a final check on the market. dow jones opening up slightly higher the dow is up a little 1.5 points nasdaq is up three points and s&p. make sure you skrojoin us tomorw "squawk on the street" begins right now. ♪ good monday morning, welcome to "squawk on the street." i am carl quintanilla with jim cramer david faber is in california, he's going to talk to doj, and goldman sachs, david solomon and makan delrahim >> our road map begins with boeing reportedly failing to tell airlines shutting off its

feature on the 737 max anadarko, deal talks with occidental the journal reporting the company did not tell southwest airlines its safety feature designed to warn pilots of a malfunctioning sensor had been deactivated. in a statement to cnbc, the future was turned off after the lion air crash in indonesia and required additional purchase to work the warning lights will be included as a standing feature on the max we do expect to learn more today as mullenburg faces the shareholders today we just talked to the guys on "squawk" about this, what do

they need to say >> i hate the whole implication that they're committed to shareholder dollars. second, there is the faa and the faa should have been doing something for that the conversation is switched to whe where, we'll have to say we own what went wrong. i think the ceo to say the products have changed that you didn't know about which implica implicated -- this happens to be hey, you want my picture they're not the buyers i am taking it up with them in private. he did not feel it is right to talk here but obviously, he

does >> andy writing the piece today. a lot of this involves sort of the back and forth response they had, some what defensive and open to input. it is that response and now selling to consumers to get them to believe that yes, we have addressed this completely. >> yes >> and how many people are asking what plane they are getting on you say they are committed to safety, they certainly say that. the fact pattern is not in indicative of that it it is not as though you can find another manufacture. you don't think they're going to suffer or suffering as a result of what's going on i don't want to put words into your mouth, simply they're committed to safety.

they seem to be committed to a bunch of other things, too >> obviously, it comes down to e-mails. we should not do this. that would certainly go along with your narrative, david i know that this is one of those things where -- people need planes you can have some short term but not long-term. i don't think you can have long-term implications did the subordinate speak out? there are memos which say listen this is something that's not safe or if there is an faa communication, what the hell are you doing? >> that's a high bar >> i know. >> we'll see what happens what he says later on today the suspension and the buy back pulling guidance, you wait until all the stocks

>> dennis came to new york and told everyone things will be fine it is a cloud kit. >> yeah, absolutely. 17% for the year so far. >> i don't know. did they say or raise expectations the buyer are insulatiatiable. >> meantime the battle continues today of anadarko resumes deal talks with occidental. the latest proposal reflecting significant improvement occidental offering 76 a share david, how does this move the balfour ward >> it is significant

it is a good moment for occidental given they got anadarko say okay, we are open for conversations. the two sides will speak if you are anadarko, you want to understand certain things in terms of a deal. it is potentially going to lead to them concluding that it is a proposal >> it is unclear what their choices going to be at this point. a couple of things to keep in mind occidental stocks have held up very well. better than last week. it would be interesting to see how it trades today or the day ahead. the idea they could win is going to settle on their shareholder base it is interesting and again, jim and i said this. chevron can pay whatever it wants and get this thing over

with the question is what it chooses to do, does it feel in some way it was fully played out for it and therefore it is going to take the asset unclear. certainly can't share anything of my reporting. we are moving along here it is interesting that anadarko chose not to accept this virtually same bid it is only 10% more cash in the new bid that was made public by occidental by last week. they were under pressure from the shareholders i will get to that in a moment we do have a few statements to share. occidental says we hope anadarko would proceed quickly. >> that's from occidental when we asked them for a statement. >> chevron says the following as

well we believe our sign of agreement with anadarko providing the best value and most certainty anadarko shareholders. >> we'll see what happens here jim, no shortage of shareholders speaking out i think that may have turned anadar anadarko's view to we got to engage they sent their 3% holder basically saying the other day on friday that it would be laughable to conclude that the occidental law is worth 75 and the current stock price is not -- it was worth only 61. we believe it would be ludicrous to stop the product now. it would be interesting decision for chevron. >> i spoke with some chevron people this weekend.

if you listen to the comps call. we can't wait. they're talking a lot more about africa and they know how to handle that. chevron's stock is up as if everything they said three days ago means nothing. i don't get it how can we be so confident that they are done when at 9:00 on friday, they're telling you, let me tell you how this deal is going to close >> it would be very interesting if they are truly done the idea they're going to sit at 65 >> no way. >> you may have a better sense as the strategic rational or the comparative they see it is made clear by occidental given the highly unusual decision they clearly want and perhaps need this asset. i don't know as much about how chevron views it, jim, do you?

>> i think they can put up 10,000 wells i never heard a ceo is more foolish of a property than mike wirth was when i spoke with him. he's a real guy. he's not a sales man he's an oil person this was a done deal 72 hours ago, i do not think one of the most aggressive and best run and large major company is going to say you know what, everything we said on frida friday -- i don't know, it was a long weekend, we thought about it no, we are not interested no david, they think that's an incredible property that nobody else can manage. chevron is a hitter. i got to tell you, chevron is done chevron can go five more rounds. >> well, they could.

>> they think there is so much oil there than people realize. they know and drill -- they came right in they are gutsy people. they are not done. >> okay, we'll see and we'll know by the end of the week, jim and carl we'll keep a close eye on shares of occi as well. that'll play a role here and you will see how that trades now, at least you have to say more likely that they end up the r k victor >> we got a lot more ahead the next hour i am going to be speaking live with mak maka delrahim, a lot of his plate with sprint and t-mobile and david solomon will join me hopefully you won't want to miss any one of those interviews, we'll be back after a quick

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the biggest box office ever. "avenge "avengers:end game, it took $1.2 billi $1.2 billion globally. movie fans across the country lined up to see the film 90% went to the latest

"avengers" movie it was not just in tuu.s. a lot of that from its initial open tuesday night in china. i know you were tweeting this morning how the stock have simply not looked back >> ever since that let me say how it ends look, this is rather remarkable. i felt that if it did not do a billion, the stock is going to be down 5. of course, it is 1.2 bob iger did something, i don't know any ceo did something like this he really knows what's going to happen and he reveals his plan right when the movie is out. think of the most telling thing was how much of a weekend there? imagine if you did half the weekend you owe, they have the ability to do that and change

how you buy value to the company. we also worry about disney plus. we forgot that they had these franchises that you don't -- you are at another movie studio. it is iger's week. >> having 90% of the week is one thing. we know there is going to be 40% of north america overall i think jessica reiff is now suggesting $3.5 billion which would surpass "avatar,". >> "avatar" is disney's property i spent a lot of time in l.a., there is a lot more costs coming out of that as well, the merging of those two studios in a sense, certainly of the two companies and the studio also, important to keep in mind,

is "end game" going to be directly going to the movie platform for those fans that wants to watch it over and over again, it is going to be available it is a must-have for fans of the march value universe >> one of the things and when "iron man" was made, they came to me, we feed you to do something "mad money," sure, i punched a button and i do this thing and they gave me half. many people started again and watching the series again so they are caught up this is really is one of the most culturally sticky things.

>> they'll obviously continue pumping out a lot more within mcu. this is what they call it. the marvel comic universe. >> micro is a controller on friday, i like the ncmcu. >> it is all mcu >> after marvel and all the grief. which do you think is the biggest chaos? this is starting to look like the best >> what's incredible is the stock market flat lined for three year and now it made up in three days for everything it missed in three years. this is a big cap stock. this is not -- it did not get a take over bid, it did not do a self break-up. david, i got to tell you, can you recall a time when there was an an analyst meeting like this is

happening? >> not in recent memory. there was a focus going in, they delivered on the highest hope of their base to the point where i made this point, remember the option of the rsn i have been following off and on i have not done much on tv however it ends up there, the number they're going to get for those, even with the yes network thrown in at a decent price is going to be horrible yet nobody cares nobody cares what it does is it makes fox more expensive investors say it was great we love d it and moved on. >> "abigail" disney complains of executive package. >> for executives whose stock went there it seems ill advised by her.

again, it is her company my name is not disney. >> we'll get cramer's "mad dash" and take another look at the premarket as we set for a busy week we'll talk about what's headed our way in the coming sessions when "squawk on the street" comes back [knocking] ♪ ♪

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"mad dash. >> spotify got hundreds of millions of subscribers. it is doing so well and the stock have done nothing. it is time to reevaluate they got tremendous cash flow. free cash flow 2018 was $74 million. this one was 173 million i think they are doing this podcast that seems to be confusing to people but won't be when the smoke clears. podcast are popular among younger generation it is not rocky, it is non promotion promotional. their whole outlook towards wall street, here is the stuff, you guys decide, it is so refreshing to have someone say hey, if you like it, you can buy some. no push. >> that's sort of how they came to the market in the first place. are investors trying to price into the impact of music >> yes, they are i think the artificial

intelligence is extraordinary. i like disney, that's really good india is the focus of so much of the big cap companies and we don't talk about it enough but, their movie entity and celebrating that those of us, okay, i am out of the closet there are five different places of spotify maybe i don't understand what people see that premium product is so good >> i don't hear like a robust recommendation to go out and buy. >> what's happening is a football stock it will go up here and tomorrow it will -- wow, i should wait for apple. that's going to be when you do it don't dough it wh it when it isg

apple can talk service and music very effectively >> we'll talk about what expectations investors have on services and phones and calendar year we'll get the opening bell in a ywrete d'to nus,on g anhe

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you are watching cnbc looifr fr live from the financial capital in the world opening bell in a couple of minutes. got our fed meeting and we'll get china's pmi, we got the half way market, the season, jim, tomorrow >> there is been many more positive surprises this is a much couple of weeks you have companies now whose stocks run based on what happens last week. there's a bit of a set-up that's daunting for a lot of companies that's -- including alphabet they're doing great things and

they got exciting youtube premiums but if they don't deliver, the stock is right. it is been going up consistently in this quarter. their conference call are very sober. i can't recall conference call >> we had a great quarter. >> yes >> we had a great quarter and they give you the data and something is not what people want the bear sees on it and it is lucrative and it is such a good company. i wish the stock had not run apple, too, i wish it had not run. there are people talking about iphone promotions to get rid of inventory. i think this is apple's stance talking about the service industry goldman does not know the apple credit card. people don't know what to say. apple is not doing what bob iger is doing to do

>> right >> apple is tomorrow night and later in the week, qualcomm, another name that jim has said, watch for the run here >> oh my >> 5-g is an issue carl, let me ask you, do you think we'll ever be in the situation where you have air pods and a watch >> we'll get to apple in a second there is the opening bell. big board today is global payments, celebrating its 18th listing anniversary at the nasdaq it is social media week, media marketing for technology professionals. >> just talk about how social media has been so fabulous to them i think it is important this week i know people don't necessarily think they're into social media, you have to go out and look great.

so listen to his conference call you will hear more online than any other ceos can give you. >> one of your longest these about social and beauty. >> he's a quiet leader when you get off the desk, people just say he's got a special map himself, again, all time high. they report on the 1st >> amazing we mentioned apple jpm says we believe in double digit declines in phone shipment does that mean they'll play up service this week? >> they got to talk about lifetime value of apple owner, this is something i have been pushing you. a lot of times i push the brink out of the service, my new wrap is lifetime value. you need to have some analysts say a lifetime value is someone who uses -- lifetime value

subscripti subscription, if they continue to say we, if they continue to make it a story where service is somehow separate and don't value what that service stream is worth then it just becomes too serial i have been waiting for one of these firms to break and have a cover by somebody who covers clorox or proctor. >> you want an analyst to cover staple and apple >> every time i speak to the ceo who's in the broker business, would you please switch cover. he comes on the judges show. i mean there he goes with tony, report of apple's death are not premature. i love them. >> great try >> almost like will frost when

it is not british. >> we'll see what happens with apple tomorrow night apple is green david, disney is 142 it is going to lead the dow in the open this morning. >> i guess as it should givens the - it is going to break reco record as jim pointed out how much grounds that stock made up for years did not do anything. core cutting really caught the attention of investors it is not completely gone by the way, espn is still incredibly important part of this company there is still concern about people continuing to fall off from the traditional bundle and espn, plus espn is not espn. they are separate services as mr. iger made clear to me. if they get to a point where they feel is not doing well then

espn plus may become more. right now it is an adjunct, their aspirations there is not near jim, there are still some things to want to be concerned about when it comes to disney, despite what is an incredible success of their box office of the marvch cinematic universe >> i think there will be profits taken in today no matter what. >> when you discuss the legacy of bob iger, he created a lot of jobs and high paying jobs. he's done a lot to be a leader in business. i keep on thinking of his legacy verses what a person may have. i know this is topical a lot of us are trying to figure out the role of the ceo put 12,000 people through

college. you think we are going to start thinking of the ceo more than someone who gets the stock price up where senator warren may want to find or bernie sanders, you have to look at how many jobs are created and how many people went to school and how much wealth is created for stake holders. that's happening >> you know jim, you are bringing up the topic that's one that i certain lily know and we talking about it a lot it is essential to the upcoming political season what is capitalism and the responsibilities i don't know the world that you and i have been apart of for the last 30 odd years have been one in which shareholders value was number one. how we judge them and compensated. by the way, it is one of the key issues that's going to be discussed here at the conference as well. a lot of different animals on that very topic, jim

it is very rich and its got a lot of different aspects to it and one that i think we should continue to discuss as well but i don't have the answer. >> something you brought up. i went to counsel on this to figure out recently what is the standard, does it matter what the product is if someone challenges you it is black and white when it comes to council what is going to bebest for shareholders that's what delaware law favors? as long as it is the case, including things that mark benioff boeinrings off. it is not worth it t whoever makes money for the shareholders win >> right should there be modifications or compensations in the system in the way that ceos are

compensated. "abigail" disney, as we pointed out created enormous amount of money and many can argue it has positioned the company in the minds of most investor based as well what's enough? is $30 million enough or 60 million? it can do a lot for other people she argues true >> with that said, you and i watched wealthy created in areas like hedge funds or private equity that dwarfs anything a ceo looks like >> first time since september 21st it does point to some of the data we got this morning where spending were strong above expectations and income reenforces ideas that inflation

is 10. >> that's going to be what allows the discussionabout why we can have good growth. >> there is no reason for powell to act as long as there is no inflation. there was a great essay by professor seigle, he's saying is look, the rules have changed and you got to be open minded. there is a lot of them of what i regards to be the ability for jerome powell to say you know what, i will see you >> it is possible. a piece out this month about morris' laws of productivity and technology, they think it takes away 40 points core inflation. >> i know jenson wong believes it is out of date because he's got the next product there are forces at work when you get wahat's going on

it keeps prices down all over the place. i think they're against minimum wage healthcare is going to b be -- democrats don't want to talk about it. i do think that democrats are going to -- all democrats that i have seen were running they are proinflation and you can't get inflation going other than minimum wage. >> there is a no doubt today, if you don't sell in may, maybe you rotate in may after it starts to the year like this one as strong as it has been if you own healthcare from may to october, you beat the overall index by 2-1 if you go back to july 2008 and you take a look, this period of 2008 and 2009, it was clear that something big is going to happen with healthcare, you just got killed united health would be down to 208 lows that it had

it would go down to 15% if we play it out. that will means you have the house, the senate and the white house. i think it goes back to 200 days, united health being on the conference call attacking the democratic position. healthcare for all or health insurance for all? i think it is going to be health insurance. you have to test the lows yet. we'll have cvs reported this week, downgraded, i can't believe anyone is still recomme recommending do these people go to a cvs? >> i think 61 target >> yeah, that's a initiation >> some regional banks, you got zion and huntington.

>> aerospace, david, what is it saying to you when you got these major american metal bending companies doing these accusations and the stocks are flying >> well, it is always a good thing in terms of ceo conference we talk about it a lot it is something that the banker wants to seize on. when you do a deal as a ceo and given when it is a large and important deal and your stock responds positively, other ceos are embolden to do something as well >> it is not to be dismissed, that can resonate within the peer group of ceo that we are considering doing. >> it depends on the importance of it. it is not to be dismissed at all in terms of importance >> i like these companies doing acquisitions, they're trying to

diversi diversify. i have 3m on tonight >> and the contacts and everything we got to work with, you were not unnerved by 3m or intel last week. >> 3m was disconcerning, execution. >> intel was kind of shocking and the stock, the data center getting hit again. data center i think has not cool i deal with a lot of the companies. the narrative being set by intel. it they will not put it like that how do you kill the stock? i do think they have to spend much worth on what they have adobe.

>> jim, leonnice recommendations >> david, go ahead >> google is already spending more on cap ex and virtually any companies out there. were they have the 21 or 22 billion? >> are they not 13%? >> everybody understands the clouds verses what amazon does the one that's most shocking is how they quietly -- that's a cash machine there is not anyone i deal with in silicon valley including people in alphabet, listen, we got to keep up with the joneses. and we should assume that i think it really shocks us. >> why assume? given the spending, that was a

big piece of gdp on friday, spending on ip and cap access and people are migrating >> a lot of controversies this weekend. jim, you were so congratutory of larry kudlow >> inventories and exports >> he did 400. he had someone after him you don't asterisk >> record high for the s&p let's get to dominic chu >> just to echo some of the comments you got, the stability feel has to do with the idea that we have a lot of catalysts coming up. we did hit that record high at the s&p 500. just around break even this stage. the nasdaq is certainly key right now. so far today, the sector action

has been a little interesting. we do know that semiconductor are a little bit weird they're doing decently well in today's trade. wti are a little bit lower today. brent prices are 71.77 but if you take a look at some of the other themes they are developing right now, some traders are keeping a close eye on some. relative performance things are happening now on small cap you take a look on the russell 32,000 they're about the same the past couple of days we have seen a resurgence in a small cap trade. jim just mentioned intel yes, it was a hammering for the semiconductor industry overall that trade is still a relative bases and out performer, that

recent under performance calls and the question, some of the issues we are nearly facing technology in the coming weeks earnings season, this week, you guys mentioned, 150 companies are going to report their numbers. we are half way through through the s&p 500 earnings season. the s&p 500 earnings season. earnings my experience with usaa

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boeing with the annual meeting later on this morning. ylan mui has more. good morning >> reporter: that meeting is just about readyy to getlp und way here at the field museum chicago. it is going to start with a moment of silence for thei] victims of the lione1 air and and then ceo dennis muilenburg will talk to shareholders, the public, when it comes to safety there are no competing priorities and that they will

getting those planes certified he's also going to give a status check on the updated mcas software that have been completed, 246e1 hours of air time with that updated software and 90% of operators have been through simulator sessions now that gets to one-of the outstanding questions here, which is what kind of training will pilots need in order to fly with this new system reporting over the weekend that some pilots want more in depth simulator training, but that will push back the timing to getting the planes in the area >> for that, we'll come back to jim what are you going to handl >> we have 3m. i think mr. roman has a lot to explain. he's new on the job and a lot of things that are -- they have to address are reallyx legacy.

so let's give him at(chance >> all right, quite a story last week all right, gedafzuz rest. >> you too. >> "mad jmoney" 6:00 p.m. eastn time when we come back, two big interviews, david has mak makan delrahim and goldman's david solomon,5 don't miss either of those dow down 5

♪ good monday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen. this hour, david will." sit do with makan delrahim and goldman sachs ceo david solomon. don't miss either of those sit-downs. in the çóeantime, a quick check on where the major averages record high on the s&p 500 above that 2941 level. and just a little change on top with the dow down about a point. >> thate1 open music was c.j. f the hour the road map starts with boeing. reportedly failing to tell

airlines it shut off the safety feature onsq 737 max shareholders. >> the s&p 500 and the nasdaq, new recorde highs >> a big week for investors gets under way.e earningings and thee1 fed bothun focus, 150 s&p 500 companiese t to report including alphabet zv tonight. >> we're going to start with boeing the annual meeting is getting under way about now as the journal says today the company did not tell southwest airlines its biggest e 737 max cut that a safety feature designed to warn pilots about a malfunctioning sensor had been deactivated in a statement to cnbc,w3 southwest says boeing told the airline the feature was turned off only after the lion air crash in indonesia and would require the purchase of an additional package to work bos)hg tells cnbc in a statement the warning lights will be included as a standard feature on the 737 max ylan mui is live for us in chicago and joins us this morning with the latest.otm

>> reporter: hi,jcarl meeting to start on a somber note with a moment of silence for the victims of both that ethiopian air crash as well as and we are expecting also for ceo dennis muilenburg to tell shareholders we have been telling the public all along, when it comes to safety, there are no competinge priorities at the company and also that they have been making steady progress k]ards certification he's going to provide updatedq numbers on the mcas softwarej d the training that has gone into that, testing that has gone e[u that, 146 test flights have been done so far. 246 hours of air time with that updatedéxoftware. 90% of the max operators had been through thef simulator sessions there is still somee1 questions from pilots over the amount of training they need to receive on this new ó[system, some pilots saying they wantn1 in depth simulator training, but that

when these planes go back in the air. both southwest and american airlines expect to start flying these planes again by the end of august but a lot of analysts are skeptical of that time frame and 1 bl september, perhaps even later, before we see these planes ini] flight again dennis muilenburg will face his leadership from shareholders, a proposal that would prevent him from serving as bothi] chairman and ceo. boeing says that's not necessary because they already have ane independent director of the board. 0we'll hear directly from muilenburg when he speaks to reporters at a press conference after the meeting is over. we expect him to face some tougw company notified southwest and other carriers that that safety feature had beene e1deactivated that you mentioned we'll see how they respond when he faces those questqáh @rt&hác directly back to you.

this morning. >>x sure. >> you're pretty bullish,e >> they deeply regret, and they're working to get it right. butlp they're close. they have nearly 100 test flights, working to get the system right and they're going to face shareholders today, rightly so because stock is down and this happened under his xdatch but we're looking to the future and the future will be fine as long as they get this right. >> but the latest information is troubling on that front. newé@ warnings that allegedly boeing wasn't thñ straightforward with regulators and with airlines about the safety

there should be strong scrutiny from the faa and other authorities. that goes to when the plane come backs into service, it has customers feeling more confident because there is more regulatory scrutiny rather than less. i think that's a good thing. in terms of the wall street journal article to the term that southwest didn't know, it would be more like an oversight or mistake rather than intentional misle misleading how can you sell an upgrade package if you haven't informed your customer that the product isn't even in there? >> whether it is intentional or an oversight, i mean, what happens to the relationship between southwest and boeing can you envision a scenario where they even start to hedge their bets with a competing manufacturer >> i think to the extent that conversations are being had by southwest, by other airlines around the world, what they're looking for is to get some kind of financial concessions from boeing, get the plane cheaper. i think they will.

i don't think southwest, who has flown the 737 for its entire history is looking to go and take on a different model type now. i think they're rightly so unhappy with the lack of information, but nothing happened under southwest and the plane is in the upgrade package now for everyone. >> how do you factor in consumer attitudes toward boeing now and some of the uphill climb they're going to have to do, boeing and the airlines to win back consumer trust >> that's why it is so crucial that the company get it right. this is their last chance to get customers back on board, passengers back on board once the plane starts flying, with the way that the industry is, particularly in the u.s., customers don't have a lot of choices. if united is flying a 737 to miami and you're going to miami, you're flying on the 737 max you don't have a lot of choices, even though united said they're going to work to accommodate customers that are afraid. what they're going to do is they're going to pound the table and say these planes are safe. i believe they will be safe.

in terms of getting passengers confidence, it will take a little bit of time but passengers don't have a lot of choices >> how safe is muilenburg's tenure >> i think it is safe now as long as they reintroduce this plane properly no further safety incidents, no further news that comes out that there was any kind of intentional cover-up or something criminal going on. i think that his tenure is safe. i would love to see an independent chairman of the board. i think that's better corporate governance but i don't think it will change anytime soon. >> do you think the independent chair is a likelihood? >> no, i don't think it is likely i just think it would be a better corporate governance structure. there are number of members that can stair up to the chairman >> what do you expect to hear from the company as far as trying to put a number or characterize the legal costs that are facing this company >> i doubt very much they will

quantify it. they didn't quantify it at all last week. i don't think anything new has happened between now and then. it is going to be very substantial number but boeing, i don't think, will quantify it. >> finally, jim, if we manage to clear out uncertainty over the max, where does that leave the company, its valuation, its future expectations relative to the macro, to global growth and specifically to china trade? >> yeah. certainly, i mean, outlook for commercial aerospace is bright boeing is going to be the number one or number two player in that space. we think they're going to capture more than 50% of all future orders. demand for planes is going to double over the next -- and boeing will get their fair share of that. as long as they get the reintroduction of the 737 max right, restore faith with customers and passengers, they're going to do very well over the next 20 years. >> if it gives us a date of september, looks look a time where we get these planes in the air once again, how long until

the supply chain evens out again? >> i think it is going to be sometime when you reduce the supply chain, you reduce the production by 1e0 planes a month, you can' go up from 42 to 52 again. it will be until next year until we see full production >> dennis muilenburg as he takes the lectern, expect some opening statements of some kind, we're going to obviously monitor the meeting today, bring you the highlights as best we can. jim, thanks very much. jim corridor joining us from cfra when we come back, dell world is kicking off in las vegas. we'll take you there live as john ford talks to michael dell. hear what he has to sane aboy a china and trade. and makan delrahim and david solomon, don't miss those interviews dow is flat, a huge show ahead n'gowauawk on the street." dot ay.

a new market record, s&p t hitting an all time intraday high today investors watching key events this week. the fed rate decision, crucial macro data and the busiest week of earnings including alphabet and apple. joining us here post nine now, shawn matthews, chief investment officer and founder of hondy capital management and keith lerner, gentlemen, good morning. is the bar now higher going into this week of earnings because of what we have seen so far has been pretty good

>> i think expectations coming into this quarter are relatively low. we saw analysts cut back estimates quite a bit in the fourth quarter and into the first quarter. now we're seeing estimates start to rise. the bar gets higher. i expect some consolidation in the market, but overall the earnings is still relatively positive. >> if someone asked you is it too late to get in on the record rally, hitting records after records, what do you say >> i think it is about time frame. i would say at the end of december we came out and said the risk reward was very favorable. short-term, more mixed however, i would say this, if you look at the next 12 months, we still think this upside, and interesting stat, if historically when you've been up the first four months of the year, that's happened 16 times, 15 times we have been up the rest of the year so strength is actually typically a positive, not a negative. >> what keeps traders from bringing the register midyear here take it and run. >> sell in may and go away i think you'll have some of that

happen this year it has been a great first quarter for risk assets. certainly as we look into the second half the year and into next year, there are a lot of head winds out there political issues that are out there. revenue growth hasn't been particularly great earnings growth has been great but one thing you can't change is revenue so you really have to start looking at revenue growth as the key to this market people are looking at eps as the barometer, but going forward, you have to start concentrating on revenue growth. >> we should say, you've been warning, you've been on the bearish side for a while and you're opening this new credit fund and expecting some real issues. >> yeah. i think there is issues in the marketplace and credit we look at the credit as now cyclical, right? posted a business cycle that used to be out there, we now have credit cycles and bubbles that materialize and certainly if you look in the credit space, there are -- there is a couple of trading dollars that has to roll in the corporate space that is significant. we think yields perform great first quarter of this year

it is challenging the second half >> in terms of risks, right, let's assume inflation is really truly not a problem and not going to surprise us is it disappointment on trade? is it dollar strength? right? is it some other policy mistake? is it just election noise, something else >> i think it is a combination of all three we expect to see some bumps along the way. where i may differ a little bit is that we actually think there is an inflexion point in the global growth. we don't expect a robust recovery, but we still think china's pmi had the best bump in seven years last month we also think the u.s. economy is on solid footing, so if you have the two largest economies doing fine, that's enough to go ahead and have -- see some revenue growth to support earnings in the back half. >> there is also the fed, shawn. the market, the fed has the market's back, that's been a powerful force for this market and some of the problems that you talk about, potential blowups in the bond market and issues with financing, couldn't

the fed kick that way down the road by saying they're not going to move this year. >> they push into next year. so that's clearly happened and most of the central banks now are getting more accommodative. but you still have the same role risk you have. so it is out there the fed has been behind the back of the market for a while now. if we look at global opportunities for them to continue to be aggressive on the -- on the accommodative side, there is not that many chances. the u.s. has the ability to lower rates, germany can't do that they're pushing on the strength a little bit and i think in 2021, people maybe start talking about stagflation. there are issues not moving its way through the system because i think the numbers are actually calculated wrong and looking at, you know, a portfolio of, you know, goods and services that people used to buy 30 years ago as opposed to today. >> personal incomes rose close to .1% >> there is wage pressure at the

bottom end there is asset -- asset bubble at the top end the middle class is getting squeezed if there is wage pressure at the bottom end, it will work its way through the system. >> i wonder, do traders think, all right, powell pivoted in december, smart guy, listens well, or he's got pushed around, he's weak. >> i think he was looking at the data the fed pivot had a big impact on the market. that's why you saw the reflation back up. the risk reward is more balanced here, rates have come down at 2.5. the risk premium is filling the bucket where you tend to see positive returns when you look out 12 months. i think expectations should come down from the huge rally, which is natural all and all, a good relative bet at this point. >> are there any pockets in the market, sectors perhaps, that are more vulnerable than others to earnings? i'm thinking 3m, such a big disappointment, and led some to wonder about industrials or those with china exposure. where would you be conscious

around earnings? >> i say now you have to look more micro even with industrials, we like the aerospace and defense. a lot of news around the boeing put a cloud over that. but underneath, good earnings. the gdp report on friday showed defense spending improving whether you're positive on the economy or not, that's a secular story still in tact. >> thank you very much >> thank you let's get to jon fortt in las vegas today. after talking with dell himself. good morning, jon. >> good morning. this is where michael dell and the rest of his team cast vision about the enterprise, the cloud, not just dell, dell emc, vm ware and other parts of the conglomerate i talked to him about china trade, how that's affecting the business and how he's prepared for a deal or no deal as chinese officials are going to be due in washington in a week and a half to see if they can button up the

negotiations here's what he said. >> we have a flexible supply chain and have been able to work around the tariffs that have been implemented so far. and certainly we're prepared for all eventualities, you know, as it relates to that we're certainly hopeful that there will be a deal here relatively soon. and, you know, we have been able to adjust our supply chain accordingly. >> what does a deal have to have, do you think >> you know, i think -- i think the deal will be essentially a framework for how the u.s. and china will adjudicate challenges over the coming decade and beyond and so i wouldn't expect that the deal will be, you know, a complete resolution of all matters. i think it will be a framework for how the two countries can, you know, work together in trade

and in a constructive way. >> when it comes to intellectual property, ip protection, any specifics you need to see there? >> we have been clear in our guidance and feedback to, you know, investor lighthizer and the government. >> can you share any of that >> i prefer not to >> the negotiator is not the only one holding this close to their vest it seems like. i got a lot more coming up on "squawk alley" about thinks thoughts on founder control and some ipos we're due to see later this year, the next wave of enterprise tech consolidation, more from him, and pat gelsinger. >> i wonder what you're picking up on the environment for enterprise spending right now, in general and capex patterns especially after that weak intel report and whether that highlighted any concerns dell, i would think, would have a good feel for that spending.

>> yeah. i talked to him and pat gelsinger about that and the sense was that enterprise spending due to be strong and analysts said that too, the oem business is not as weak as intel's business and their outlook seemed to be amd reflected that a bit too pat said he expects for enterprise tech spending to be outstripping gdp still for the foreseeable future, sara. >> all right, jon, look forward to more michael dell from you in the next hour on "squawk alley ." another big week for earnings, 150 s&p 500 companies set to report later on "closing bell," earnings from alphabet, mgm, many more and will we see another record close just saw intraday high on the s&p. more "squawk on the street" when we come back there are people in the investment industry

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cfa charterholders have proven themselves by passing one of the most rigorous exams in the world. demand the best. demand a cfa charterholder. cfa institute. let's measure up. time for our etf spotlight mike santoli on the floor, looking at disney, hitting an all time high earlier this

morning. >> we have an etf that captures both names, old and new media in the xlc, the communications services, spider etf, this came into being last year, last summer in advance of the overall s&p 500 index rejiggering. taking the likes of netflix, alphabet, facebook out of technology and bringing mediaing tos like disney into the xlc from consumer discretionary. you see the big comeback, a round trip since the inception last june. look at the xlk where most of the market cap came out of it has still outperformed, that's the old software names, apple and semiconductors kept technology ahead one thing about the xlc with regard to disney and the great run it had, it is only at last

report about 6% of the xlc that should be going higher because the market cap of disney now is so vastly increased, not just because the stock has gone vertical, but a bunch of new shares to acquire the fox assets right now disney is about 60% of facebook's market cap, but only has a third of the waiting in the xlc. maybe look for some of the rebalance activity to make it look a little more like media. right now, google and facebook are together 44% of the xlc. >> and you think disney is still riding the streaming announcement or is it avengers? what do you hear >> i think it is the streaming announcement and the way this very kind of daunting studio release slate is getting people to believe that the original content side of that streaming story is kind of a lock. also, a lot of pent-up buying in this stock and went sideways for five years and then it became a momentum name almost overnight. >> mike santoli, see you later, thank you. up next, david sitting down

with doj antitrust chief makan delrahim and david solomon quk t see wl "sawonhetrt"ilbe right back

good morning, everyone i'm sue herera here is your cnbc news update at this hour. afghanistan's president opening a grand council of more than 3,000 prominent afghans, seeking to agree on a common approach to peace talks with the taliban the meeting is an effort to influence the ongoing direct peace talks between the u.s. and the taliban in qatar sri lanka banned women from wearing face veils under an

emergency law put in place following the deadly easter attacks. it says the measures will help security forces identify people as a hunt for any remaining attackers continues. mozambique says the death toll from a cyclone has risen to 38 power was cut as heavy rains cause the more flooding and threatened to cut residents off from the outside world some 160,000 people have been affected and back here at home, a dash cam captured the moment that a crane fell in seattle, killing four people. pieces of the falling crane fell on to several cars below an investigation into the cause of that collapse has been opened you're up to date. that's the news update this hour back over to you guys. david? >> okay. sue, thank you very much well, we're here at the mokan institute, big meeting in los angeles, mack angeles, makan delrahim joins me at the global conference in your hometown >> this is

it is nice to be back in l.a. >> nice to come home i want to start off with what is arguably the largest single certainly from our vantage point case before you, if you can call it that, sprint and t-mobile couple of weeks ago, the wall street journal reported your staff is at least -- has some resistance, that was the word they used, to the deal, at least without structural remedies. is that true >> i can't comment on a pending merger but, you know, suffice it to say our regular process allows for the staff to communicate to the parties if there are particular issues, additional data or economic support we need and i think that was probably what was being reflected in some of the reporting that went on, but we will see the investigation is ongoing and we have had meetings with the parties and it will continue >> yeah, how many more meetings? they have been quite active. and obviously your role here is a very important one, in addition to the stats. have you made up your mind yet

in. >> i have not made up my mind. the investigation continues. we have requested some data from the companies that will be forth coming we don't have a set number of meetings or necessarily a timeline we have a timing agreement with the parties. which they can't close the transaction sooner than a certain period of time but as i've said, i've been very open and transparent with merginging parties that we would be open to meeting as long as there is a need to meet and we'll continue to do so. >> interesting transaction in terms of some of the ways that they are portraying it, the idea of market 4 going to 3, some say that's a red flag for antitrust. they're also making strong argument on the national security grounds for the deal. the advent of 5g, that, in fact, their combination separately capital starved together have the ability to really bring 5g

in a way that verizon and at&t don't. does that resonate at all with you and the staff? is that an argument from the antitrust point of view or does that not -- is that not part of the argument you'll be consid considering? >> sometimes those factors do figure into our consideration. so where it is important is when they raise efficiency arguments. when a merger creates efficiencies, good for the consumer, we factor those in, but there are strict guidelines about those. the efficiencies that a merger provides needs to be merger specific you can get these benefits from it they also need to be verifiable. they can't be pies in the sky. and it has to be an important element. as far as the number of 4 to 3, the more competitiitors in any market, you have more competition. there is no magical number in any particular market. you don't have barriers to entry for new competitors to come in, and restrain prices, it could be

one competitor that could be fine and these types of industries that are regulated, you can't just go out and put up sell sites, all around. so there say barrier and entry, regulatory barrier and entry and those are factors we consider. there is no magical number, no 3, 4, 5, 2, it is what the facts and the economic evidence show us. >> and so what is your sense in terms of that, in terms of what will happen to pricing this is the most important bill that every american pays each month. and there are those who argue that price competition will come to an end as a result of the -- of three large competitors as opposed to sort of an insurgent in the form of t-mobile and sprint. >> so those are exact lit types of issues that we're investig e investigating. will there be a price effect will there be an increase in the ultimately the price of the consumers for the cell phone bills, as well as their broadband. with the advent of the innovations that is happening

with 5g and other technologies you know, you're going to be able to use that phone for more than just communicating with your best friend or texting. you're getting your media, you're getting video and we want to be sure to encourage that but the ultimately is there going to be a price effect when those two combine? there is the other theory, you have the combination and there is few competitors, will there be what is called coordinated effects between them, meaning you won't have the same incentive to compete with the other players because it is in their best interest to not compete, to not compete on prices and so those are the factors and there is strict guidelines that we follow, based on case law handed to us and we are continuing to investigate that >> so if the staff comes to you and says, we think that is going to be the case, consumers will suffer as a result of this, do you just go along with it? >> well, i mean, part of my job, one of the great privileges of

being appointed by the president and confirmed by the senate is to be able to make a judgment there. now, a lot of times we're all one team the antitrust division i don't view myself as the judge sitting there between a staff and merging parties. we will make a decision, collectively my job is to make sure the analysis is done properly. make sure that the facts are there. and if we're going to challenge a case in court, that we are looking at all the evidence properly and meets the legal guidelines, and, you know, if the case is there for us to challenge a transaction or suggest changes, we will do that >> right back to this national security question i don't feel like you answered does national security play a role in the decision you're making because they're making this argument that -- and, by the way, the president said it and many of his advisers as well, 5g is the next battle front with china, for example we need to be ahead in 5g. these two companies have seized

en that theme, it would seem, to say you need us to be together in order to be able to fight that fight. >> that's certainly an argument, the parties have made. the issue is do you need this merger to happen for 5g to develop? or is this something that it would develop regardless of this merger and that is what we call, you know, one of the efficiency arguments that the party would raise. it is not so much a -- creating a national champion to beat out a foreign country. that's not something that necessarily factors into our decision but is that an efficiency that the innovation will provide for the benefit of the consumers that dynamic competition that they could bring with 5g is something that certainly factors into our decision. >> there is also the possibility here that even if you were at the doj to approve this transaction there are a number of state ags that may still have objections do you work with those state ags prior to making your decision? and what do you think is the

likelihood that perhaps a number of states could get together and still try to block the transaction. >> i don't know. but we do, you know, i don't know as far as what is the likelihood they're an independent law enforcement authorities in each of those states some phenomenal antitrust lawyers and enforcers and many of these states. we work closely with them. so we have what are called confidentiality agreements and common interest agreements in place that is routine in every merger transaction where specific states have an interest in a transaction and this is a merger we have worked closely with the states ultimately they could make a different decision you might recall the american express case, the justice department prosecuted through the district court and the court of appeals was later appealed to the supreme court not by the justice department, but by the state of ohio and a group of other state ags which went up to the supreme court. they make independent decisions from us and, of course, the federal communications commission is also reviewing

this transaction because they'll have to approve the licensed transfers as part of that. we all work closely together. >> right and, again, back to timing, the two parties to the extent that they have been sharing anything seem to indicate june is sort of where they're working with as a timeline to have an understanding or actual fact as to whether the doj is supported or not is that support of a timeline you're working with as well here >> we work with the parties to make sure that the evidence that we need to make a decision is there. and -- but there is no specific timeline >> your sense it could be june >> it could possibly be that it could possibly be the fcc has this 180 day shot clock they can stop and continue if you look at that timing, wha has been reported is that that will be sometime in the june range. but, look, if the parties and we continue to work out, you know, if there is a solution, that time could continue on because we don't have it -- a specific deadline by which to work on.

>> your meetings with them continue or the prospect of further meetings with management continue >> it could. if there is a need for that, we're not preclosed to not meet i ing with them. >> judge leon -- >> he's a friend and a good man. >> the judge in the original at&t time warner case that you brought. he's doing some strange things with cvs and aetna is there -- what is he doing there? >> that's a merger as you -- >> a merger that is done that has been approved that has actually occurred and closed and yet he continues to hear arguments or -- >> we challenged a portion of that merger and we required divestiture of 1.5 million lives to be insured, sold to well care i believe that portion of that divestiture has also been closed the judge has a role to -- under a law called the tunney act, to review our decisions, to make

sure that that portion of the challenge has been settled and what is called in the public interest and there is specific guidelines we're before the judge and it is a -- you know, it is unprecedented but certainly the judge has a role to review our judgments. >> but it is unprecedented. >> it is unprecedented. >> nothing like this has ever happened there is the possibility that he could try to undo the deal. >> what is interesting is in preparation for this, one of my predecessors, ann bingaman, head of the antitrust division, we named an auditorium at the antitrust division after her, first woman -- >> i saw your speech. >> thank you for that. and she has -- she had argued in the microsoft case with judge sorkin who challenged a settlement and tried to look into that, i was actually working for judge buckley on the court of appeals at the time, the great privilege on that particular case when it was appealed to the d.c. circuit and it raised certain issues about what the role and the limits of

the tunney act are and we'll see what happens in this case. we're complying with the judge's order. we just made some filings last week and i think he's going to have a hearing sometime in may. and we look forward to that. >> well, mr. delrahim, always a pleasure to get some time with you. sorry we don't have more to talk about some of the larger issues you and i discussed in the past, including right here a year ago. but we look forward to future appearances. thank you. >> thank you for having me. >> of course makan delrahim carl, back to you. >> david, thanks coming up next, another big interview from david at the instute obitglal conference. david solomon. don't go anywhere. dow is up 14 so servicenow put your workflows in the cloud, huh? mm-hm.

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welcome back to "squawk on the street" live from the global conference here in los angeles goldman sachs chairman david solomon joins me right now at the global conference. nice to see you. >> great to see you. >> an annual sit-down for us here always happy to do it more often. in preparation, i reread a number of your transcripts from last two earnings calls and it struck me how much change you're bringing to this organization. and so many different ways do you feel like your investor base fully appreciates the change that goldman sachs is going through? >> well, it is something we're spending a lot of time talking about and thinking about and working hard to communicate with investors as to how we would like the firm to evolve. i would say we are working on a lot. i think it is natural as a new ceo, we really come in, we take a hard look at all the businesses, reunderwrite the plans and also look for natural

areas to grow, expand and move the franchise forward. and so we're working away at all that stuff, making a lot of progress one thing i've been very focused on is how i can approve the transparency we have with the investing community around goldman sachs. i say when i look back on our evolutionsachs when i've looked back since the ipo that's been a slower process for us we've changed our presentation format probably noticed i was on the last two earnings calls. >> i have. >> which was new and different we have a pretty formal plan to continue to provide more information as we roll forward, and we're in a place to better articulate the continued evolution of our plan. things are going well. and i feel good about what we're finding and the energy in the organization to continue to focus on our clients and evolve our franchise. >> specific to transparency you've talked about performance targets that you will at some point provide. >> yes >> any update in terms of when you see that

is that something this year your investor base will get ahold of? >> we have said publicly we're committed to putting out performance targets this year, and as we move forward we'll add to that and evolve to that we're committed to performance targets during the course of the year >> what is a multitiered digital wealth platform look like? >> we've talked a lot about our view starting with a white piece of paper we could build a digital platform to serve consumers around their financial needs broadly and so if you think about the way most of us deal with our financial affairs, still pretty analog, still relatively silo'd but can you use it in an integrated way so people can save, spend, deal with insurance and protection issues, invest when you think about our asset management business and the access to products and services we have, we're looking to build something in a very integrated way with help with financial wellness and that's a vision

we've begun to articulate. we're encouraged by the feedback to the initial products and services on our market platforms. >> what has that feedback been like by the way, for all the years that i've covered this company to hear a ceo talking in that way, it's kind of bizarre, i have to tell you >> i think you have to step back the world has changed a lot over the last decade and we're looking at things through the lens of who are our clients and what are the opportunities for us to use our franchise to help a variety of different clients at a high level we've dealt with corporations >> institutional client base >> corporations and governments. we've also dealt with institutions and we've had some businesses with individuals. we've had a very high-end wealth management business for very, very affluent people around the world. we also sell some mutual product, mutual fund products, third party distributors but if you think about the brand and the way the regulatory environment has changed who we are, it makes sense for us to

have direct relationships with consumers. the most important thing was to start to develop a deposit base and digitally, it's been going quite well if you start with a digital deposit platform we say how can you use that platform to potentially bring in an integrated way other products and services to these customers. >> to the extent, david, you're going after a consumer in the way you hadn't in the past or a smaller enterprise value company, $2 billion now you're looking at or even below in terms of hiring people, does it change the perception or the brand from your typical corporate/institutional client >> i think the important thing for us to do is to think about how we serve our clients across the spectrum, and if we do it in a way we're really adding value, have good people who are making a difference we have good technology. we link those things together. and at the end of the day we're providing a very valuable service, it'll be differentiated i think the brand can remain very strong.

obviously we're thinking a lot about the fact that being in these businesses with consumers is different, new for us we're going to go very slow in a very thoughtful way. we don't have to be a huge market share player. we can have nice businesses where we're adding value and grow slowly and we're building something for the long term. >> do you feel you have the metrics by which you want to judge whether you're making the progress that will amount to something meaningful >> sure. i think we have the metrics in place and we're building the metrics to make sure we do if you look at the history of the firm and the way the firm has grown over time, we started in the 1980s building an asset management business from scratch. sure, we've done some inorganic add-ons but built organically at very large platform, and we think we're good, patient, long-term builders of businesses we think we're good at marrying people and technology, and we believe that we can really build some interesting and differentiated -- >> something that good people's attention was apple's

announcement over credit card with you we don't have a lot of details there other than this word disruptive was used a number of times. will it really be disruptive >> there was an opportunity that i think apple saw and we saw to redesign certain aspects of the credit card. we can't talk more than we've talked about it because it's not yet formally launched. coming soon. >> what is soon, a couple months >> a few months. coming soon. we'll talk more about it but we're trying again -- and it's the same thing we're talking about markets, less friction for consumers, no fees. what can we do to have lower overall rates, cash back instantly, more flexibility, and so it was an opportunity because we don't have any legacy platform to really think creatively and think how can we make changes at the margin good for consumers as we develop the platform with all this stuff, david, what i say is none of this is going to fundamentally change goldman sachs, who we are, how we're making money in the short term we think we can build successful

platforms that over time will make a meaningful contribution for our business, our franchise, and we'll be value added for our shareholders >> you've said this, quote, the available wallet for large institutions has materially declined over the last few years. >> it has. that was our business. and i think back and i said this publicly on the earnings call, the firm had $36 billion of revenue last year. five years ago someone said, hey, your ics franchise would be $6 billion, we would have said, kind of hard to see. the reality is that wallet has shrunk and it's shrunk for everybody. we've gained market share. >> you gained market share >> in a shrinking market we've also built around other businesses we've grown our asset management business, expanded our banking footprint and banking business

we've continued to grow our investing platforms. i think we've done a good job, you know, slowly over the last decade, rebalancing our business but there's more to do >> you've spent, what, about $1.1 billion in your consumer efforts, at least that was from the last call. what's the number going to look like when we start to really look at them meaningfully contributing to earnings >> there's an opportunity for this to be a significant business over the course of the next five years, significant in the scale of goldman sachs, not when you look -- >> you talk about trillions of deposits you don't need to get a lot it have for it to add up. >> we're very pleased with the progress we're making on our digital deposit platform it's grown nicely and continues to grow quite well >> 1mdb. we had to talk about that. i think it was on the 16th of january, again, you were on the call which is a bit different, you said there are always important lessons to be learned from difficult situations. so here we are five months later, any lessons learned >> well, we're spending a lot of

time being reflective and really thinking about how it was that we wound up having somebody we hired at the firm and promoted at the firm, became a partner of the firm, turned out to be a criminal i think that's something that's worth really thinking about. we own that. that's on us as far as 1mdb more generally, we're working hard to get it behind us. there's not a lot more i can say. i'd like to say more about it. we're working as diligently to put it behind and stay focused on our clients and business. >> beyond making sure you're not hiring people who conceivably become felons, what about the risk management side which, of course, you've always been lauded for but some wonder, come on, 10% on a government bond, shouldn't that have raised more concern in the institution >> we've spent a lot of time talking about this we committed a significant amount of capital and a part of the world where the distribution process isn't clean and simple in those transactions, one was

sold quickly, one took a year to distribute the risks are real if you look at other transactions and other developed economies where you're committing sizable capital, the risk premium then structuring, rating and distributing the paper, this was not out of the ordinary >> it wasn't necessarily something that should have been immediately sort of tagged >> there were big transactions and an enormous amount of scrutiny around the transactions look when you look at the fraud it went on a long time before we raised money and after and we and others were fooled by the government and others that were involved and perpetrated the fraud. >> we usually spend most of the time talking about the markets we can't do that anymore you're ceo now you indicated things seem to be picking up to the end of the first quarter. has that still been the case in april? >> i think april has been more

constructive the u.s. economy is doing well china has responded bettory stimulus i was in china and spent a little bit of time there europe and japan are lagging a little bit the global economy is moving along well >> what about client activity? >> it's been better. after the fourth quarter speedbump and with the government shutdown we had a very slow start to the year. we saw pickup particularly in march, and activity has been more constructive in april particularly capital markets activity you see ipo activity and that's start to go gain some momentum i would say more constructive, better, more constructive. >> got it. we'll leave it there thank you. >> it was great to see you, david. >> david solomon the chairman and ceo of goldman sachs back to you. >> david, thank you very much. good morning, everybody. it's 10:00 a.m. at boeing headquarters in chicago.