black listing chinese technology that is what is topping your five at 5:00 this morning. president trump signing an executive order, effectively banning huawei from operating in america. we're live in beijing with the fallout. some of the biggest names on wall street are finding new love for big tech should you regulating e-cigarettes. a huge loss last quarter, but what invest ares aors are told t the losses and what your credit cards

are doing that you may not notice, and it may be the biggest story that nobody else is talking about but us. ♪ ♪ keep on rockin' in the free world ♪ all right, good morning, good afternoon or good evening and welcome from wherever in the world you may be watching. i am brian sullivan. stock futures are mostly higher now. up about 40 points right now the nasdaq and s&p are up, not a lot. we're not seeing a lot of green on the screen, but there is green on the screen. as always, more on the markets and your money in moments. but first, we have to begin with this following a major, developing story out of the white house president trump signing an executive order that effectively black lists chinese telecom giant huawei let's get live to beijing with more on this big story, eunice

>> reporter: thanks teach. that executive order from the president is meant to safeguard america's i.t. infrastructure from quote, foreign adversaries, it does not mention huawei specifically, but at the same time, u.s. officials have been criticizing huawei and calling it a security threat separately, the commerce department added it to the u.s.' entity list, saying they are suspected of activities that have breached u.s. national interests, and because of that, u.s. firms that want to sell to huawei are now required, first, to get a license from the government before they are able to do so and the talk is that that could possibly be issued within days now huawei has responded to the trump administration's latest move saying it is ready and willing to engage with the united states on product security it also pointed out that restrictions would only hurt the

u.s.' own telecom's development, its companies and consumers, and it also says unreasonable, quote, restrictions could raise serious legal issues the decision is likely to have a very big impact on huawei's business some of the analysts i've been talking to say because huawei has been winding down its business in the united states the executive order probably isn't going to have a whole lot of impact. hou however, the commerce department decision is probably going to have a major ricochet effect because huawei does rely so heavily on u.s. components made by companies like intel and qualcomm now the foreign ministry weighed in, the commerce ministry said that china opposes unilateral sanctions against chinese entities and the foreign ministry went one step further saying china will go do great lengths to protect rights of its businesses

one of the reasons why the government with would want to have a strong reaction is because huawei isn't seen as just any old company it is a national champion that has been viewed as one that has been very successfully globally and seen as critical as part of china's effort to become a technology leader worldwide. so an attack on huawei is really not an attack on a kwp bcompany on china's hopes to become a super power. >> this is a big story separately, one of china's most influential papers is ratcheting up the anti-u.s. rhetoric. >> reporter: that's right. it's the people's daily, which is seen as an authoritative voice of the communist party, accusing the u.s. of bandit logic, bandit-like behavior. one of the reasons we've been seeing all this criticism and doubling down is because the pressure that china has been feeling is something that the chinese definitely don't want to

see. they want to, they don't want to appear weak in front of the public so there are historic reasons why they don't want china to look as though it's being humiliated by a foreign power. so the effort, then, is to fight back and they want to make sure, and they've repeatedly said this, not only for the trade agreement where they said they don't want to be operating under duress but they want to appear as an equal when they are doing any type of dealings with the u.s. >> thank you, from all us bandits here, we say thank you for that appreciate it. u.s. suppliers to huawei, they are all in the red this morning. intel's unchanged, but qualcomm, micron and seagate are down a percent or more. let's turn now back to the markets and your money and investments. futures indicating the dow may be likely to rise slightly at the open stocks really scratching and clawing to make a come back from

monday's rout. the nasdaq and s&p one percent away from being higher on the weak frayed nerves and tension over iran have also brought buyers back into bonds in a big way the benchmark, 3.2% this morning. it will bring down borrowing costs and mortgage costs and make stocks more attractive. the yield on bonds not enough to get anybody's attention. right around the world, a similar trend as we've been seeing in asia china's rise has been a little bit surprising lately, because we've got new data out yesterday that shows people have been dumping chinese stocks the iif said about $2.5 billion came out of chinese equities last week. this morning, europe mostly in the red today, but don't tell anybody. europe has been pretty hot, we're down fractionally right now, but the german market is up

7% in three months germany has been one of the best stock markets in the world recently, even with the concerns about deutsche bank and european growth oil higher by about 50 cents a barrel right now bitcoin has done something it hasn't done in a long time it's fallen, actually down about 2.5%, right around the 8,000 mark at 8,011. but forget everything we just told you because you've got such a big day ahead of you that everything can change the biggest retailer in the world, walmart, giving us a window into the consumer and economy, their numbers are out today. you're also going to get the latest jobless claims numbers, housing starts numbers and a key fed indicator. if any of those surprise or disappoint, we could flip those futures and bond yields at any moment this is an important story that nobody else seems to be talking about. there is something happening in credit that hasn't happened in more than 20 years and you may

not have noticed but you should. the average rate on a credit card in america is right around 17%. that's right, 17%. that's a more than 20-year high. let's welcome in the man who spotted this, chief investment officer. a contributor. we have been talking, peter, about tariffs and the impact on the consumer gas prices and the impact on the consumer that is a tax on the consumer. >> right, and it's coinciding with the feds' interest rate increase in december 2015. so we're about 350 basis points up why are credit card rates so high when the fed still has interest rates so low, and there's a few different factors. in 2009, congress passed the card act this is post financial crisis which limited the flexibility of banks to raise credit card rates to their customers

but what they did was to sidestep that was to basically front load at a higher level the initial rate of interest >> so they're not raising rates. they just start you at a higher rate >> start you at a higher level so when the fed starts to razis you creep up to where we are today. >> two sides to the story. if you're a lender, a bank, that's got to be good. we talked about a yield on the ten year of 2.36%. the prime rate is down that's got to be money in the bank for the issuers >> in 2000, the prime rate, the credit cash credit card rate was about 600 basis points now they're about 1200 basis points everybody gets a credit card and rewards. the banks obviously have to offset that and pay for that by higher interest rates. and then you throw in right now these higher rates are causing

higher delinquencies >> are you suggesting that maybe all these rewards that we see in commercials, every commercial break, are not free? >> it's not free, exactly. so while we're getting, those that are paying off their credit cards every month and not being subject to these interest rate costs, they're essentially get being it for free, but those who are not paying off their credit cards, yes, they're getting rewards but paying for it. >> roughly how much credit card debt is outstanding. >> it's about a trillion >> a trillion. >> so for every hundred basis point, the interest rate is up call it extra cost >> $35 billion in money that literally just goes into the ether and is really a tax on the american consumer. >> right, which is, again, coinciding with the rise in interest rates by the fed on top of the factors that we just mentioned.

>> what are the implications for this >> i do think it has softened retail sales you send very squishy data this year, and we saw yesterday disappointing retail sales so you combine that in the northeast with the cap on the salt deduction regarding building materials and others i think it's capping retail sales. >> you think about that. you can't deduct all your state and local taxes. now you have credit card interest rates that are higher you have the tariffs as well trickling through the economy and may trickle through in a bigger -- i don't want to call it a trickle gas prices are higher over the last six months. >> right gas prices too >> a quadruple wham eon the american consumer. >> this is offsetting a good labor market, tight labor market and rising wages, swamped by this other factor. >> that's a big story, 17% on

credit cards very important stuff thank you very much. here's some big news for all you tech stock lovers. wall street's affection for the so-called phang stock is back. >> phang stocks getting major investment after many came back to earth last year a sec filing providing more details from berkshire hathaway's stake in amazon it owned $860 million in shares at the end of march which would now be worth roughly $900 million as of yesterday's close. warren buffett saying he was an idiot for underestimating amazon and jeff bezos tiger global increasing its stake in facebook and netflix by more than 42%. t. rowe price and george soros

buying 50,000 shares in netflix. this is a good way to track what investors are buying and selling but disclosures are made 45 days after they end the fang stocks have made a good start. facebook surging more than 40% amazon's up almost 25% and netflix has spiked by roughly 33%. great start for the fangs, brian. >> it has been making a lot of people and their portfolios happy. >> we are just getting started up next, wework losing more money last quarter, but what it's telling investors about those losses that are getting a lot of attention today you just may roll your ice a company called lemonade is uraking up the way you protect yo property. the ceo will join us next. dear tech, dear tech, let's talk.

we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. are you working for all of us, or just a few of us? can we build ai without bias? ai that fights bias? ai that helps us see the bias in ourselves? we need tech that helps people understand each other. that understands my business. dear tech, dear tech, dear tech, dear tech, let's champion data rights as human rights. let's use blockchain to help reduce poverty. let's develop new solutions with the help of quantum technology. let's show girls that stem isn't just a boy's club. let's make a difference in people's lives. let's do it all. together. let's expect more from technology. let's put smart to work.

i'm deirdre bosa what's been a red hot year for ipos stumbled, driving markets down in the days ahead of uber's ipo. one of the most anticipated in years turned into a major disappointment, declining 20% in its first few days lyft continued its downward trajectory as broader markets

got nervous. share of other newly public unicorns have been far more immune, holding onto gains from their ipo prices pinterest hanging onto gains of more than 50%. beyond meat shrugged off jitters and has more than tripled from its ipo price. >> that was deirdre bosa, reporting on the trade war impact on the ipo market here's a question to all of our very smart viewers can a loss really be called an investment real estate firm we 3 wowork recording a $264 million loss last quarter, but investors are told they should look at those as investments last year, wework lost $1.9 billion the company filed confidentially for an ipo back in december.

all right, sticking with startups cnbc ranking the 50. we're up we're introducing you to these companies. let's meet lemonade, not the drink or beyonce album, this is assurance company. joining us is co-founder and ceo of lemonade, a company using ai, artificial intelligence, to change the game. i guess that's why we call them disrupters how are you using big data and ai to change an industry that seems like it hasn't changed in half a century >> good morning, yeah, i'd say a couple of centuries. so the whole insurance industry has been around for hundreds of years. the companies that dominate the fortune 100, 12 of them are insurance companies with an average age of 125 this is absolutely a sector with a tremendous amount of legacy.

what we've seen today is all of that is turning from an asset to a liability. if you have 40,000 brokers, is that an asset or liability and lemonade has started from scratch. so we have none of that. and we've been able to build a company that's purely built on top of a digital sub straight. and what it means is that consumers can buy insurance in a matter of seconds from their smartphone, chatting to a chat bot. they make claims the very same way. and about a third of our claims are settled within three or four seconds by a bot on your app >> but daniel, how do you do that, though how does the bot know what's right, what's wrong. i hate to call people out, but insurance fraud is a big deal. how does the bot know if someone's not just pulling a fast one >> well, ai is getting to the point that for certain tasks it can reach parity with humans or

even outperform them so there's pretty sophisticated algorithmic work it isn't a dumb bot. it's a very smart one and it's particularly good at flagging fraud. dealing with fraud is not just about algorithms and ai. it's about changing the business model. so insurance companies typically make money every time they deny a claim. and lemonade works differently, where we take a flat fee if there's money left over at the end it goes to a nonprofit and that changes the dynamics so that our consumers are less inclined to defraud, because there is a charity important to them so we deal with fraud through social impact, having a give-back program where that brings out the best in us and the best in the consumer the and through really smart bots that can analyze data and detect any kind of variance or suspicious

behavior, arguably, far better than a human adjustor could. >> if you are what you're saying is happening, and ima'm the ceoo one of those fortune 50 companies, i'm going to either try to crush you or buy you. >> well, state farm just a few weeks ago, state farm is the largest insurance company in the nation, they are a thousand times bigger than we are and they had an advertising campaign with an actor from "the office" and mocking us and mocking bots we really love that. first of all, a company thousand times larger than us, feeling threatened by us is quite seriously a compliment but also, it does esignated, delineated battle lines between the old school and new and gives consumers a choice if they want to pay additional

costs and pay for factioxes and paperwork that is available to them but if they want to go seamless and available that's also available. they're so invested in their existing systems that the battle lines are drawn. >> you helped me solve a mystery. i didn't know what those state farms are with the guy posing as a robot with chris paul. that's a shot at you i like it. daniel schreiber, thank you very much for explaining that commercial appreciate it. >> thank you the founder of fanatics is your guest on cnbc are you thinking of buying land? we'll show you the states with the least and the most valuable land in america. but first, we're pampering you with a skin care stock and three

big reasons to hold your nose and stay bullish on these markets. ♪ that's where you found me ♪ 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. how do you determine the durable value of a business in the transportation industry without knowing firsthand the unique challenges in that sector. coming out here, seeing the infrastructure firsthand, talking with the people behind the numbers creates a different picture. once i know what a business is truly worth,

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some serious allergic reactions and lung inflammation can occur. talk to your doctor today, and learn how janssen can help you explore cost support options. remission can start with stelara®. explore cost support options. that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. welcome back let's get a check on this morning's other headlines outside of money and business. phillip mena with these.

>> alabama has taken a major step the governor is signing a law that put the near total ban on abortion in the state. restrictions would make it a felony for anyone to perform an abortion, punishable by up to 99 years in prison. nancy pelosi calls it a clear violation of the constitution that cannot be allowed to stand. an immigration overhaul is on the way at the white house president trump is on tap to unveil a sweeping new plan the proposal could help republicans on the campaign trail but will likely hit a wall with democrats in congress and who knew what promising free beer as a reward could help solve crimes it worked for the unknown brewing company in charlotte when they took to twitter for help locating their van and offered a free keg party they were able to recover that van in 42 minutes, thanks to

tips from more than a dozen people as for the keg party, they will be brewing a new beer called van theft auto it is amazing what free beer can bring out of people. >> okay. first off, criminals not generally the brightest bunch, the brightest bulb in the lamp store, if you will can we show that van again why would you steal that van if there is a van that is impossible to hide if you want to be on the low down, a giant van with neon green letters and some sort of pirate hook on it is not what you want >> i don't know. maybe the criminals thought because it's called the unknown company nobody knew who owned it and therefore nobody would come looking for it >> i'm wondering if those who turned it in are the ones who stole it the fight with china taking another major turn trump tossing out one of

america's, or china's biggest companies out of america that story ahead and will vaping go up in smoke? what a judge just did that could change the billion dollar business my gums are irritated. i don't have to worry about that, do i? harmful bacteria lurk just below the gum line. crest gum detoxify, voted product of the year. it works below the gum line to neutralize harmful plaque bacteria and help reverse early gum damage. gum detoxify, from crest.

a telecom take down. president trump black listing chinese giant huawei we are live in china with the fallout. a major crackdown. a judge ordering the fda to

start regulating e-cigarettes. why you want to stay bullish long term. worldwide exchange rolls on right now. ♪ you'll make my dreams come true ♪ ♪ you, you, you, you, ♪ well, well, you >> so i'm going to give you a little detail on worldwide exchange here's what happens. i make fun in a bandna commercial breaks and miss seriously, that band's music begins playing goon good morni good morning and welcome back frank collin, the lost member of hall and oates >> if that's how the music works, i wonder when drake's going to come up i know you're not a big fan of canadian rappers

>> glcalifornia officials say te camp fire was caused by downed power lines from pg&e. the company filed for bankruptcy protection in january. and the food and drug administration is ordered to regulate thousands of products a judge ordered e-cigarette makers to submit their products for review in 30 days. and berkshire hathaway revealing stakes in amazon the current value of about $900 million. shares of amazon up nearly 25% this year. but just about flat. slightly down in the early trade. brian, back over to you. >> thank you very much let's get you up to speed with the markets and your money. they are mildly higher the markets really scratching

and clawing, trying to make a come back from monday's rout on the dow. the s&p and nasdaq are one percent away all are mildly higher. we get a lot of economic data, housing starts, the philly fed, let's bring in chief strategy at silver crest asset management. what a weird market this is, patrick. welcome, by the way. we just tank nearly everything gets sold on monday suddenly, tuesday morning, with no real news, everything seems okay how do you manage your clients' money in this kind of an environment? >> well, first of all, i'd say that the reason it's taking place is number one, markets are really trying, struggling to price the risk of a trade war. they're trying to decide, do we focus on simply the short-term costs that have to do with tariffs and potentially, that's manageable, or do we focus on

the broader implications in a break down between the two largest economies in the world and then the fact is that the market data, the economic data in the united states is mixed. there's some good numbers out there. there's some bad numbers out there. and you can tell a story about the economy getting stronger or weaker >> what's your story is the economy getting stronger or weaker? >> in the short run i think the market has softened, the economy has softened you can't ignore that fact you can't ignore the fact that there's a partially inverted yield curve which signals concerns about growth. but to answer your question about how do you invest in this environment, you look long term. and we always look long term we're a not trying to guess the ups and downs on a day-to-day basis. we're also not trying to guess when the cycle ends. what we're looking at is which kinds of assets are overpriced or underpriced the equity risk premium right

now is 5.6%. that suggests that in the long term, equity risk will be rewarded >> yeah, and i gave a speech a couple weeks ago when i made the case for stocks. there's 30 million more millennials than my generation and the number of stocks have gone down by half. there's fewer stocks being bought by more people. that's the ultimate long-term bull case. but in the next year or two with trade fights and brexit, how do we protect ourselves >> so here's the thing, that fear, that concern, is being priced into the market right now. as high as stocks might be, and they're at all-time highs, relative to the return that you'll get from safe harbors, there's still this very big reward you get for taking equity risk so the question as an investor is how exposed do you want to be if you're he worried about where you're going to be a year from now or two years from now, you might have to take some money off the table, but it's going to be very costly to do so. if you're a long-term investor

and you're willing to say, you know what? if a year from now stocks are down 30%, i can accept that because i know they'll be up five years from now, you're in a position to earn higher than. >> returns >> your real job now is to find stuff cheaper than in a year >> for us, actually, i would say that that 5.6% risk premium suggests, actually, if you look back in history, that stocks should outperform over the next five, four to five years again, you've got to balance that that's the key thing for every investor they've got to know what their risk appetite right now is and, you know, if you don't want to be taking risks that you can't afford in this kind of market, because i do think volatility is going to be greater, and also, and not just volatility, but it's possible that we could be looking at the end of the cycle coming up

it wouldn't be a stretch to say that after ten years of recovery that a softer economy might mean that >> all right, patrick, good stuff here we appreciate your views thank you very much. let's talk routers, chocolate and high-end retail. not all together first up, cisco giving an upbeat sales forecast for the current quarter. says it made supply chain changes. cisco up 3.5% right now. nestle up in zurich. talks to sell its skin care business to a group of investors, it includes brands like proactive and cetaphil. luxury retail, far fetch, recording a wider loss, but revenue jumped the number of shoppers rising 60%. but investors were obviously looking for more far fetch shares are down 6%

trump's tech take down the u.s. black listing one of china's biggest telecom companies. and the world's biggest retailer is about to report its numbers. what to expect from walmart. good economy how much do tariffs hurt we're going to find out. stick around ♪ i think we're alone now ♪ it doesn't seem to be anyone around ♪ so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country.

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sense tra since trade talks ratcheted up here's the concern with china. it is a huge supplier of auto parts that go into cars and trucks built here in the u.s last year it topped $20 billion. as for selling american-made vehicles in china, it's not a huge market for the u.s. just over $6.2 billion worth of cars and suvs were sold there last year. mostly mixed models. with one notable exception, tess lachlt china's demand for electric vehicles will be huge for the auto maker, but right now, tesla buyers in china are paying a 35% tax that should change later this year when tesla is expected to open a new auto plant in shanghai >> that was phil lebeau. but it is not just autos we are following a major developing story this morning

out of china president trump signing an executive order that effectively bans chinese telecom giant huawei from doing business in america. we're live in china and we're joined now >> reporter: thank you, i talked to huawei this morning and they told me over the phone, they gave a strong response saying any continued block of the company will leave the u.s. lagging behind in 5g development. they also said trump's executive order could pose some serious legal issues i've done a bit of work today on what kind of impact this could have firstly, the u.s. market is very small for huawei the americans account for 6.6% of the company's total revenue the bigger concern is about the supply chain huawei relies on over 30 u.s. suppliers for components for products ranging from smartphones all the way through

to its networking equipment. should there be any disruption for that for huawei that could be a big issue and they count companies like intel and qualcomm as some of those suppliers of the third issue is what kind of impact this has on other countries. we know trump's administration has been pushing other countries to block huawei from the 5g rollout. some have listened, the likes of australia and japan. but some in europe haven't banned huawei. germany is open to huawei. but you could see some blow back on some u.s. firms, because they have exposure to huawei and the overall chinese consumer electronics space. if you look at qualcomm for example it's a huge supplier of chips to many in china and some of the other semi-conductor players that are listed in the u.s., it will be interesting to see how they

react. i spoke to a couple sources at huawei this morning who told me it's business as usual but there's no doubt some in senior management will be wracking their brains about what type of impact this will have on the company in the long term >> this is a big story ar jun, if you could put it into context. huawei is a company people are starting to hear more about. they don't do business with american consumers nobody's going to buy a huawei product. companies do how big is huawei? >> reporter: it's huge brian, let's put it frankly. it's the world's largest maker of telecommunications equipment. you know, it's bigger than some of the other players you may have heard of like nokia and ericsson that was its core business but over the past few years, it's been investing so heavily in the consumer electronics side it's now the second or third-largest smartphone maker

in the world, tussling with apple and samsung in the high end. it's been investing in its own chip technology. i talked about the supply chain a moment ago and what kind of impact and disruption that could have to huawei huawei's been trying to mitigate its exposure to the u.s., it's been investing in its own championshchip products and 5g which could put it in the competition with the likes of qualcomm. it is not listed but it is a giant technology company and certainly one of china's largest. >> arjun, a big story, thank you very much. now let's bring in the president of the national foreign trade council. we brought you in to talk about tariffs and maybe not just china but mexico and i've got to get your response to this huawei story. if you're trying to negotiate a deal and you're the president, and then you ban one of china's

biggest companies, that's probably not exactly a happy moment >> yeah, good morning, brian that is not necessarily an easy thing to handle, because we've been driving towards an agreement with china which would give u.s. companies greater access to control their own technology in investing in the chinese market and yet at the same time we're basically going to be saying that because of concerns about the chinese government's control over its major companies that there's too much of a threat of technologic technological cyber security risks to the u.s. to allow companies like huawei to operate here i understand entirely why the administration has these concerns i think there are very serious and legitimate concerns over the chinese government's control over its large technology companies and how that control could be used for, you know, everything from cyber theft to, to national security threats

but it is, does introduce a great deal of complexity into a negotiation where we're trying to push china to open its market to cross-border data flows to ip and investment so this is going to be interesting to watch it's certainly become a more complex picture now. >> we're focussed a lot on china and rightfully so, rufus our trade with mexico and canada is far bigger. we sell about 120 billion more per year to mexico than we do to china, about the same with canada what's the status of the quote, new nafta, the unfortunately named usmca. why isn't that getting more attention when it's clearly far more important economically, at least in the near term >> well, in the near term, it is important, and the most important thing is to make sure that this big success we've had in sort of integrating the north

american economy to make us more competitive globally, so we're able to compete with china better because we have, you know, this integrated platform with canada and mexico it's not just our exports to canada and mexico, it's the fact that we've developed this north american economy the risk that that falls apart is very significant, particularly if the administration takes a view that it's usmca or nothing. i hope they don't do that. but i also hope that the congress can begin to move expeditiously on this usmca agreement. it's an important agreement. i think that there are some step the that c steps to ensure that it gets through the congress i think they have to do something about these steel and aluminum tariffs we've imposed on canada and mexico get those out of the way so there's more incentive for u.s. agriculture and other industries

but also for canada and mexico and then you know, there is a problem here, brian, with how nancy pelosi and president trump can reach some kind of an agreement on going forward with this deal. that's really the big blockage now. >> rufus, an important topic thank you very much. we'll talk to you soon >> my pleasure not one, not two, but three reasons why you want to stay bullish long term. we'll lay out the case and your morning rbi. we'll tell you what states have the most and the least valuable land in the continental united states you're going to want to leave the east once you hear this. stick around ♪

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♪ i'm so excited so excited the sun is coming up and maybe at some point it will stop raining on the east coast

5:51 stock futures are up about 50 points we're clawing our way back from that monday rout the biggest retailer in the world, walmart, giving us a window into the economy and the consumer later today its numbers are out. investors are looking for earnings per share of a buck two. housing starts numbers and a key regional fed economic indicator known as the philadelphia fed. if any of those surprise or d disappoint we could flip he is managing director of zor capital. we said it earlier in the show, joe, that your advice is hold your nose and buy. and i say hold your nose, because this has still got to be the most-hated bull market in the history of bull markets. >> absolutely. we've had a big run since the

beginning of the year, and we're just digesting those gains think of it after a big thanksgiving meal. what do you do you lay on the couch and digest those gains. we're nin a consolidation perio. and after that i think we will move to new highs and possibly an acceleration phase. >> i've heard about tina lately, not tina turner, tina, there is no alternative interest rates keep coming down. does that make stocks look more attractive >> yeah, i think there's a lot of reasons, fundamentals, interest rates, sentiment, being the most-hated bull market as far as interest rates, i think that's biggest thing that changed everything the fed almost put us into a fed-induced recession. but when they came out early this year and changed and said we're going to be patient. that's the biggest two things that control the market are earnings and interest rates.

earnings are strong and interest rates are still very low and it's a favorable environment for equity >> earlier we had a piece on how the fang stocks are starting to come back. is that important? not just for stocks but the overall market >> yeah. we got to new highs at the end of april without participation from the fang. it's not just a few stocks moving this market but the fact that the big institutions, when they do need to put money to work because a lot of them are underinvested, they tend to gravitate toward those fang stocks because of liquidity. >> and the fundamentals, i guess you like 75%, 76% of companies have beaten. look at cisco last night >> 76% so far. 60% have beat revenues gdp growth, 1.5% to 2.5% for the last eight to ten years. we've seen a little over three

it's like a big tanker ship on the economy. it moves the needle. >> i've said three reasons there's really four to be longer term unless you've got the technicals fundamentals, sentiment, nah, we don't want it too good but interest rates are down but let's fight now. all that stuff, tariffs, brexit, does all that stuff literally just get swept out to sea because of this massive global trade fight we're about to enter or are already in the middle of? >> i like to focus on what the big institutions are doing to touch on the technical part. think of all the news that's hit us over the past five, ten years, whether it's ebola and yuan valuation, all these interesting elections all over the world, but at the end of the day, the big institutions control the markets. it's not me buying a thousand shares or you with your big bankroll buying 10,000 shares. it's the hedge funds buying millions and millions of shares.

so far this year they haven't been doing much selling. i want to follow what the big institutions are doing and pay, not less attention to the news but at the end of the day, if they're the ones that control the market and they're not selling why not stick with the trend. >> we appreciate it, joe, don't be a stranger. >> thanks for having me. time to get random the most random thing you may hear, you may be thinking about dumping stocks and buying land to have an acre or two of your own. get out of the east and new jersey 24/7 wall street broke down the value of acres the state with the most valuable is the garden state. the average value per acre, $196,000 the next most valuable land belongs to little old rhode island, feeling cheap? >> west. wyoming, an acre can be had for

$1500. 196, 1500, and they have skiing. random and interesting wyoming here we come "squawk box" is next eó2w

good morning, a new executive order basically black listing chinese tech we're expecting results from walmart in about an hour, plus, whale watching we'll tell you why some of the world's biggest hedge funds and money managers are falling in love with the fang stocks all over again it's thursday, may 16th, 2019.

"squawk box" starts right now. ♪ i fooled around and fell in love ♪ >> this is "squawk box." >> good morning. welcome to "squawk box" here on c cnbc becky and andrew today let's begin with the markets where stocks have been clawing their way back from monday's selloff. the major indexes are 1% away from erasing monday's losses taking check on how we're setting up on this thursday morning session we will see that we are higher across the board the s&p 500 looking at 5 at the open the dow jones strilt average up by 52 poins where are yesterday's comeback, if you can call it that, mike, seemed a little bit anemic because we did close off the session highs. we'll get to that in a little bit more overnight in asia, taking a look at the picture there we've got the headache singe just about flat here shanghai composite finishing higher by .6%. that weak data yesterday stoking hopes that there is more stimulus in th