 and it was 1.5 we created a lot of inventories, want to pay attention to those for q1 numbers of course on the trade sale side, up .3, exactly as expected. up pretty firm number, that follows up .5. this number has been solid as well so all of these numbers, of course, will have implications for trying to define how q1 is

shaping up especially that trade data that we had earlier, of course, we want to continue to monitor. not only domestic demand, which sometimes makes trade deficit largers, but also monitor foreign demand in the global slowdown sa sara, back to you. >> rick, thank you qualcomm shares soaring for a second day after settlinging its royalty dispute with apple ste steve mollenkopf joined us exclusively. >> netflix not worried about the competition. we'll break down the earnings. >> pepsi shares on the move up we'll hear from hugh johnston. we'll start with qualcomm this morning yet another very significant gain for the stock this after, of course, yesterday we first told you about 2:55 eastern that apple and qualcomm perhaps unexpectedly certainly seems for investors had settled their long running dispute,

which included litigation across the world. it is now all done a worldwide settlement for the two companies in which they do reach a direct licensing agreement between the two. and interestingly that had not been the case previously, remember qualcomm's licensing agreement had been with the contract manufacturers who build the iphone now it is directly with apple. we know it is a six-year term, it has a two-year option we know apple is also going to be paying royalties to qualcomm. though it is an unspecified amount billions had not been paid there is an assumption at least that while it may not be the total amount owed, it could be in the billions. there was also multiyear chip set supply agreement that was announced between the two. as qualcomm is now going to be the main, if not the sole provider of 5g chip sets to apple as it looks to bring out a 5g enabled iphone in the perhaps not too distant future and all the worldwide litigation

between the two companies is withdrawn. what do we know on the economic front here for what it means for qualcomm not too much other than they do expect incremental earnings per share of roughly $2 a share as they say product shipments ran we had steve mollenkopf, the company's ceo, join us right around 9:00 a.m. eastern and i did ask him if he's going to ever tell us more of the specifics here in terms of what they're getting on a phone, or how much they got from apple >> no, we won't. >> you won't >> we won't. >> it won't be on your conference call as well, or anything like that when you report your numbers, we're not going to know either >> correct >> why not >> the deal like this, there is a lot of value back and forth, it is just best to keep it confidential we did try to give some indication as to what it means, at least to our business we gave, you know, something on the website, we did an 8k which said there is $2 of additional

earnings as a result of this deal broadly when the products begin to ship, which is very significant obviously for us but, remember, they're a big customer and so we're very happy to have an ability to move forward >> peace has broken out between the two, of course in fact, despite many attempts to try to get mr. mollenkopf to characterize the level of discussions, the nature of the vitriol between tim cook and himself or the two companies, all he would talk about is the future, sara, and what it means for qualcomm and it means a lot and that is being reflected in 23% jump yesterday, after the news came out, after we reported and the news came out, and another 13.5% this morning >> that's -- i think your scoop on this one was particularly cool actually because not just that we get the massive stock move on qualcomm, but i think it came as a big surprise, right, for those of us who have watched this fight, have watched the technology industry. apple has dug in its heels on

local battles. took samsung to the supreme court. >> yes. >> so just curious how this settlement came together after so many years and so many back and forth battles across the world and the courtrooms >> i'm trying to understand it a bit more because there are a lot of questions about it and for obvious reasons, mr. mollenkopf, i think, in the spirit of cooperation now between the two companies did not really want to get into it but you're right, you have to imagine that apple looking at the possibility of not having 5g chip sets available for it as its competitors move forward with their 5g phones, that had to figure prominently in their thinking one would expect that speculation to some extent. we don't know what they're getting a phone, not sure we would. yesterday in court, qualcomm's lawyers had referenced 13 bucks a phone, that was evan chessler, i want to read the transcript more thoroughly. that was reported at the time. op opening arguments were being

made in judge curial's courtroom while the settlement was coming out. >> we were expected to hear from cook and mollenkopf in court. >> going to testify. >> so where does it come out per phone? listen, six-year agreement, chip sets, only a positive for qualcomm certainly it removes an enormous threat to the company's business model it faced if the trial moved forward and if it ended badly for it don't want to forget about the ftc, which we still haven't heard from the judge in that case mollenkopf said he was encouraged by what the judge had said during the course of that case, which wrapped toward the end of january but others were sort of more circumspect in times of -- or worried on the qualcomm side. >> this is the ftc looking into the business model on antitrust. >> antitrust in terms of competitive nature of their linki linkinging, so to speak, chip sets with intellectual property, forcing you to buy one or the other. >> the gut reaction was that intel was the loser out of all

of this. do you think that's overdone >> general consensus is their product was inferior, th company knew it and this gives them a graceful way to bow out am i oversimplifying >> you asked a key question, carl, or raised the point, qualcomm spent more on r&d, when it was under fire, activist investors in there, then they were dealing with a hostile bid from broadcom and yet mollenkopf made the decision to increase spe spending i think half a bill or more. that may have paid off. >> the other thing analysts are saying, it is a justification for qualcomm's overall business model and the fact it has demanded royalties from apple and iphones and others, even if the chips aren't necessarily in the phones because of its -- i guess first move advantage here. >> it will say, apple moved strongly into the marketplace initially and only because of us, you know, you didn't need to

go out and develop the ability for these things to communicate, you could think about all the other things because you knew qualcomm would be there with the patents and the chip sets you needed to make this thing happen right away. >> 19 year high, back to the spring of 2000, if that rings any bells. watching those shares closely. another stock to watch today is netflix, beating on the top and the bottom line, adding over 9 million paid subs around the world. but the weaker q2 outlook has some analysts worried as the company is facing new competition from the likes of apple and disney reed hastings says he's not worried. >> so there is a ton of competition out there. and disney and apple add a little bit more, but frankly i doubt it will be material because there is already so many competitors for entertainment time, which is great for consumers, and it is exciting for us >> joining us to discuss the earnings report, sun trust analyst matthew thorton and guggenheim senior managing

director michael morris. good morning good tosee you both. >> good morning. >> matthew, the sub guide, we're used to this routine now, but does it reflect any forward sharing because of price hikes is it about the timing of content in the first half of the year >> yeah, i think there is clearly we'll see an impact from the price increases, particularly in the domestic market probably a little high on the domestic side. probably more importantly, there is a couple of key shows we thought were going to land in the second quarter that are being pushed to the third quarter. i think the punch line there is that the 2q guidance is fine and the third quarter set up in content slate which we flagged as looking quite compelling into this print looks that much more compelling here. >> michael, you agree? if so, what shows should we be worried about in terms of timing >> well, i'm not worried about any shows in terms of timing, i'm not sure which shows your

other guest was talking about, but i do know "stranger things" may be one show that will be in the third quarter rather than second quarter we have "the crown" in the third quarter. i think back to your original question, though, about the subscriber guidance and we have been on before talking about this, keep in mind we think that netflix is the best value proposition for consumers, okay. and in the second quarter, they have this price increase going through. and we're going to see let's call it 1% to 2% pressure on the subscriber base as a result of this price increase, relative to about a 15% price increase so we have a service here in the u.s. with 60 million subscribers, that is able to push through at 15% price increase with about a 1% impact on subscribers we think it is very evident in the pricing power of the company has. >> matthew, i mean, it still feels like the jury is out on the competitive threat that netflix faces. reed hastings did address this head on, in the press release and then in that subsequent interview, says they don't see it as a material threat.

are investors going to buy that? >> yeah, i think it is a couple of points here let's talk about disney for a second number one, disney will at the margin represent incremental competition for netflix. however, we also think that disney is going to spark more cord cutting, number one number two, it is not a perfect alternative to netflix disney is predominantly family generated content, family-based content. look at netflix, it is much, much broader-based and then point number three here is a lot of this consternation is already reflected in netflix stock. we have seen it pulled back in recent weeks, leading up to the report here. so, look, it will be incremental competition at the margin, butting manageable for netflix. >> matthew, if i could follow up on that. you think about all the streaming services available, not just disney, but warner, for example, and others, and no longer having licensing agreements potentially with

netflix, so they're going to be solely reliant to a large extent on just developing their own programminging are there costs that are going to continue to go up for years and years to come and are they going to be able to develop enough of a strong brand for sort of their own brand to continue to accumulate users the way they have been in the past >> yeah, great question. so a couple of interesting comments on the call last night. if you look at this, there are content spend is going to continue to increase no question. it has been a mixed shift and will continue to be a mixed shift toward original content as opposed to licensed content. they made the point on the call last night if you take the four largest studios, disney, fox, warner, and universal, they are the minority of viewing on the platform and they're the minority of content spend on the platform and that will continue to come down and then just finally, this content doesn't go away

overnight. it is gradual andthey have license agreements, probably put a longer tail on their access to that content, a little longer than most expect here. we think this is very manageable. >> michael, you know, it is interesting, this seems to be a disconnect you look at some surveys about netflix subs and the shows that incentivize them most to subscribe, names like "stranger things," but then look at things that are ostensibly viewed the most and it is shows like "friends." how do we know which it is >> it is a good question because they don't -- netflix doesn't disclose viewing they did say yesterday on the call, though, something that i think was quite interesting, that ten of their top ten most viewed programs are netflix original programs. and 21 of their top 25 so that gave you some insight into what the sort of exposure is to, you know, viewing on things that are licensed versus owned. in addition, they point out,

rightfully, i believe, that they lost access to fox content in 2017 and we really haven't seen a discernible impact under subscriber trajectory since then i agree with their thought process that is they will have more budget to put into their own originals. i'm more concerned about them finding quality projects and i'm not concerned, but i would say that's a greater concern than being concerned that they have to ramp their spending beyond what the current trajectory is >> fascinating story they give us a lot to chew on, that's for sure. matthew michael, thank you, appreciate it very much. >> thank you. >> talking a little netflix this morning. to phil lebeau who joins us live from the new york auto show with a special guest. good morning, phil. >> good morning, carl. joe everhart, who runs jaguar land rover north america named world car of the year, how are you feeling about demand so far? >> it has been a great morning for us not only where we name world car of the year, we were world design car of the year and world

green car of the year. the first time manufacturer has won the three major awards really incredible. demand, we just started going on sale, but clearly the interest in this car is phenomenal and for a small company like us to be leading the field really says a lot about our innovation and technology >> where are the buyers coming from coming from other electric cars they are trading in, are they coming from standard internal combusten models they said i don't want to drive that anymore, i want to go electric >> they come from everywhere there is not too many interest vehic electric vehicles. >> how much is brexit making it a bit of a halsle now trying to figure out world production as well as world supply >> yeah, keeps us up at night. it is hard to plan because it changes at such a rapid pace hard brexit would have been really an issue for us

hopefully we will find a negotiated way over the next couple of months and then we'll see how to -- >> you took an extra week of downtime in anticipation of a hard brexit and now the question becomes, do you have any production issues, let's say, if things get lumpy over the next couple of months >> no, for the time being we should be okay if there were a hard brexit in the future, that's our anticipated plan, but we're good for now. >> you are in the cusp of this transition happening around the country and around the world in terms of electric vehicles catching on. do you sense we're seeing the transition in consumer attitudes, maybe not that they're buying electric, but they're finally considering it >> absolutely. it is not part of the conversation at first, first it was early adopters, now it is part of every car buying conversation, should we consider an electric vehicle? we have overcome a lot of the issues, ranges, 240 mile range, the performance is phenomenal, the driving dynamics is unlike

any other car. so customers are starting to see the benefit of an electric vehicle as an everyday commuting vehicle. it is part of the conversation, i do think, though, the adoption will be a couple of decades before we see the majority of cars being electric vehicles >> land rover, once again, the fastest growing brand in the u.s. and yet -- this is nothing new to you, we have done reports on this, you skintly co consistentt the bottom for reliability and dependability. >> we have grown quite rapidly as part of that, we still have to work out some of the issues you mentioned. a lot of them are electronic spa based. and we have a program in place to transform that part of the business the good news is we have two brands that are iconically british that people want the design, it is phenomenal, the technology is there and our engineering colleagues are working really hard to fix the rest at which point then i think the

sky is the limit. >> no doubt land rover is red hot now. jaguar, world car of the year. joe everhart here at the new york auto show back to you. >> phil lebeau, thank you. when we come back, shares of pepsico moving higher this morning on an earnings beat. 5% organic sales growth, the best it's seen in years. helping the entire consumer staples grow hugh johnston, what he has to say about the quarter when "squawk on the street" comes right back

welcome back to "squawk on the street." pepsico shares are higher after a beat on the bottom and top lines. joining me now, hugh johnston, cfo of pepsico, also the vice chairman welcome back, hugh good morning >> thank you, sara good morning to you as well. >> so the highlight of this report, 5.2% organic revenue growth we haven't seen that kind of growth from pepsi in years what is powering it? >> yeah, we really do feel terrific about the topline performance. i think it is a combination of two things number one, you see continued portfolio strength, u.s. businesses, international businesses, across snacks and beverages. we continue to see strong broad-based performance. in addition to that, our north america beverage business has been strengthening over the last couple of quarters as we have invested in more advertising, we have invested in more execution. the portfolio is working and you see stepped up execution from increased investment in the business advertising and marketing as

well as sales people we feel great about that at the top line this quarter. >> you know what else changed at pepsico is leadership. ramon la guarta took over. what are some of the biggest changes under his reign versus nui who was there for years. >> it is continuicontinuity we're evolving the strategy of the company now to invest a bit more because we see opportunities in our innovation, we see opportunities in being able to execute in the marketplace. so i wouldn't call it a revolution, probably an evolution in leadership that is diff differing markedly strong results. >> one question investors and analysts keep having on this quarter is why didn't you raise guidance with these new growth prospects and all of this enthusiasm you're seeing around execution and higher spend

>> well, you know, it is interesting, sara, we just gave guidance 60 days ago so i'm not sure we're ready to make any changes off of something we just said two months ago what i would say is, you know, the world is a volatile place and with our guidance, we want to accommodate some level of volatility we're pleased with the results, competitively, pleased with the top line, and we do expect we see upside to come through in the business to reinvest them back to even strengthen and further make our business stronger. >> what are you seeing competitively, specifically in north mer north american beverages, coke is growing nicely as well, it faced strong currency head winds which weighed on profitability lately so what is that like on the ground >> yeah, i think you see heightened focus across all of the categories i think you see a good healthy level of competitiveness going on in the marketplace.

i won't speak for our competitor, but we're innovating very well. you're seeing accelerated category growth rates in carbonated soft drinks we feel good about the state of competition in the business. we feel like it is healthy competition. and as a result, i think all attached to it are doing well. >> what are you telling investors today as far as how much more room there is to improve on execution, on the feet on the street as you call it, the sales force, puttinging products in the stores and all the other sort of levers that you're pulling and working and leading to higher growth how much more room is there? >> there is quite a bit more room the way i would characterize it to use a baseball metaphor, we're in the early innings of the game, second or third inninging. we have lots more room to improve on execution both on the marketing side and on the feet on the street side and that will only enhance our top line results over time >> always like to ask about the consumer there are a lot of worries about global growth.

talk a little bit about what you're seeing in terms of consumer spending in the u.s. and the rest of the world. >> yeah, right now we see a healthy u.s. consumer. of course, we play in consumer staples, i won't speak more broadly. but within our segment of the economic world, we see a consumer that is capable of spending, and is willing to spend on products that they really see as differentiated and adding value and that's what's driving our focus behind putting money behind advertising, putting money behind innovation, because when you deliver something different that the consumer likes, they're willing to pay for it and buy lots of it. >> like white cheetos. is that what you're referringing to >> exactly right our simply white cheddar cheetos, it is a terrific product, we're basically selling all we can make and consumers absolutely love them if you haven't tried them, please go out and do so. it is a great product for frito lay. >> we'll do so hugh johnston, thank you >> thank you

>> when we come back, pinterest and zoom set to price tonight, the biggest week for ipos this year what to expect when "squawk on the street" comes back dow is down 23

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time for our etf spotlight, the kbe is down this morning as the big banks earnings essentially wrap up. morgan stanley helping the index with shares climbing higher after the blowout first quarter results. wealth management division leads that charge topping expectations stock up 21% for the year. we keep our eye on at least the first chapter of earnings season to seema mody this morning, get a cnbc news update. >> here is your cnbc news update at this hour climb change protesters disrupting rail and road networks across central london they set up camps on roads, stopped trains from running and blocked bridges in the city. more than 250 people have been arrested they are urginging the government to be more active in tackling environmental issues. the french prime minister paying tribute to the firefighters who fought the devasta devastating blaze at the notre dame cathedral he said they risked their lives for france and the country must rise up to the level to face the

challenge. michelle obama telling a crowd in paris to be strong and have faith in the wake of the fire, this during a trip to promote her best-selling autobiography "becoming. >> be strong in times like this, we have to believe in each other, we have to use these times to unite because notre dame will be rebuilt >> yes, it will. >> you have been through worse, as so many of us have. so now is the time to be strong and have faith >> and that's our cnbc news update for this hour sara, back to you. >> seema, thank you. when we come back, the former ceo of tivo, tom rogers, will join us his take on netflix and streaming landscape with more competition on the way. take a look at the markets, about an hour into trade, and the dow turned negative, down about 11 points here so is the s&p. thf aq stays firm up a ten o we'll be right back. moving is hard.

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welcome back to "squawk on the street." we're continuing to watch netflix on the heels of the company's q1 earnings beat the stock recovered from most of its after hours decline yesterday, down 1%, 1 and change the company highlighting its original content growth in its letter to shareholders triple frontier, umbrella academy and highway man among the top performing content joining us to discuss the whole landsca landscape, all different now, former tivo ceo tom rogers we should say happy anniverse aanniversery. >> i was up really early to have my team launch cnbc and proud of what's become of it. still a great -- a great trivia question, what does cnbc stand for? you can stump a lot of people

with consumer news and business channel. that's not what people's first guess is. >> we used a lot of different names for it through the years for the cnbc that was the original, right >> yes >> tom, it is a different landscape right now. we just got the netflix earnings we got the new disney streaming service out. it is like the vanity fair headline, disney built the streaming service to be a netflix zapping death star is that true or all hyperbole? >> i think the disney exuberance has gotten a little over the top. it is instructive to go back and think about networks breaking in the cable business as we did 30 years ago. when we were breaking in the cable business, the cable industry resisted us like crazy. our competitors were pretty small companies, ted turner, turner broadcasting, rainbow programming. what disney as a network company, cable company now too, is going up against are absolute

behemoths with amazon and netflix and facebook these are companies with massive resources, and it is a very different day than when the networks got into cable. having said that, all the networks got into cable big time and most of the cable networks are owned by broadcast networks today. those transitions can be done. on the other hand, what disney did what we did back then was going from one b to b model, distributing through broadcast affiliates to another b to b model, distributing through cable companies. what disney is now doing is transforming from a b to b model it a b to c, business to consumer model that is a much, much trickier transformation and i think trying to make it sound as if disney has that transformation in the bag is getting way ahead of things. >> the optimists would argue that adoption rates are different than they were when

cable came along, right? because of the technology, certainly with 5g, and that the soil has been aerated in i was y ways you can have multiplayer participation in a hurry do you not agree with that >> i think there is plenty of room as the streaming market develops, but just remember how far netflix is ahead in one quarter, they added more subs than disney said espn is likely to have in five years in one year, they will have added more subs than disney plus is likely to have in five years. in a year and a half, they added more than an entire hbo. so when people start talking about netflix's second quarter, subs looking a little weak, let's step back and put all that in a little bit of perspective here they have won, they're out there, there is room for others, but it is not a disney netflix story. the story is disney against the decline of its own legacy

business, and can it move into streaming fast enough to deal with that deterioration? that's a much bigger story and not one that we have seen much focus on at all. certainly vanity fair has missed that. >> i get it. not people focused perhaps as much on espn subs still coming down espn plus, which you mentioned, is not seen as a replacement of espn, sticking with the old model on espn. your point is a good one you're talking about disney, with incredibly deep runs and deep connections with the consumer already, and they are talking about having 90 million disney plus subs by fiscal year 24 that's not an insignificant amount and it is not going to cost d im as much as netflix they have all the brands already. they're making the movies at the movie studio, which go immediately then to the online platform you could argue that it may be a more profitable model over time. >> that's the story that has been propelling all the optimism about disney but let's not confuse some great

executives, bob iger, kevin mayor who hasn't gotten much play at all, great executive, and great brands, and great global brands with what they have to do to become a global brand. i maintain that while disney plus will be a very interesting global brand, espn, by their own admission, espn plus won't be global the big underreported story, david, you got to dig into this one, is how much does comcast have its thumb on disney being able to take hulu globally because everybody talked about, well, at&t sold its interest back to the partnership. okay, that partnership has governance rights. and comcast now owns a third and i would be extremely surprised if comcast is going to allow that to happen without some massive deal. they own the disney programminging rights in europe. and for comcast to allow disney

to expand hulu globally is a big question mark. i think it is a question mark, a lot of talk on this set, hey, wait until disney packages pact bundle, they got a lot of leverage on and that will creat something of the cable bundle. i've negotiated a lot of joint venture type agreements between companies and i would be also extremely surprised if disney had a unilateral right to take hulu and package it with each other's services to unilaterally benefit itself to the detriment in any way of the partnership service without comcast having a large voice in that. >> that's a very -- >> that's another really big underreported issue. >> you're right, it is an important point you're making. one i will look into disney to your point has not said they're going to take hulu internationally, but said they're looking at it or considering it they see two thirds of disney plus being international by year

five it clearly is a big rant for them to run internationally, where all the subs are being added. look at netflix, how many they added internationally and what is going on domestically. >> that has to be part of the transformation of the company. you have to go global. disney plus, carrying that transfor nation. even if they get the subs that they're talking about, with disney plus in the united states, and espn plus, how many subs are they going to lose here the subs are losing here as a bundle probably get 15 to $17 a month from cable operators you're talking about one service at $6.99, another service at $4.99, even if they are able to package those in some way, the loss of what they are -- are going to incur in legacy, cable and satellite subs versus what they pick up here isn't a 1 to 1 translation. you're going to have to do much

better than their own sub projections to deal with that linear decline unless the linear decline is less severe than many think. and i would recommend anybody reading todd younger bernstein, who has done excellent, excellent work on just how bad that linear deterioration could be when a recession hits really bad and you got to put all that in context before you get too excited about the transformation >> so, i just wanted to ask you about the pricing, because now we got a lot more competitors in the game and they're all priced at very different points netflix raising prices, hulu cutting its prices, disney coming in lower than people expected at $7 per month do you think that's going to matter for consumers when they make their choices and figure out just how many of these internet services they want? >> yes price will mackke a difference n cord cutting is about price and seeing value and skinnier bundles of pay $40 to $50 for a

bundle of channels rather than $100 and add streaming services. don't -- i agree with reed hastings i don't think the others coming in and offering services is going to really affect the price value perception of netflix because of how much original programming they are producing and how much they will continue to produce i think that the top ten programs on netflix are all originals. 21 of the top 25 are originals and by virtue of that, the perceived value is huge. nobody at disney spending a couple billion dollars in original programming is not going to make a dent there do i think some of the others? your second streaming service, your third streaming service make a difference, particularly when amazon is effectively free and is a gargantuan service in its own right, others coming in now, whatever the price, very smart where disney put its pr e pricing pric i ing, it is going to be a

consumer issue for sure. consumer news and business channel, 30 year, mark hoffman president for half of that time, in itself a major milestone. >> a little nice -- >> good shameless plug >> tom rogers, thank you . >> shares of csx moving higher after reporting results. morgan brennan joins us with more >> how do i follow up that segment? i mean, really, cnbc turning 30. if you take a look at shares of csx, they're higher, leading the transports higher in what is largely a flat market, transports up 1% now i did speak with ceo and president jim foot he said very good quarter based upon solid execution of the railroads running well in difficult circumstances. keep in mind we saw a lot of really tough weather last quarter. csx was impacted to a certain extent by that like we heard from jamie dimon,

warren buffett, foot telling me the u.s. economy may be a little slower than a year ago, but still sees it on very solid footing. just about every category for the railroad had growth during the quarter that is notable given the fact that railroads like csx touch about every good to some extent moving around the u.s. something that drove the better than expected results that we got from csx export coal, a driving force again, we saw tailwinds last year that helped again in the first quarter. csx reiterated its full year guidance, key part of that is because foot does expect to see some softening of those coal volumes in the second half of the year notewort noteworthy, csx has seen some increases in crude by rail again. a lot of discussion of further growth according to foote and that the economics in terms of the spread between wti and domestic crude and offshore brent remains favorable in terms of the crude by rail volumes

something to watch there csx picking up more customers in a shift from truck to rail, more broadly for that reason. foote doesn't believe that pricing has peaked yet keep in mind csx has raised prices in recent quarters that moving merchandise by truck, he said, is 15% to 20% pricier than rail and shippers have been paying a premium for the reliability. better service at csx as it continues to implement precision guided railroading is making it more competitive, part of the reason we're seeing more u.s. rail carriers implement similar strategies right now not surprised, he said, by some of the softer trucking data that we have seen in recent months including jb hunt's earnings given the weather impact and the pull forward last year, ahead of anticipated tariff increases on those u.s. exports to china that never actually materialized. but in terms of trade in general, also keeping an eye on the freight flows between the u.s. and mexico, there are a lot of reports of backlogs after that border closure threat a

couple of weeks ago. csx has not been impacted by that but keeping an eye on it, it creates uncertainty shares are up 5% right now on those better than expected results. >> quick question, morgan, does it raise a question about how the transports broadly are set up for earnings period they haven't been doing that well in the market and you had this idea that maybe analysts and economists, everyone got too pessimistic about growth prospects i wonder how the rest will trade and do. >> it is a key question. i think the rails in general have been holding up more sol solidly relative to other areas of transports, focused on freight over the recent months and recent years and i think a large part of that is what foote is talking about in his call with me that shift from trucking to railroad, where it makes economic sense for the shippers moving goods around the u.s. trucking rates, the spot rates

were bananas last year saw record numbers i think you're seeing shift in that in general, based on the conversation i had with him and other folks that watch this area, it does -- it does seem like from that vantage point, economic growth will continue, though maybe not at the same type of pace we have seen in the past year or so. >> fascinating, a lot of information in there, morgan, thanks so much morgan brennan watching csx. dow trying to narrow losses down to 14. quick programming note, do not miss our exclusive interview with citi's michael corbat tomorrow, 9:00 a.m. eastern time right here on "squawk on the street." don't go away. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best...

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pinterest and zoom, the

headliners of a total of eight ipos expected to price this week and raise $2.5 billion social media company pinterest reportedly set to price above the expected range of 15 to 17 zoom upping its range to 30 to -- 33 to 35 a share founder and the ceo will join us tomorrow morning on "squawk alley" after a cold start to the year driven in part by the government shutdown. making up for lost time in a hurry. >> i think the question is the lyft price, right. so far, i don't know, what is it 30% off its ipo price and nobody has said that's going to hold back any ipos but curtails the enthusiasm around some of these offerings and will uber be valued at $100 billion is the other question of the year, right. >> yeah. lyft reminds people there is risk in buying these new issues, given where it was priced at 72, having traded up from that the first day and you can see 57.35. that said pinterest is coming at a price that actually is below

its last value in the private market and there seems to be a good deal of enthusiasm around zoom given its growth rates and the overall model of its business at this point it could be a good day, but you're right, it's hard to look bast lyft only a couple weeks old. >> all right let's send it over to jon fortt get a look at what's coming up on "squawk alley." >> david, well, it looks like a truce, qualcomm, at about 77 bucks a share, yesterday at this time, it was below 60. truce between qualcomm and apple, intel out of the picture on 5g. what does this mean for mobile and the billions of dollars at stake in this exploding market we'll find up coming up on "squawk alley. to a single defining moment... ...when a plan stops being a plan and gets set into motion.

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mno kidding.rd. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. welcome back to "squawk on the street." i'm dominic chu. splashgtsz lost a little steam as you can see behind me in large part due to continued weakness in health care related stocks if you take a look at that group, it's close to erasing all of its gains for the year over growing concerns over

legislation that could impact some of the company's business models take a look at managed care providers, under pressure. one day after united health's ceo warned medicare for all proposals would, quote, destabilize the nation's health care system. you've got united health care, humana, all hitting fresh 52-week lows at the very least now i will send it back downtown to you guys, david at the stock exchange >> okay. dom and i will take it thank you. you know, sara, yesterday's show was pretty darn good i have to tell you. >> the surprise. >> we had this big breaking news story i don't want to say and then we were able it to discuss it at length jon fortt joined us. what are you going to do today to top that? >> i have a way to top it. i have a power duo for you former treasury secretary jack lew just back from the china development forum in beijing and david, you're going to be jealous, legendary champion michael phelps will be with us not in conversation together,

both joining "closing bell." there you go. >> coming here >> he is. >> i might have to stay. >> you're welcome to stay. we could talk about qualcomm, it's up 13%. >> respect the closing bell. >> thank you >> that's the way to follow it up we'll see you this afternoon "squawk alley" for its part is coming up next don't go away.

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good morning it's 8:00 a.m. at qualcomm headquarters in san diego, 8:00 at cupertino and "squawk alley" is live. ♪ ♪ ♪ why can't we be friends why can't we be friends ♪ ♪ why can't we be friends >> good wednesday morning. welcome to "squawk alley." i'm carol quint nail, morgan brennan and jon fortt. the song sets us up for a discussion about apple and