it's friday, april 26, 2019. it may never stop raining again. >> i'm okay with that. the pollen, wash it away all kinds of allergies >> taxi driver "squawk box" begins right now. live from new york, where business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" on cnbc. s&p futures down by 3.5 points the nasdaq off by 25 again, we're not far from the new records.

as i mentioned down by 25 points >> take a look at what happened overnight in asia. it looks like the nikkei closed down by about a quarter of a percentage point shanghai composite down by 1.2%. the hang seng up by .2 of a percent. in europe this morning going to see that there are some mixed markets at this point. not major movers but the dax is up by .1 ftse up by .2. and the treasury market here in the united states that we've been watching so closely, the ten year today yielding 2.522. one of the big stories out yesterday, intel and the shares this morning are reflecting that, plummeting earnings and revenue beat for the quarter. real story is the outlook guidance intel slashing revenue guidance for the year new ceo bob swan partly blaming

china for the slowdown we'll hear more when bob swan joins "squawk alley" in a first on cnbc interview coming up at 11:20 a.m. eastern it's 8:20 out there. sleep -- >> focusing on -- >> i wouldn't want to face the music ever 11:30. 11:20 on "squawk box." >> china is going to -- >> china. >> china is going to be the question how much of a slowdown for technology is that still going to be an issue for apple? we'll hear from them in the meantime, amazon shares are higher after they crushed estimates for the first quarter. amazon reported a huge earnings per share beat they were looking for $4.72 a share. amazon came in at $7.09 a share. amazon cloud revenues were up by 41%. on the conference call the company's cfo said it will work to turn its prime 2-day shipping guarantee into one day shipping.

that evolution will happen over the next year. amazon will be investing $800 million in the supply chain and logistics. aws, amazon web services, that's the big story here they can basically print the money with what they're doing this same story with microsoft the day before when it had recently reported better than expected results because of azure. >> oh, this is you, too. >> ford delivering better than expected quarterly results the car maker says that strong demand for its pickups and suvs offset weakness in both china and south america. shares of ford this morning up by about 8%. that's a gain of 75 cents. economists expect growth of 2.5% despite the government shutdown and a bumpy start to the new year on wall street. joining us is stan mcmillan. numbers coming up. for a while we were thinking

sub 2. >> six weeks ago everybody was talking about the recession in 2019 it doesn't really feel that way. 2.5% growth in the first quarter, pretty impressive stronger than the fourth quarter last year and for some reason or another, first quarters tend to come in soft, like 7 out of 8 last year. fourth quarter terrible. .8 residual seasonal discount. that's really a 3% growth if we get something like that. that's not a slowdown. >> are you at 2 3/4? you say recent data has indicated 2 3/4? >> i had to write down a point >> that includes the seasonal y seasonality. >> that's what they'll print. >> but it's actually higher? >> the company would be growing -- >> i mean, that would be the best first quarter we've had in how many years >> it'll be a while, but the thing to remember is it's old

news this is late after the quarter just like the earnings report are somewhat old news. >> does that mean that second, third, fourth are already going to reflect cost pressures or margin pressures >> that's our forecast. >> this could be the best of the year >> this would probably be the best of the year. >> that's weird. >> that's the good news. the good news is 3% growth on an underlying basis isn't sustainable when the unemployment rate is 3 3/4%. so some modest slowing from here is what makes the expansion sustainable. >> vince, yesterday we got earnings from 3m they showed a lot of weakness. they blamed a lack of demand in some of their in markets 4 of their 5 businesses showed weakness we had an analyst and he wasn't surprised. he thought you would be hearing things from the mid level, small level manufacturers that are providing to auto industry and other places. >> there are two things to worry about. number one is manufacturing hasn't come back

part of the story might be that it's just a lag relative to gearing back up. the other is the neighbors of china along the asia pacific rim aren't -- haven't also come back. >> that could be a lag effect, too? everybody kind of rides -- >> both lag. >> i feel like it's only been four weeks since we saw a potential stabilization in china, is that right >> since we became confident about that, and what we keep hearing is they're throwing a lot of high quality stimulus at the problem. let's not talk about the medium or longer term china and what that does to their balance sheet and risks but previously when chinese officials want to deliver top line growth, they deliver top line growth. >> so if we're down to 3 3/4 and we continue to have a fairly strong economy, then wages are going to continue to go up in your view? >> right and in our forecast, earnings growth is going to slow more than gdp growth.

>> because of the margin >> because of the margin pressures and besides, earnings, profits generally have a much higher cyclical amplitude than gdp. >> are we starting to see some easing of the inequality concerns based on finally job -- you know, job market being so strong or not? >> not so much in wages. more in participation. jobs are the basis for -- >> participation is getting pretty tight. >> wages go up, that's a good thing. >> if it's up as much as it's going to go, then sooner or later it's got to come in. >> the good news is if it's a cyclical margin squeeze then it means workers are getting more the issue with inequality -- >> all the builders coming in here building walls around their house. they're not walking the walk but they're talking the talk about, you know, they've got a lot of guilt and every -- look what this election is setting up to be it's about higher taxes because of income inequality and the

wealthy. is it right -- are we addressing this right is it starting to ease >> let's talk about the earnings reports we've gotten over the last couple of days. the big guys are getting bigger. they're increasing their market share. they're more concentrated. >> this is an income inequality in the earnings we're seeing, is that what we're seeing >> i'm saying it's an increase in coop sen trags. >> which means small businesses aren't doing well and that translates into a big swath of main street america as well. >> exactly. >> for the year, do we do 2 1/2 percent. >> that's the forecast. >> that's higher than the last ten-year average. >> higher than the last ten-year average. a pretty good accomplishment if you think trend growth is closer to 2% because, remember, demographics are destiny population growth is slow. not generating as much output per hour maybe you can be a little bit more optimistic about

productivity we're still probably going to end the year with more excess demand than when we started. >> you don't make your money forecasting stock or bond prices but -- >> oh, no, i'm the chief economist, strategist of combined -- >> that's too much the last thing i want to do is get my stock picks from an economist, but i'm going to give you -- i don't know if i want anything from an economist, but your point is that people assume the fed's out, which may not be true, as it comes back they also haven't taken into account that earnings slow more quickly than the gdp does, so that's another. >> i assume the fed's out of this am i wrong >> and volatility will rise. you say it's a triple whammy for stock and bond prices later in the year they could have to be facing >> right so what it suggests is a couple of things. first is how quickly did your opinion change in like about six weeks as macro data changed, the fed changed. >> as the fed changed its language. >> and if the fed can move that

quickly, if it can pivot 180 degrees in the blink of an eye. >> except for that there's going to be a lot of pressure. the president's been putting pressure on this i don't think anybody feels they're out of the woods in terms of the economy i feel like there's a few questions out there. >> jay powell is not going to be a hero he's not going to be leading the pack and saying, let's do this if we get the forecast, inflation is coming up, we see growth as high as it's been for a while, then j. powell doesn't have to lead, he just has to follow the markets who suddenly start saying, oh, maybe we're behind the curve maybe there's some inflation shares. >> but it would be the market that would figure it out first, you think, maybe sniff it out? >> the whole thing about data dependence, decisions meeting by meeting, that's about letting markets move them and markets will respond to the data if data get better, markets will respond. >> is there anything good that can respond that will make your outlook become more bullish? make it seem that you're too

bearish, like china? what about china >> it's a first half, second half this is risk on because the fed is out of the frame? >> what does this do to the trade? >> the thing that would make me more bullish is no evidence of inflation at all we get a china trade deal. we get some more appreciation of the dollar we find out that oil prices are as high as they're going to get this year, then the fed can just sit on the sidelines they're not going to ease, but they'll just sit there and they'll watch real interest rates be unchanged and that will be a fuel to further find financial accommodation. however, we might be talking about financial excesses at the end of the year. >> vince reinhardt standish melon is a subsidiary >> no, we're not standish

anymore. we're just melon just melon. >> why do we have this you've got to update your file then. >> i can give you a new business card if you'd like. >> whenever people do that i say thanks and then when they leave i throw it away so let's not even go through it. >> i think we'll fix it. we got the point. >> thanks, vince. when we come back, uber is set to launch its ipo road show but at a much lower valuation than previously expected leslie picker has the details right after this. right now as we head to a break, here's a look at the biggest pre-market winners and losers in the dow. disney leading the way up by just over .4 of a percent. the latest innovation from xfinity

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a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back, everybody. uber about to launch its highly anticipated ipo road show. leslie picker is here and she joins us with more valuations come down potentially. >> yeah. >> still pretty high. >> still pretty high definitely has been taking down over the last couple of weeks. >> when they said the number we were all whispering, that's the whisper number, that's the fake and we're going to come down, right? >> yeah. oftentimes you see bankers pitch these numbers to get -- >> you know -- >> just get interest. >> get into the deal. >> range, bring it back to it. >> you start kind of conservatively, that way you have more flexibility to price

higher according to sources, uber is expected to launch its road show this morning that is the part of the ipo process where the company's executives will go around the country to meet with investors to find a specific price by which they will debut their stock. reports yesterday said uber is intending to market with a range between 40 and $55 a share that would imply a valuation as high as $90 billion and an offering up to $10 billion the amended ipo prospectus detailing the specifics of uber's marketing plan should be out any minute now the company has had to temper down those valuation expectations in recent weeks after it became clear that growth in some of its many businesses has been slowing as losses continue to pile up still, after 22 rounds of funding and a private valuation of $76 billion, uber may be the most hotly anticipated ipo of the last few years and with an offering size of $10 billion, which is what everyone has been estimating, it would be the

largest umpt .s. listed tech si albie alibaba went public. >> what's the low end? 55 is 90 billion >> 5 is 90 billion. >> what's 40 >> 80 billion. >> and we're talking 120 >> yeah. and their latest private round was about 76 billion so still slightly higher than that, but much lower than the 120 that we were initially hearing about six months ago. >> never raised any money at 120? >> they've never raised any money at 120. >> 76 was the high. >> why are we talking about 120? >> that's what they were promising. >> that's why everybody said that was crazy -- >> wow, this was a deal. >> yeah. >> this is -- even the low end is higher than where they've ever raised money. >> exactly. >> how did lyft impact all of this >> it's definitely impacted it bankers you speak with will say

oh, uber's business is so different. they're in all these different countries, they have all these different business lines including uber eats. >> on the road show are they talking about taco bell uber eats >> yeah, they're definitely talking about that the diversification. >> i would be pushing that specifically. >> at the end of the day ride hailing is still the core of their business and the u.s. is their most profitable market. >> profitable? >> there is a profitable market. >> most profitable. >> the least losses? >> exactly that's what i've been going back and forth with as long as you have a strong competitor, can you make money at this? it's a race to the bottom. it's what gordon bethelium used to say you're only as smart as your dumbest competitor. >> there are some reports that uber was seeking to tell investors that it was going to be the next amazon essentially yes, we're losing a lot of money right now, but we have all of these different levers we can pull in the future that would make us profitable. >> like what

>> exactly that's the key question is like what and what needs to happen is it that autonomous vehicles need to be a real thing? the argument from uber's standpoint is if you have an autonomous vehicle, you don't have to pay the driver overhead. >> you have to pay for the autonomous vehicle then which you don't have to do. >> unless they outsource that, but you would still have to pay the lease on that. >> then you have to pay somebody the lease for that. >> costs are still there >> and just this idea that for so long. now you have to come to a public market and you have to look at the numbers on a quarterly basis. >> right clearly there was a huge discrepancy for what people were willing to put money toward and value lyft at in the private market versus the public market and there was some discrepancy by the time they actually went public with uber it's really interesting to see the valuation takedown i personally believe that the lyft dynamic is a strong variable in why they're bringing

down the valuation, being more conservative especially with the larger deals, you don't have as much of a room for margin of error to price this too high. you do need to get a lot of investors in the door to cover a $10 billion book it's not an easy task. >> the -- i'm thinking in terms of middle class and people that have disposable income it seems like everybody in the world will eventually have an uber app when you need to fall back on uber we fall back that's what i mean, so i would think every person in the country -- but it's not cheap. there's still mass transit, there's still buses. can the top 50% in the country use it the top 80%? >> is it geographic? you have to be in an urban area. >> we hear half the country lives paycheck to paycheck doesn't have enough if they don't get paid for a week. do they use uber

they don't, do they? >> you bring up a good point they say their total addressable market is mobility people mobility which could include things like walking, you know, if you're making the decision to walk or take an uber you may choose to take an uber you're right, it's not cheap. >> it's expensive. >> even more important than that, there are rural parts of the country where there may be uber available but you could have to wait 20 minutes for your uber to get there. i grew up in kansas and i definitely have gone home and been in the suburbs of kansas. >> when i'm traveling you're not going to catch a 2:00 a.m. flight to the airport and hope that it's there. >> it's not as dependable. that's why they focus on this idea of driver liquidity and that drivers are their main priority because they need to ensure that they have enough drivers on the road. >> drivers are the main priority until we can get rid of them and have autonomous vehicles. >> overland park >> leewood which is right outside of overland park.

>> leslie, excellent answered all of my questions i have a lot, too. >> keep them coming. >> taco bell i'm thinking about that. you know, whenever -- that's crazy, but my mind -- >> you going to make a run for the border >> no, i'm going to have someone bring it bring it here. uber eats. coming up, tons of big stock movers this morning, including a big one from toy maker mattel. we'll tell you what's behind this stock and its nice 8% gain a day. that's next. my experience with usaa

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"the wall street journal" is reporting that renault is planning to propose a merger with its partner nissan. the report says shareholders of each company would receive a 50% stake in the new company there are other options being considered and the report comes just a day after ousted chairman carlos ghosn was. >> maria: leased in japan. starbucks beat estimates but revenue did come in light. same store sales were up by 3% that was slightly better than expected ceo kevin johnson will be on "squawk on the street" at 9:00 a.m. eastern time. you saw the stock was off by about 40 cents. >> did you see the big story over the weekend about the needle boxes and all the --

>> yeah. >> that's what happens when you -- >> open the doors. >> one of the unintended consequences i read anecdotal stories where people are pointing out where people are finding discarded needles. anyway, i guess it's good. i read it, i was like, what? i guess you'd want to dispose of those things if you're going to open up -- if you're going to have a customer service business where people are going to be walking in you're not going to go in if you're going to get a cup of coffee. >> customer service. you can shoot up in the bathroom >> no. no that's what i mean if you are going to have a restaurant that customers come into, you have to maintain certain -- >> i don't -- >> -- levels of safety. >> did they know this was going to be one of the things that -- >> no. it probably wasn't very well thought through. >> shares of mattel are --

>> i'm glad i don't run a company. >> me, too. >> you're glad i don't run one or -- >> no, i'm glad i don't run one. i'm glad you don't run one too. >> mattel posted a loss of 44 cents. revenue topped estimates on strong demand for barbie dolls also toys from jurassic world and toy story. i wonder if they have stinky pete. >> that's your obsession >> that is stinky pete. mesa pete, occidental pete on the earnings call the company cfo said the recall of the fischer price rock and play cost an estimated $27 million and the company doesn't expect further losses from that recall to be material 4.7 million rock and play sleepers were recalled after more than 30 babies died while using them. grub hub shares this morning are soaring. the food delivery service posted earnings that beat expectations.

gross food sales they don't mean gross sales of food were up half a million people ordered food on their apps each day during the quarter that was up 19% from the prior year grub hub's ceo matt maloney will join us. maybe we'll suggest they change that you ready? >> leslie's back. >> i'm going to intro you. i'm going to go slow. >> about to drop everything. >> come on >> she needs the information >> got the google dock going >> uber has now officially launched its ipo road show. >> yes yes. >> leslie picker and mack -- >> who's hiding behind the chair. >> mack is back. >> are you ready for the numbers? >> yes 44 to 50 a share that's the price range midpoint that implies about $47 a share for uber now that would also indicate an

ipo size of $10.35 billion at the high end of the range because you've got both primary stock being issued which is the stock that's being issued by the company, which is a majority of it, as well as stock being issued by some selling shareholders here. at the midpoint that comes out to about $9.7 billion for an onch size. here's where it gets interesting. market cap, as we were talking about earlier, so this is on a -- what's known as on a nondiluted basis this does not include the stock that would be options converted into stock potentially at the time of the ipo. >> why do they do that >> because a lot of people like to assume if the ipo price is higher that people will cop verdict it this is the clean simple market cap method of doing this the nondiluted method. that market cap at the high end of the range is actually $83.9 billion. >> okay. >> low end of the range is showing $74 billion from a market cap standpoint.

now when you take all of those additional shares that may be converted on a fully diluted basis, those numbers will likely be higher. we still have to crunch those but the cleanest, simplest form of value is market cap. >> that doesn't make sense to me you've already issued all these options. basically you're pretending those don't exist. to keep them on board, to keep them happy i think you have to take that into account. >> they to have various strike prices and also the fully diluted number implies, if i remember correctly, it also applies the amount of shares that are issued in the offering as well. it is a post money -- it makes a lot more assumptions than the traditional market cap. >> anybody who is potentially considering buying this company. you have to consider the options. >> worked at ge. >> if that's the case, if the options are worthless, you don't want to buy the stock. >> mine were. >> you look at it assuming they're going to be worth something. trying to figure out if you want to buy it. >> literally, literally, there

were millions of ge options. >> and if that's the argument, you should not buy the ipo you should assume the options are going to be worth something. >> definitely options that are issued are -- i learned the hard way. >> but, again, if you are -- for our audience, if you're an investor considering buying into this, you better assume they're worth something because if they're not worth anything, then the stock they're printing is not worth anything. >> and the money that's happening. so they will raise something now it is a bit more speculative at this stage because we don't know where within the range they will price they could price above the range, below the range. >> more than anybody anticipated? >> it is, indeed that $10 million offering size appears to be accurate. >> how big was lyft's offering uber obviously has a lot of excitement around it people will be looking at it what's the ratio >> i think lyft was about 2.2 billion.

we're looking at five times. five times if you combine last week's ipo, i think that was only last week, of principinterest and zoom, ag five times both of those two deals combined, and we saw how well those did in the after market trading. >> that's a lot of money, the overall valuation. when you buy one of these -- everybody wants another facebook or another google or another -- >> like amazon. >> amazon because they go up 2, 3, 4, 5 times and you make all this money is this really going to be a 400 3w8d company some day? is it going to be a $150 billion company if it has trouble making a profit >> that's the key question. >> why would it be such a hot ipo? you're not going to -- it just doesn't seem like you're going to be able to dum kate the high tech -- we're calling it high tech pretty low tech. i understand what they're saying, but it's really just about moving people around it's not about the internet and

advertising and everything else. i don't know >> it's fascinating. it's not like the platform models the public markets have not really had the chance to fully evaluate them from a marketplace stand point. we've seen these private valuations and we've talked about this a lot with lyft and some of the subsequent ipos that followed there is a huge discrepancy between what people are willing to pay in the private markets and what they're willing to pay in the public markets. uber has softbank, for example, in its market. they need to make four times their money by 2023 in order to generate a substantial i.r.r. of 20% a year for their investors softbank, their vision fund has invested all over the place, but this is one example where you have all of these private investors who are anticipating, you know, the total addressable market that we were speaking about earlier coming to fruition

and really converting people who may have chosen to walk before or chosen to take the subway before or live in a rural area and there will be enough drivers for them to really get on to this platform or for one of these other projects, like freight and eats and some of the global markets and global investments to really take hold in order to generate those returns. like any ipo, it's certainly a risk. >> do you see all of this paypal stuff, too paypal is buying $500 million worth of shares at the ipo price. they're going to explore future allianc alliances. >> alliances for -- >> future payment collaborations including the development of digital wallet for paypal and uber >> they're an anchor investor. we saw that with salesforce with the zoom ipo. >> they're an anchor investor meaning -- >> they're already going to invest at the ipo price. they're kind of helping fill that book before they've even

gone through their entire marketing process which helps with the supply/demand dynamic of needing to fill -- $.4 billion worth of a book, which is pretty interesting. >> you've got a lot -- there's a lot here, leslie. >> there is. >> we'll come back >> we've only scratched the surface of this amended s1 >> okay. >> yeah, we should have some q1 numbers in here. >> yeah, there are there's a lot of them. i don't know if they're good or not. >> we'll continue to watch this. leslie will bring us updates in the meantime, when we come back, get ready for a busy day on wall street we've got a rundown of the economic data and what could move the markets that's next. plus, amazon looking to cut its shipping time to one day that's straight ahead. right now as we head to a break, take a look at yesterday's s&p 500 winners and losers. >> that was wonderful. >> bravo. >> i loved that. >> that was great. >> pretty good. >> well, it wasn't bad.

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♪ welcome back you're watching "squawk box," live from the nasdaq market site in times square. good morning u.s. equity futures at this hour have repaired some of the losses a lot of the losses accounted for solely by intel in the dow, but you can see the nasdaq is also lower different than yesterday nasdaq was up. the dow was down on 3m but today it's intel so nasdaq is also even weaker on a relative basis than the dow jones the s&p indicated down 2 1/3 or so on today's squawk planner we'll get the first look at gdp for the first quarter. economists expect to see a reading of about 2.5%. you get the first look at the first quarter, second look at the fourth quarter constantly doing. >> who's on first. >> yeah, it is a who's on first.

on today's earnings calendar, exxon mobil and chevron expected to report in the 8:00 hour. amazon is the latest megatech company to release its earnings reporting profits of $7.09 a share. that was well above expectations, and i mean way way. analysts were only looking for $4 and change. revenue came in at $59.7 billion also above estimates joining us to talk about the results is tuna moby all 45 sell side analysts have buy ratings. 100% buy ratings across the board on amazon. you've got to be positive on this stock, but what did you hear last night? >> yeah, i mean, we have a bias well, i have to say that for pretty good reason you've seen that celebration in the share price. i think amazon right now has reached a point where i would argue the earnings visibility has never been better. the company has set itself up to become a well-oiled free cash flow generating machine.

this q1, while the revenue did slow down quite a bit, i did see that the company is now transitioning into high jerp margin businesses, whether it's cloud computing, you know, advertising which nevertheless did see a little bit of a slowdown third party sellers. all of these businesses are the reason why you're seeing the major margin expansion by investments in the business. >> maybe the one exception to that is whole foods and the grocery business. >> even that, becky, you know, whole foods has reported as part of their physical stores which grew 1% in q1. last quarter we did see more concerns while that business was down 3%. more importantly the company went to great length to emphasize that whole foods is actually a very compelling proposition for prime members. now this is one of the most popular features of prime membership perks which is little talked about, so i would think of whole foods -- >> what, having whole foods

delivered to your door >> in terms of price cuts. >> when i go to whole foods myself and i get the price cuts and i get a discount if i have my amazon credit card. >> and prime membership. a lot of those benefits are available to prime members that's one of the sticky features that's increasing as we look out at prime membership group which they don't report. whole foods -- >> it was pretty sticky already between prime video, prime music, the free delivery, all of the things that come along with that now they're talking about giving prime members delivery in one day instead of two. >> that got tons of attention on the call prime membership, free one day delivery think about that this company is raising the bar in terms of delivery two days was already a great proposition. now one day for -- on a free basis for prime members? now guys like a lot of retailers are trying to catch up to amazon. >> good luck with that. >> good luck with that, that's right. >> i understand amazon always giving its customers what they

want and that's why it's able to keep them there, but when you have the entire analyst community being positive and having a buy rating, do you have a price target 1,920 is where it's trading now. >> we are 2200 right now when you think about valuation, sure it's going to be expensive, 47 times next year's earnings, 65 this year i think the way to think about that is to look at the company as a -- you know, kind of a convergence of businesses. when you think about amazon web services, just that business alone, which is run rate $30 billion a year, that business is worth almost as half the value of the entire company. and we saw that business 40% -- over 40% revenue growth. 300 basis points margin expansion this quarter the trajectory for that business continues. >> tuna, thank you very much. >> you're welcome. two oil giants will report results. the price of oil has been climbing up more than 40% in 2019 although it's down a little

this morning down 1.6%. we'll talk to autonation what about gas prices. you are watching "squawk box" on cnbc we'll be right back. the cnbc stock draft challenge is on. pick who you think will have the best portfolio and you could win a trip to cnbc gbalol headquarters go to stockdraftchallenge.com now. registration ends monday

time now for the executive edge we are watching shares of 3m once again today just a day after the company posted its biggest one day decline in more than 30 years. 3m missed earnings and revenue expectations it slashed its full year outlook and said that it was cutting 2,000 jobs as part of a restructuring. that stock again had its biggest decline yesterday in 30 years. this morning you're not seeing a bounce back. it's down another 32 cents decline of less than .2 of a

percent but, again, no bounce back after that big drop 3m shares at $190.40 and that is a dow component so it is putting pressure on the dow. we're going to learn more when the ceo michael roman joins jim cramer on monday that's a cnbc exclusive interview. when we come back, autonation stock up more than 10% since carl lever took over in march as ceo. we'll join him rising gas prices, tariffs and even uber/lyft as a quick break, let's take a look at what's happening in the markets this morning mixed picture. up .2 to down .2 through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate...

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autonation reporting first-quarter results this morning. revenue a little light, but analyst expectations on earnings per share well above where the street was here now to break down the numbers, carl liebert, president and ceo of autonation. mr. liebert, it's good to welcome you on the show. i assume you're running a tight ship at autonation, naval academy grad you have a lot to do still with the navy, and i admire your resume here, just looking over it, and i love all -- you work for usaa in senior roles and home depot, which you bring a lot -- a wealth of experience from things other than auto retailing to the job, carl, right? >> yeah, thank you, joe. it's great to be on with you and becky this morning and honored and humbled that mike jackson was able to snare me away and bring me into this great industry we're excited about being here

>> you must have thought, do i really want to try and step into his shoes? that might have been a concern he's a tough guy to replace in terms of, i mean, a legend in the industry, right? >> yeah, and i kind of look at it as mr. i zynga founded this great company and mike over the last 20 years made this company incredible and i don't see myself stepping into his shoes i see him as that founder 2.0, and he's being a great mentor and teacher for me and i'm thankful to learn. i've had privilege to learn from some great leaders along the way, whether it was kim langone or nardelli at home depot or stewart parker at usaa i've worked with some great leaders to help me get where i am today. >> so everything was going great for you, and then you step into this business, which, i mean, it's a great business, but i'm looking at some of the concerns, and there are a lot of things to worry about. i hope you're sleeping all right. but gas prices, oil prices are

up much more than they were. how's that going to impact sales, do you think? and what are your most profitable lines right now i mean, everybody's selling these big trucks, right? will that hurt the sale of suvs and trucks >> well, look, and i think this is -- we see the consumer as very strong right now. and i know we'll get gdp later this morning, but as you think about some of the -- you mentioned trucks and large vehicles the oems have done an incredible job of building fuel efficiency into those vehicles. and so, you know, we see continued strength i think there's some opportunity as we work to identify the right vehicles for our customers when they come in to autonation stores coast to coast, but we're optimistic that despite maybe some of these headwinds as we're heading into summer, the summer driving season, that we're going to see continued strength. >> the profits aren't as flush on new cars as they had been is that fair to say? what are the reasons for that?

and are we bottoming out to where you could see some light at the end of the tunnel at this point? >> well, i think this is the most important thing that our play to execute on in first quarter that we call is that we really wanted to focus on profits per new vehicle. and we had made significant progress in the first quarter, both seeing our gross profit per vehicles up, but also leveraging some of our brand extension strategies in consumer, the customer and financial services area so, as you know, oems are going to discount. they're going to provide incentives for us in our stores, but what we want to make sure is we're taking care of each and every customer for their needs. >> i think mike did a lot of the heavy lifting already, too, with some of the restructuring and some of the investments in the company to bring it into the 21st century completely. so, is that behind you at this point or are there more initiatives you need to undertake there that are going to cost money?

>> no, i'm thankful that mike positioned the company extraordinarily well you look at the seamless transition of mike handing the reins to me and what he and this leadership team did to prepare it i think my first week on the job, we hopped on the plane and spent some time with waymo and we were out in silicon valley. we were out in stores all week and you know, some of the investments the team has made to position us here, which is extraordinarily positive, but also the restructuring that we took and how that impacted our sg&a -- we're very excited about where we're going. >> well, the show has a lost history, but it's great to have the perspective of the ceo of autonation for such an important part of the economy. so, hopefully, that will continue it was good to have you on today, carl. thank you. >> thank you thank you, joe i appreciate it. >> okay. when we come back, uber unveiling a price range between $44 and $50 a share. also, our guest host for the

next 2 1/2 hours is guy adami of cnbc's "fast money." he's running, he's hiding, he's on his way here. we'll get his thoughts on earnings season. dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias? how do we bake security into everything we do? we need tech that helps people understand each other. that understands my business. we've got some work to do. and we need your help. we need your support. let's expect more from technology. let's put smart to work. ♪ ♪

wall street in wait-and-see mode as investors get ready for gdp data that could sway the markets. key earnings also coming up from american airlines, exxonmobil, and chevron. we'll break down what you need to know ahead of the opening bell is comcast ready to give up its stake in hulu?

a new report suggests the media giant may be talking to disney about a possible deal. "the new york times" columnist jim stewart will join us to discuss. and let the road show begin! [ beeping >> what are you doing? >> what you can expect when uber goes public as the second hour of "squawk box" begins right now. ♪ it's friday i'm in love ♪ monday you can fall apart >> announcer: live from the beating heart of business, new york, this is "squawk box. ♪ thursday doesn't even start, it's friday i'm in love ♪ welcome, greco greco! >> isn't there someone above him that can rein him in >> way to go. >> first they do the video, then -- >> they followed it up by the music that you hate. it's a good friday already. >> rein this guy in. he's disturbing the talent >> you. >> yeah. i love pointing at the talent. that's from "groundhog day,"

too. you can call yourself -- >> okay, hairdo. >> yeah, hairdo. good morning and welcome back don't drive angry. welcome back to "squawk box" on cnbc i'm joe kernen along with becky quick. in studio with us is cnbc "fast money" trader guy adami -- >> yes, i am, joe. >> other shows he's allowed to call in, and they have him -- they just have a picture of him. >> you watched "wex" yesterday, "worldwide exchange. i'm a huge fan of the show and they called me the night before, said can you call in at 5:30 i said, of course. i'd be more than happy to go to englewood cliffs i was there yesterday for the stock draft, which you found riveting. >> it was fun and interesting. fun to make business news interesting. we're glad to have you -- >> physically here. >> physically here, rather than -- and brian sullivan, if he called me, i probably wouldn't come on at 5:30, but i'd consider it because i love brian, too anyway, u.s. equity future -- and i love you

i love all of our guests good morning >> good morning. great to be here. >> i don't want to leave you out. i do not like producer though, greco. he's been here like 50 years, too. anyway, we're down 32 points on the dow. nasdaq down 22 -- >> almost as long as you. >> almost as long as me. the s&p down -- i just missed the 30th thing by a year. >> i know. you get no love. >> i get no love what's making headlines? >> let me tell you. >> this is not about me today. >> yeah, not all, but the beginning was pretty good. >> right. >> here is what's making our headlines this hour. uber unveiling terms for its initial public offering. the ride-hailing company anticipating a price range between $44 and $50 a share. the valuation saw it as less than the $120 billion valuation that many bankers told uber it could fetch and that a lot of people kind of rolled their eyes at but despite the local elower va, it could be the lowest ipo since

2018 amazon's earnings per share had a huge beat. wall street was looking for $4.72 a share. amazon came in at $7.09 a share. amazon cloud revenues were up by about 41%, so it was helped by some of the same things that helped microsoft amazon shares up by less than a percent. and the first read on first-quarter gdp is due out in less than 90 minutes economists expect to see a reading of about 2.5%. we're going to bring you the number and instant market reaction as soon as it hits. well, a few stocks are on the move this morning. intel most significantly, shares are sharply lower. it wasn't the just-ended quarter that was the problem here. both earnings and revenue beat for the quarter. the real story, the outlook intel slashed revenue guidance for the year intel's new ceo, bob swan, partly blaming china for the slowdown >> our conversations with customers and partners across our pc and data-centered

businesses over the past couple months have made several trends clear -- the decline in memory pricing has intensified, the data center inventory and capacity digestion that we described in january is more pronounced than we expected, and china headwinds have increased, leading to a more cautious spending i.t. environment. >> swan will join "squawk alley" in a first on cnbc interview today. that's coming at 11:02 eastern adami, did you see xilinx yesterday? >> hammered. it went in a straight line, though valuation was stretched. their quarter was fine, if you look at the quarter. guidance was fine. they made an acquisition, but i think the market said, at 43 times forward earnings, it's too expensive, take some profits, and that's what happened so this is not a xilinx story. >> what's happening here >> intel decided we're getting out of this 5g modem, qualcomm

is crushing us, we can't compete. the market liked that. intel traded higher on the back of that, because they're going to focus on higher margin businesses then they come out with this, things are slowing down. this is on the heels of texas instruments, which in my opinion was a disaster, which comes on the heels of micron, which wasn't particularly again. then you have to wonder, if the semis topped out in the short term >> well, it sounds like a whole lot of evidence of maybe. >> i would think so. qualcomm's a different animal. qualcomm apple thing, it's a big deal for qualcomm. finally after five years, qualcomm seems to be on some solid footing, but you take in the aggregate what i mentioned, techs and intel and micron, want to throw them in on the price action, okay then you wonder if we topped out and typically these last three to five quarters. >> you highlighted how different the companies are -- >> you can't throw them all in the same bucket. >> we still talk about the semiconducto semiconductors, and they have totally different -- >> yeah, that's fair i understand why we can talk about them as the semis, but each one, they are very

different companies. xilinx is a very different company. they decided 5g -- last year we talked about it. in 2019, we said everybody's been talking about 5g. guess what, now everyone's talking about it and xilinx acted in kind, but the move was too extended and valuations -- >> but now we're talking about how it's not going to get here any time soon. in the last couple weeks -- >> fair enough and when you hear texas instruments -- excuse me, intel saying we're going to step away and let other -- you know, it's tough. people are making bets now, not unlike -- the giants made a bet last night that this guy's going to be their quarterback, and everybody says they reached to get him, i agree, but they had to make that bet the same way that xilinx has to make that bet -- >> are you sure? >> and the say way that intel had to make the bet, my opinion. >> people wanted a defense. >> oh, i agree i think it's madness, but that's a different show. >> does xilinx still make fueled programmable gatorade, where if you like grape, you can get grape, if you like -- you know, on the field -- >> yeah, i think that's one of their core businesses. >> no, fpgas, remember this?

they used to make these, gate-arrays. >> i've been a huge fan for a long time. >> because we had no -- >> that's such an old joke, i don't even remember. >> but fpga -- >> that's very 1990s, if i recall -- >> some people like lemon lime. >> gatorade always to me tasted like sweat. >> oh! >> if you can imagine tasting sweat -- i never was a gatorade guy. >> you're never going to be a spokesperson. >> i'm never going to be again. >> not in this case. all right, ford -- >> there may be some people who like that. >> tastes like sweat. >> sorkin -- have you tasted sweat? how do you know what sweat tastes like? >> well, when you're on your peloton -- and i'll be a peloton pitch person -- you sweat and it runs down your face -- >> you lick it >> what are you going to do? you have your hands on the handle bars. you have no choice. >> i have a peloton. i canput shirts on one handlebar, pants on the other --

>> joe, that's wrong. >> i agree. >> get on the bike, you'll feel good. >> it holds more drying clothes. you can hang all -- >> nbcuniversal holds a stake in peloton. >> when i'm not using it, because it is a great product. ford delivering better-than-expected quarterly results. the carmaker says strong demands for pick-ups and suvs in north america offsets weakness in china and south america. joining us right now to talk market sentiment in the midst of earnings season is ellen hazeman, portfolio manager and guy adami's here, too. >> is he ever! >> boy, oh, boy, he's ready to go we thought this was going to be an earnings recession. that's what we thought as recently as probably a month ago. earnings season is shaping up to be much better than anticipated, and i think yesterday was the day they said we're probably not going to wind up in an earnings decline. what do you think? where is the market, if that's the case what's fair valuation? >> if you look at companies that have reported earnings so far and how much they've reported in terms of revenue growth and

earnings growth, it may not be a recession in terms of being actually below zero, but it's the lowest earnings growth in several years, the slowest revenue growth in several years. and the only reason why the earnings growth hasn't gone negative is because companies have been exhibiting really strong cost control. you saw that with the banks and with some of the tech companies, including some of the semiconductor companies. and in cases like 3m, where they had a revenue miss and they didn't exhibit strong cost control, they're now having to take really drastic action so it may not technically be a recession, but you're seeing revenue growth really decelerate when we see the gdp numbers come out later today, later this morning, those are probably going to be soft and even though revenue is up a few percentage points, it's not what we have been used to. and with the market up 17% this year, they're probably somewhat ahead of themselves. >> with the market up 17%, you would tell people to slow down, even with these better-than-expected numbers >> absolutely. the way we're looking at this is why is the market giving so many

companies the benefit of the doubt? because you can see, clearly, the pressure is at the top line is under, and you can see, clearly, that again, the only reason they're showing earnings growth is because of tight expense control. >> guy, what do you think? >> i think you make an excellent point. earnings have been decelerating. there's no question about it and i think the market did something in october that it probably needed to do -- flush itself out i think we've reversed -- >> we're back. >> -- in my opinion, the only reason we've reversed is because our federal reserve took a 180 now, you could say they were right to do it, wrong to do it i don't want to have that argument but to me, most of this move back, this 22% move back to the up side, has been predicated on the fact that jerome powell went from being extraordinarily hawkish to extraordinarily -- >> but that matters. >> -- dovish. >> when you're trying to figure out the fair value for markets, you have to look at the yield on treasuries so if the fed is out of the game, if treasuries are going to stay at 2.5%, where is the better alternative i don't want to say we're back to there is no alternative, but i want to say you've got to

fairly value that. and if the fed is out of the game, maybe it's not such a crazy price. >> but you can see some advantage to being in cash these days a couple years ago you had nothing on cash and now you can get 2.5% -- >> 2.5%'s a stretch. i've seen 2%, but that's a stretch. >> somewhere in the middle if you go out 6 to 12 months on a cd but whatever the number is, it's better than it used to be, and i do also hesitate to go back to t.i.n.a., there is no alternative, but analytically, it kind of feels like that's where we're going back to because you're just not going to see the earnings and revenue growth and if you listen to the conference calls, the mentions of optimism versus pessimism, stronger versus weaker, those ratios are the worst they've been in several years, and everyone's looking for a back-half rebound, but they're not citing evidence. and when the analysts ask them on the calls, why do you think there's going to be a back-half rebound, are you seeing actual

orders increase that far out, nobody's seeing it. >> and vince reinhart was here earlier this morning he made the point that this may be the best quarter we're going to get in terms of gdp growth because of those issues, because margins are going to get more tightly squeezed, because companies are going to have to pay more for things like labor as we have a tight labor market. those are all fair points. he also made the point he's not necessarily sure the fed is out forever, if the economy improves, maybe they're not out all year. >> well, certainly, they did a real pivot in january and then cemented that in march and if they're true to what they say, being very data-dependent, then if things accelerate, they will come back in. but given what we see now, in terms of leading indicators, in terms of, again, earnings and revenues and gdp, it doesn't look as though they're going to be justified in coming back in and he will take some political heat -- >> adami, have you been pushing back on this rebound in the market the entire way, too >> i'm not pushing back -- >> because a lot of your colleagues on that show have been is it something in the water or the sweat or the gatorade or

something? what is it with you guys you don't like prosperity? >> no, i love prosperity. >> have you been pushing back on this the entire wham, so now we're at a top -- >> no, no, i'm not suggesting anything. >> what are you saying do you feel like you've been sufficiently bullish since the lows in december >> no, absolutely not. >> you have not. so -- >> but i'm being honest. >> i want you to be. in this case you're being honest thank you. >> i'm always -- i always try to be honest. but what i'm saying is -- >> i think he's being -- >> be honest -- >> i don't think a slowdown is a bad thing. >> all right. >> i think we look at it, for whatever reason, it's -- i think part of the cycle is allowing things to slow down, is allowing some of the poor companies to go by the way side and let some of the newer companies to come up recessions are an essential part of the business cycle and i think our federal reserve since greenspan -- this has nothing to do with politics -- has said, you know what, we can alchemy them out and i think that's a bad thing because you have to let the cycle work in december we decided we were, then all of a sudden we stopped

and said game's over, we're going to go back to, in my opinion, the mistakes of the last ten years. >> ellen, thanks for coming in. >> thanks for having me. >> guy's going to be here. he's our guest host. coming up, much more on uber's pricing and what investors can expect, plus quarterly results from american airlines those numbers are minutes away and cnbc.com reporting that comcast may sell its stake in hulu disney may actually be talking about that, which would -- i don't know what that means, exactly. of course, they're a minority -- comcast minority owner ♪ wednesday doesn't even start >> oh, great, another -- >> god, oh, man. we'll speak with media columnist and disney follower jim stewart about a possible deal and what it means for both companies. stay tuned -- >> that's a pretty good version. >> you're watching "squawk box" on cnbc. ♪ thursday i don't care about you ♪ plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology

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quarter, up 19% from the prior year ceo matt maloney pointing out that the acquisition of restaurant technology company level up has been a game-changer when it comes to competition in its arena. grubhub ceo matt maloney will join us in the 8:00 hour, and we're going to ask him about that and much more coming up, will comcast sell its minority stake in hulu to disney at some point, probably, but could it be, maybe sooner rather than later that's what we're going to talk about. giving the house of mouse full control over the streaming service. we'll discuss that after the break. "squawk box" will be right back. today's aflac trivia question -- what was the value of the tea spilt at the boston tea party? the answer when cnbc'ssqwk x"onnues "ua c... aflac! ...but not what they do. so we're answering their questions. aflac is auto insurance, right? no.

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today's money. cnbc.com reporting that comcast is in talks to sell its 30% stake in hulu to disney. this is what comcast ceo brian roberts told us yesterday about hulu >> we're proud to be able to have a number of our shows air on hulu, and we have a good relationship with the company, and we'll have to see where that goes in the future, but it's, again, another asset in the company that's not in the cash flow numbers that you see this morning. it's not on balance sheet. and it is a very valuable asset. >> joining us now to discuss how hulu could play into disney's streaming strategy -- streaming strategy -- jim stewart, columnist at "the new york times" and a cnbc contributor. guy adami is still with us, "fast money" trader, sitting alongside. the story itself, jim -- once

you realize that now it's disney and comcast, is hulu -- >> right. >> so, you're not going to stay 30% forever, probably. so, in talks, i would think you're in permanent talks about what to do with this, so i don't -- the question is whether -- are the talks near some type of real resolution, or are they preliminary or are they just overtures do you have any insight into what this means? >> no, they ought to be in talks or -- >> you'd be surprised if they weren't! >> exactly first of all, most of these joint ventures do not work i mean, i think hulu has been hobbled from the beginning by having -- >> yeah, i'm surprised how long hulu -- >> nobody's making a decision. >> you've got netflix with pushing up towards 150 million subscribers or whatever. hulu has 25 million. that kind of tells the story right there. but then we've got just comcast and disney comcast and disney in the same room i mean, they are -- number one, they're fierce competitors two, comcast has snapped sky tv away from disney after making

another business for fox, which drove up the cost. i mean, i can't even imagine them having -- >> must be fun at board meetings. >> -- to sit down together, let alone plan a strategy for hulu and now disney plus is coming into the picture, which would be a direct competitor. this is a completely untenable situation -- >> stone over the top -- >> yes, so they've got to find a way to figure this out disney ought to get it all the alternative model would be something like espn, where remember disney only, it owns 80% of it. hurst is a very nice 20% owner that doesn't interfere and doesn't compete with disney. they -- you know, they're a happy investor but comcast doesn't want to do that with 30% of hulu. so they've got to do something i think it makes a lot of sense for disney they want to get to 100 million, they said, on disney plus. they get total control of hulu, they can start, you know, working those things together, they've got 25 million right off the bat. that's a big step forward for them. >> is there any reason -- >> but does comcast want to help

them with their ott product by getting out of the way and letting them take that i mean, that's why you wonder, what's the price target? what's the price going to be >> why not spoil it for as long as you could, especially if you don't know whether the netflix valuation increase is going to be duplicated. if you think -- >> being a spoiler is not a strategy. >> it's not a strategy, but it'd be fun and attractive -- >> but you have carroll ic crl the board. >> it's nice, but will it be worth 30 some day? will it be worth 50, hulu, some day? then you wait around, and you don't want to sell too early you want to let your profits run, don't you or what if it's never worth that >> i don't see being a passive investor there or trying to somehow mark up the future of something you own 30% of just to spite disney really makes any sense. and also, let's face it, whether they want to help disney or not -- look, they don't want to help disney, they're a major competitor -- but there is a

number at which it's compelling for comcast to sell -- >> what do you think that number is >> i don't know. i mean, hulu loses money -- >> and they share in the losses, too. >> and there's only one buyer here it's not like you're going to be out shopping and people are going to be knocking on your door to buy the minority stake in hulu with disney looming over you. but it's a valuable asset for disney. >> so, who has the upper hand in these negotiations >> that's a good question, but i think it's probably disney i mean, what's the alternative disney could kind of just let the thing languish while it builds up disney plus, and i don't see that there's anything good for comcast about that. now, you know, comcast also needs a direct streaming option for its content, and it's working out what it's doing with sky. it's really interesting. but it's not in the driver's seat here. it's got a 30% stake in a money-losing streaming thing in

a highly competitive environment. >> maybe this is the timing, when everybody's trying to launch their own ott maybe that is the time. >> but disney can't really make a go of it until it's got all of it. >> well, i don't think disney wants to exactly i mean, disney -- >> well, then maybe they'll sell to comcast and keep disney plus. >> well, that's an interesting idea, but no, that's not going to happen, because disney is not going to put its content -- >> acquisitions -- >> on a rival service. >> what do you think, guy? >> you know who has the upper hand netflix, reed hastings has the upper hand why is that the answer because everybody's chasing netflix. >> i thought that was the case until this week, when i started looking into some of the things just published i think the "wall street journal" or somebody -- yesterday it was front page of the "wall street journal," said that something, more than 75% of viewing time on netflix is spent on the libraries, which are these reruns and if you've got to pay $100 million to keep a show like "friends" around, they had to triple the price they were paying to keep it on for a year when at&t doesn't launch its own over the top until the end of this year, and now you've got

"the office" coming up that nbcuniversal will be in talks with them to do it it's going to get to be a more expensive proposition. and if all these guys pull back their content -- >> so, here's the pushback -- a band-aid is an adhesive strip. we call it a band-aid. q-tips are cotton swabs. we call them q-tips. >> that's true. >> jell-o is gelatin we call it jell-o. what's my point? netflix has become -- you don't talk about hulu and chill. it's netflix. >> no, but i do talk about tivo and nobody has that anymore. it doesn't always work. >> it doesn't always work. i'm betting this will -- >> sports drink is gatorade but it tastes like sweat. >> did you know it's the worst ever jim stewart will tell you. i apologize if they are a sponsor, but it's sweat -- >> you're basically the same -- >> i appreciate that. >> taken it to another level. >> you're like a biotech major. >> can i also make the point that it's not entirely clear that you have to own these delivery systems, like nbc comcast. they can still license, they can sell, they can provide

they could still be selling their content to hulu. they don't have to own hulu to have the content on there. >> no, i agree and i think from what we heard yesterday from brian roberts, i think that might be the plan because we asked him about some of those things, too and to me, it sounded like, well, it's an open negotiation and we're trying to make those decisions right now, but you know, give me your best offer type of situation. >> right. >> and i think that's what it's probably going to be, because all of these companies have debt to pay down, too. >> you really need to know whether, you know, hulu loses money -- you need to know whether $15 billion is xosh tently high or low do you know? >> what i know is they all have highly paid investment bankers who are doing discounted cash flow analysis and plugging in assumptions that can produce just about any number you want. >> right, $120 billion for -- >> the fact that it's losing money doesn't mean it's not valuable look at some of the companies going public, you model it out into the future and i don't know what parameters to put in there.

>> put you don't want to hold onto your myspace stake, you know what i mean it was $10 billion at one point and went to zero, right? >> again, i think disney -- does disney keep it as a separate brand? that's a good question -- if it gets it -- and does it sort of merge it into disney plus? iger said he doesn't want to turn this into another cable thing, where you have 100 pieces of something you don't really want, but disney would have a lot of options for, you know, tying them together, offering pricing packages that make them attractive and converting hulu subscribers into disney plus, so there's a lot for disney to get. >> what happened on that day they outlined disney plus? did that make sense, that move in the stock >> well, i think they did a fantastic job on that, and they really did succeed in starting to get a netflix halo around them a little bit. i think from that perspective, yes, it makes sense -- >> it was justified? >> but what i have said about the stock is they haven't actually solved the espn problem yet, which is, you know, the declining cable -- it's still

essentially the revenue and very good revenue is coming from the cable model, and they have not told us yet how they are going to transition espn into the direct -- >> it's like watching cnn, anyway, so they ought to fix that first. >> but i tip my hat to disney. they changed the subject there they got people to stop thinking about espn, which they were obsessed about and suddenly, we're all talking about, oh, my god, disney plus, we've got to have it so they did a great job on that. >> they're playing the music, jim. >> i hear it. >> can you hear it >> i hear it. >> well, we'll see you soon again. >> all right. >> thank you look forward to the next jacket you wear that's a good one. real quickly, american airlines out with earnings looks like the company came out with 52 cents on an adjusted basis. street was looking for 51. also looks like it is seeing earnings per share for the full year, $4 to $6 that's a pretty broad range. the street is at the high end of that at $5.63. traffic was up 3.5%, load factor 82.2%. we'll talk more about that when

we come back. when we return, we'll dig deeper into this, but you can see the stock is down 1.25%. we'll see if they say anything about the impact of grounding their 737 max 8 airlines plus, uber hits the road the ride-hailing company's going to be seeking to be valued between $80 billion and $90 billion when it goes public. they'll be pitching bankers their plan, but did lyft's ipo debut put a cloud over their head we'll talk about that. right now as we head to break, look at u.s. equity futures. w down about 41 points, s&p off 4 1/2, nasdaq down 29. ♪ to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for. ♪ can i get some help. watch his head. ♪

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american airlines reporting results. what was it? you just mentioned it, right >> yeah, the company came out with earnings -- shoot, where did i write it down? >> 52 cents. >> 52 cents, analysts' 51. they're also giving us guidance to talk about. their guidance for the full year was $4 to $6 the street was at the high end of that at $5.65 they make some comments about the 737 max fleet. chairman and ceo doug parker saying that they expect that it's going to be grounded through at least august 19th they've changed their schedule

to take it out of the schedule through at least august 19th remember, southwest said earlier this week that they were taking it out of their schedule through august 5th they also say they're expecting it will have a 2019 pretax earnings effect of about $350 million. that's less than the run-up in oil price is going to be impacting them they say the higher oil prices and expenses for the year is expected to be about $650 million, higher than they forecast just three months ago >> when you see fiscal year earnings somewhere between $4 and $6. >> well, that's the point. >> thanks. >> exactly, thanks so why -- >> we don't know when the 737 max can come back. we don't know how high oil prices are going to go. >> don't bother. >> there's $1 billion they just laid out with pretax cost with those two -- >> but why bother with the guidance if your range is $4 to $6 >> i like that they're doing that, being honest about it and saying, over here's $1 billion in costs that we think are going to be out there that we didn't anticipate before, and we're going to hit the number within 3

cents. at least be honest. >> i understand what you're saying my pushback would be, i think that's what people get frustrated about this isn't forward -- this is just, we're going to be here -- >> if they don't give guidance, we trash them for that, too. >> but only for one time you would and we would get past it, the same way twitter a couple quarters ago -- >> any time there's any question and you don't get guidance, we still want more -- >> move on $6 is 60% higher than $4 and $4 is 60% lower -- huh? >> see the math. >> in my head. >> tremendous. >> yeah? thanks. >> anyway, the stock is down by about 2%. still to come on "squawk box" this morning, uber unveiling its ipo pricing earlier. we'll talk about the valuation after the break. and then, former vice president joe biden throwing his hat into the presidential ring but with stocks hitting all-time highs and record job creation, can top candidates take on the president's economy? >> who dat >> it's going to be a major sticking point in 2020 we'll debate >> new party. also, a big data point coming for the markets we're going to get the first

read on first-quarter gdp. that's coming up at 8:30 this morning. "squawk box" will be right back. i've got aoc over here what's a target date fund? what's a hedge fund? a mutual fund? an index fund? what should i ask my investment professional? how do i know if they're even legit? edgar? who's edgar? how do i read a 10-k? what about fees? what's an etf? 529 plan? 401(k)? how do we plan for retirement? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

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♪ it drives me crazy, ooh, ooh welcome back, everybody. uber unveiling its terms for its initial public offering. the ride-hailing company anticipating a price range of between $44 and $50 a share. that would put a valuation on the total company of about $80 billion. joining us right now is quinn garcia he's managing director and co-founder at auto tech ventures, a vc firm devoted to the mobility space the firm was an early investor in lyft, and quinn currently serves on lyft's advisory board. quinn, i'm guessing that you are a lyft-only guy, since you're on the lyft board, and not somebody who would invest in both of these. is that correct? >> yes, that is correct. i am not an investor in uber and i'm only mildly biased. >> only mildly let's talk a little bit about what the comparison is between these two companies. why do you think lyft has the

upper hand on uber >> lyft is a founder-led company, first of all, which has cultural implications. it's a pure play on consumer transport in north america uber's business has been much more diverse than lyft, both in terms of geography -- they've had their cultural ups and downs -- but also in terms of product line extensions. so, lyft is focused on giving people rides, whereas uber's been -- they've done kitten delivery, they've had air taxis, you know, they're all over the world and they've since retracted from some of those different geographies outside north america. >> quinn, if you look at the market, though, and the idea that lyft's all the way down to $56 a share, the market may be saying differently and in fact, one of the things that potential investors sometimes note is they want the diversity. they want the uber eats, the other things that are in there what's your response. >> i think there's pros and cons to both approaches you could make an argument in favor of diversification in terms of geography and product roadmap, but you can also make an argument in terms of focusing

in on north american market and focusing in on consumer rides actually ends up providing a better experience for users and for drivers. >> what's the argument for anybody investing in either one of these companies when the losses have been so massive? i think uber lost $1 billion in a quarter. lyft lost $1 billion in the most-recent year before they went public. so, what's the idea when nobody can make any money on this and you have a big competitor who's there to beat you up how do you eventually become profitable >> yeah, it's pretty common for tech companies to start off unprofitable and what they're often doing, and often is the case here, is they're spending for growth. it's not just a zero-sum game in the rideshare market both companies are attempting to expand the overall size of the market, and they've successfully done that. >> you know, people often make that commentary. they point to a company like amazon, say they started with the losses leslie picker went back and did the math uber starts with combined losses of $8 billion. amazon when it went public started with $6 million in

losses how do you make those comparisons and say, okay, this is still a good deal at 100-fold >> so, we're not investing now we're early-stage venture investors in mobility. so we're not a hedge fund. if i knew how the stock was going to behave, i might open my own hedge fund but one of the reasons why we invested into lyft is the company's capital-efficient. so, the fact that it's been focused on north america rideshare and also focused on partnering they haven't tried to develop everything on their own. they've partnered with external parties and leveraged the strengths of other folks as well and so, we like that capital efficiency. >> quinn, this is a pretty straight-forward question. was it priced wrong, lyft? i mean, we were having a much different conversation about lyft at $56.50 and it got prized at $62, where it was priced, where it ran up to and where it is now >> personally, i think they did a phenomenal job with the ipo. i think it was priced right. i think as an existing investor, they wanted to go out, they wanted to raise at a certain

pri price and wanted to raise a certain amount of capital and they achieved that. >> quinn, thank you for your time nice talking to you. >> thank you. which democratic candidate has the best shot of taking on the trump economy? we're going to debate that, talk about the wealth effect, the president's plan on job creation, cutting taxes, with both sides of the aisle, after a break with a couple of dueling former senators. check out the senators now we're down 37 points

i'm announcing my candidacy for president of the united states. >> former vice president joe biden throwing his hat into the presidential ring, but with stocks surging, democrats are trying to find the best candidate to go up against trump in 2020. cnbc contributor, former senator heidi heitkamp, and former u.s. senator, governor judd gregg welcome to you both. senator, you write a lot of editorials the latest one is about -- and i'm talking about senator heitkamp -- the latest one is

about trump failing the reagan test in terms of, i guess in rural america, in terms of are you better off now and i know that democrats are going to have to talk about, you know, things that aren't quite up to speed and what most people think is good. we've got sub-4% unemployment, new highs in the stock market. wage gains are finally occurring. we've got gdp that's running about 50% higher than during the obama administration does it really feel like that's going to be the winning formula to say that people are -- this is an economy that's leaving people behind or that's failing the reagan test? >> the point that i'm making, joe, is that when you look at how regionally the economy is functioning and doing, when you look at rural america, where the president is enormously popular, continues to be popular, when you look at that segment of our economy, it's not good and it's not good because of

some of the president's practices and policies, like his trade policy and like his budget if you look at his budget, taking 31% out of the farm bill, cutting crop insurance is not a formula for growth in the middle part of this country and so, yes, he's very popular there, but when there is a growing concern, growing rates of bankruptcy, growing people leaving the farm, trying to find employment, and when you look at gdp growth in those sectors that represent middle america, gdp growth is actually down compared to other parts of the country. >> there are people that write off joe biden, and then other people that talk about how much appeal he might have in the key states where president trump won with certain voters, like pennsylvania or certain rust belt farm areas, and they say to discount him in those areas is a big mistake, and i certainly get what you're saying there hey, judd gregg, we've talked

about senator biden before you've served with him he's been in the senate since he was 29 years old, i think, right? i mean, he's been -- >> yeah. >> he's been there a long time and you like him, but i'm going to show you a quote from -- and heidi's not going to like this, although i don't know who she's backing. are you from the aoc wing or the biden wing i don't know where you are, but -- >> you know better, joe. you know better. >> i know, i do. >> look at this quote from bob gates, who was the defense secretary under president obama and under president bush, too, but joe biden. "i think he has been wrong on nearly every major foreign policy and national security issue over the past four decades," whether being for the first iraq war, against the second, splitting iraq up in three different places, voted against the alaska pipeline. i mean, it goes on and on and on and even democrats have some problems with the anita hill hearing and everything else. so, is he a viable candidate,

judd >> oh, he's an extremely viable candidate for the very simple reason that, basically, everybody else who's in this race right now is to the left of bernie sanders they're running towards the socialist agenda that's not going to sell anywhere in america, i believe, but it's certainly in the heartland where heidi is from, it's not going to sell and joe biden represents a moderate voice within the democratic party, which is a liberal voice, but it's a moderate voice. >> how can he win the nomination it's the same problem you have with republicans, you know you can't run moderate you can't run moderate in the primari primaries. he's going to get eaten alive! >> you can -- >> you know, if i can weigh in -- >> you can if there's more -- >> if you think about all the competition for the left, there's a lot of people over there. there's not a lot of people in the middle the potential for a brokered convention is higher than it's ever been. you cannot rule out anybody in this race. you've got to see them perform, joe. >> right, but look what happened to poor howard schultz, when he

talked reasonably about some of these issues and you know, i'm worried about aoc. i even was channeling her earlier, senator i said, joe biden, who dat new party. i mean, that's what you're going to hear from her it's like, this guy -- i mean, this is not -- right, senator? she tweets that out! she tweeted that out about some other -- someone made a comment, and it was some -- oh, it was joe lieberman. he tweeted something out and she said, "who dat new party. >> well, you know, she can say and she has her platform and she has her free speech rights, and joe biden has his free speech rights i have my free speech rights and we're going to figure out where this ends up in the spectrum of decision-making in the democratic party >> judd, you -- >> and so, the one thing that happens all the time is the republicans only want to talk about aoc. there's a whole lot of other people in this race who are saying something different than her. >> okay, all right bernie sanders, cory booker, kamala -- i mean, take your pick >> yeah. >> they're all way out there

beto beto i'm going to stand up on this thing. hey, judd, you're just sitting there laughing i know you you can't wait -- >> i am. i am. >> you can't wait to watch this play out and you're evil! >> no, i'm not evil, joe, and i heard you earlier today say that you loved all your guests, and so, i can feel your love, so i'm not evil. >> i'm kidding about that. i just meant you were diabolical in that you're going to enjoy this primary season from the opponents in the democratic party. you're going to enjoy this as they eat themselves alive. >> yeah -- >> actually, that's not true can i answer something can i get in for a second? >> okay. >> that's not true >> okay. >> i am very concerned that the democratic party has jumped the rails on one of the core issues that has made america a great place and has made us the envy of the world, and that's our commitment to a market economy. >> right. >> you have a lot of people running for president on their

side of the aisle who don't believe in a market economy. they believe in a socialist, french economy, and it's not going to work in america and it's going to bring down our standard of living the reason joe biden is viable, in my opinion, is that most of the democrats i dealt with in the senate, the one thing they wanted to do is win, and they wanted to win the presidency if they put up a candidate who can be defined effectively as a socialist, they're going to lose to donald trump. the only way they're going to have a competitive race against donald trump is to run someone who can come across as a rational, thoughtful individual who will lead this country in a rational, thoughtful way, and not take us down the road of socialism, and that's where joe biden -- that's joe biden's path and i don't know whether he can win or not as a very practical matter, he's got a lot of baggage and it's going to be hung around his neck but if they want to have a competitive race for the presidency, he's the type of guy they need. >> heidi, there's still room >> well -- right, right. very little room when you're talking about 20 candidates. but i think, you know, even

people on your show, joe, people who are the masters of capitalism, have talked about income disparity and what we need to do to revitalize capitalism and make sure it's working for everyone and i think that's the discussion free enterprise systems worked for centuries for america. we need to keep it. >> yeah, we need to keep it. and i think we're talking about it everybody's talking about education, heidi they talk about capitalism, saying what we really want to do is find a way to make opportunity equal and available to every child in this country and every person in this country. that's what we want. anyway, we've got to go. that was fun cnbc contributor heidi heitkamp, governor judd gregg. what do you see? we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration,

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if you've never seen yourself in a mercedes, you've never seen these offer. lease the 2019 glc 300 for just $479 a month at the mercedes-benz spring event. hurry in before april 30th. uber hitting the road. the ride-hailing giant ready to deliver its pitch to bankers as it launches its ipo road show and revealing some key financials a live report is coming up. and it's not just transporting passengers. how about burgers and fries? this hour we'll speak to the ceo of food delivery heavyweight grubhub about earnings and competition with uber eats. and the countdown is on to first-quarter gdp. the number could prove the

markets. it comes your way in just 30 minutes as the final hour of "squawk box" begins right now. ♪ i was lying on the grass of sunday morning of last week ♪ >> announcer: live from the most powerful city in the world, new york this is "squawk box. good morning and welcome back to "squawk box" here on cnbc, live from the nasdaq market site in times square. i'm joe kernen along with becky quick. our guest host, cnbc "fast money" trader guy adami. you got a trump name >> you make up one for me -- >> gratuitous guy? >> gratuitous guy. goofy guy. good-looking guy. >> good-looking guy, but we're not that superficial around here you're leaving soon, so we've got to milk you for all you're worth. >> i'm not going anywhere. oh, i'm leaving the show soon. i thought you meant the network. >> no. you're leaving the show at what

time >> probably right after the gdp numbers come out. >> oh, you're going to make it, good. >> i have to high-tail it to new jersey and then come back for the show you'll be hosting, i heard, cnbc's "fast money." >> next monday. let's get to work on exxonmobil numbers. >> because the futures are going to move on these and they're already down. >> exxonmobil numbers. looks like they came in with earnings of 55 cents versus the 70 cents the street had been anticipating it looks like that's a clean number i'm going through the release and i don't see anything additional that should be stripped out the stock's down by 2.1% this is a dow component. again, that is below the 70 cents the street was expecting revenue, we don't always look at that number very closely because i think there's a small number of analysts that actually give us that estimate, but revenue came in at $63.6 billion a couple of the quick highlights that they're making on this is that upstream liquid production grows by 5% versus the first quarter of 2018 because of the permian. i think the big question here is going to be -- >> have they missed --

>> have they miss ed by that much >> and in this environment -- >> well, oil prices are on the climb. we know that happened at the end of last quarter, will be reflected in this quarter. so why did they miss by that much and does it matter? >> i'm going through it myself is it refining -- kilduff can comment as well. but if you look at exxonmobil, it's basically been in this decline in terms of stock price for the last five years. we've had rallies along the way. each rally's been sold off that's what's apparently happening right now. i'd love to be able to going through these numbers and figure out, because at the end of the number, valuationwise, 16. i'm multiple earnings, one of the cheaper valuations exxon has seen in some time -- >> and it's at a discount to -- >> yes, exactly right. i'm curious as to what happened here. >> you're curious. all right. >> i am curious! >> that chair does something to people. >> i'm reading it as i talk. it's not easy to do. >> you're curious. >> andrew says that all the time. >> ultimately -- and joining us now to talk about exxon's earnings, john kilduff, capital founding partner and a cnbc contributor

all right, we want the lowdown on this, since you've had 2 1/2 minutes to think about it. actually, 3 1/2. so, it should be good, john. what do you think? >> absolutely, joe what makes it especially disappointing was that the ceo was just on wall street, a couple of months ago now, at the investor day -- >> not even, less -- >> talking it up right, becky you had that great interview with him there's no real reason for this. we'll have to see. i don't honestly know how they could have missed so badly here. i'll tell you this, exxonmobil has been a disappointment on earnings day for the past, i'm going to say year and a half, guy, right >> mm-hmm. >> they used to be the yankees you used to be able to take them to the bank and just buy this stock and forget it. it has rebounded massively off its lows from december with the rest of the market, and it has actually gotten a little bit expensive here at about 16 times earnings, in my view. >> darren woods, chairman and chief executive officer, says that "the solid operating performance in the first quarter helped mitigate the impact of challenging downstream and

chemical margin environments." what does that mean? >> that means that the refining sector got hurt. and that is obvious to me. i think i talked about that yesterday when i was setting up this interview with you guys refining margins have gotten really compressed here over the past quarter when crude oil prices go off to the races to the upside, the profit margins at the refiners get squeezed because they can't pass along the extra cost. compounding the problem was there was a glut of gasoline on the market, really from the latter part of last year through the first quarter. things have turned around now because we're in the summer blend of gasoline. there's actually a little bit of spot shortage. we've had some refinery issues since then. >> well, he addresses some of that, too. he says "the change in canadian crude differentials, also heavy scheduled maintenance," similar to what they saw in the fourth quarter of 2018, affected their quarterly results. >> that's right. when the province of alberta shut in production basically to get the russian canadian select

price more up towards the international market, that put another squeeze on them. so in a way -- and that's the thing with these integrators i like them because you do get the full exposure, and they should be able to make it up on one part of the business, even though they get hit on another, but this is one of those times where the perfect storm sort of came to the refining sector and overwhelmed what is obviously good stuff in terms of increased oil production, increased permian production -- >> increased permian production and a plan for doing that, which is what you see chevron doing right now with anadarko, so -- >> right, and a price that went from 42 bucks at the end of last year to now over $60. >> right. >> so, quickly, is it an exxon-specific thing because you heard valero numbers the other day, which were pretty good, if i remember. >> and we get chevron in about 25 minutes. >> that stock was up i think 3% yesterday. so, exxon can say whatever they want now it makes you wonder if it's exxon-specific or do you broaden this out to the energy sector? just looking through this, it appears to be more exxon-specific than anything else.

>> i think it is to a degree, guy. they obviously have a big exposure to the chemical sector -- >> that's what i mean, how much of it is management and how much -- >> there's another major that had awful numbers, and it was because of some of the -- >> i think shell's had problems. i think you'll see a similar story, guy, out of chevron, too. valero benefits from having exposure to cheap, you know, permian-type oil in the gulf of mexico. >> right. >> so they're centered down there, whereas exxon's more exposed internationally to the higher brent price and the weaker, again, international gasoline market. i mean, there are cars just going begging in the atlantic basin and out in singapore really for weeks. >> darren woods is making the point that they think they're on plan, that their plans for what they're doing and trying to change and streamline things is on target and in the works would you say that >> i would and i would also say this. this refining issue will correct itself a lot of maintenance coming up they are already the gasoline profit margin -- there's a

wofford fword for it in business -- but it's fwlo blown out, in california like $104 a barrel or something, and gotten very high here again. so that will be fine what you have now is a huge portfolio of oil, crude oil, that exxon now has exposure to and who is getting help from the likes of saudi arabia in particular to get that oil price back up. saudi arabia very much in the driver's seat right now, the only one with spare capacity and the only one willing at times, as we're seeing aggressively, to dial back their output to support the price. >> can we take a longer-term look at shares of exxonmobil right now we see it's down by about 2.4% today it's down just over 1% for the week the price has picked up pretty steadily since the beginning of the year, as we've also seen wti come back up. >> and that's in terms of the chart. that's what i'm talking about. if you look, that goes back 4 1/2 years and we have had a series of lower lows and lower highs. to john's point, a series of disappointments. we can argue about valuation clearly, it turns out it was expensive. >> although he just said that he thinks that the management is on

the right path right now with what they've laid out -- >> i was impressed by the investor day, i have to say, and hopefully, i didn't get sucked into the pr, but i want to say that it sounded great. i liked what they were doing i think everybody liked what they were doing. and he was very transparent. first time we ever had the ceo -- i'll bet he will be on the conference call, and we've never had that in exxon's history. it's a fresh transparency that's growing. if you look at the mobile chart, it very much tracks the s&p 500. if you blocked out exxonmobil and put back from the end of last year until now, you could have sworn it was the s&p 500, not specifically exxonmobil. but again, the story here now, particularly with this pullback -- now it could be relatively cheap, especially if it gets beat up today. the dividend yield at 4% coming into today will tick back up closer to 5. that makes it worthwhile. >> real quickly, with chevron coming up in about 20 minutes' time, you expect that they could see some similar problems -- >> i do. >> -- because of the asset mix they have as well? >> it's almost an identical picture, except that i guess

chevron has a greater exposure to the west coast, where they might benefit from that. they also have a bigger exposure to the permian assets. and again, we've had a lot of pickup in price there. so, they may be a little better, but of course, the focus there will be on their attempt to buy anadarko stock's already been hit on that and you know, they're going to be -- >> come back and offer more? >> absolutely. i think they absolutely will that's going to hit the stock some more. i think you step back from chevron here, let the stock get hit on all of this m&a around anadarko and maybe others, and then get in that. >> john, thank you. >> thank you in the meantime, let's get you caught up on some of the other big stories that investors are going to be talking about today. intel shares are plummeting after the chipmaker beat earnings and revenue estimates for the latest quarter but intel also slashed revenue guidance for the year. the company's new ceo, bob swan, partly blamed china for the slowdown he's going to be joining "squawk alley" in a first on cnbc interview coming up today at 11:20 a.m. eastern time. that stock, though, down about

7.75% this morning that is a dow component, which is also why you see pressure on the dow. right now indicated down by about 71 points. amazon trading higher in the premarket after the retail giant crushed first-quarter profit estimates. amazon earning $7.09 a share, well above consensus estimates of $4.72 a share cloud revenue up 41%, similar to some of the strong news out of microsoft this week. on the conference call, the company's cfo said that over the next year, amazon's going to be working to turn its prime two-day shipping guarantee into one-day shipping that stock is up by about 1.1% and we're getting set for the first read on first-quarter gdp. economists are expecting growth of 2.5% for the first quarter. the number due out at the bottom of the hour right along with chevron's numbers, too. coming up, uber on the road, or rather, the road show the company is one step closer to going public this morning as it tells underwriters how to pitch shares to investors. a live report is next. and what will be a publicly

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welcome back to "squawk box. the futures right now are indicated down 65 on the dow after some disappointment in some of the components like intel, with its forecast, exxonmobil as well so, the nasdaq's indicated down 27 or so as you can see there, intel and exxon taking about 45 points off the dow at the open. the s&p now indicated down about five points. so, intel must have improved a little, then, right? or, let's see, where is intel? >> a minute ago, it was down over 7%. >> down $4, so that's 28 points, and then exxon -- >> exxon improved a little bit intel's still down 7.5%, but exxon was down less than 2%. ride-sharing giant uber kicking off its road show this morning as it gets ready to go public leslie picker joins us now from where it's all happening leslie, good to see you again. >> reporter: hey, becky. good to see you, too we're standing outside of

goldman sachs behind me, where the uber execs are currently meeting with the bank's sales force, goldman being one of the three lead underwriters on this deal this is part of the road show process where they essentially teach the sales force how to pitch this deal to investors earlier this morning, the company set a price range for selling its stock as it embarks on this road show between $44 and $50 per share. in that, the company would raise about $9 billion they also announced an agreement with pay pal to have a private placement of about $500 million. so, in total, uber could be raising about $9.5 billion through this ipo that it could then funnel and reinvest back into their business. now -, there are also selling shareholders in this offering, selling about 17 million shares, about 13% of the total deal. those include the former ceo and co-founder, travis kalanick, softbank as well as benchmark,

two early investors in uber. the company also earlier disclosed three-month projections to march 31st, saying revenue growth could be as high as 20% for those three months compared to a year ago, about $3 billion in revenue. they also disclosed the potential for loss from operations around $1 billion for that quarter now, as part of this ipo process, they will be seeking a valuation on a fully adjusted basis between $80.5 and $90.5 billion, guys. back to you. >> leslie, thank you very much. one company facing increasing competition from uber and its uber eats division is grubhub. grubhub has great news of its own out just this week, too. that company beating on both the top and the bottom lines in its latest quarter the stock is up big this morning in the premarket you can see a gain of about 4.6% let's talk more about the food delivery wars, what it means for investors, and for eaters. joining us for that is grubhub's founder and ceo, matt maloney. matt, thank you for being here today. it's good to see you.

>> thanks for having me on again. >> strong numbers. the street definitely applauding what you guys did last night but you are facing some increased competition across the board. there's lots of names out there, everybody from doordash to amazon potentially getting involved in this, caviar and now you've got uber coming public and really talking about uber eats, too how do you distinguish yourself from a crowd like this >> strong execution. that's what we just released last night we had an incredible growth, 30% growth in new diners, a huge record, and increasing profitability, even as we continue to invest aggressively through the whole quarter. so, we're executing. the industry itself is growing very fast. and one of the interesting things we did last night was we released supplemental information. we showed actual cohort consumer purchasing data, which is really interesting, and we don't do that very often. and we showed data for the past four years to show how incredibly consistent our diners are on our platform, even during a time when there's been

incredible competitive acceleration, including all the names you just mentioned. >> matt, where's the most profitable areas for you are there certain cities that really are the places that you have to do it, or how do you kind of break it down when you're thinking of it in terms of where your profit centers are? >> no, i wouldn't look at it from a geographical perspective. across the board in all markets, we call them tier one, which are the oldest markets we've been in, over 12 years. tier two, around 7 years and tier three would be much more recent. suburban, rural areas very much supported by our young partnership. we're seeing growth across the board on all metrics in all segments so, it really is a ground swell of interest by the consumers that are looking to order online i think that's why you're seeing so much growth in the entire industry but being a leader, we're capturing a significant part of that. >> you guys are public and so, as such, you have to take a pretty disciplined approach to this you want to invest you want to make sure you're building up as fast as you can, but you're also going to have to show profitability to the

street so, what do you think this means as companies like uber also go public >> we've been incredibly aggressive in terms of investing for growth we see a lot of opportunity. we came out on our third-quarter earnings call last year, saying we see an opportunity to put a lot of money to work and really grow fast. we did that. we took the hit to profitability. in the fourth-quarter call we came back and said, this worked we showed incredible growth, and we want to do this for the remainder of 2019, which is exactly what we have done. so in this call, last night, our first-quarter call, we showed the type of growth -- i think it was 60% higher new diner adds than we've ever shown before and last quarter's call, we had another record so, it is huge growth coming around because of this investment so, we've made the conscious decision to invest into that, take the hit to profitability. but like i said, our profitability per order increased this quarter, even while we're doing this aggressive investment. >> but my guess is this is going to be cyclical in nature, much

like amazon, in terms of having to invest, maybe rest on your laurels a little bit and then reap some of what you've put in, but then maybe going back to invest again if you look at it for the week, you guys are up 14%, but for the last six months, you're down 16%. and i think it's a bigger decline over the course of the last year. there are a lot of investors who are wondering, how do you continue to do this when the competition is so fierce what's your long-term play >> yeah, i wouldn't say it's cyclical i think that it's industry growth, dramatic industry growth, because you have $270 billion was the latest number i saw on online takeout purchases in the u.s. only on an annual basis. the entire industry is less -- including all the pizza shops -- >> pizza shops -- >> less than $50 billion so i think there's a lot of opportunity to grow. >> potentially, but there's also a lot of competition vying for that do you think there's room for all of these boats to float, or do you think there's going to be a shakeout and a lot of them have to go away? do you have to have only one or

two competitors in orderto be able to continue profitably over the long haul? >> i don't know if that's true, and that is why we released the supplemental information we wanted to show our investors that over the past four years, everyone else's growth has not come at our expense. it's not a zero-sum growth situation, like i said in the call last night. we are seeing record growth in the face of record competition so, the entire industry is accelerating i think you're seeing americans order more from their local restaurants online and on their apps. >> i'm not trying to play stock market with you, but it was clear, to becky's point, this stock got ahead of itself in december i think it's probably cut in half since this was a great quarter i guess my question to you is did the stock move too much, too fast to your liking, and can you see this continued reacceleration of growth over the next few quarters? because if you can, i think even at current valuation, the stock would be a pretty compelling story here >> yeah, i would agree i think what happened with the stock decrease was we came to the market and said, we see

opportunity for growth, we are cutting our profitability, and we are going to have a tremendous investment that will pay off in the longer term we are betting on the long-term potential of this business and so, obviously, when you put anything at risk like that, the profitability, you're going to see it pull back, and you're seeing it come back now. our story has been, you will see similar profitability to before the investment by the end of this year, and we're sticking to that. >> matt, thank you so much for joining us hope to see you soon. >> thank you. >> a little bit of a groundswell for a heitkamp/judd gregg ticket, all of a sudden, based on your gift now that's trending on the twitter people say it would have been more effective if i actually jumped up on the set >> oh, is that up there now already? >> it's a meme but i have wireless mics i could have done that, but that would have been -- i don't know -- >> it's a very expensive set. >> very expensive set. we've got to go. coming up, gdp, first look at first-quarter gdp. we're counting down to that big number at the bottom of the hour then at 9:00 a.m. eastern time,

don't miss a first on cnbc interview with national economic council director larry kudlow. >> come on. >> yep i may stay andwatch that stay tuned "squawk box" will be right back.

welcome back, everybody. ford says that the u.s. department of justice has opened an investigation related to the company's emissions certification process. back in february, ford said that it was investigating potential problems in the way that it calculated and tested the emissions and fuel efficiency of its vehicles after employees reported possible flaws with the company's computer models. that stock had been up by about 7% earlier this morning after ford's earnings release from last night you can see it's right now up about 5.3% we do have big news coming up. we'll talk more about this later. coming up, the big number of the morning. first-quarter gdp is out in just minutes. we'll have the data for you, first thing. always gets revised, but still want to itsee when "squawk box" comes right back e and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities.

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welcome back to "squawk box" buckle up, because we have some big data first look at first-quarter gdp, and it is a whopper! 3.2% a three handle on first quarter. it's supposed to be the dog of the year in terms of which quarters excel this is really powerful. all right, let's go through it personal consumption, 1.2%, little better than expected

sequentially following 2.5%. the gdp price index up 0.9%. about half of our last look at 1.7% and the personal consumption expenditure quarter over quarter, always pay close attention to -- 1.3% that's about 0.1% cooler than we were looking for and about 0.4% cooler than our last look. listen, we haven't had a three handle on a first-quarter gdp since, well, we were tied -- no, that's the fourth quarter. man, go way back to the first quarter of 2013. first quarter of 2013. first quarter of 2015 was 3.3% i guess we're going to keep it at 2015. but no matter how you slice it, gang, we've got a response in the marketplace. this is supposed to be an old number, and i get that, and we can all discuss it, but it really does tell us where our current lap begins and how we're going to complete the year, if the assumption is this could be the weakest quarter. joe? >> that's unbelievable, rick

yeah, but we've had people on saying it goes down from here. they always seem to say something like that to make it seem less relevant for what's going on. >> i have to say, vince reinhart was pretty positive on the economy. >> he was. >> thinks this is going to be the high-water mark. >> rick, should i go double or nothing with austin goalsby on the 3% bet we always have, do you think? then i'd have to have dinner with him twice if i lost. >> no, you're just going to let him off the hook having a digital binary it is or it isn't. the real issue for viewers is not betting on where it's going to be, it's explaining to viewers why it is where it is. and i think that's where austan falls short, so don't let him off the hook. >> i mean, he may not be around for a while. where's our chief economics reporter today >> steve liesman. >> this -- we should have known it was going to be a good number i wouldn't want to be around for this either. rick, stick around joining us is the chief economist at stifel.

and ethan harris is head of global economics research at bank of america merrill lynch global research. you, i just yelled at you out there, that you were too low, right before it came out what happened? >> so, joe, first let me ask, why do you do a bet where you both suffer no matter who wins why do you do that >> you know, we both are -- we love, we do, we like each other. we'll have fun when we go to dinner we might not agree on everything, but yeah. >> so, we were tracking 2.4% based on the flow of monthly numbers, and this is a pretty darn good number i mean, we're coming off a year where you had a big fiscal stimulus, and some of that should be fading the first quarter has tended to be a really weak number. and you had weather issues you had the shupd. it's a pretty darn good quarter and certainly pushes back against this hard landing notion, all this talk about recession risks. i mean, the u.s. economy's in pretty good shape. >> i guess with, you know, what

we see on the first friday of every month, to get too negative would have been -- we tried to explain that -- how can the jobs numbers -- we had that one outlier, though. >> yeah. >> we had the jobs numbers that seemed toe strong and an unemployment rate so low that didn't jive with under 2% for gdp, did it? unless there was -- i mean, it is hard to get workers now, isn't it, for those -- >> it is i mean, there's a huge shortage of workers when i talk to business leaders at our wealth management business or fixed income business, everyone's talking about a tight labor market it's even tighter than the official statistics suggest. so, the job market is even stronger than the overall economy. we're looking for easily over 200,000 in the next payroll number. >> can i tell you quickly chevron's numbers? we saw exxonmobil earlier today missing expectations now chevron comes out and actually beats in terms of the earnings per share $1.39 versus the $1.30 that the street had been anticipating revenue a little lighter than

expected at $35.2 billion versus the $38.4 billion that the street was out there with. michael wirth, chevron's chairman and ceo, making some comments just talking about how upstream production volumes were up 7% from a year ago. that was largely because of the permian basin in the united states and weedstone in australia. the company's net oil equivalent production up 3 million barrels a day for the second quarter in a row, but the first-quarter numbers are down from a year ago. the same issues that exxon was facing, lower crude oil prices and weaker downstreaming chemicals margins. but again, this is better than the street had expected, at least in the earnings per share. chevron shares down by about 25 cents to $117.65 that's a decline of 0.2% and last time i looked, it looked like exxon was down maybe by a couple of dollars, so we'll be watching this closely. >> and gdp's more important than this, but it all comes down to the anadarko deal. you can talk about the chevron numbers all you want, but will they have to overpay for apc

i think that's what the street's focused on anyway, back to you, joe. >> just wondering, if this is in the middle of trade tensions and in the middle of, you know, everything, slowdown in europe and draghi and all these things, what happens if something good happens for the rest of the year >> well, i think that is right. >> it just offsets headwinds that you see coming anyway, and -- >> well, it looks -- >> would we be lucky to do 3.2% every quarter? >> we would. i don't think the growth trend rate in the u.s. economy is 3.2% -- >> would we be wrong about that? we keep hearing from people like kudlow that it's possible to go back to the haasan days of these -- >> yeah, i think the problem with that argument is it depends on this view that the tax cut caused a massive investment boom in the united states -- >> and we haven't seen that yet. >> and it just didn't happen so you're not getting that capacity addition from massive investment boom. so, that's why i think -- >> you need the productivity -- >> -- have been skeptical -- >> i know they have been

they didn't distinguish themselves with their predictions for last year either, though this was supposed to be a sugar high, right? the sugar high's supposed to have worn off 18 months ago. >> no, no, the sugar high story worked last year this first quarter doesn't fit the sugar high story it's lasting longer than i would have expected. >> the sugar high was the stock market, too, and it's now up 50% since the election. >> well, and i think that a lot of that has to do with the fact that, you know, a lot of the uncertainty factors that were in the markets, fears of a spike in oil prices, fears that the fed would slam on the brakes, fears of the trade war, have faded i mean, the equity market's gotten a lot of good news from the policy front in the last -- >> i think larry agreed to come on -- >> is that a conspiracy theory >> no, i mean, he's been saying -- >> privy -- no, he's been saying this all along. >> are you monitori monitoring @realdonald a trump right now, becky that's coming, right >> no, i'll look now. >> something's coming after

3.2%, don't you think? >> he has to say something, no doubt about it, or he's waiting. waiting right before the markets open. >> usually has a big boom or something -- >> not seeing anything this morning. >> 3.2%, that -- i mean, for a while, we were below 2%, right at the beginning with the government shutdown and everything else. >> yeah. >> i don't even know why we -- >> -- looking into this weren't looking for necessarily -- >> why even ask economists what they think i'm sorry. why do we even pay any attention? >> personally, i think economists are geniuses, but you have your opinion and i've got mine. >> you don't really believe -- you don't -- >> i mean, let's face it, whether -- you know, we know that forecasting a single-quarter growth rate is a bit of a throwing darts at a dart board, but -- >> not to mention that this number's going to be revised anyway. >> it's going to be revised. what we do know -- >> the first quarter -- we were getting less than 1% in most first quarters, weren't we because inventories -- >> i expect the seasonal adjustmentness to affect the

data but the true story is the doom-and-gloom crowd who thought that the inverted yield curve and the equity market correction and all that was a sign that the economy would have a hard landing. that's clearly wrong. >> lindsey i'm sorry, lindsey, you need to talk get in here! i'm sorry. give me your comments. you're probably closer than ethan, right >> well, i do think this was a very solid number, certainly stronger than most had expected. but remember, this is very much in line with what the fed had talked about, that the economy is still in a good place they did not pull back on quantitative tightening because they were concerned about the economy falling off a cliff, but they identified some early signs of weakness, a potential waning momentum as we go further into 2019 and so, this was preemptive action to allow the recovery or the expansion to continue. and it looks, based on this number, like their action was very much correct. they did give the economy extra room to run, and we were able to stave off that weakness and continue to see some of this

more positive data at the same time, i don't think this means any sort of move from fed policy in the near term -- >> yeah, that's -- >> again, the fed really focused on the future, not looking in the rearview mirror. first quarter was great, but there are some signs that momentum will continue to wane as we go into the end of the year so, the fed sitting tight, happy with this number, but no reason to change policy at this point. >> really? because that's the next thing is, like, uh-oh, they're going to be back thinking about it, but we've got to watch -- so, ethan, barry neff says, "another very strong intellectual property investment number," plus 8.6%. that's what you're missing that's driving stronger productivity and it's from the tax bill why is that not true >> well, you know, we have to be careful with this intellectual properties story the change in the tax law has changed the incentives for where companies book their profits, the tech sector. so, when u.s. had high corporate tax rates, companies had a very strong incentive to book their intellectual property in ireland and other low-tax countries, and

that's why ireland had these crazy numbers on their intellectual property investment and so, what happened with the change in the tax laws, it's really distorted the gdp statistics companies are reporting that the intellectual propertiy's being developed in the u.s., where it really is, instead of overseas because of the tax law change. so, some of this is probably real there's real intellectual property development going on, and some of it is -- we've seen it from the beginning of last year -- some of it is basically a distorting effect of the tax law, encouraging companies to book it as a domestically generated intellectual property. >> can't believe you had an answer for that. you are a genius, i think. >> brilliant that was cogent. i mean -- >> you just immediately, just, cut barry neff right off at the knees. >> well, your view will change the next time i come on here. >> you're darn right well, what time is it? i still have time in this show rick, are you still around

no, rick's -- >> absolutely! enjoying the conversation. >> tell us more. >> you know what, i would say it's the inflation side. i've been looking at the pricing pressures. because your conversation was going right to where i was thinking, that, ultimately, everybody said, you know, fed's doing a horrible job the last quarter point in december was a huge mistake. i'm sorry, but the data really doesn't bear that out. and as far as now everybody's going to jump to the other side of the ship, oh, my god, got to sell equities, the fed may have to tighten, i don't know right now, we've always used the word goldilocks. i've never really found it very true in the past, but this is sort of goldilocks we have growth and productivity has picked up a little bit we're not seeing big pricing pressures. however, patty dime wrote a great story that, you know, as we get earnings and preannouncements to the future and thoughts about how things are going to look down the road, some of these companies are saying they could pass along higher costs we need to figure that in. i guess what i'm saying, joe, is i would suspect if the fed has

an action, it would be at the end of the year, and i think be just like last year, quarter-point tightening. >> lindsey, all my crazy twitter nuts are saying that the magic wand, trump's magic wand wasn't totally -- he didn't use it all up last year i mean, any comments that magic wand that obama said no one's got -- >> is there such a thing >> i don't know, but you weren't going to be able to wave it -- >> think about it, i think the powell-led fed -- i think powell did a great job leading the fed this time around historically, the fed continues to tighten until it's very clear that the economy has stalled or essentially fallen off a cliff and at that point, it's too late and they have to aggressively ease rates or cut rates. this time around, powell was very cautious, very calm, and took that preemptive step to back away and give the economy room to run. so, he's allowed the economy to continue this expansion, and this has been one of the softest landings that i think we have seen in quite some time. the magic wand seems to be alive and well >> yeah. kind of wish i knew next -- i

wish i knew for the year i don't know whether to make another bet or not i haven't heard from austan. made one comment, calls me sleepy, sleepy joe after my beto o'rourke thing anyway, lindsey, ethan, and rick thanks, rick have a good weekend, everyone. friday, right? >> guess who else is leaving. >> i'm out of here >> come on. >> you did your job. and you did the 3.2%, awesome. >> are you going to have me back >> i'm going to see you monday night, too >> i can't wait. >> it's official now it's just my friends, right? we don't have any -- >> just your friends >> okay. >> joe and friends we'll rename the show for two nights. >> okay, good. coming up, it's another big morning for the market and corporate earnings we're going to get you caught up on the biggest stock movers after a quick break. stay tuned ust. transparency. expertise. these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute.

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all right, welcome back, everybody. less than an hour to go to the opening bell on wall street. watching things right now, you're going to see that the futures are down by about 22 points bounced around a lot, based on some of the earnings we heard earlier this morning and the gdp number dom chu joins us right now with a look at some of the morning's biggest stock movers dom, good morning. happy friday. >> happy friday. tgif, becky. an energy tilt, of course, towards this morning's movers. starting at least with earnings out from chevron in the last few moments or so. we're talking flat now, just about maybe over 30,000 shares of premarket volume. this is america's second biggest oil company. it posted earnings that beat estimates, but sales came in below forecast chevron said that it sought headwinds to lower crude oil

prices and weaker profit margins in its downstream or refining and chemicals businesses, so those shares ones to watch there. we'll keep an eye on them and see if they move more. meanwhile, exxonmobil shares down between 2% and 3%, over 250,000 shares of premarket volume america's biggest integrated oil and gas company posting profits that missed analysts' forecasts on sales that also fell shy of expectations big part of that story as well, weaker than expected results in its downstream or refining operations as well as disappointing results from its chemicals business there, too. upstream or exploration and production operations also seeing a drop-off from the year-ago period as well. and we're going to end on transportation shares of american airlines down just around maybe 3% to 4% at this stage, over 130,000 shares of premarket volume. profits came in slightly better than expectations. sales, though, were pretty much in line. it cited ongoing financial drags because of the groundings of that boeing 737 max jet, also higher oil prices as well. so, becky, those shares

certainly on the move 3.5% at this stage to the down side. becky, back over to you. and again, happy friday. >> you, too, dom have a great weekend. >> you, too. >> no golf for you today it's raining. >> no golf for me. after this morning's blowout gdp number and the batch of earnings reports, where should investors look next? daniel suzuki is joining us now from bernstein advisers. you're skeptical as we've seen the market run up big. you think the market is starting to unlook some potential problems >> what's lost in this exciting rally and hitting all-time highs is that underlying fundamentals are getting weaker -- >> for companies, not like gdp, where we just saw the 3.2%. >> yeah, and i think that's what people want to focus on. if you focused on gdp throughout this bull market, you would be pretty luke-warm on stocks, right? gdp until recently has averaged in the 1% to 2% range, but corporate profits have been booming this entire bull market. so you don't want to focus on gdp. if you're going to be a stock investor, you want to focus on

the markets and underlying profits and fundamentals for stocks are actually deteriorating. everyone's very excited about this earnings season, you know, percentage of beats is very good, companies are beating very lowered expectations, but if you look underneath the surface, the profits that are coming in are coming in, are in and tracking to be 4% lower this quarter than a year ago. t the outlook for these companies are getting worse. the most cyclical sectors are down look at their earnings coming out according to today, it is all lower year over year healthcare, staple company is tenning to ho tending to hold better >> you are talking about margins. you like healthcare. >> healthcare is a great opportunity. it is getting hit by the political concerns but healthcare is a lightning rod

for political. what drives healthcare over the long period of time is the profits cycle. the '90s, we have the clinton's healthcare proposal. in the '90s, there are two big periods of under performance and it is coming under profit recessions that's when the cyclical do well it is one of the best buying opportunities in the history of the sector >> what about technology >> if you want to be bullish on technology here, it is a story on riding that sentiment and optimism this quarter tech earnings are tracked to be down it is cyclical >> you are talking broadly in sector i am thinking of some of the place in the clouds where a lot of advances have been made and revenue that's been in you look at amazon numbers and microsoft numbers. some of the big guys >> amazon revenues did come in

lower. there is always going to be winners here the question is how are those under line results going to come in relative to where expectations are if you think of the tech bubble, you have huge expectations, internet between post tech bubble was changing the world and technology was improving but the sector was a lackluster. it was kind of, the other problem is you had everybody's price to be a winner today, right? you look historically these expensive companies, only about 10% of them end up growing into the multiples and rest of them under perform are growing away all tomorrow expectations are broadly too high, you are seeing that in the private equity market >> and potential change of market sentiment that affects everybody. >> that's not imminent that's the risk going forward. that can go further. you saw that 1999 but ultimately

that does not end well and that's the risk today that you get that type of euphoria. you have companies today coming into market saying they're not a widget company but a lifestyle brand company. that's a worrisome sign. >> dan, good to see you. >> thank you let's get down to jim cramer is that a call for a ski daddy or a booyah or what is it for the 3-2 hit? >> it was a good number. january was weak economy bounced back it is interesting, interest rates did not do exactly what i thought it would do. this is not an anomaly there are some good things happening in the economy i don't want to hear the fed has to tighten again

that's a mistake, they already tighten. we are not seeing interest rates going higher what's happening is some people say they were filling the pipelines ahead of the tariffs it is as good number you have to own it it is a good number. it is a good number. >> i am seeing from a lot. number one, the under line details are showing a slow economy is one thing i am seeing the other thing i am seeing is it is going to be revised and the highest number of the year and it is all down from here is that all? >> march was a good month. there was a good rebound and people realize we are not going to go into a derive per session, people are starting to do better look, i think as you and i know resistance in coin, it is good

number and good. that's what we want in the economy. it hires a lot of people and produces a lot of well i can't back away from that. that's what it does, joe >> maybe we ought to have some norms where we accept some good numbers. >> is there like a kudlow/cramer 2.0, is that is coming up? >> larry and i both believe in expanding pie, it is something that the democrats started in the 1960s, that's when we had buns and butter ultimately expanding pies make everybody do bet. that's what happens. if we can't go through, who's the president or who's not the president? we have good numbers good numbersare good for the economy and the working person there is no spin for that, the fact than that's what it is. tell me i am wrong

>> i am afraid of success. do you think we can do 3% for the year >> i think that we are coming in and april is another strong month for the economy. i think some weakness in the economy. auto got issues but it is entirely possible that we have another good three months. everything is about hiring if we can keep hiring. >> if wage gains continue and we keep ongoing at 3%, is there a chance we don't need to abandon c capitalism maybe we can keep it instead of changing it. i am a big fan of capital. >> maybe things start organ organically healing. >> can we make one thing clear this is a democrat idea that's adopted by the republicans >> i am fine with it >> all right, thank you, jim we'll see you in a few minutes don't miss the exclusive

interview coming up on monday, jim will speak with the ceo of 3m which will be very interesting, michael roman the worst of 3m was on monday. stay tuned, "squawk box" will be right back every day, visionaries are creating the future.

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. a check to the future. dow futures is down. 3.2% for the first quarter for the first read have a great weekend everybody, we'll see you back here next week, right now it is "squawk on the street." ♪ good morning and welcome to "squawk on the street," i am david faber along with jim cramer we are live at the new york stock exchange carl is on an assignment this morning. this hour, we got the president's economic adviser, larry kudlow, his gdp report for the quarter. plus, starbucks' ceo is going to join us, kevin