a final check of the markets today. dow is only down by 4 points we'll see what happens a lot you better stick around for "squawk on the street" as you get to the opening bell. anything can happenfor the trade situation. that does it for us today. make sure you join us tomorrow right now it is time for "squawk on the street. ♪ welcome to "squawk on the street," i am carl quintanilla with jim cramer and david faber. futures as you can see going back and forth between the red and the dpregreen after the dow worst day in four months we get more how china backtracks on talks the president tweeted a few moments ago. the reason china pulled back negotiating of the sincere hope that they'll be able to

negotiate with biden or one of the very weak democrats. china informed us a vice premier will come to the u.s. to make a deal we'll see. futures on a net bases reacted positively to that >> yeah, they're coming to make a deal even though it is not xi so new information at the same time i mean, the amount of posturing, i don't want to fall victim as a member of the press to this minute by minute am snalysis of tweets. this is a tweet that you put out when the dow is out. you put the tweet out because some of the stocks matter and the dow will wrap. if anyone think it is a gross situation or not a serious case of what's happening at the white house, they have not made enough

calls. this is about getting the dow up a little bit but also pressuring them >> find balance. >> my friends -- if i said they were stocks, yeah. >> how long can he keep doing that >> how about 12:01 on friday morning? >> right >> who's the governor in this case to call short and stop it >> you are looking at him. that's it. >> well, what do you think >> like you say, how were you supposed to know you can do your best and rely reporting and do your own phone call and try to get a sense and talk to some of the people involved it is difficult to know. chinese apparently were neg quite a bit. >> they picked on 150 pages. >> particularly they seemed to

reluctant to changes and law >> what are they willing to now offer with the prospect of tariffs going to play a couple of days from now i don't know, jim. >> i am glad it is something you are not supposed to do you said you didn't know >> i think we are in a world we don't know i like to come up with answer and never liked the punch. >> any caller we get now is suspect. a few days ago thinking the deal was possible in 48 hours so if we are gullible enough to buy that what are we supposed to do with any of these >> i don't know. i had the good pleasure t to -- one of the most powerful speeches and he talked about ohamel used to put out fake news and give it to washington. trying to fool washington. it is not new in our country but

it sure confuses people. >> reuters citing multiple sources on a number of things they backtrack on in all seven chapters of this deal. ip theft and even currency manipulation the president is prepared to take a hard line going into 2020 he sees this as a political play that makes him look good and tough. this argument now you can try to run out the clock and face the democrats of january of 2021 >> we always share about the chinese having a 200 year plan i look at that export number that they had yesterday. i don't know if they got 200 hours plan we say listen, forget that they are very much -- >> go back on stalling, he's really powerful. >> it took quite a while

>> the 100 year plan you don't think much about that? >> the chinese have done a pretty good job following the plan since xi jinping. >> they cut the tile at 45 >> they taken 700 million people out of dire property they have done okay. >> i don't care, tell me what they have done for me lately listen, i don't want to get into a big debate here. the president does say -- i am in it for a little bit more. i think the press is saying they got 20 guys over there maybe it is a broker convention for democrats. >> all right, jamie dimon, who

says it is going to get a little sticky in the next several weeks. it is in neither interests, takes months >> how about we are close to a deal so i am going to give it another six weeks. here is five things they renege on it. >> what do you do if you are an investor right now >> i soul search on this for like since 2:30. i want to come on air, it went down a lot, i can't recommend buy or sell. >> so just do nothing. >> tomorrow on twitter, i am going to consider someone that does not have a pulse and brain dead and 50 over 20. sometimes i think you have to say to yourself, this is a dicey moment, had i said at 8:53 that trump was dpoigoing to give in,e

may be fool. >> given yesterday's action, days of 83 down of volume. maybe signs of short term bottoming. >> that's why i don't want to sell anymore to buy some weakness today maybe right. to sell seems too p-- of what w had. >> it is a difficult call. as we said before something nobody has and you can't look to analysts on this >> what happens when james corbin gets involved it is going to make it so the buyers don't sell. they lock up all the people who just got stock in the last 48 hours. and he gains it correctly. people say you know what, the uber thing is done maybe the president is doing the right thing. and suddenly, well, what the

hell was cramer thinking on wednesday morning when he said sell uber can be very important the president tweets we are closer than we thought they looked like a fool. i don't want to be fooled. >> i am hearing on uber they're tighten up and not going higher. >> 44 to 50 so maybe they moved up 48 to 50. >> your information is what i have heard >> yeah. >> it is going around. >> someone was doing a story on tesla, i got to do more homework what >> homework? he's letting the facts get in the way of the story we are in enticing moment, fact do matter and even false facts

>> ride hailing and demanding better pay and we do have lyft's earnings or losses this morning. we'll get to that. take a look at the premarket here we'll see in volume is light given how much we do not know this moment. moresqwkn e re" om "ua othstetfr post 9 in a minute trust. transparency. expertise. these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it.

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two days from uber much anticipated debut. uber and lyft drivers are staging strikes in major city demanding better wages and working conditions lyft reported for the first time since going public, net loss of a little over $1.1 billion revenue did beat consensus of 95 >> there were things to like how about contribution mark was good the problem is this, it makes you feel like wait a second, how about all those drivers got stop

for uber okay, lyft was up when we got the numbers and it has come down it is very emotional stock now it seems to be not trading with whatever fundamentals because i think you would like the guidance >> of course, it is competition going on price and how they have to continual liloly lower price >> here you have improved margins and that's a positive for lyft and uber. >> at least that's you kno know -- guidance guidance was above >> yes, guidance is good >> 17% to 20%. >> that's in the end it is what today's sober thought is how about the amount of money that they lost and that's a lot

of money how much can they raise if they can afford to lose >> uber is slowing a lot faster than lyft. >> yes >> lyft is growing 37% >> it is a slow down >> no doubt. >> i mean it is interesting to see what the stock took a hit when the president tweeted maybe something is going around. if this stock is way beyond predicting the next few points this is beyond meat. >> it is beyond meat >> it wishes it was beyond meat. the greatest performer we had quite some time since going public >> when that peace, the s&p, that was s&p double top. i think this is kind of lik liklike like like - like -- s&p is 5.1

is beyond meat some sort of peak i know it is a $4 billion contract >> it is a very small flow so. >> it is crazy >> it is potentially crazy >> if you threw caution to the wind and chase beyond meat after the first day gain, you would be up 20% >> warren buffett is wrong with the index. if he added saying other than beyond meat. tyson food, they hate each other. again, this is a real rivalry, tyson food and these guys. this could be mission impossible to take on beyond meat if they choose to accept it, we know what happens. >> we are two days away from the

pricing of one of the biggest ipo of all time. coming at the end of what's going to certainly been a volatile week at the very least with a lot of uncertainty of what's going to become this week i am curious to see how it performs >> do you think they'll talk this morning >> you and i heard, they're going to tighten up towards the top of the ring at this point. >> you want people to know that every single hour today, you will be at a new read if you try to how the deal is being priced. we are getting from the morgan stanley people if they see anybody breaking this lock up ahead of time. what are they going to do? >> break their legs. >> taking a tour at browns >> it is as new culture at uber,

they don't break legs. >> no chance this gets delayed >> the uber deal >> i suggest one point yesterday and i got good information that may be i am challenged -- i am a challenged person. >> that's good, we'll keep that in mind. >> we'll get cramer's mad dash and count down to the opening bell another look at the premarket, after the president's tweet a moment ago, it narrows the sshat we expect to open. don't go away. drivers just wont put their phones down.

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here >> you got a mad dash going on here >> i got some order here it is hard to do my job sometimes. i am trying to be focused. qrvo, this is a company that's inspired cell phones they reported a great number last night people are not looking for it and they flex strong demand from huawei but some very good numbers from apple and samsung and no one was expecting this. people felt -- this is going to cause people if it were not the fact we were in the position honestly for everyone so concerned of china apple completed the grid of tweets this is a bullish sign and everyone is ignoring it as if it is qorvo

it should have been a broad read through where all these people do a check i am going to check on broadcom. i am going to check on sky works. david, this may be market share gains but verizon is talking a lot about the samsung folks. you are starting to get this there was a narrative if it was not for the trade talks, maybe cell phones are picking up that's what i want to leave you with because it will be amazing. >> we'll keep an eye on qorvo. >> speaking of telecom infrastructure, we'll go over ge details of that deal weot the opening bell a few minutes away, stay with us on "squawk on the street.

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the notice of the hike in tariffs is now in the u.s. federal register let's get to aemon javers on

that >> reporter: they're going to add a process here within these tariff increases by interested party to petition to have their particular product exempted from the tariffs increase which they say effective date will be may the 10th that's as expected that's what we expect to see as the u.s. trade representatives' office gets the process in place to hike tariffs on friday. it is about half an hour of the president tweeting vice premier, he will be coming to washington to make a deal he's happy of the tariffs in place as they are right now. he thinks the chinese are coming to town to make a deal rather than stalling or waiting for president biden or somebody else after 2020 we'll see where all this leads

we are told of no low level meetings today all meetings are scheduled tomorrow with he in town that makes thursday a very big day of the trade front >> it is a good set up for us, thank you. it does bring us to the notice of exclusion of process for companies that can claim -- >> talking about his earnings being wiped out. maybe this changes things. how about farmers? this is very big i know aemon says as usual but when i was listening to this yesterday, how polaris is going to get it destroyed. maybe that's the beginning of the exemption product. not that apple or boeing or caterpillar is going to get it some of these domestic companies are going to be hurt

>> politico has a nice piece today of companies scrambling, raising crease of their cost of the second half of the year. >> we talked about furniture makers >> i don't think they're the ones that's going to be at the top of the list. it costs a fortune to buy their stuff. it is important to recognize that you can be hardship i think it will be a lot of leeway >> more so than there has been >> yes >> everyone is talking about 17 and you know it is never like if we should do it gradual. >> if it is 25, it would be on everything >> everything. >> when you deal with the white house, one of the things that's interesting is they're belligerent about america. we gave these guys more than a year could they have not moved faster i am under armour later today,

13% to 7% by 2023? the president should be saying can you just pull it out can you just do everything in vietnam? it is not as easy as you think >> well, companies you can maybe forgive them for not moving because every headline were closed i have a great relationship with xi >> if you talk to dollar tr tree -- he would say we are dollar tree, we are taking action now dollar tree was a visioner >> it is funny, we always said it would take longer for the markets assumed when this began. it has been with january of 2018 when the first tariffs went into place, i believe the larger set >> the 232 >> over a year ago >> we are a long way down the road at this point >> it did not make sense

almost every single funky idea had said booiehind the scene. we have factories. the chinese company -- we do not have gigantic ports and we don't have the infrastructure to take it it is like the chinese -- let them have naple. >> gundlach was on our air yesterday. he says the market had not moved since 15 months. >> he's very bearish >> it is always interesting listening to gundlach? >> don't you think >> i find him refreshing he's not in there promoting his

book i am a statesman these days. can you believe it jefferson had not been on me >> let's get to the opening bell at the s&p 500 at the big board today celebrating ipo, the first technology, infrastructure company, parsonss and main street bank in northern virginia >> jim, i guess your advice is to just watch. >> yeah, i think so. i could not have been more negative a lot of people were critical of me this weekend and monday how can you be such a downer my job is not a downer and i want you to sell let me just' what's going to happen now you are selling kind of i give up and i quit and i am scared >> earnings who are about 82% into the season, almost done earnings are up two and reserve

new is up seven. >> all the economist friends, didn't they tell us it was all over didn't we get that >> yes >> all we were toll, hd, hey gu, it is over you can raise numbers. you have to search hard for companies you could not raise numbers for, alphabet? too busy cleaning up the privacy stuff. >> yeah, interesting appreheedi on privacy >> i read that, i thought okay, they're ahead now of facebook just in terms of where people are. privacy should not be a luxury good, kind of like louis vuiton

>> was this not at apple but premium products >> a lot of them hate each other out there. mark benioff -- there is the adobe and microsoft axis and then there is the benioff of everybody else alliance. alliance verses axis >> i am going to san francisco next week. i am going to play a game called diplomacy. >> trying to bring the war in fraction together? >> i said i came in peace and nobody listened. >> you have to do separate dinners? >> they hate each other.

>> we'll get disney tonight. >> yes >> after this film slate they released yesterday untitled projects being released all the way through december 2026 >> how about people preparing 2020 is a dud year did you read that? sometimes bob iger watches our show >> sometimes he does that. >> if i look over the slate, not that closely but it is a done. do you think it is respectable journalism >> no. >> okay, fine, i rest my case. you know the dow had been lower for five or six days >> we were down 500 points yesterday. well, i was saying 500 points. >> i traded 1987 it was 508 points, it was called a crash. here it was down 1 point, 7% and all of a sudden we had to cancel

everything and life as we know it was over. >> "avatar" sequel is coming >> are we really going to be scrutinizing how many people decided not to watch espn? >> well, we just know the court cutting is happening 544,000 fewer subscribers of direct tv in a quarter >> dish lost 200 something >> i want to know more about disney plus than espn negative >> that's a positive for disney. >> the movie slate, how many tin poles are there going to be. you know what to the critics, go watch the movie. see if you can get in. >> i do want guys to get to the

large leverage bio it has been out here for a bit >> they have announced 35 bucks a share, zayo group and infrastructure are the buyers and as i said it has been in the mark place and plenty of rumors about it i have not done any reporting on air. here we got the deal you can see the stock is reacting positively. 32% premium they are talking about at least over the 6-month average price where the stock is headed it did move up on some reports of beyond going potential options. digital colony that is been there. a year ago the stock was higher. when you throw in 14.3 total price, 5.9 billion in debt, equity value is close to

8.4 billion. it is a large buy out. we have talked frequently about all that dry powder that many of these funds have and they're will to put it to work or desire to put it to work here >> david, remember when we talked about worldcom? >> we looked at it and we are going to recommend it on "mad money money money," -- growth of cloud computing and impacting even them this is a sign that someone believes in the infrastructure building >> i remember when they went public times go by. it is four or five years ago at this point they went public and now they're going private. >> last mile over kkr. you look at the number of bytes and the our of streaming

>> it is never comcast, right? >> last question, last mile 5g always comes to mind and what it looks like >> how about desk star >> you still need a lot of back quality and fiber in the ground for 5g it is not like it is traveling long distances it is getting from point a into your home which is not that long of a distance but nonetheless could compete with those >> it is building 50 locations as you say -- it is worth following. >> walmart, the worst performance dow component. are we going to talk about the impact of tariffs and consumer products >> absolutely. we have been moving away from

china. it is still not over, we all have the same problem. i know that by 9:50 we'll hear from walmart some what on the background that we are ready so a lot of these guys say they are ready but who's going to eat it is it going to be you, me or china or the margins of walmart? >> 10% or 15% easy to imagine how it gets a portion. 25 is top not to pass. >> now "usa today" says $72 a person i don't think that's true. we are not going to play hardball with everybody. how many divisions china have? stalin said that >> you made that reference >> it was a great reference. >> i got it.

>> i like it i just think walmart got more power than target. >> semi is not lighting up the world. which would make it the worst year for semi revenue growth in a decade >> they are over rated with micron and d-ram and flash >> prices are coming down? >> the rest of them. you look at the average selling price of a semiconductor one week ago who was on mad money, suh, and it is up i think that's what we have to look to intel being a major gaining tag to becaugai gaining tag gai gaining factor because they have execution issue. >> you know what is up >> i think one day we'll be eating non-burgers on the back

of the seat of autonomous taxi >> beyond meat >> you tell me where beyond meat is and i am going to tell you where the s&p is i am not kidding s&p is down 4% this thing is it >> it controls >> i tried to explain it to you it is beyond meat and you don't seem to gather it. >> rod serlin is saying -- is he talking? what is he saying? >> thank you for remembering >> did you ever look at the diary that came out 50 years after? >> i heard it because you discussed it before, too >> we have been doing the show for a long time. >> the recipe for brain soup

that came out. >> gunpoint i got it the first . >> survival of the fittest >> on new issues, we did get rosenblatt today on pinterest. time spent on social media has been peaking 45 minutes a day for the last couple of years there are general these, in order to get engagement up, they have to take it with some of the more established >> pinterest valued much more than every other social media play a lot of that people feeling there is no issue of privacy they like the easy infrastructure i would say i would do that for instagram stories. it is much more expensive. you should be buying facebook

and selling pinterest. >> wendy's is hanging in chick-fil-a which is the third largest u.s. restaurant chain by sales after mcdonald's and starbucks. >> is that incredible? out of nowhere, number three proud of wendy's just continues to do great and not just -- the baconator two, the double platter. a lot of these guys are very good chick-fil-a would be worth a fortune but i am not not intere at all how is beyond meat >> it is still up. >> it is up more every time you mention it, it goes up. >> i looked into vegan yesterday, i got some beyond

meat, what should i do with it >> why it keeps ongoing higher? >> wow >> it is reminiscing of the dot-com place. >> is it >> it really is. >> what do you think beyond meat is like? >> cmg >> remember k-town >> tyson can put them out of business tomorrow by giving it away tyson was flat foot. it is almost impossible. it is impossible verses layaways >> you want to come now. >> you and i should file >> soil and green. >> i got soil and green all cued up >> it is people. >> that's deep track

>> we are hanging onto 28.80 let's get to bob pisani on the floor. >> happy wednesday everybody we briefly went positive on the dow. this is a good opening overall we got the chinese exports and iran issues scaling back some of its commitment i want to show you the futures see how we got smacked around by trade headlines. we had the big reuter story around 4:30 in the morning about china backtracking on nearly all aspects of the trade deal. that dropped the market the next hour or so and the president tweeted out, china informed us that the vice premier is dcoming to the u.s. to make a deal that was a big thing we are getting smacked around by every tweet and headlines in terms of how it affects the market we looked at trade as and stocks this morning slightly down, micron and qualcomm and best buy and deere,

slightly down. 3m is positive though. that's one of the reasons the dow is moving up sector is still a little weak. materials flat, and energy have gone positive. you see this is a much better open than we have yesterday. still a lot of uncertainty it is obvious. the mark is totally confused what does it mean? the front month future contract. the second one there, 18.50. that means traders -- think things would be crazy the next two weeks. it is very unusual often associated with market bottom they don't know what the outcome is going to be it is hard to gain what's going to happen with trade talks that's part of the issue is figuring out the outcome the three basic outcomes that everybody talks about.

one, you get the trade deal and everybody gets home and be happy and the second is no trade deal and no tariff increase and negotiations continue. and the third is no trade deal and tariffs increase and everybody goes home unhappy. ugh s you can see why everybody is confused and the vix future is all over the place big ipo today, parsons, this is a huge deal if it was not for uber in front of us. this is one of the biggest government contract in the world. these guys do everything $27 right in the middle. this is a $5 million deal obviously, uber is $8.5 million deal, keep an eye on this one. finally, i don't know what's in the water supply but everybody is asking me if it is possible uber could postpone the ipo?

i don't understand the logic of this it is certainly possible companies have cited in the past, market conditions decided to postpone for a few days or a week because the markets are bad. this is not a typical ipo or $75 milli $75 million biotech ipo. this is a high stake and if they try to postpone it, it is not going to perceive as oh the market is weak it would be perceived as weakness that would be a bad signal for everybody else i can't imagine a scenario of a complete melt down where they decide to do that. this deal looks like it will be a go right now we just went positive on the dow jones industrial. >> bob pisani, thank you let's get to rick santelli at the cme >> we are seeing global

sovereign melting away a little bit. you hear the noise in the background look at the two-day of two-year, 231 was the high side yesterday and here we hover. 227, seven bases away from 220 which is the low for 2019. that takes you back to february 2018 looking at a two-day of tens notice 2.5 on the peak on the left and we talked about it. traders responded. now we hover at 244, 236 is the low this year and if you open up the chart to the summer of 2017, you can see 236 low carries you back to the end of 2017. we are getting close three-day of the dollar index, it is a little different than those two charts kind of treading water sideways. let's look at the euro, right

around 1.12 and that makes sense. we want to continue to monitor that i am going to go back to the sovereigns for a minute. here is the 20-year chart of the bund yield the closest close for bund was july 2016 at minus 18. we are not far away from testing it carl, jim, and david, back to you. >> all right, rick, thank you, rick santelli. still to come this morning anthony noto is going to join us we'll get his evaluations on uber and lyft. dow is green and so is the s&p ckn montba ia me

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going to be one of those days where we're on alert for every tiny headline. and every intraday tick. with that, the dow essentially flat, along with the s&p we'll get stock trading with jim in a moment. ♪

feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

but we all know we're paying too much for it. enter xfinity mobile. america's best lte, with the most wifi hotspots combined for the first time. when you're near an xfinity hotspot you're connected to wifi, saving on data. when you're not, you pay for data one gig at a time. use a little, pay a little. use a lot, just switch to unlimited. it's a new kind of network. call, visit or go to xfinitymobile.com. let's get to jim and stock trading. >> the fascination with what i regard as fin tech knows no bounds fleet core, a way to save money if you're a trucking company fleet, flt, fantastic number they do beyond fuel, now that

they added beyond tolls. fin tech seems to -- it trumps -- trump -- everything. so fin tech is where people are hiding this is a company that keeps the costs down of transport. and it is a winner it has been a winner look at that chart fleet cor, get to know it, get to love it there you go >> beautiful chart >> isn't it? tonight we have kevin kline, under armour excited about that we have a gigantic new facility in the -- this is a facility in the sparrows point, 1 million square foot place that bethlehem steel built ships. when they shut that down, they shut down that city. kevin plank brought the city back. >> that's a show can't wait for it. great. "mad money" at 6:00 p.m. eastern time when we come back, anthony not noto with ipos dow is down 15

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good wednesday morning welcome back to "squawk on the street." i'm carl quintanilla with sara eisen, david faber at post nine of the new york stock exchange we await more details about the progress of u.s./china trade talks, very tight action today dow is up a point and the s&p down fractionally. >> that's where our road map for the hour begins. trade tensions, where do we stand and how is the market gaming out possible outcomes of the president's standoff with china? we'll discuss it all >> international protests and strikes taking place today ride hailing app drivers demanding better pay and benefits from companies like uber and lyft. all of this two days fro s out m uber's ipo. >> and parsons preparing to make its debut at the new york stock exchange we'll speak with the ceo as soon as that stock opens for trading. we'll start with the markets this morning and big swings as investors digest ongoing trade tensions between the u.s. and china, looking ahead to a new set of proposed tariffs which are expected to be implemented

on china as early as friday. with us this morning, david kelly, jpmorgan chief global strategist, thanks for the time today, appreciate it very much what can you tell investors at this point, at least until friday >> obviously the prospects of tariffs going up increased quite a bit. we're sticking to our baseline we expect them to come out with a deal at barclays research, we have been cautioning investors and clients that you can see a lot of this. there is the buy more american exports and the key issue is all the new economy issues how do you deal with forced technology transfer, ip theft and the technology issues. there is no easy solution. >> is your best case a deal is done within two months >> you could see -- hard to give a timeline to that exactly behind the scenes a lot of back and forth. what we want to see is constructive discussion on the technology issues. could we see a regulatory panel get developed that allows western firms to complain in

china about issues going forward? could we see the chinese government put less restrictions on forced technology and ip. from a chinese perspective, to imagine for them to give up on all of their demands and the american issues at play would be a little surprising. they have a long-term view of what they want to get out of this. >> given that, david, how are we supposed to play this other than sit back and wait? >> well, i think we need to recognize that there very likely will be a deal excuse me for being a little cynical here, i see posturing on both sides both sides need a deal the beauty of a trade deal is that nobody actually reads the details. it is quite possible for the administration to sell this as a big win for the united states, for xi jinping to sell us in china as a big win for china, and we can all move on with life and the other thing i think is important is the stock market reaction to all of this. because it is almost like we got stock market vigilantes now. i remember back in the 1990s,

the bond market forced more conservative fiscal policies, i feel like when the stock market sells off it puts pressure on the administration to come up with more -- with responsible trade policies to come to an agreement. i think there is going to be an agreement, i think investors should look through this tension and where the value in markets really is. >> david, what about the impact of 25% tariffs on, well, let's go to the hold, over $500 billion in imports from china if we get there, which is very possible you have to consider that, i would think, what would the economic impact be in your opinion? >> i think it would take a few weeks before it would even impact -- it would only apply to stuff that has been shipped before -- or after friday. so already on the high seas would not be impacted by it, it would take a while before it impacts consumers. i expect a deal before then. if we push up tariffs, they push up tariffs, whole global economy slows, u.s. economy slows, could be pushed into recession, going

into election year with recession would be a disaster for the administration, that's why i don't -- i'm not too worried with the long-term economic consequences because politically i just don't think they'll sustain this position because it is so damaging to the u.s. economy and the global economy. >> so are you saying you could be comfortable buying stocks here, even with this huge uncertainty still out there? >> yeah. i would be because the other thing is going on is rates are still very low i think the economy is shifting down a gear gently from 3% to 2% growth i don't think we're in imminent danger of recession unless you do something crazy on trade. if the economy just chugs along 2%, 2.5% on long-term bonds, in that kind of environment, the dividend deal that you get on stocks almost matches the bond deals and i think there is room for appreciation so, yes, i would still be after ten years of a bull market a buyer of u.s. stocks in this environment. >> see you respondinging to what david is saying. >> one thing to keep in mind is

how the response from the european side, we still have this u.s./european trade discussion going on and usmca. still up for ratification in congress you better believe all these different sides are watching how the chinese respond and how the u.s. administration goes. >> when you -- making a list here, you mentioned usmca not resolved fully japanese u.s. talks, brexit talks now back iran is trying to get sanctions relief north koreans are shooting projectiles. and venezuela's on the brink of collapse >> busy times. >> yes from a public policy spectrum, is this crazy town or not? >> i think there is -- there is a lot going on in this let's segment this to the trade side of it u.s. china, u.s. europe mca. there is a lot of things for the markets to be worried about. >> they feed into various asset classes, oil or trade. >> absolutely right. let's watch and see how u.s./china resolves itself the next domino in this -- we

looked a lot about this is how does the u.s. respond to europe? we have tariffs possible on auto and auto parts in the fall, we're in presidential election season with debates beginning in june everybody is going to be looking towards congress to -- is there a path to ratify u.s. mca. >> is the president more likely to go auto tariffs against europe >> it is hard to read -- it is hard to read the tweets to understand what is happening inside the administration. it is an important data point to watch on this. again, from the barclay's point of view, we're not that surprised we're seeing trade tension. >> just on the specifics, david asked about full chinese imports. what is actually scheduled to happen at this point, right, is 12:01 a.m. on friday, the rate goes up from 10% to 25% on the 200 billion of chinese imports, which includes semiconductor products, agriculture products, all sorts of stuff that sold in

target and walmart already, like baseball gloves, i think so are companies prepared for that >> i think they're beginning to prepare for that i think the reality is about to set in much faster now i think a week ago they thought the chances of this were much slimmer and now people are getting a little more nervous. if the president goes forward on additional tariffs, i think he mentioned that in a follow-up, the idea about going forward and putting tariffs on all chinese imports, that i think would send a much broader signal. >> my question to you, david, is the u.s. consumer going to absorb that entire increase in the tariff rate from 10 to 25% if it goes through or are these companies going to have to start absorbing it and we're going to see it in the margins? >> it would mostly i think fall on u.s. consumers and that's the big negative with tariffs. also, remember, we're 550 days away from the next presidential election long-term investors ought to look past that election. a lot of this tension, the trade tension, a lot of the other

geopolitical tension is really in some ways related to the run-up to the next u.s. presidential election. once you get that -- past that point, president trump re-elected but not now running for anything, or if you have a new president, in either case, a lot of the political posturing involved should die down it is important read to look at the economics, the underlying economics rather than some of these tensions, both trade tensions and geopolitical tensions >> they're looking at the economics too and emboldened by the fact we got a gdp print that was strong for the first quarter, unemployment rate we haven't seen in 50 years and we have been operating in an environment where tariffs were already on place in plenty of products. >> absolutely. but that -- that has offset the huge impact of a very big tax cut. so, you know, economic growth has been strong despite the tariff increases, not because of them as we look at the data, this economy will slow down almost a mathematical certainty it will slow down in the second

half of this year, given the lack of labor supply, given where we are on things like inventory. it is going to slow down there will be reason for nerv s nervousness about the economy later on this year, from the federal reserve perspective and also from the administration's perspective. >> i agree with him. the tax cuts did have a very big impact on gdp growth as did the previous spending deals. you saw large spending deals go through congress this fall, these spending deals are back in question you got a fiscal clip in the fall with spending on the budget you have a democrat limit agreemedebt limit agreement that needs to be resolved. >> very tough to play. shawn, david, thanks, guys appreciate it very much. when we come back, drivers from both uber and lyft are striking calling on passengers to boycott. this as uber prepares to go public on friday we'll break it all down with the ceo of sofi, anthony noto.

and u.s. government contractor parsons making its public debut today. we'll talk to that ceo as well as soon as it begins trading here at the nyse big show still ahead dow up 13. don't gonyer awhe. experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer.

but we all know we're paying too much for it. enter xfinity mobile. america's best lte, with the most wifi hotspots combined for the first time. when you're near an xfinity hotspot you're connected to wifi, saving on data. when you're not, you pay for data one gig at a time. use a little, pay a little. use a lot, just switch to unlimited. it's a new kind of network. call, visit or go to xfinitymobile.com. welcome back to "squawk on the street." shares of lyft swinging around here between gains and losses. now down almost 3.5% after posting a massive loss in the first quarterly report since going public shares now down 16% or so.

investors watching closely as its competitor uber prepares to make its public debut later this week and today ride hailing drivers from both uber and lyft are striking, calling on passengers to boycott the companies joining us to discuss all of this and more, the ceo of online lender sofi, former coo of twitter, anthony noto, launching this gig etf, which i assume includes lyft, right >> it does include lyft. we're very excited to be on today to talk about sofi investment before diving into that for those that aren't familiar with sofi, important to solidify what we offer. we're a member focused personal finance company, all available on your phone or online, originally started with offering free financing student loans we expanded to in school lending and mortgages, new mortgages, finance mortgages. in february we launched something called sofi money, checking account and savings account with no fee and all atms

rebated. what we're really excited about today, it is the only place you can buy with no commissions and no account fees, stocks, etfs and robo accounts and today we're launchinging two new etfs following up on the two we launched two weeks ago to meet the needs of members >> you're trying to be a full service bank to millennials? >> to help people get their money right. we want to give products across borrowing, savinging and investing and protecting and the reason why we're launching the gig etf today is really wasn't a way for our members who are very excited about these companies to get broad based diversified exposure to these companies. they're new investors, novice investors, this is a way to get access to companies and participate in a economy that they're helping to actually grow. >> you're telling them it is a better investment to go into an

etf instead of buy the ipo lyft because there is less volatility and it is more diversifdiversif? is that the pitch? >> investors early in investing are novice investors, they don't understand individual stocks so we want them to invest in things not only they know, but things they like i diversified ways the amount of money you need to use to diversify is much greater than the $20 needed to pay per share of our etfs. >> you started with people who needed money to some extent, now you move beyond that to helping them try to choose how to allocate whatever capital they have what kind of demographic are we dealing with at this point >> we're going after millennials, 25 to 40-year-olds, they have higher income. they're looking to have ways to get their money right. they have been successful professionally but the reality is that the challenges of buying a home and

having a family are much more costly today and they're underserved. we're going after people that are underserved have done really well academically, professionally trying to get to the point where they have enough money to do what they want we have to have them get their money right across everything they do, not just borrowing. >> you're dealing -- goldman sachs is making real efforts with markets and a number of digital platforms going after a higher mass affluent, but it would seem the two of you could find yourself in competition at some point. >> we're focused on the member and delivering to them value they don't get today f ytoday. the 20 to 30-year-old that is not investing today has to have such better performance, so we're trying to give them ways that they know to buy things they like today that are lower cost and lower dollar entry points many of the big sort of private

wealth management firms don't service 20 to 30-year-olds and don't serve people until they get to millions of dollars of assets we're helping them invest today. >> farm team for those guys. >> so you were at goldman sachs back in 2011 early uber investment. what do you make of lyft's kind of public drugging into the uber ipo? >> the thing we have learned over time, 99 through 2001, the wave of ip os or the ensuing wae of ipos now, when companies go public, they're not used to being public companies, they haven't set guidance, the volatility of the stocks are high because of expectations management and low floats. so buying into an exchange traded fund like sofi gig economy is a way to get access to these ipos in a more diversified way and more risk of balance way as opposed to taking such risk on individual stocks when they're learning how to be public companies and delivering

performance and driving consistency over time. >> can we tap your ipo expertise and ask what you'll be watching for on uber on friday? >> we're not watching for anything specifically. there are opportunities for our investors to buy individual stocks >> i meant you i meant anthony. >> i would say, you know, i have an interest, i worked on the company when i was a banker and worked on the investment with the rest of the firm and the team i have a lot of friends there, i'm friends with dara. we're wishing them great success. we want every company to be successful because it makes the rest of the environment for finance, the rest of the environment for growth and capturing this opportunity in front of us better >> do you believe a lot is riding on how it does day ne, week one, month one, in terms of the overall health of the pipeline >> i don't i think over time, companies that are allocating capital to drive shareholder returns of the long-term will come and go anytime in the marketplace that somebody is going public there could be dislocations.

the value of the company is going to be the current value of the discounted cash flow as we talk to our members, they really want to invest in companies and the gig economy etf is a way to do that in a responsible way to avoid the pitfalls >> as you're targeted demo ages, though, i assume you're going to roll out products that tries to get them to stick with you as they get older really old >> our products can last with you whether you're young or old. really about making sure that we're putting the member at the center of what is happening and giving them the best ways to borrow, save, spend and invest and protect. and we think as we build our membership base, they'll stay with us for decades ahead. >> nice you've come on to talk to us, you've raised a lot of money in the private market. are you yourself eyeing an ipo >> it is not a priority today. it is something over the long-term that will evaluate we're focused on continuing to roll out these products to build a mobile distribution, we couldn't be more happy with the success we had over the last year launching sofi money and

sofi invest and our mortgage product. it was critical in making sure we're mobile first the success we're seeing is starting to build on itself. we want to see that perpetuate and focus on growing the business for right now >> anthony noto, good to see you. >> thank you very much >> thank you a check on the major averages here as we continue to trade. tight range. dow up 23 points s&p at 2886. don't go anywhere. dear tech, let's talk. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. ♪ ♪

time for our etf spotlight santoli at the telestrator looking at small cap versus large cap amid the trade tensions >> this relationship has shifted a bit in the last six weeks or so this is the iwm russell 2000 small cap etf. that's an 8 percentage point spread it has been mostly since september. almost entirely since september. dead even right there in mid-september. you see in the downturn, the small caps badly underperformed, lower liquidity, higher risk perceived in those stocks have not quite come back as far as the overall market

right here, about late march, they basically were -- that's when the relationship bottomed, when the underperformance of small caps has essentially stopped getting worse f you look at one month, you can see some of that flattening out or performance and essentially the russell 2000 is slightly outperform why? domestic, not global also, high financials waiting, 18% financials, 13% in the s&p 500 and less tech. so the less we are worried about -- less we're focused on large cap growth tech andsh shutting financials, got to see if there is any carry through. russell 2000 is 8% or 9% below its all time high. >> very closing bell, mike, at the telestrator. >> i like mike at the telestrator. wherever he wants to be, always good. >> watch at 4:00 let's keep digging into the markets. art cashin with us art, always like to get levels from you things you're watchinging in

terms of what we should be, especially after a day like yesterday. >> first thing you want to watch is defending yesterday's low so that's, like, 2860 in s&p and i think 25790 or so in the dow we probably would have given it a real test without the president's tweet this morning so we're still up in the air the feeling -- the hypothesis is that we were close to 85 to 90% done on a trade deal and that the chinese went back to the higher authorities and said, you know, we're almost done, and this is what we have got and some of those authorities said no, no, no, that goes too far. so i think what the president's trying to do is get their attention, tell them, you know, those things agreed to, probably want to stick with them, if you

can, and if that happens, you may see him back up on the tariffs and announced just before they're about to kick in, the vice premier came over, he made some good overtures, i'm going to hold up a few days. >> you, like a lot of other people, speaking to in the last two days, seemed to be more or less believing that we're going to get to a deal >> both sides desperately need a deal okay china needs it for the sake of its economy. and the president needs it for the sake of the election now the trouble is, it is kind of counterintuitive, he decides he's going to get them back to the table by threatening tariffs. they -- neither side wants to lose face. they don't want to look like they're negotiating out of fear or in the face of a threat so that's got to get wiped away somewhere in there but i think we came very close to a deal. i think there was some after

thoughts and raises for me the possibility that we can get close to a deal again. >> 80% down day. we used to talk about 90%-ish days being a good buy signal some argue it is not necessarily true when it is coming off a recent high. where are you on that? >> i tend to lean in with that there are a couple of other thing things you had a nice pop-up in the vix. that comes when you're getting a climactic day. that gives me some solace that maybe we purged out. you got news and geopolitics around here. the secretary of state wound up having his plane diverted and even the press group with him were not told where they were going, so things are cooking you can accidentally wind up in a military event in iran here with, you know, we're going nose to nose in the straits of hormuz so it is not a market you want to get too comfortable with,

certainly not for a couple of weeks. >> wonder how much the fed is playing into this, art feels like the market is a little unsettled after powell used the word transitory, claret on the tape yesterday, repeating they think inflation is temporary. does it feel like the market is okay with that >> well, it is okay because it thinks that if things get a little -- they'll just back up and they will go back to the idea of cutting. you know, the market was disappointed when they took the probable cut theoretically off the table. so the fed is a key player here and a lot depends do we get a trade deal, does that mean the economy will perk up, does that make the fed look to tighten a lot of combinations to be worked on. >> finally, how do you feel about uber going public on friday in this market? >> it will be interesting. for some reason, when they did lyft at the end of the month, i

was not comfortable with that as you recall and i'm not overly comfortable doing it on a friday i would think closer to the middle of the week would have been better, but maybe they have -- what i'm saying is you like to have it on a wednesday or a thursday. and if it is good, you get a immediate follow-up. but if you do it on a friday, you get people speculating, well, was that a good a deal as we thought maybe people will step back? hopefully everything will be fine that's just an old fogy's concern. >> art, thank you. >> my pleasure as we head to break, we're awaiting an ipo here today at the new york stock exchange. parsons preparing to make its public debut we'll talk to the ceo as soon as the stock opens for trading. check on shares of match, beating on earnings, revenue and forecast stock on fire up more than 8%. exclusive with ceo mandy

ginsberg ahead on "squawk alley.

good morning, everyone i'm sue herera here is your cnbc news update at this hour. one person is dead, eight others injured after two suspects with handguns opened fire at the stem school in hylands ranch, colorado, outside of denver. no information yet on the motive >> we have an adult male that we sent out information on yesterday in custody we originally thought that we had a juvenile male in custody, but through our interviews yesterday, late afternoon, determined that we have a juvenile female. >> iran's president says tehran will keep its excess enriched uranium and heavy water setting

a 60 day deadline for new terms for the nuclear deal he says if that deadline passes with no deal, iran will begin higher enrichment of uranium it was a year ago when president trump pulled the u.s. out of that accord. and prince harry and his wife meghan have shown off their newborn son to the world for the very first time. meghan giving birth to her first child on monday. the baby's name not been announced yet, but he's seventh in line to the throne and he's a cutie pie. you are up to date that's the news update this hour i'll send it back downtown to you guys >> not how i looked two days after giving birth. >> not even close. stocks are erasing early losses with the dow coming off the worst day of the year. wall street looking to friday with higher tariffs set to kick in on chinese goods coming to this country president trump did tweet out hopes of a trade deal.

so should investors be looking to buy amid all the uncertainty? joining us is tom lee, co-founder and head of research and john stolfus tom you say what we have seen in the market over the past few days has been an overreaction. why? >> i think the market is trying to price to an extent the risk of a tariff. in rough numbers, assuming all the tariffs get put in place and for a full year, it is roughly a 5% hit to s&p earnings we're down 2.5%. the market is priced in 50% chance that the new tariffs go into effect for the full year. that's a pretty severe pricing event. i think you -- investors should be buying this pullback. do you agree >> we think it is good for investors. gives opportunity for them to pick up things that they may not have -- may have gotten away from in the run-up we saw from december 24th. and for traders, of course, it is an opportunity to play. >> you both call this a buying

opportunity? >> yes. >> does that mean you guys expect eventually a deal to go through between the u.s. and china? >> i do expect a deal. it is much too impractical for the u.s. and china not to come to a deal and both leaders of the country have time periods that they need to consider one is 2020 for president trump. and made in china. 2025 for president xi. those are the kind of goals that could be thrown off if you have a protracted trade war. >> that's the calculus that the chinese maybe have a longer clock. hence leverage to not do a deal in the next few months >> it involves global trade. they had problems along the silk road so it would be good to get that -- have an opportunity to patch that up, get the u.s. back as a major customer without tariffs or with much lower tariffs than we have right now the main thing is that

improvement moving in the right direction. >> when you say buy the dip, where exactly do you buy and do you have to stay clear of industries like semis at this point with the uncertainty out there that those tariff rates will kick in on some of those products >> the market is up 17% year to date and most institutional investors and hedge funds and retail investors have missed much of this rally so it is a decision point. we're 2.5% off the highs on a sort of binary event i think -- people should think back to the 17th when the fed made a policy error and lost 7% at 2600, the market recovered that in four months. this is a huge buying opportunity, people are too overweight defensive groups like health care which are breaking down i think that you got to be buying cyclicals here, even with the risk of this and look, at the end of the day --

>> like industrials? >> i think industrials, technology, i think financials have really proven in this earnings season their franchises and, look, we have to remember the fed, let's say, doesn't have the markets back here, but the fed is not as -- less likely to make a policy error. we got trade tensions elevating, central banks can step in. this is a huge buying opportunity. >> where do you buy? >> ironically it is consumer discretionary, technology, it is industrials, which we consider to be the new technology with all the sensors and things that are involved in industrial goods, as well as in financials, finally get something respect this year. so we would -- we have to agree with tom on that, we have been long-term we have been overweight these sectors and feel comfortable at this point. in fact, where we would caution is we think you don't want to be overweight the defensive sectors, particularly consumer staples and health care. modestly you can cherry pick in

there with you want to gain some exposure to biotechnology. >> just one other thing to add, especially when managers think about sector exposure, year to date, the best versus worse sectors, differentials only, like 1500 basis points, in a typical year, 3300 leadership this year has been tech, industrials, financials. they're going to ultimately crush defensive groups by the end of the year. i think there is a chance for people to rerate, get exposure and gain >> one of your calls was that managers stung in december didn't get a chance to lever up again. and were chasing for the last four months. i have to imagine that has subsided to a degree, right? a lot more cautious given the events of the last couple of weeks. >> it is funny, i was talking to jonathan offline before, in every meeting we do, we see glum faces, people have not added enough exposure and they have been defensive you see from jpmorgan, north

american hedge fund ratio, hedge funds have been shorting this market, maybe trying to make up this trade but on trade equity exposure, they're short. >> managers were underexposed and retail has been -- >> they have been selling all year, buying bonds all year and this is a chance for retail to buy some equity here. >> john, want to ask about small caps santoli did a chart on the factt well off the market highs. wouldn't now be a time when there is so much volatility and uncertainty in the rest of the world and the u.s. is outperforming everyone to stay domestic why the underperformance and should you play that trend >> we have been market cap agnostic for a long time if you give us a new buck, we would suggest puttinging a third large, a third mid and third small. the market tends to very quickly rotate and rebalance by various news pieces and data points that

come across the tape as a result of that, we like fairly even exposure small caps to us, what amazed us is that on monday they were outperforming on the rebound versus the large caps, but then we thought, well, the large caps have international exposure, so the small caps would be preferred in the short-term rebound. >> john and tom, thank you, both take a quick break here. we're awaiting the opening of parsons. and its public debutat the exchange we'll talk to the company's ceo straight ahead dow down 25. tethtrt"s ckhe see iba afr is see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation?

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memories. what we deliver by delivering. is the recent sell-off a sign of more pain to come? find out what top market watchers are saying on tradingnation.cnbc.com more "squawk on the street" coming up.

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parsons opens for trade here at the nyse, psn at post eight. u.s. government contractor raises half a billion offering 18.5 million in 27, the midpoint of the range 26 to 28 chairman and ceo charles harrington is going to join us in a little bit. that's a decent open, up almost 14%. >> okay. for now let's get to the cme group in chicago rick santelli joins us with the santelli exchange. >> thank you, david. like to welcome my guest peter bookfar from bleakly advisory group. thank you for joining me this morning, peter. >> good morning, rick. >> in this corner we have q1 and the economy. in this corner we have the central bank, the federal reserve. can you try to calibrate in your opinion is the fed mostly responsible for the performance that we're seeing in both the economy and the markets? >> well, not really necessarily in the economy but i do think they have a huge

influence in the markets a lot of the rally we have seen year to date has been multiple expansion because we have seen earnings decline from where they were going into the year earnings estimates 170, 175, now about 166. we had this extraordinary rally. so i think the multiple is where the fed has the biggest influence. people like to look at -- >> i got you >> okay. >> here's my issue, though, peter. whether you take the credit crisis and the big drop in the stock market or the way the market dropped at the end of last year if you take the dips and pretend they're canyons and then draw a line off the top from where we were in september, october, to where we were in january and february, the line is very continuous do the same thing with the credit crisis. my point is, you don't get 3.2 gdp, 3.6 preliminary q1

productivity, some of the nonfarm numbers have been terrific, if it is just the per section of less fed. the economy obviously did its own lifting to get that type of q1 performance, but doesn't seem to be getting much credit for it >> i agree we're on the cusp of the longest economic expansion on record you have to give a lot of credit to the economic growth and the earningings that that economic growth generates getting back to my point are multiples, you look at a price to sales ratio for the s&p 500, you're basically where you were in march 2000. and that's not because the economy is great, and we're ripping to levels we have never seen before, that is because the fed has money at a very cheap rate that's why you've drive than kind of multiple expansion that's why you've incentivized debt accumulation, a lot of companies using that to buy back stock, which has also goosed stock prices there is benefit to growth and earnings but on a multiple basis, what companies have been able to do to juice earnings per share, a

lot of that is induced by fed incentives >> i got you peter bookfar, thank you for your opinion we try to handicap what q2 is going to end up. sara, back to you. >> thank you, rick. up next, the ceo of parsons as his company makes its public debut, up more than 15% in the opening minutes. first, send it over to jon fort for a look at what's up next >> match group is up 8% after earnings we got the ceo of that company, mandy ginsberg coming up on "squawk alley. but you're stuck in the vicious cycle of credit card payments. it's time to get a personal loan from sofi. borrow up to $100k to pay off your credit cards, and then pay us back with one monthly payment. and it's all with zero fees. get a personal loan, and pay no fees.

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welcome back to "squawk on the street." i'm dominic chu. stocks trying to rebound following the s&p 500's worst day of trading since late march. we are seeing relative strength in energy and financials following steep declines for those two sectors yesterday. but one of those groups that continues to underperform lately at least is the consumer staples side of things, taking off some of the gains to start the year weaker sales from cover girl parent company cody dragging that group lower today, other names like philip morris, kroger and moulson off by a percent or

so now i will send it back downtown to you guys, carl at the stock exchange. >> thank you very much one of the biggest government contractors parsons going public a few moments ago, shares popped at the open, the company has projects from saudi arabia, dubai, to l.a. and washington, focuses on defense and intelligence and creating infrastructure through cyber security with us this morning is the ceo and chairman of parsons corp, charles harrington with us at post nine. congratulations, nice open. >> thank you, carl we're very proud. >> give us a sense of what we should know about the company? you've been there almost half of its entire existence >> yes we're a company that transformed several times through history. been in missile defense since the '40s we're a company that's cyber, intel and critical infrastructure. >> where is the fastest growth at this moment >> missile defense and cyber intelligence work. >> characterize growth i mean, is it mostly in the hardware element or mostly in

the software >> mostly software and we do what i call very bespoke hardware that fits into the critical mission. >> give us an example. >> high-speed processing units 200 gigahertz working with hypersonics, anti-hypersonic technology. >> need to go back to school to get some of this. >> 42% of revenue in the last year from the federal government >> yes. >> that would seem to, obviously, be a risk if there is some hiccup in spending. i know defense spending has been moving up but the sequester may come back into play the next fr. is that a concern? >> we believe we're in the defense spend that is the least likely because of a sequestration, hacks don't reduce, they probably increase. when protecting the government's infrastructure and intelligence and in this world of missile defense we think those are critical parts of the defense spend. >> given your 75 year history, why go public? >> we were public from 1969 to 1984

two of those last two years on the new york stock exchange. we always thought we would probably go public again some day. we've done growth through m&a and this continues to help us on that path. >> what are you going to be doing with the proceeds of today's offering >> buy down debt. >> first government and services and aerospace defense company to go public in nine years. why is that? >> i don't know that i can answer why others haven't gone public for us us a great opportunity. >> how much were you watching the markets? a great year for the ipo but a bumpy week iwonder if you encountered any of that in the days leading up to the raise here and price? >> no. i think for -- from our perspective the part we were in was fairly stable and good earnings made by most of the folks in our particular sector stable. >> rarely a days goes by that we don't get news of another cyber intrusion of some kind yesterday or date before "the new york times" reporting about nsa tactics or a hack being used

by the chinese against the u.s how serious is this problem? i mean there are many who believe the next crisis will have cyber in front of it. >> yeah. i think that the two new domains for warfare going forward are cyber security and space it's something that this country needs to continue to be vigilant on every day of every week >> are we? >> yes >> we are? >> we are. >> you can be confident we are with your help i suppose >> yes. >> are you in infrastructure play if we see a miraculous bipartisan agreement around infrastructure spend, is that something that would be material for you? >> we would be benefited from that especially in the complex systems of airports and rail and transit systems and intelligent highways and transportation networks >> you're doing all over the world? >> yes. >> how significant do you think the trade fight escalation, you know, increasing potentially the tariff rates to 25% on the chinese imports would be >> i think as it relates to u.s.

infrastructure i'm not sure it would be that material most of the infrastructure in the u.s. is built with u.s. materials, u.s. or european products and u.s. services >> any exposure to china >> no. >> none? is that because of international -- or u.s. law or i guess are there restrictions to your growth in international markets? >> in certain parts of what we do there are. >> for saudi arabia, we mentioned that in the intro, is that more infrastructure as opposed to defense related >> pro dominantly large infrastructure programs and projects we manage. >> are there defense projects you could take on overseas >> yes as a part of foreign military sales typically. >> and finally, you mentioned dry powder, i know you bought polaris alpha about a year ago. >> yeah. >> are there other acquisitions to come as a result of your now having both the currency and dry powder as you said >> yes we closed on a company in january called og systems and we're continually to look at additional companies as they come up.

>> nice open very nice one. we've seen a few in recent weeks too. take this one at 30, 30.90 thank you very much. >> thank you very much. >> parsons time now to turn to sara and check out what's going to come up in a few hours from now when right back at this desk bringing us the last trades of the day. >> yes we have another big earnings day ahead of us today. we will hear from disney, roku and etsy much of them gainers disney going to be interesting after the stock has been riding high off of the disney plus and avengers >> mean time "squawk alley" is coming up next we'll get a lot more on the market swings which today happen to be pretty tiny. uber and lyft drivers are striking across the globe, and crete of match group on her company's blowout results when quk le srtss a moment

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pnc - make today the day. good morning it's 8:00 at uber headquarters in san francisco, 11:00 a.m. on wall street and "squawk alley" is live.

♪ ♪ good wednesday morning i'm carl quintanilla, with morgan brennan and jon fortt busy morning, obviously. we're getting a pop here in the market dow up 75 points as reuters is running a headline that white house spokeswoman sarah sanders says the u.s. has received an indication china wants to make a trade deal that's all we have at this point. joining us jonathan, chief u.s. equity strategist at credi